BT, Enel, RBS Net Soar; BAE Systems, Shell Profit Decline

Nigel Thomas
30 Jul, 2015
New York City

BT profit climbed 16% to

[R]4:00 PM Frankfurt – BT profit climbed 16% to £632 million. BAE Systems net declined 8% to £398 million. Enel profit soared 10% to €1.8 billion. Lloyds agreed to sell its Irish commercial loans business to Bank of Ireland for about £827 million. Shell profit plunged 25%. RBS profit surged 27%.[/R]

In London trading, FTSE 100 index increased 46.95 or 0.7% to 6,677.95 and in Frankfurt the DAX index edged up 4.58 to 11,216.78.

In Paris, CAC 40 index gained 25.28 or 0.5% to 5,042.72.

Areva SA soared 4.7% to 8.69 after the France-based nuclear power producer said revenues in the first-half ending in June jumped 6% to €1.93 billion or $1.82 billion in a year ago period.

Net loss in the quarter narrowed from a year ago to €206 million compared to €694 million and diluted loss per share dropped to €0.54 from €1.81.

Separately Areva plans to sell at least 75% stake of Areva NP to French state-controlled utility provider EDF for about €2 billion or $2.2 billion.

BT Group Plc dropped 1.5% to 466.30 pence after the U.K.-based communications services provider stated revenues in the first-quarter ending in June was nearly flat at £4.36 billion from £4.35 billion in a year ago period.

Net profit in the period climbed 16% from a year ago to £632 million compared to £546 million and diluted earnings per share increased to 6.1 pence from 5.6 pence.

BAE Systems Plc rose 0.6% to 472.30 pence after the U.K.-based aerospace and security company reported revenues in the first-half ending in June soared 11.3% to £8.47 billion from £7.61 billion in a year ago period.

Net profit in the period declined 8.3% from a year ago to £398 million compared to £434 million and diluted earnings per share fell to 12.3 pence from 13.5 pence.

Hellermanntyton Group Plc surged 42% to 471.70 pence after the U.K.-based high-performance wires and cables maker agreed to be acquired by the U.S.-based Delphi Automotive Plc to buy the group for £1.07 billion or $1.85 billion to expand its electrical architecture business in UK.

The transaction is expected to close by the end of fourth-quarter.

Enel S.p.A fell 0.5% to €4.23 after the Italy-based electricity and gas utility provider reported revenues in the first-half ending in June jumped 4.2% to €37.63 billion or $36.10 billion in a year ago period.

Net profit in the quarter soared 10% from a year ago to €1.83 billion compared to €1.67 billion and diluted earnings per share gained to €0.19 from €0.18.

Lloyds Banking Group Plc gained 0.9% to 86.44 pence after the U.K.-based bank agreed the sell its Irish commercial loans business to a consortium of Ennis Property Finance Limited, Feniton Property Finance Limited and Bank of Ireland for about £827 million in cash.

The transaction is expected to close in fourth-quarter of this year.

Solvay SA dropped 2.7% to €120.85 after the Belgium-based diversified conglomerate signed a merger agreement to acquire the U.S.-based specialty materials and chemicals producer Cytec Industries Inc for $75.25 per share or about $5.5 billion in cash, representing a premium of 28.9% to closing price of Cytec on July 28.

The acquisition is expected to close in the fourth-quarter of this year.

Royal Dutch Shell Plc soared 4.2% to 1,838.29 pence after the Netherlands-based oil and gas refiner reported revenues in the second-quarter ending in June tumbled 34.9% to $72.40 billion from $111.22 billion in a year ago period.

Net profit in the period plunged 25% from a year ago to $3.99 billion compared to $5.31 billion and diluted earnings per share slipped to 62 cents from 84 cents.

Separately, Shell agreed to sell its 125.3 million shares or 33.24% stake in Showa Shell Sekiyu KK for about 169 billion yen or US$1.4 billion and retain a 1.80% holds in the company.

The Royal Bank of Scotland Group Plc slipped 1.3% to 348.80 pence after the financial services provider reported total revenues in the second-quarter ending in June declined 3.1% to £3.74 billion from £3.86 billion in a year ago period.

Net profit in the period surged 27.4% from a year ago to £293 million compared to £230 million and diluted earnings per share decreased to 2 pence from 3 pence.