Nissan could report first quarterly loss on Thursday following sales slump
Nissan Motor Co Ltd (TYO:7201) could report its first quarterly loss for more than a decade, when results are announced on Thursday.
The firm said that slumping sales have contributed to a poor performance in their most recent quarter, whilst pressure on the company rises.
Nissan have been bruised by a tough few months of trading, which was topped by the recent departure of ex-Chief Executive Officer and Chairman Ghosn who slashed jobs, cut production sites all in attempts to ensure that the company survives.
If things were already tough for Nissan, then the recent outbreak of the coronavirus has only made things worse.
The Japanese car giant have faced supply disruptions and production chains have been disrupted following the outbreak of the lethal disease.
The car giant are not the only firm that have been hammered by the coronavirus as many Chinese and Asian businesses have seen billions wiped off their stock prices and production issues.
Two officials told Reuters that there was a possibility that Nissan could be announcing a quarterly loss, which would be the first since March 2009.
Nissan have refused to comment on their financial results, however tension has circulated around the company as there is anticipation for the firm and shareholders for the results to be released.
UPDATE: Sosandar successfully raise £5 million for advertising
Update 14:08BST: Sosandar have announced this afternoon that their share placing has been successful in raising the required funds for their advertising spend.
Ali Hall and Julie Lavington, Co-CEOs, commented:
“We are very pleased to have successfully raised £5 million through this placing, with both new and existing shareholders showing their support for the business and our growth plans.
The strong results achieved in late 2019 resulting from our increased marketing investment have continued into 2020. Coupled with impressive repeat order performance from existing customers, the Board believes the potential opportunity for Sosandar is bigger than previously thought. We are excited that the Company is now in a position to continue growing our active customer base, accelerate growth further and work towards establishing Sosandar as the leading fashion brand for our target audience and a profitable business.”
Sosandar (LON:SOS) have announced that they have plans to raise funds via a share placing. The firm said that they need to raise £5 million to fund marketing spending, which will hopefully boost trading and brand awareness. Sosandar have been in a bit of a tough spot over the last few months, as the women’s clothing retailer has seen slowed performance in trading. 29.4 million shares will be placed at 17 pence each, through an accelerated book build, the firm noted. Interestingly, the price offered per share is a 5.6% discount compared to the closing price of 18 pence per share on Tuesday. Sosandar said: “The net proceeds raised from the placing are expected to be used to provide further support for the continuation of company’s recently accelerated and successful growth strategy.” “These new marketing initiatives significantly increased the company’s brand recognition and awareness. “Given the continued strong performance of the company and the results from its recently accelerated growth strategy, the board believes that the potential opportunity for the company is significantly bigger than previously thought. Accordingly, the board believes that it is in the best interests of the company to raise additional equity to allow the company to continue with its accelerated growth plan.”Sosandar’s interesting position
A few weeks back, Sosandar said that its annual revenue for its financial year, which ends on March 31 is on track to beat market expectations however its loss will be wider. The firm said generated a quarterly record net revenue of £3.8 million in the three months to December 31, as net revenue exceeded £1.2 million in each month. Looking at their recent quarter of trading, Sosandar said that revenue was ahead of management expectations and more than double the revenue generated in the same period the year before and exceeding the £2.8 million recorded in the first half of financial 2020. Notably, the company said growth in its active customer data base which totals at 110,132 which saw a 93% surge from the same period one year ago. Sosandar are in an interesting dilemma, the fact that the firm is expecting a widened loss may mean that the share placing will be an effective way for the firm to raise funds. With the share placing plan however, shareholders will not be so keen as shares will slip in value. Sosandar could see benefits from this however if the marketing and brand advertising schemes are a success. Shares in Sosandar trade at 17p (-3.47%). 12/2/20 12:32BST.BP announce plans to become net carbon zero
BP Plc (LON:BP) have announced their intentions to become net carbon zero by 2050 in an update on Wednesday.
