7th Oct 2026 07:58
(Alliance News) - Shell reports a strong rise in refining margins, IMI has set out an acquisition and Metlen is eyeing a possible Athens listing plan for a unit. Elsewhere, Pennon has upped its investment aim, part-funded by a rights issue and dividend cut.
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 10,506.79
GBP: lower at USD1.3246 (USD1.3280 at previous London equities close)
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ECONOMICS
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UK house prices were steady last month, with the market being "fairly subdued", mortgage lender Lloyds says. UK house prices were flat both on-year and on-month in September. In August, they fell 0.3% from July and 0.4% on a year prior. "While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of base rate. That's mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict," Lloyds Mortgages Director Andrew Asaam says.
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BROKER RATINGS
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Berenberg raises Clarkson price target to 6,025 (5,925) pence - 'buy'
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COMPANIES - FTSE 100
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Shell says refining margins have surged in the third quarter, though the chemicals margin has declined. It expects to report a write-off in its Upstream arm, and it says that earnings in its Marketing unit are to weaken. The oil major, in its pre-third quarter results update note, says the indicative refining margin for the quarter is USD42 a barrel, up from USD24 in the second quarter and rising markedly from USD11.6 on-year. The indicative chemicals margin is down on-quarter at USD208 a tonne, from USD270. Year-on-year, however, it is up from USD160. Shell says its third quarter Upstream output was between 1.735 million and 1.835 million barrels of oil equivalent per day, compared to 1.824 million in the second quarter. It expects exploration well write-offs of around USD300 million. In Integrated Gas, output between 740,000 and 780,000 boe per day is expected, up from 631,000 in the second quarter. In the Marketing unit, it says adjusted earnings will weaken on-quarter. Elsewhere, it reports cash flow from operations will include a roughly USD2.5 billion outflow related to the timing of payments of emissions certificates linked to Germany's fuel emissions trading act. This sum is historically paid in the fourth quarter, Shell notes. Shell releases quarterly results on October 29.
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Metlen Energy & Metals says it is reviewing strategic options for its infrastructure-related activities arm Metka, with a possible Athens listing among the moves being sized up. The aluminium producer and electricity generator also invests in network infrastructure, battery storage, and other green technologies. Metlen says the consolidation of its infrastructure-related activities into Metka is progressing. Metka is to hold Metlen's construction, concessions and public-private partnership investments offerings. "The proposed re-organisation seeks to enhance operational flexibility and further develop Metka as a leading infrastructure platform, positioned to capture opportunities across infrastructure, PPPs, concessions and adjacent sectors, including real estate, logistics, water, and environmental projects, in Greece and the broader Southeast Europe region," it says. "In this context, Metlen is reviewing strategic options, which include a potential listing of Metka on Euronext Athens. The strategic review is being undertaken with a view to providing Metka with additional capital to support its growth and expansion, thus further enhancing its self-funding capacity and financial autonomy." Metlen says that in the event of a stock market listing, it will retain majority control of Metka.
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Engineering firm IMI says it has struck a deal to acquire a building automation systems firm for EUR63 million enterprise value. It is buying iSMA CONTROLLI, which it says will sit in its Climate Control sector. "The acquisition aligns IMI even more closely with the long-term megatrends of Energy and Automation, and strengthens our ability to deliver smart‑connected solutions that help customers optimise building performance, improve energy efficiency and lower operating costs. iSMA CONTROLLI is particularly well positioned to address the needs of underserved small and medium-sized commercial buildings, and we are excited by what we can achieve together," IMI Chief Executive Officer Roy Twite says. iSMA is expected to generate operating profit of EUR4.5 million on revenue of EUR40 million in 2026. Completion of the deal is expected in the fourth quarter, subject to customary regulatory approvals.
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COMPANIES - FTSE 250
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Water utility Pennon Group is to invest GBP1 billion more than expected as part of the sector's latest regulatory framework, as the company's boss admits "there are areas where we need to improve and deliver better outcomes". Capital investment in the regulated water businesses during the AMP8 cycle for the water industry is now expected to be around GBP3.6 billion, some GBP1 billion more than its original plan. AMP8 is the regulatory framework covering the 2025 to 2030 period. "It's clear from my comprehensive review that Pennon has real strengths, but there are areas where we need to improve and deliver better outcomes for our customers and communities," Chief Executive Officer Keith Haslett says. "The operational plan, which is already underway, is practical and focuses on clearer accountability with key skills brought back in-house, and more investment where our assets need it most." Pennon has set out a funding plan, which includes a GBP550 million fully underwritten rights issue of 220.3 million new shares at 250 pence each, on the basis of 7 new shares for every 15 existing ones owned. The rights issue price is a 36% discount to a theoretical ex-rights price, based on its 452p closing price on Tuesday. Pennon says it will also rebase its annual dividend, to around GBP125 million, from GBP138 million a year prior. Taking into account the rebased payout and rights issue, the implied dividend cut is around 30% at 18p each, Pennon says. It adds: "Pennon's dividend policy will continue to be to grow dividend per share in line with [the consumer price index including owner occupiers' housing costs] from this rebased level." The funding plan also includes the "reinvestment of previously identified efficiencies" and the proposed sale of Pennon Power. It also reports the "continued use of ordinary course debt funding". "I am confident this plan will deliver a better service for customers, improve our environmental performance and generate sustainable, growing value for our shareholders," the CEO says.
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OTHER COMPANIES
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Advertising agency Brave Bison has sweetened its bid for System1, but says its latest offer is final. Brave Bison says the offer will see System1 shareholders receive 180p in cash plus 2.394 new Brave Bison shares. It implies a total value of 405p, Brave Bison says, valuing System1 as a whole at GBP53.4 million. This is its fifth bid for the advertising and communications agency. Brave Bison's fourth bid comprised 135p in cash and 2.394 new Brave Bison shares. Brave Bison also notes the new offer has a contingent value right portion, "which may deliver 20p in cash". "Having listened to shareholders, we have designed an instrument – the Bison CVR – that provides System1 shareholders with price protection on their Brave Bison shares. If, following publication of Brave Bison's FY27 final results, the Brave Bison 60 day volume-weighted average price share price does not exceed 94 pence, System1 shareholders will receive 20 pence per share in cash for each CVR," Brave Bison says. The firm says its offer has received the backing of just under 40% of System1 shareholders.
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By Eric Cunha, Alliance News news editor
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Related Shares:
ClarksonShellIMIPennonMetlen EnergyBrave BisonSystem1 Group