Friday's most followed: Lamprell, PLUS Markets, BHP Billiton, Hornby, Range resources, Exillon EnergyReported by Proactive Investors on Friday, 8 June 2012 (on June 8, 2012)
|
The main stories of the day included another profit warning from *Lamprell (LON:LAM )*, which was the worst performer in the FTSE 250 today, and the acquisition of the PLUS exchange by *ICAP (LON:IAP)*.
*PLUS Markets (LON:PMK)* today defended the £1 valuation placed on PLUS-SX, noting that it will have net liabilities at the completion at the deal, which will be assumed by ICAP, and that it expects to retain £640,000 of cash balances in mid-June.
Only a day ago, PLUS warned shareholders that its exchange licence would be revoked if it failed to secure approval for the PLUS-SX sale.
“ICAP will also assume all liabilities from the point of the acquisition including ongoing trading losses and the requirement to immediately recapitalise the entity in accordance with the FSA's requirements,” the group said in a stock exchange statement this morning.
Shares in PLUS tumbled nine percent to 0.25 pence in early trade, while Lamprell plummeted 23 percent to 83.7 pence after revealing that it now expects to post a loss of between US$15 and US$20 million for the half year period.
The oil rig maker still expects to report full year revenues of around US$1.1 billion, however, with a revised profit margin of 2.5 percent.
Back in May, the group said its profit margin would be 3.5 percent due to delays in equipment deliveries for new build jackup projects along with the “progressive slippage in the timing of expected new project awards and delayed client deliverables”.
Nomura repeated its ‘reduce’ recommendation with a 125 pence target price on the stock on the back of the update, saying that the management’s credibility has significantly deteriorated.
Over the past month, Lamprell has lost more than 70 percent of its value.
The group showed up among the most popular searches on Google Finance along with the world’s largest miner *BHP Billiton (LON:BLT)*.
Investors were looking for the reason behind today’s declines in the mining sector, which were in part due to a drop in base metal prices that followed comments from Federal Reserve chairman Ben Bernanke and a downgrade of Spain’s sovereign rating to BBB by Fitch.
In his testimony to the Congress, Bernanke said the fed was prepared to act to support the recovery, but did not say whether any specific stimulus measures were under consideration.
In addition, BHP was hit by a bearish note from Merrill Lynch, which cut its forecasts for the group on the back of a decline in oil prices and reiterated its ‘hold’ recommendation on the stock, constributing to today's three percent decline in its share price to 1,763 pence.
*Hornby (LON:HRN) *did better this morning, rising nearly five percent to 77.5 pence after saying that despite the macroeconomic backdrop remains challenging, it is making “encouraging progress”.
The toy maker said it is hoping for a boost from the upcoming Olympics in London and from the recently won Moshi Monsters licence.
For the year to end March, Hornby posted a 1.7 percent increase in turnover to £64.4 million. Pre-tax profits reached £4 million, down from £4.1 million the previous year.
Earnings per share climbed to 8.19 pence from 7.5 pence.
Hornby said sales of its London 2012 branded products are gaining momentum, which should make a positive impact on profits in the short term and lead to an increase in its presence in mass market retail outlets.
To capitalise on that increased presence, Hornby has developed a number of new ranges including a series of pin-badges based on the Moshi Monsters license.
“Despite the backdrop of a challenging market, Hornby is making encouraging progress,” said chief executive of Hornby Frank Martin.
“There is no doubt that there will continue to be pressure on consumer confidence for some time to come.
“However we continue to innovate and to seek new commercial opportunities in order to counter the effects of the macro-economic climate in which we are operating.”
Oil and gas groups *Range Resources (LON:RRL)* and *Exillon Energy (LON:EXI)* also caught the eye of investors with their updates showing up among the most read RNS statements of the day along with the full year results from Hornby.
Range announced an upgrade to the reserves at the North Chapman Ranch project in Texas ahead of its sale and Exillon, which is a constituent of the FTSE 250 index, released it production figures from May.
The Russian operating group’s oil production reached 11,320 barrels of oil per day (bopd) last month as output from its assets in the Timan Pechora region stood at 3,434 bopd and its West Siberian business produced at a rate of 7,886 bopd.
Exillon noted that production in West Siberia was restricted by works carried out on its pipeline network and production has since increased to 9,500 bopd.
Peak daily production for the group was 12,247 bopd.
The group also updated investors on its ongoing drilling programmes, saying well Eas I-51 on the East EWS I field flowed oil at a maximum rate of 1,218 bopd. Meanwhile, well I – 61 on the North EWS I field has now reached its total depth, confirming 9.5 metres of net oil pay.
Exillon is currently analysing the results to decide on how to test and develop the well.
The report from Range revealed increases of 57 percent and 20 percent in proved and probable oil reserves to 1.1 million barrels and 0.6 million barrels respectively.
Proved gas reserves have risen 54 percent to 11.7 billion cubic feet (bcf) and probable reserves climbed 16 percent to 6.4 bcf.
Range is now preparing to sell its interests in North Chapman Ranch, targeting completion in the third quarter of the year, to “focus its capital on higher value adding opportunities in its portfolio”.
“We are extremely pleased with the recent results from our Texas drilling programs,” said executive director of Range Peter Landau.
“The sales prices of similar production assets in the region have been encouraging, and any such divestment will provide significant funding that could be applied to Range's current activities and other possible corporate initiatives such as an on market share buy back.”
Based on the new estimates, consultancy Forrest Garb values Range’s North Chapman reserves at US$169 million.
Links:  Full news story
|
|
|
| Recent related news |
| |
DailyFinance
2 days ago | Filed under: Investing
Watching the mining companies race downhill of late may be terrific... |
DailyFinance
2 days ago | Filed under: Investing
*MPREI Signs Agreement with TDIC to Acquire First Phase of Saadiyat Beach... |
This is
2 days ago | This is Hull and East Riding --
THE agonising wait is almost over as Hull will learn on Wednesday... |
PRWeb
4 days ago | Silver Visibility and Eclectic Media Productions are pleased to announce that CoConi has become it's... |
guardian.co.uk
4 days ago | Actor's achievement is rewarded, as winners include Joanna Lumley and Malala Yousafzai
Lenny Henry... |
| |
guardian.co.uk
4 days ago | Chiwetel Ejiofor talks about his return to the London stage to play murdered African hero Patrice... |
guardian.co.uk
4 days ago | Festival curator Pat Kane explains the thinking behind the event and what visitors can expect to see... |
guardian.co.uk
5 days ago | Around 200 people occupied one of London's key financial districts as part of a range of anti-G8... |
PRWeb
5 days ago | SAVORTEX join British Institute of Facilities Management (BIFM) as a corporate member.
London,... |
| |
|
|
Facebook
E-mail
Twitter
Mixx
StumbleUpon
FriendFeed