“The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner. To deliver that, trillions of dollars will need to be invested in re-plumbing and rewiring the world’s energy system. It will require nothing short of reimagining energy as we know it”.
The oil major noted that in order to reach this goal, a fundamental reorganization would be required, however the emphasis on this goal has been clearly evidenced by BP.
BP outlined that they want net zero carbon emissions on all operations by 2050, or even sooner.
There was a particular emphasis on oil and prediction assets, as the firm outlined it was a a 50% drop in carbon intensity from all products sold by the same year or sooner.
BP said that they would be installing methane measurement instruments across all major sites by 2023, as part of plans to cut methane intensity by at least 50%.
BP have looked to change the identity of the brand, as many environmental pressure groups and activists have been quick to blame the oil and gas industry on issues such as climate change.
“We need to reinvent BP. Our historic structure has served us well but, in order to keep up with rapidly-evolving customer demands and society’s expectations, we need to become more integrated and more focused. So we are undertaking a major reorganisation, introducing a new structure, a new leadership team and new ways of working for all of us”.
The acknowledgement from BP to promote environmental issues is a good one, and will favor their public media image. Having worked with bodies such as the Tate Modern, BP are trying to change their public image to be pro-environmentalism.
The oil titan said that they currently produce 55 million tonnes of carbon dioxide equivalent per year across all worldwide operations, and they want to make significant ground in improving this.
BP outlined five aims to get to net zero:
1. Net zero across BP’s operations on an absolute basis by 2050 or sooner.
2. Net zero on carbon in BP’s oil and gas production on an absolute basis by 2050 or sooner.
3. 50% cut in the carbon intensity of products BP sells by 2050 or sooner.
4. Install methane measurement at all BP’s major oil and gas processing sites by 2023 and reduce methane intensity of operations by 50%.
5. Increase the proportion of investment into non-oil and gas businesses over time.
Notably, BP also implemented a plan which could help other businesses and society to reach net zero.
1.More active advocacy for policies that support net zero, including carbon pricing.
2. Further incentivise BP’s workforce to deliver aims and mobilise them to advocate for net zero.
3. Set new expectations for relationships with trade associations.
4. Aim to be recognised as a leader for transparency of reporting, including supporting the recommendations of the TCFD.
5. Launch a new team to help countries, cities and large companies decarbonise.
BP’s new CEO said the following:
“This will certainly be a challenge, but also a tremendous opportunity. It is clear to me, and to our stakeholders, that for BP to play our part and serve our purpose, we have to change. And we want to change – this is the right thing for the world and for BP.”
“This is what we mean by making BP net zero. It directly addresses all the carbon we get out of the ground as well as all the greenhouse gases we emit from our operations. These will be absolute reductions, which is what the world needs. If this were to happen to every barrel of oil and gas produced, the emissions problem for our sector would be solved. But of course, the world is not that simple; the whole energy system has to be transformed and everyone has a contribution to make – producers and sellers of energy, policy makers and everyone who uses energy”.
BP have made it clear that they want to address this issue, and with the inclusion of the five points to make all businesses and people cut down their emissions they are clearly promoting an inclusive approach to tackling issues such as climate change.
Looney concluded saying:
“Together we will aim to build a more agile, innovative and efficient BP. A purpose-driven, digitally-enabled, fully-integrated organisation. I’m confident that this new leadership team, together with all our people, have the skill and will to turn BP into a thriving sustainable energy business that is a force for good in a net zero world”.
Changing the face and public image of BP will be hard initially, but the oil major are taking the correct steps to ensure that a global and industrial approach is being taken to address these issues.
At a time where environmentalism has never been so important, the steps made today by BP are in the right direction.
