UK Public Finance Surplus; Informa Drops 4%

Arthi Gupta
22 Feb, 2011
New York City

The UK indexes traded lower as violent protests rage in Bahrain and Libya. Crude oil prices surge and world markets decline. The UK government recorded largest surplus since July 2008. BP to sell certain UK assets. Informa plc 2010 net declined 6.3% on flat revenue. Kerry Group Plc net rose 61%.

[R]4:00 PM London – The UK indexes traded lower as violent protests rage in Bahrain and Libya. Crude oil prices surge and world markets decline. The UK government recorded largest surplus since July 2008. BP to sell certain UK assets. Informa plc 2010 net declined 6.3% on flat revenue. Kerry Group Plc net rose 61%.[/R]

British Prime Minister David Cameron addressing the Kuwaiti Parliament on Tuesday said that momentous changes are taking place in the Middle East and North Africa and praised the ""brave and peaceful"" protests by people ""hungry for political and economic freedom.""

He said ""history was sweeping"" through the region in the wake of the popular uprisings in Tunisia and Egypt whose “despotic rulers” were overthrown in mass upsurges.

In London, FTSE 100 Index declined 15.70 or 0.27% to 6,001.38 and the pound edged lower to close at $1.6154.

UK Public Finances Record Surplus

British public sector net borrowing showed a surplus of £3.7 billion in January, the highest since July 2008, according to data released by the Office for National Statistics. That compares with a deficit of £1.27 billion last year.

BP Contemplates Sale of UK Assets

BP plc said it intends to sell its interests in a number of operated oil and gas fields in the UK. The assets involved include the Wytch Farm onshore oilfield in Dorset and all of BP operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal.

BHP Plans Buyback of Shares

BHP Billiton Plc announced a tender offer to buy-back shares of BHP Billiton Ltd., with a target size of A$5 billion as a part of $10 billion capital management program, which is expected to be completed by the end of 2011.

The company announced the start of the stock buyback program and the purchase of shale gas assets of Chesapeake Energy Corporation for $4.75 billion.

Gainers & Losers

Drax Group Plc edged higher 0.10% to 395.30 pence after the power generation company reported fiscal year 2010 total revenue increased 12% to £1.65 billion from £1.475 billion in the comparable period. Profit for the year soared 70% to £188.4 million or 52 pence per share compared to £110.9 million or 31 pence per share last year.

The company said its board proposed a final dividend for 2010 of 17.9 pence per share, higher than prior year''s 9.6 pence per share.

Informa plc slumped 3.99% to 431.10 pence after the business publisher stated full-year 2010 revenue grew to £1.23 billion from £1.22 billion in the prior year. Profit in the year fell 6.3% to £98.9 million or 16.5 pence per share from £105.6 million or 18.8 pence per share last year.

Kentz Corporation Ltd. fell 2.23% to 373.50 pence after the holding company of Kentz Engineering and Construction Group, said it has been awarded a $35 million contract by the National Petroleum Refiners of South Africa, or Natref, at the Natref Crude Refinery in Sasolburg, South Africa.

Kerry Group PLC surged 3.16% to €26.10 after the international food corporation said fiscal year 2010 revenue grew 9.7% to €4,960.0 million from €4,520.7 million in the prior year. Profit for the period increased 61.1% to €324.2 million from €201.2 million a year-ago. On a per share basis, adjusted earnings were 194.5 cents versus 166.5 cents last year.

Morgan Sindall Group plc dropped 0.84% to 710.00 pence after the construction services business reported fiscal year 2010 revenue declined 5% to £2.10 billion from £2.21 billion in the comparable period. Profit for the year dropped 9.4% to £29.9 million versus £33.0 million a year earlier.