BP Records Additional Deep Water Charges in 2017, HIS Markit Beats Estimates

Sarla Buch
16 Jan, 2018
New York City

BP recorded additional $1.7 billion charges linked to Deepwater Horizon disaster. Ericsson wrote down 14.2 billion kronor. Greggs issued cautious fiscal outlook. Hugo Boss quarterly sales benefited from the strength in the U.S. IHS Markit beats fourth-quarter estimates.

[R]4:00 PM Frankfurt – BP recorded additional $1.7 billion charges linked to Deepwater Horizon disaster. Ericsson wrote down 14.2 billion kronor. Greggs issued cautious fiscal outlook. Hugo Boss quarterly sales benefited from the strength in the U.S. IHS Markit beats fourth-quarter estimates.[/R]

In London trading, FTSE 100 index fell 19.88 or 0.3% to 7,749.26 and in Frankfurt the DAX index advanced 112.94 or 0.9% to 13,212.54.

In Paris, CAC 40 index increased 14.33 or 0.3% to 5,524.01.

BP Plc declined 2.3% to 520.30 after the U.K.-based oil and gas producer said it will book post-tax non-operating charge of $1.7 billion in its fourth quarter for Deepwater Horizon settlement program.

In fiscal 2018, cash payments related to the Gulf of Mexico disaster are now estimated at about $3 billion from the third-quarter estimate of $2 billion.

Telefonaktiebolaget LM Ericsson dropped 0.4% to 56.40 Swedish kronor after the Sweden-based communication services provider reported that it will write-down about 14.2 billion kronor or $1.8 billion of assets after impairment in testing segment of its businesses.

Ericsson said majority of goodwill originated from the investments made 10 years ago or more and the business has limited relevance for Ericsson going forward.

Ericsson is scheduled to release its fourth-quarter and full-year 2017 earnings results on January 31.

Greggs Plc jumped 2.5% to 1,338 pence after the U.K.-based bakery food retailer said total sales in the year ending in December soared 7.4% and comparable sales increased 3.7%.

The bakery chain said it plans to roll out more stores in the year ahead and refurbish about 100 shops in fiscal 2018 despite Brexit uncertainty.

Hugo Boss AG traded at €78.33 after Germany-based apparel and accessories maker said net revenue in the fourth-quarter ending in December increased 5% from a year ago to €735 million after strong sales in its own retail segment and double-digit sales growth in the U.S.

The luxury apparel and accessories maker reported net sales in fiscal 2017 advanced 3% to €2.7 billion and operating profit in the period was about €493 million.

Hugo Boss is scheduled to release earnings results and outlook of fiscal 2018 on March 8.

IHS Markit Ltd increased 0.8% to $47.85 after the U.K.-based analytical financial services provider reported revenues in the fourth-quarter ending on November jumped 8% from a year ago to $944.7 million.

Net income in the quarter surged 18% to $105.7 million from $89.3 million in a year ago period and diluted earnings per share increased to 26 cents from 21 cents.

IHS Markit forecasted fiscal 2018 revenue in the range of $3.80 billion to $3.85 billion operating profit between $1.50 billion to $1.53 billion and diluted earnings per share in the range of $2.23 to $2.27.