Helge Lund, BP’s chairman, added:
“Energy markets are changing, driven by climate change, technology and societal expectations, and the Board supports Bernard and his new leadership teams ambition for BP. Aiming for net zero is not only the right thing for BP, it is the right thing for our shareholders and for society more broadly. As we embark on this ambitious agenda, we will maintain a strong focus on safe, reliable and efficient operations and on delivering the promises we have made to our investors.”
The movements from an oil major will hopefully set an example to not just those in the industry, but global businesses more generally.
Oil prices jump on coronavirus optimism
Oil prices have jumped on Wednesday morning following new developments to global affairs including an update on the coronavirus.
China today reported that it had seen its lowest number of new coronavirus cases since late January, which seems to have struck investor and business enthusiasm.
The jump in oil prices may mean that global businesses and commodity traders may remain optimistic that China is now making gains towards limiting the number of coronavirus affected individuals.
Currently, WTI Crude Oil is priced at $50.77, seeing a 1.66% jump across Wednesday trading.
Brent Crude remains volatile being priced at $55.17, another derivative that has also been boosted 1.66% by the hopeful news on the coronavirus.
Although there has been some hope restored for businesses, the case of the coronavirus is still taking its toll on the globe.
In the UK, there are specialist dedicated lines for individuals to call medical professionals if they are experiencing coronavirus symptoms.
Travel restrictions and cuts in flights have cut fuel usage, which is one of the reasons that analysts have explained the jump in oil prices over the last few days.
Two of China’s biggest oil refiners have already said that they are planning to cut processing and production by around 940,000 barrels per day following a slump in consumption.
Many businesses have also ceased production temporarily in China, Singapore and Korea to stop the further contamination of the work place.
Yesterday, the US Energy Information Administration cut its global oil demand growth forecast for this year by 310,000 barrels per day following higher cases of the coronavirus.
Looking at supply issues, OPEC have said that they are recommending a further cut of 600,000 barrels per day last week in order to stem the oil price fall.
Official data is expected to be released this afternoon at 15:30BST, and it will be really seen as to how the market has reacted to the ongoing coronavirus surge.
Anglo Asian delighted to announce that the firm is debt free
Anglo Asian Mining (LON:AAZ) have told shareholders and the market that the company is now debt free.
The firm described this as a significant achievement for Anglo Asian, and shareholders should be sharing the delight just as much as senior management.
Anglo Asian noted that they had signed a loan agreement with Pasha Bank in February 2018, which was worth $15 million.
The loan had an interest rate of 7% per year, however only $13.5 million was eventually drawn down meaning that the whole loan has now been paid.
Anglo Asian CEO Reza Vaziri commented:
“I am delighted to announce that the Company has made the final repayment of the Pasha Bank refinancing loan, marking the significant milestone of Anglo Asian now being debt free.
“The facility was taken out to improve the Company’s financial performance and provide operational flexibility. Given that the net debt of the Company peaked at over $50 million in 2015, this milestone is a remarkable achievement.
“Since 2015, as well as paying off its debt, the Company has continued to invest in its business, embarked on a three-year exploration programme at its contract areas, commenced payment of regular dividends and built up a significant holding of cash. This amply demonstrates the robust cash generation of the Company.
“The financial flexibility of being debt free allows Anglo Asian to focus on the growth of the business which I look forward to updating the market on as and when appropriate.”
Anglo Asian continue to impress
In January, Anglo Asian gave an impressive update to both shareholders and the market. The firm said that it is looking at record annual revenue, due to solid production and a rise in commodity prices. Anglo Asian’s 2019 production was 82,795 gold equivalent ounces, 1.1% lower than the year before. Copper was up 34% to 2,210 tonnes, with gold down 4% to 70,098 ounces. The firm however did note that silver production had declined by 24% in the period, to 159,356 ounces. In the fourth quarter, gold ounce production fell 3% year on year to 21,284 ounces. Gold fell 1.7%, silver by 37% however copper rose 24%. The firm had accounted for $1,250 per ounce gold price in 2019, however the price rose over 18% across the year which contributed to the impressive performance highlighted in the update. The recent performance of Anglo Asian has been nothing but stellar. Shareholders should be equally delighted that the firm is both operating at high level capacity and formally debt free. Shares in Anglo Asian trade at 144p (+2.38%). 12/2/20 11:40BST.Zenith Energy close to purchasing new asset in West Africa
Zenith Energy Ltd (LON:ZEN) have said that they are close to purchasing a new asset for production in West Africa.
