Europe Movers: Bilfinger, British Land, Novo Nordisk, Phoenix Group, QBeyond, Salzgitter, Tullow Oil

Inga Muller
13 Nov, 2023
Frankfurt

European markets advanced in Monday's trading, and investors awaited the release of inflation data from the eurozone and the U.S.

The DAX index increased 0.5% to 15,309.01, the CAC-40 index advanced 0.7% to 7,093.52, and the FTSE 100 index added 0.6% to 7,406.19.

The yield on 10-year German bonds increased to 2.70%, French bonds traded higher to 3.27%, the UK gilts edged up to 4.31%, and Italian bonds inched lower to 4.53%.

Bilfinger SE added 1.9% to €36.02 after the civil and industrial construction and engineering company reiterated its annual outlook.

Revenue in the third quarter increased 7% to €1.1 billion, driven by a double-digit growth in the engineering and maintenance segment in Europe and the planned decrease in the U.S.

Net income increased 67% to 37 million from 22 million, and diluted earnings per share rose to 98 cents from 56 cents a year ago.

Bilfinger expects 2023 annual revenue of between €4.3 billion and €4.600 billion, compared to €4.3 billion a year ago.

The group’s profitability is expected to increase, with an EBITA margin between 3.8% and 4.1% compared to 1.8% in 2022.

Free cash flow is forecast to be between €50 million and €80 million, compared to €136 million in 2022, because of cash outflows of around €60 million in 2023 to implement the efficiency program, and capital expenditures are expected to return to a normal level of around 1.5% of revenue.

Salzgitter AG jumped 3% to €26.06 after the specialty steel company confirmed its fiscal year 2023 annual estimate.

Revenue in the first nine months declined to €8.4 billion from €9.8 billion, due to a downturn in shipment volumes and the lower average selling prices of many rolled steel products compared with the year-earlier period.

The after-tax result dropped to €193.7 million from €945.8 million, and basic earnings per share fell to €3.51 from €17.40.

Return on capital employed, or ROCE, amounted to 6.5% from 22.9%, and net debt declined by around €400 million from a year ago.

The company forecasted annual sales of 11 billion, operating earnings between €650 million and €700 million, pre-tax profit between €200 million and €250 million, and return on capital "notably below" previous year's level.

Q.Beyond AG decreased 1.6% to €0.60 after the German software company reported a wider loss in the first nine months of the year.

The British Land Company soared 4.8% to 328.70 pence after the real estate company reported strong first-half results.

Tullow Oil plc soared 8% to 32.84 pence after the oil explorer entered into a five-year loan agreement with Glencore Energy UK Ltd.

Phoenix Group Holdings PLC advanced 6% to 492.40 pence after the UK-based insurance company lifted its cash generation target.

The company estimated cash generation at the upper end of the previously announced range between £1.3 billion and £1.4 billion.

The company declared a cash dividend of 26 pence per share, an increase of 5% from a year ago.

Insurance revenue increased to £2.9 billion from £2.6 billion, and loss attributable to shareholders declined to £245 million from £1.2 billion, and diluted loss per share fell to 27.1 pence from 130.4 pence a year ago.

Novo Nordisk AS advanced 3.2% to DKK 713.50 on a report that a trial showed its obesity drug Wegovy lowered the death risk.

The company announced the overall results of the trial in August but released details of the trial on Saturday at an industry conference organized by the American Heart Association.

The company asserted that overall cardiovascular problems declined by 20%, cardiovascular-related death by 15%, and heart strokes by 7%.

The trial covered 17,600 patients with obesity and existing heart disease without diabetes, and the trial did not look at the reasons for cardiovascular benefits and how much of that was contributed by weight loss.