Antofagasta Lifts Dividend on Commodities Recovery, RWE Loss Widens

Sarla Buch
14 Mar, 2017
New York City

Antofagasta lifted annual dividend on the back of a recovery in base metal market. Ocado first-quarter sales jumped on higher weekly orders. Prudential net plunged. Symrise profit rose. RWE net loss widened. Wacker net declined.

[R]4:00 PM Frankfurt – Antofagasta lifted annual dividend on the back of a recovery in base metal market. Ocado first-quarter sales jumped on higher weekly orders. Prudential net plunged. Symrise profit rose. RWE net loss widened. Wacker net declined.[/R]

In London trading, FTSE 100 index fell 19.06 or 0.3% to 7,347.98 and in Frankfurt the DAX index slid 7.05 to 11,982.60.

In Paris, CAC 40 index dropped 25.48 or 0.5% to 4,974.12.

Antofagasta Plc gained 0.8% to 791 pence after the U.K.-based copper and gold producer said revenues in the year ending in December soared 12.3% from a year ago to $3.6 billion.

Net income in the quarter surged 78.7% from a year ago to $1.6 billion but earnings per share fell 34.7 cents from 35.2 cents per share in the same quarter last year.

The miner increased the yearly dividend to 18.4 cents per share from 3.1cents in a year ago period as operating costs declined, commodity prices recovered and production jumped 12.5% to 709,400 tons.

Copper sales increased to 698,500 tons from 635,900 tons and gold sales soared to 271,400 ounces from 219,200 ounces.

The miner forecasted copper production in fiscal 2017 to range between 685,000 tons to 720,000 tons and production of gold between 185,000 ounces to 205,000 ounces and production of molybdenum in the range of 8,500 tons to 9,500 tons.

French Connection Group increased 1.8% to 35.50 pence after the U.K.-based fashion clothing and accessories retailer said revenues in the year ending in January dropped 6.7% from a year ago to £153.2 million and pre-tax losses widened 51% to £5.3 million.

The retailer said operating loss narrowed to £3.7 million from £4.7 million in a year ago. However, comparable store sales in the UK and Europe were up 4.4%.

Fashion retailer reported a full-year loss for the fifth year in a row.

Ocado Group Plc jumped 4.6% to 270 pence after the U.K.-based online grocery retailer reported gross sales in the first-quarter ending on February 26 surged 13.3% from a year ago to £384.7 million.

Retail gross sales advanced 13.1% to £352.4 million from a year ago period and average order size dropped 1.6% to £110.84 due to reduction in multi-buy promotions and the Ocado ""Smart Pass.""

Prudential Plc advanced 2.1% to 1,699 pence after the U.K.-based financial services provider reported gross premiums in the year ending in December jumped 6.3% from a year ago to £38.9 billion.

Net profit in the year plunged 25.6% from a year ago to £1.9 billion from £2.6 billion and diluted earnings per share slumped to 75 pence from 100.9 pence.

Operating profit in Asia soared 15% to £1.5 billion and in the U.S. jumped 8% to £2 billion but operating profit plunged 32% in the U.K. to £799 million from £1.2 billion in a year ago period.

The financial services provider said pretax profit in the year declined 28% to £2.3 billion from the same period a year ago.

New business profit surged 24% to £3.1 billion that boosted by 22% increase in Asia and 33% increase in the U.K. retail business which offset by 13% drop in the U.S.

Symrise AG slipped 1.4% to €58.62 after Germany-based fragrances, flavorings and cosmetic products maker said revenues in the year ending in December soared 11.5% from a year ago to €2.9 billion.

Net income in the year jumped 2.4% from a year ago to €252.7 million from €246.8 million and diluted earnings per share increased to €1.95 from €1.90.

RWE AG soared 8.5% to €58.62 after Germany-based electricity and natural gas provider reported revenues in the year ending in December slumped 4.8% from a year ago to €45.8 billion.

Net loss in the year widened from a year ago to €5.7 billion from €170 million and diluted loss per share jumped to €9.29 from €0.28.

RWE booked impairment charges to contribute to the nuclear energy fund in the power plant business of about €4.3 billion, as risk premium increased 35% to €1.8 billion.

Separately, RWE AG declined to comment on market rumors regarding the possible takeover of its €18.6 billion valued newly spun-off renewable energy unit Innogy SE, by France-based Engie SA.

Wacker Chemie AG fell 0.8% to €58.62 after Germany-based silicon wafers maker said total sales in the year ending in December rose 2% from a year ago to €5.4 billion.

Net income in the year declined 21.7% from a year ago to €189.3 million from €241.8 million and diluted earnings per share dropped to €3.61 from €4.97.

In fiscal 2017, Wacker forecasted sales to grow by mid-single-digit percentage and operating profit may be flat compared to prior-year level.

Wacker plans to expand capacity at the Norway-based silicon plant with an additional plant.

The silicon wafers maker will invest approx €85 million to increase the capacity and expand the local infrastructure. However, completion of the plant is estimated during the first-half of 2019.