Zenith are yet to formally name the new asset, however the firm did say that it last produced over 1,000 barrels of oil per day.
The firm added that negotiations are still ongoing with an unnamed “national oil authority”.
The rate of production is certainly impressive for the potential acquisition, and Zenith have expressed intentions to get the facility operating at maximum production. The energy firm noted that a rehabilitation program might be required to restore the production.
The cost of this program would be spread over two or three months using a benchmark price of $40 per barrel of oil.
Andrea Cattaneo, Chief Executive Officer, commented:
“We believe the acquisition of the asset could represent a unique opportunity for achieving a quantum leap in Zenith’s development. The Potential Acquisition will complement our recent acquisition in the Republic of the Congo and enlarge our footprint in a prolific oil production region.
I take the opportunity to thank our advisors who have enabled us to achieve rapid progress in pursuing development opportunities in Africa during recent months.
I look forward to providing further updates in due course.”
Zenith strike deal with AAOG
A few weeks back, Zenith told the market that they had struck a deal with Anglo African Oil and Gas (LON:AAOG) for their operations in Congo. The firm said that a put-and-call option has been formally signed for the last 20% stake in AAOG’s Congolese operations. The two parties have agreed that this option can only be exercised by Zenith on January 16, 2021. Another clause was inserted saying that the option is only valid if total production from Tilapia has never exceeded an average of 2,000 barrels a day for any period of 30 consecutive days. Zenith will have to pay £1 million in shares if it does decide to exercise the option. AAOG can only exercise the option, on the same day as Zenith, if production has averaged at least 4,000 barrels a day for 30 consecutive days prior to January 15, 2021. Shares in Zenith Energy trade at 1p (-4.51%). 12/2/20 11:23BST.Itaconix shares spike 18% following agreement with New Wave Global Services
Itaconix PLC (LON:ITX) have seen their shares rally as the firm announced it had signed a new licence and supply agreement with New Wave Global Services.
Itaconix outlined that New Wave Global Services is a North American detergent supplier.
The firm said that the licencing agreement is for a new new dishwashing detergent formulation, based on the new Itaconix TSI322 detergent polymer.
The firm said: “The new dishwashing formulation is based on the new Itaconix® TSI™ 322 detergent polymer which the Company introduced last month. In December 2018, Itaconix announced a license agreement with New Wave for a new triple-chamber dishwashing detergent pod based on Itaconix® CHT™ 122. New Wave has gained new accounts and grown its volumes, with the formula now used in private label brands at retailers throughout North America. The new formulation offers New Wave additional competitive advantages available with Itaconix® TSI™ 322. Roll-out into an expanded customer base for New Wave is expected to commence later in 2020. “
The supply agreement is to support internal growth for the company, and forms part of a growth strategy led by Itaconix.
The deal is the second that has been struck with New Wave, following an agreement in 2018 for a new ripple-chamber dishwashing detergent pod based on Itaconix CHT122.
John R. Shaw, CEO of Itaconix, stated: “We look forward to accelerating our work with New Wave on the opportunities ahead for a new generation of dishwashing detergents. With these agreements and other prospects providing a strong pipeline, I am excited about our growth trajectory and broader recognition our polymers are gaining as key differentiating ingredients in major consumer products.”
