London: Petrofac Rises; Forth Ports Soars

Mayank Mehta
08 Mar, 2010
New York City

The UK stock index closed higher after fractional gains in commodities. Petrofac, the oil services provider said 2009 net income surged 33%. Scotland port operator Forth Ports surged 26% on two buyout offers. Royal Dutch Shell and PetroChina offer to acquire Australia based Arrow Energy Ltd.

[R]4:00 PM London, 11:00 AM New York – The UK stock index closed higher after fractional gains in commodities. Petrofac, the oil services provider said 2009 net income surged 33%. Scotland port operator Forth Ports surged 26% on two buyout offers. Royal Dutch Shell and PetroChina offer to acquire Australia based Arrow Energy Ltd.[/R]

A mild strength in commodities and energy stocks lifted the trading sentiment in London trading and talks of deal also contributed to the positive sentiment. Royal Dutch Shell Plc and PetroChina are in talks to acquire Arrow Energy Ltd in Australia.

Prudential Plc was among the most active stocks traded and closed 0.4% lower as investors speculated that the company may have a difficult time convincing 75% of shareholders to agree to $20 billion in rights offering.

Petrofac gained 4% after it reported better than expected earnings.

In London FTSE 100 Index closed higher 6.96 or 0.12% to 5,606.72 and the pound edged lower to close at $1.513 and edged lower to close at €1.107.

Gainers & Losers

AstraZeneca PLC dropped 1.8% to 2,941.50 pence after the drug maker said that in recent study Recentin failed to match the efficacy compared with Avastin in patients with colon cancer.

Blacks Leisure Group plc closed unchanged at 51.75 pence after the sportswear retailer announces that it has commenced the store rollout program which is the next phase in the company''s turnaround plan.

Bovis Homes Group PLC decreased 0.7% to 378.40 pence after the home builder said fiscal 2009 revenues fell 0.3% to £281.5 million from £282.3 million a year ago. Net profit for the year was £3.5 million or 2.8 pence per diluted share compared to net loss of £59.0 million or 49.1 pence per share a year ago.

Chaucer Holdings PLC fell 0.5% to 47.50 pence after the specialist insurance and reinsurance underwriting group said fiscal 2009 revenues rose 38% to £670.8 million from £485.4 million a year ago. Net profit for the year was £28.1 million or 5.8 pence per diluted share compared to net loss of £19.0 million or 6.0 pence per share a year ago.

Delta plc rose 0.5% to 192.00 pence after the metals group said fiscal 2009 revenues rose 0.7% to £333 million from £330.8 million a year ago. Pre-tax profit for the year rose 20.4% to £52.6 million compared to pre-tax profit of £43.7 million a year ago.

Fenner PLC added 3.1% to 199.50 pence after the industrial conveyor belt maker said net borrowings at the end of February were less than £170 million notwithstanding an increase from translation impact of more than £10 million since December.

Forth Ports Plc soared 26% to 2,953 pence after the Scotland based Grangemouth container port operator said that it received two takeover proposals.

Intertek Group plc fell 1.1% to 1,330.00 pence after the safety services firm said fiscal 2009 revenues rose 23.3% to £1.24 billion from £1.00 billion a year ago. Net profit for the year rose 22% to £114.7 million or 71.2 pence per diluted share compared to net profit of £93.8 million or 58.9 pence per share a year ago.

Petrofac Limited rose 3.7% to 1,112.00 pence and an oil services provider said 2009 revenues rose 10% to $3.66 billion from $3.33 billion a year ago. Net profit for the year rose 33% to $353.6 million or 103.19 cents per diluted share compared to net profit of $265 million or 77.11 cents per share a year ago.

Royal Dutch Shell plc dropped 0.05% to 1,872.00 pence after the company confirmed confirmed today it is participating in discussions to acquire Arrow Energy Limited excluding its international assets for $3 billion in partnership with PetroChina Corp.

Stagecoach Group plc slipped 1.2% to 178.90 pence after the bus and train group issued an interim management statement saying the overall profitability of the group since November 1, 2009 has remained in line with management''s expectations.

SThree plc increased 5.1% to 325.90 pence after the recruiter today said group gross profit in the first quarter declined 27% from a year ago to £36 million from £49.5 million. UK gross profit declined 36% and non-UK gross profit declined 19%. Non-UK now represents 60% of gross profit compared to 55%.

Tarsus Group plc closed unchanged at 100.00 pence after the events and conferencing group announced full year profit for the year attributable to equity shareholders of parent was £4.1 million compared to £3.49 million a year ago.

Tullett Prebon plc declined 4.3% to 310.00 pence an interdealer broker said 2009 revenues rose 0.4% to £947.7 million from £943.6 million a year ago. Net profit for the year rose 17% to £110.8 million or 51.2 pence per diluted share compared to net profit of £94.5 million or 44.0 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 50 increased, 49 declined and 3 were unchanged.

AMEC Plc decliners in the FTSE 100 index with a loss of 1.91% followed by losses in British Airways Plc of 1.75%, in Intertek Group Plc of 1.63%, in Randgold Resources Ltd of 1.45%, and in AstraZeneca Plc of 1.42%.

Resolution Limited led gainers in the FTSE 100 index with a rise of 4.95% followed by increase in Petrofac Limited of 4.10%, in Home Retail Group Plc of 3.44%, in Legal & General Group Plc of 2.69%, and in Man Group Plc of 2.28%.