British Air Parent Pursues Norwegian Shuttle, Ryanair Lowers Profit Estimate

Sarla Buch
21 May, 2018
New York City

EDF is reported to be in talks to sell its 49% stake in the U.K.-based wind farms business. The U.K. competition regulator plans to investigate the proposed merger of two retailers Sainsbury and Asda. Ryanair warned fiscal 2019 profit is likely to be affected by higher energy prices.

[R]4:00 PM Frankfurt – EDF is reported to be in talks to sell its 49% stake in the U.K.-based wind farms business. The U.K. competition regulator plans to investigate the proposed merger of two retailers Sainsbury and Asda. Ryanair warned fiscal 2019 profit is likely to be affected by higher energy prices.[/R]

In London trading, FTSE 100 index advanced 73.99 or 0.9% to 7,853.37 and in Frankfurt the DAX index decreased 36.89 or 0.3% to 13,077.72.

In Paris, CAC 40 index increased 28.33 or 0.5% to 5,642.79.

BGEO Group Plc gained 0.6% to 3,394 pence after the U.K.-based real estate developer today announced to split the company into Bank of Georgia Group and Georgia Capital Plc.

Following the completion of the company split, Bank of Georgia and Georgia Capital will be separately listed on the London Stock Exchange.

The split is expected will be effective on May 29, 2018

Electricite de France S.A advanced 1.4% to €12.44 after Financial Times reported that France-based electric utility provider is in talk to sell its 49% stake in the U.K.-based 550 megawatts onshore and offshore wind farms business worth as much as €686 million or £600 million.

International Consolidated Airlines Group SA increased 1.2% to 694 pence on European press reports that the U.K.-based airline operator plans to offer 330 kroner or $40.59 per share for Norway-based Norwegian Air Shuttle, valuing at about €1.52 billion.

J Sainsbury Plc jumped 2.9% to 314.30 pence after the competition regulator of U.K. said that it will investigate the proposed merger between supermarkets operator and the rival Asda Group Ltd, a subsidiary of U.S.-based Walmart Inc.

Ryanair Holdings Plc soared 5% to €16.28 after Ireland-based budget airline reported revenues in the year ending in March jumped 8% from a year ago to €7.2 billion.

Net profit in the quarter surged 10% to €1.5 billion from €1.3 billion in a year ago period and diluted earnings per share increased to €1.20 from €1.05.

Ryanair said passenger traffic in the year jumped 9% to 130 million but average fare dropped 3% to €39.40 and unit costs fell by 1%.

The low-cost airline forecasted fiscal 2019 profit to decline to between €1.25 billion and €1.35 billion driven by flat average fares and 9% increase in unit costs and extra fuel cost of €400 million.