Itaconix’s deal with Croda
In January, Itaconix announced that they had delivered the initial order of polymeric zinc complex Zinador 35L to FTSE 100-listed chemicals firm Croda International PLC (LON:CRDA). The agreement was initially agreed in 2017, for the supply of its polymer-based odour removal additive Zinador 22L to Croda, for home and industrial applications. In October, both the firms agreed to expand the deal to include Zinador 35L, which is designed for use in detergent and industrial applications. The update from Itaconix today is a pleasing one, and shareholders should be keen to see the benefits that can be exploited with this new agreement. Shares in Itaconix trade at 1p (+18.57%). 12/2/20 11:10BST.US Election: Bernie Sanders narrowly wins New Hampshire primary
The US Election is well underway, and certainly the race for the White House is heating up as we edge closer to the November unveiling of results.
As states prepare for their relevant primaries of caucuses, many have speculated on the uncertain nature of the 2020 US Election.
Last night was the turn of the New Hampshire Democratic Primary, and this was a contest which was not to be missed.
New Hampshire is notoriously a famous seat in the US Election as it is known for its plurality of independents running, its volatile nature and its wide demographic base.
This was the second state in the election cycle that would be voting for their representative, following Iowa a few days back.
It was announce that Democratic candidate Bernie Sanders had narrowly won the New Hampshire Democratic Primary.
Interestingly, many have speculated about the possibility of Sanders running directly against Trump in this election. The optimistic nature of Sanders combined with his slightly left wing but liberal views mean that he is a hit with voters – however will he be able to do enough to be the incumbent that is Donald Trump?
The win for Sanders did deal a blow to rival Joe Biden, who faced a stint as Vice President within the Obama years, however both Biden and Sanders have become strong contenders for 2020.
“This victory here is the beginning of the end for Donald Trump,” Sanders told supporters in Manchester, New Hampshire.
Sanders has pledged to make the tax system more progressive in America and promote issues such as inequality to take power away from big corporations and businesses.
The challenges faced for the Democratic Party are still quite unclear in this election, with the campaign of Sanders there is a clear candidate who could challenge Trump to the last hurdle however incumbent President’s always have an advantage.
Sanders won the Primary last night with 26% of the vote with Buttigieg just losing with 25%.
Notably former Vice President Biden only took 8% of the vote, however elections do have a way of swinging when results seem to be consolidated.
“It ain’t over, man. It’s just getting started,” Biden told supporters in South Carolina.
“We just heard from the first two of the 50 states,” he said. “Where I come from, that’s the opening bell, not the closing bell. And the fight to end Donald Trump’s presidency is just beginning.”
The US election is certainly heating up, and many will be looking at the next set of primary and caucuses to see how events unfold.
Babcock lower profit expectations for financial year
Babcock International Group PLC (LON:BAB) have lowered their profit guidance on Wednesday as shares have been hit.
Shares in Babcock trade at 530p (-4.71%). 12/2/20 10:29BST.
The defense firm said that profit guidance is expected to be lower and that the firm could face a £85 million one off costs from its oil and gas business.
Within the annual period, which ends in March the firm said that they are speculating underlying profit to be around £540 million.
Notably, this would see an 8.2% slump from the £588.4 figure one year ago, which may concern shareholders.
Babcock’s previous guidance for financial 2020 was for operating profit in the range of £540 million and £560 million.
On a better note, the firm held its forecast for underlying revenue which lies around the £4.9 billion figure, seeing a 5.1% drop from £5.16 billion year on year.
Underlying earnings per share are expected to meet analyst and market forecasts which range between 71.1 pence to 71.4 pence. This would see a year-on-year fall as high as 15% from 84.0p.
Babcock did praise their performance in the year however, as its order book and pipeline is at a record level of £34 billion.
The firm said: “As flagged in November, there have been delays in the award of new contracts for aerial emergency services in Italy and Spain. Since then, we have won or been selected as preferred bidder for contracts worth around £600 million but the delays have pushed revenue into future periods.
