BP Profit Rises and Debt Soar on Gulf Oil Spill Payouts; Centrica Net Tumbles

Sarla Buch
01 Aug, 2017
New York City

BP net swing to profit on 32% jump in revenues. Centrica net tumbled despite weak energy demand due to warm weather. HeidelbergCement sales and profit surged and reaffirmed fiscal forecast. Koninklijke DSM net and revenues surged. Rolls-Royce net swung to profit

[R]4:00 PM Frankfurt – BP net swing to profit on 32% jump in revenues. Centrica net tumbled despite weak energy demand due to warm weather. HeidelbergCement sales and profit surged and reaffirmed fiscal forecast. Koninklijke DSM net and revenues surged. Rolls-Royce net swung to profit.[/R]

In London trading, FTSE 100 index jumped 60.53 or 0.8% to 7,432.82 and in Frankfurt the DAX index advanced 177.89 or 1.5% to 12,296.16.

In Paris, CAC 40 index soared 53.58 or 1.1% to 5,146.68.

BP Plc jumped 2.9% to 458.70 pence after the U.K.-based oil and gas producer reported revenues in the first-half ending in June soared 32.3% from a year ago to $112.4 billion.

Net in the period swung to profit $1.6 billion from a loss of $1.9 billion in a year ago six-month period and diluted earnings per share swung to 0.48 pence from diluted loss per share of 0.65 pence.

BP said upstream production in the period jumped 6% and downstream fuels marketing earnings soared about 20% from a year ago period.

However, the oil and gas producer said debt jumped to more than $39 billion compared to $30 billion in the same period a year earlier and the oil company is continuing payments for the Gulf of Mexico oil spill in 2010 that has cost more than $60 billion.

The company estimated $4.5 billion to $5.5 billion payments linked to Gulf of Mexico spill this year.

Centrica Plc jumped 3% to 204.40 pence after the U.K.-based energy services provider said revenues in the first-half ending in June increased 7% from a year ago to £14.3 billion.

Net profit in the period tumbled to £44 million from £1.1 billion in a year ago six-month period and diluted earnings per share swung to 8 pence from 22 pence.

Centrica said net debt in the period declined 22% to £2.9 billion from a year ago.

HeidelbergCement AG gained 1.8% to €85.35 after Germany-based cement and building materials producer reported group revenue in the first-half ending in June jumped 29% from a year ago to €4.6 billion.

Net income in the quarter soared 12% to €358 million from €318 million in a year ago six-month period and diluted earnings per share increased to €1.80 from €1.69.

The cement producer said sales volumes of cement surged 47% to 33 million tons and ready-mixed concrete advanced 22%.

Heidelberg reaffirmed fiscal 2017 revenues to increase in mid-single to double-digit percentage and estimated “significant rise” in profit for the financial year

Koninklijke DSM NV soared 5.4% to €65.75 after the Netherlands-based personal care, feed, medical devices maker said sales in the first-half ending in June surged 11% from a year ago to €4.3 billion.

Net income in the quarter jumped 42% to €312 million from €220 million in a year ago six-month period and diluted earnings per share increased to €1.75 from €1.22.

Rolls-Royce Holding Plc surged 10.6% to 982.50 pence after the U.K.-based aircrafts engines maker reported revenues in the first-half ending in June advanced 12% from a year ago to £7.6 billion.

Net in the period swung to profit £1.6 billion from a loss of £1.8 billion in a year ago six-month period and diluted earnings per share swung to 86.06 pence from diluted loss per share of 96.72 pence.