7th Jul 2025 07:56
(Alliance News) - Shell's pre-results teaser revealed it expects "significantly lower" trading results in its Integrated Gas and Chemicals & Products divisions on a quarter-on-quarter basis.
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 0.2% at 8,805.91
GBP: down at USD1.3605 (USD1.3640 at previous London equities close)
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ECONOMICS
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UK annual house price growth eased ever-so-slightly last month, though the "market's resilience continues to stand out," mortgage lender Halifax said. Year-on-year house price growth slowed slightly to 2.5% in June, from 2.6% in May. On-month, prices were flat. Prices had fallen 0.3% in May from April. "The market's resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That's being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead," Halifax analyst Amanda Bryden said.
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BROKER RATINGS
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Citigroup raises Weir to 'buy' - price target 2,900 pence
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RBC cuts Currys to 'sector perform' (outperform) - price target 140 pence
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COMPANIES - FTSE 100
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Shell set out a weaker top-end of its outlook range for Integrated Gas unit production in the oil major's customary pre-results snippet. Shell expects output between 900,000 and 940,000 barrels of oil equivalent per day in Integrated Gas, compared to a 890,000-950,000 range given in its first quarter results. LNG liquefaction volumes of 6.4 million to 6.8 million metric tonnes are expected, the top end of the range trimmed from 6.9 million, but the bottom raised from 6.3 million. Shell warned that second quarter trading and optimisation results in Integrated Gas and Chemicals & Products will be "significantly lower" than the first quarter. In Upstream, its second quarter output forecast range stands at 1.66 million to 1.76 million boepd, the bottom end lifted from the 1.56 million in the outlook range given in its first quarter results.
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Glencore announced it will kick off a USD1 billion share buyback programme. It is to be completed by the time it releases annual results for 2025, in February of next year. UBS will conduct the programme. "The programme's purpose is to reduce the capital of the company. It is currently intended that any shares purchased will be held in treasury," it said.
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COMPANIES - FTSE 250
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Trading platform provider Plus500 reported profit and revenue growth for the second quarter of the year, and it "remains confident in the outlook". Earnings before interest, tax, depreciation and amortisation rose 12% on-year in the second quarter to USD91.3 million from USD81.3 million. Revenue climbed 15% to USD209.3 million from USD182.6 million. For the whole of the first half, the Ebitda was 1% higher at USD185.1 million, while revenue rose 4% to USD415.1 million. Its Ebitda margin for the first half weakened to 45% from 46% a year prior. For the second quarter alone, the margin fell to 44% from 45%. "Following a strong start to the year, the board of directors of Plus500 remains confident in the outlook for the group for 2025 and beyond, reflecting the group's market-leading technological capabilities, balance sheet strength, earnings resilience and the emerging opportunities, particularly within the business-to-business (Institutional) futures space," Plus500 added. It puts consensus for the whole of 2025 at USD746.2 million for revenue and USD345.2 million for Ebitda. In 2024, revenue totalled USD768.3 million and it achieved an Ebitda of USD342.3 million. It added: "The company will announce new shareholder returns, comprising dividends and share buybacks, consistent with its shareholder returns policy, as part of its H1 2025 results on Monday 11 August 2025."
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SSP Group said the proposed initial public offering of an Indian joint-venture has kicked off. Travel Food Services has finalised the allocation of 5.3 million shares to anchor investors at INR1,100 each, the top of a "previously indicated IPO price band", Upper Crust owner SSP said. "The final IPO price will be determined through the book build process," it added. "The Anchor Investor list includes funds managed by large global and Indian investors such as ICICI Prudential, Abu Dhabi Investment Authority, Axis Asset Management, Fidelity, Government Pension Fund Global (Norges Bank), Kotak Mahindra Asset Management, amongst others." SSP on Wednesday said K Hospitality Corp, its joint venture partner in India, noted that TFS filed its Red Herring Prospectus with the Indian regulatory authorities regarding the proposed IPO. K Hospitality expects a market capitalisation of between INR137.6 billion and INR144.8 billion, so up to around GBP1.24 billion.
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OTHER COMPANIES
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Ferrexpo said commercial production in its second quarter weakened, as the suspension of VAT refunds meant it had to "downscale operations". The iron ore pellet producer in Ukraine said total commercial production for its second quarter to March was 1.3 million tonnes, down 40% from 2.1 million achieved in the first quarter. The first quarter result was the highest it has achieved since Russia launched its invasion of Ukraine back in February 2022. "Formal written notifications of decisions not to refund VAT from the Ukrainian tax authorities are being received on a monthly basis, typically two months after the reporting month. From January to April 2025 the amount of VAT refunds refused is USD31 million," Ferrexpo added. "Due to the ongoing suspension of VAT refunds and the resulting reduction in financial liquidity, the group has been forced to downscale operations from two to one pelletising line and also to reduce the production of high-grade concentrate." The company said it has "worked extensively to lower its costs to remain financially viable". Interim Executive Chair Lucio Genovese said: "This includes placing approximately 37% of employees on reduced working time or on furlough, cuts in procurement of goods and services and a suspension of all non-essential capital expenditure, [corporate social responsibility] and humanitarian spending. In tandem, all efforts and representations are underway with the respective authorities and government bodies in Ukraine and internationally to try to resolve the VAT refund suspension. I am grateful to all our colleagues for their efforts and contributions during this challenging time."
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Central Asia Metals said it has entered into a revised takeover deal for New World Resources, cementing an increase in its bid for the Sydney listing. Central Asia said it will pay AUD0.062 in cash per New World share, valuing the North America-focused exploration and development at AUD230 million, around GBP109.9 million. The bid matches an offer by Kinterra Capital, CAML said, and "provides transaction and funding certainty, and a simple cash exit for NWR shareholders". Kazakhstan and Macedonia-focused base metals firm CAML back in June said it increased the value of its bid for New World. It said at the time that a deed of variation was being "executed to formalise the price increase". "The NWR board unanimously recommends that NWR shareholders accept the CAML offer, and each NWR board member intends to accept the CAML offer in respect of all shares they own or control, in the absence of a superior proposal," according to a statement on Monday. CAML currently owns around 12% of NWR.
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By Eric Cunha, Alliance News news editor
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Related Shares:
Weir GroupCurrysShellGlencorePlus500SSP GroupFerrexpoCentral Asia Metals