Oil and gas continues to be a tough market. The three large providers of helicopter services who operate worldwide in oil and gas have all emerged from Chapter 11 bankruptcy protection with reduced debt and written-down assets. This has effectively reset global market pricing levels, forcing us to respond quickly to remain competitive. We will also exit our oil and gas businesses in Ghana and Congo.”
Interim profit growth for Babcock
Back in November, the form reported strong profit gains within its interim results. For the six months to September, the firm reported pretax profit of £152.5 million, which was a huge rise from the £65.1 million figure a year ago. However on an underlying basis the figure dropped by 18% to £202.5 million from £245.5 million. Revenue meanwhile dropped by 2.7% to £2.19 billion from £2.25 billion the prior year, with underlying revenue also slipping by 4.7% to £2.46 billion from £2.58 billion. Babcock said that the revenue dropped because of the step downs in its Queen Elizabeth Class aircraft carriers contract, which contributed heavily to the falling revenue figures. Revenue declined on the ending of Babcock’s Magnox contract with the UK’s Nuclear Decommissioning Authority, as well as a one-off benefit of £90 million a year before in asset sales related to the group’s Fomdec contract in Aviation.Babcock’s CEO departs
One week ago, the CEO of Babcock announced that he would be departing the company. The firm said that Chief Executive Officer Archie Bethel will be stepping down from his role, and will depart when a suitable replacement is found. Bethel has held his role for four years, and has been with Babcock for 16 years since his initial appointment since 2004. Babcock also announced that it would be appointing United Utilities Group PLC’s Chief Financial Officer Russ Houlden as non-executive director with effect on April 1. Houlden has held his role at United Utilities for ten years since 2010, and has also held senior roles on the reporting committee of the 100 Group. This is a rather interesting time for Babcock, however shareholders will remain optimistic for current operations in 2020.PLUS500 revenue and profits drop in 2019, however optimism remains for 2020
PLUS500 Ltd (LON:PLUS) have seen a drop in revenue and profit for 2019, however have remained confident in their 2020 expectations.
The firm told the market that 2019 was a “year of two halves” and praised performance in the second half following the arrival of new trading opportunities.
PLUS500 noted that pretax profit was $189.3 million in 2019, seeing a drop from $503.0 million in 2018, quite a substantial drop when comparing the figures.
Revenue also suffered, and in 2019 totaled to a figure of $354.5 million, down from $720.4 million.
The firm noted that the first half performance in 2019 was bruised by low volatility, as this was particularly seen in the first quarter.
However, this was slightly offset in the second half where performance was driven by “increased trading opportunities identified by customers, reflecting more volatile market conditions during the rest of the year.”
PLUS500 declared an interim dividend of $0.3767 per share, a decrease from $0.6191 a year ago. This lowered the total dividend for 2019 to $0.6501 per share from $1.9977 in 2018.
PLUS500 also announced a new share buyback program that would be commencing, which will run until August 31st managed by Credit Suisse.
Asaf Elimelech, Chief Executive Officer of Plus500, commented:
“We finished 2019 in good financial and operational shape following a period of changes for the industry, which has provided a more certain regulatory outlook for Plus500 and the industry as a whole.
“We were particularly pleased with the strong improvement in financial performance in the second half of 2019 and believe that customer trading patterns have now adjusted following the regulatory changes introduced in Europe last year. We continue to monitor and prepare for any potential product intervention measures that are expected to take place in Australia during 2020.
“I am also encouraged by the trading momentum we have shown through the year end, reflecting continued optimisation of our marketing spend, enhancements to our customer service, improvements in our proprietary technology platform and additional cost optimisation.
“We are further pleased in our ability to provide significant value to our shareholders with the delivery of strong returns representing 100% of our 2019 net profit.
“Looking forward to 2020 we are confident of the prospects for the Group as we focus on further strengthening our customer offering and market positions, thereby delivering growth and further strong shareholder returns.”
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
PLUS500 have maintained their confidence in current trading and are expecting to meet internal expectations for 2020 business.