5th Feb 2026 07:59
(Alliance News) - Shell reports lower fourth quarter earnings and launches a USD3.5 billion share buyback programme, while Anglo American cuts its copper production guidance.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.3% at 10,373.34
GBP: lower at USD1.3622 (USD1.3656 at previous London equities close)
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BROKER RATINGS
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Berenberg cuts Fresnillo to 'hold' (buy) - price target 3,800 (3,400) pence
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Citigroup cuts Babcock International to 'neutral' (buy) - price target 1,554 (1,338) pence
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Jefferies cuts Beazley to 'hold' (buy) - price target 1,310 (982) pence
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COMPANIES - FTSE 100
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Shell lifts its fourth quarter dividend and starts a USD3.5 billion share buyback programme as it reports its full year earnings. The London-based oil major says the buyback programme will be completed before the first quarter results announcement. It increases the fourth quarter dividend by 3.9% to 37.2 US cents per share, from 35.8 US cents. Shell reports adjusted earnings of USD3.26 billion in the fourth quarter, down from USD5.43 billion in the third quarter and USD3.66 billion a year ago. It says adjusted earnings before interest, tax, depreciation and and amortisation for the quarter is USD12.80 billion, down from USD14.77 billion in the third quarter and USD14.28 billion a year prior. Cashflow from operations falls to USD9.44 billion in the fourth quarter from USD12.21 billion in the third quarter and USD13.16 billion a year prior. Adjusted earnings in 2025 fall to USD18.53 billion from USD23.72 billion in 2024, while adjusted Ebitda is down to USD56.14 billion from USD65.80 billion. Shell says pretax profit is USD6.90 billion in the fourth quarter, down from USD7.92 billion in the third quarter but up from USD4.21 billion a year ago. Revenue for the quarter is USD64.09 billion, down from USD68.15 billion on-quarter and USD66.28 billion on-year. Revenue for 2025 is USD266.89 billion, down from USD284.31 billion in 2024. Looking ahead, Shell guides for between 920,000 and 980,000 barrels of oil per day in production from Integrated Gas in the first quarter of 2026. It expects Upstream production between 1.7 million boepd and 1.9 boepd. It sees Marketing sales volumes between 2.55 million barrels per day and 2.75 million barrels.
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Anglo American cuts its production guidance for copper for 2026 and 2027 and also reduces its diamond production guidance for 2026. The London-based diversified miner reports 2025 copper production of 695,000 tonnes, down 10% from 773,000 tonnes in 2024. Premium iron ore production is flat on-year in 2025 at 60.8 Mt. "We delivered another strong production quarter in our copper and premium iron ore businesses to end 2025, in line with our guidance. In the fourth quarter, we benefitted from higher copper grades and strong plant performance at Los Bronces, while Collahuasi reached its highest historical level of throughput, partly mitigating the impact from lower grade ore feed," says Chief Executive Officer Duncan Wanblad. The firm expects between 700,000 tonnes and 760,000 tonnes of copper production for 2026, a cut to the previous guide of between 760,000 and 820,000 tonnes. It sees copper production of 750,000 to 810,000 tonnes for 2027, down from previous guidance for 760,000 to 820,000 tonnes. The miner eyes 2028 copper output of between 790,000 tonnes and 850,000 tonnes. The company lowers its 2026 diamonds guidance to between 21 mct and 26 mct, from between 26 mct and 29 mct previously. CEO Wanblad adds: "We are committed to seeing our portfolio transformation through to its conclusion. The formal sale process for Steelmaking Coal is progressing well, and we continue to ramp-up Moranbah North ahead of transitioning to normal longwall operations. In Nickel we continue to work through the regulatory process, and we are progressing the separation of De Beers." Anglo American says it continues to secure key regulatory approval for the merger with Teck Resources.
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Vodafone starts a EUR500 million share buyback programme, which will end by May 11. The Berkshire, England-based telecommunications company says third quarter revenue rises 6.5% to EUR10.5 billion in the three months to the end of December. Service revenue climbs 7.3% to EUR8.5 billion. Adjusted earnings before interest, tax, depreciation, amortisation and leases rises 2.3% on an organic basis to EUR2.8 billion, phasing in line with full year guidance. On a year-to-date basis, adjusted Ebitdaal increases by 5.3% on an organic basis to EUR8.5 billion. Vodafone continues to expect to deliver the upper end of its financial 2026 guidance ranges of adjusted Ebitdaal between EUR11.3 billion and EUR11.6 billion, and adjusted free cash flow between EUR2.4 billion and EUR2.6 billion. "We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by top-line growth in Germany, and strong contributions from Turkiye and Africa. After a fast start, we are making very good progress with the integration of our UK business," says Chief Executive Margherita Della Valle.
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COMPANIES - FTSE 250
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Playtech now expects adjusted earnings before interest, tax, depreciation and amortisation for 2025 of at least EUR195 million, above the analyst consensus of EUR177 million. The gambling software operator says the consensus range is between EUR150 million and EUR187 million. The London-based firm reports strong trading in the second half of the year, driven by performance in the US and Mexico in the fourth quarter. "For 2026, the company remains mindful of ongoing sector headwinds including the scheduled increase to gambling taxes in certain markets including the UK," it adds. However, Playtech says fourth quarter revenue trends in the Americas means it enters 2026 "with good momentum". The company says it remains confident in its outlook for 2026 and its medium-term targets of adjusted Ebitda between EUR250 million and EUR300 million, and between EUR70 million and EUR100 million of free cash flow. "I'm delighted with the strong performance we saw at the end of 2025. We have been steadily investing across our business in the Americas for a number of years, and I'm particularly pleased with our recent progress in the US, as the benefits of our hard work start to accelerate and flow through to profitability," says Chief Executive Officer Mor Weizer.
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OTHER COMPANIES
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Resolute Mining wins mining permit from the Ivory Coast government for the Doropo gold project. The Africa-focused gold miner says the mining permit is valid for 14 years and is extendable. "The Doropo mining permit advances Resolute's goal of becoming a leading multi-asset gold producer in West Africa," Resolute says. It adds that the licence supports its aim of annual gold production above 500,000 ounces by the end of 2028. "We are very pleased to be awarded the mining permit, which marks a significant milestone in the development of the Doropo gold project and reflects the strong support we have received from local and government stakeholders," says Chief Executive Officer Chris Eger. "We look forward to unlocking value for our stakeholders by progressing the Doropo gold project towards construction in H1 2026."
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By Michael Hennessey, Alliance News reporter
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Related Shares:
FresnilloBabcockBeazleyShellAnglo AmericanVodafonePlaytechResolute Mining