31st Jul 2025 07:53
(Alliance News) - Shell launched a USD3.5 billion buyback despite decreased profit, Unilever eyes faster growth in the second half of the year after revenue falls and Just Group agreed to a GBP2.4 billion takeover.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.2% at 9,154.34
GBP: down at USD1.3273 (USD1.3285 at previous London equities close)
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BROKER RATINGS
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Deutsche Bank Research cuts Rio Tinto to 'hold' (buy) - price target 5,100 (5,300) pence
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COMPANIES - FTSE 100
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Shell increased its dividend and announced a USD3.5 billion share buyback programme while profit fell. The oil major increased its dividend to 71.6 US cents from 68.8 cents a year ago. It starts a new USD3.5 billion buyback, which is expected to be completed by the third quarter results announcement. Income attributable to shareholders fell 23% in the first half of the year to USD8.38 billion from USD10.87 billion, while basic earnings per share fell 18% to USD1.40 from USD1.70. Total revenue and other income sank to USD136.60 billion from USD149.76 billion a year ago. Adjusted earnings were down 30% to USD9.84 billion from USD14.03 billion. The firm said the results reflected lower trading and optimisation margins and lower realised liquids and gas prices, partly offset by higher Marketing margins and lower operating expenses. Shell said it expects upstream production between 1.7 million and 1.9 million barrels of oil equivalent per day in the third quarter. It sees integrated gas production between 910,000 and 970,000 boepd.
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Unilever reported decreased earnings for the first half of the year, as revenue fell 3.2% to EUR30.13 billion from EUR31.12 billion. Pretax profit decreased 8.5% to EUR5.09 billion from EUR5.57 billion. The consumer products firm increased its quarterly dividend by 3% compared to a year ago to 45.28 euro cents per share. It reported underlying sales growth of 3.4% for the first half, up to 3.8% in the second quarter alone. "Our continued outperformance in developed markets and the positive impact of our decisive interventions in emerging markets, accelerated our growth in the second quarter to 3.8%, with positive volume growth across all business groups," said Chief Executive Officer Fernando Fernandez. "Our first half performance positions us well for the full year. In the second half, we expect further acceleration in emerging markets, particularly in Asia, and sustained momentum in developed markets." Unilever said it expects underlying sales growth for 2025 to be within its range of 3% to 5%, with second half growth ahead of the first half despite "subdued market conditions". It expects underlying operating margin to improve for the full year, with second half margins widened from a year ago to at least 18.5%. The first half underlying operating margin narrowed by 30 basis points to 19.3%.
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COMPANIES - FTSE 250
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Just Group said it has agreed to a GBP2.4 billion takeover by Brookfield Wealth Solutions. Under the terms of the acquisition, shareholders will receive 220 pence in cash for each Just share. The price represents a 75% premium to Just's closing price of 126 pence on Wednesday. Brookfield Wealth Solutions said it intends for its UK insurance operations subsidiary Blumont to operate as a single, consolidated insurance group with Just under the Just brand. The Just directors said the plan is to unanimously recommend that shareholders support the takeover at a general meeting. "The acquisition reflects the strength of Just's business and the significant financial and strategic progress the Just management team, led by David Richardson, has delivered in recent years," said Just Chair John Hastings-Bass. "The Just board also welcomes BWS's strategic plans for Just, which it believes will benefit existing and future customers, Just employees and the UK economy through investment in important productive assets." The acquisition is expected to complete during the first half of 2026.
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OTHER COMPANIES
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Permanent TSB said operating income fell to EUR322 million in the first half of the year from EUR336 million a year ago. Pretax profit sank to EUR19 million from EUR75 million, while net interest income fell to EUR288 million from EUR311 million. Looking ahead, Permanent TSB said its outlook for 2025 remains unchanged, as do its medium-term financial targets. It still expects to return to making distributions to shareholders next year. "As PTSB completes the first six months of its three-year business strategy, I am pleased with the performance the bank has delivered in H1 2025. While certain financial metrics are lower versus the previous year, this is in line with management expectations given the more challenging interest rate environment we are operating in," said Chief Executive Eamonn Crowley.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
ShellUnileverJust GroupPerm Tsb GrpRio Tinto