National Express announce record 2019 results, and intentions to be carbon neutral
National Express Group PLC (LON:NEX) have seen their shares in red, despite a strong update from the firm.
The transport operator said that it has reached record results in 2019, as all businesses have thrived.
Looking at the figures, National Express told the market that 2019 revenue was £2.74 billion, which sees a 12% climb year on year.
On an even better note, the firm saw pretax profit rise 5.2% higher totaling £187 million.
North American businesses proved fruitful for National Express, and on a constant currency basis revenues grew 11% to $1.57 billion.
Spanish brand ALSA, also saw a strong performance as revenues rose 12% to €940.6 million.
Looking at the UK, revenue also rose modestly by 3.9% to £599.7 million, whilst German revenues also surged 34% to €102.5 million.
The firm set a final dividend payout of 11.19 pence per shares, giving the yearly total a sum of 16.35p.
Dean Finch, National Express Group Chief Executive said:
“National Express has again delivered a record set of results. Revenue and profit are up strongly and free cash performance has beaten our expectations. All businesses have delivered organic growth. I am particularly pleased with North America achieving a 10% margin and significantly increasing the number of customers rating their services five-star. The Group is also carrying significantly more passengers.
Major contracts were retained in North America and Spain. We became Morocco’s largest urban bus operator, with new contracts in Rabat and Casablanca more than tripling the size of our operations when fully mobilised. UK coach won its first overseas contract and West Midlands bus is adding routes and growing its accessible transport business.
We combined organic growth in every division with continued diversification into complementary markets, such as our major WeDriveU acquisition which has grown revenue by over 30%. Each division has a strong pipeline of new acquisition and contract opportunities to target this year.
As industry leaders we are delighted to make major pledges in the shift to zero emission vehicles. National Express will not buy another diesel bus in the UK and lead the transition to zero emission coaches. Our ambition is for our UK bus business to become zero emission by 2030 with UK coach by 2035. We believe these commitments are not only the right thing to do, but will also help strengthen the position of quality public transport in the communities we serve.”
Vistry see record profits across 2019, as revenues also surge
Vistry Group PLC (LON:VTY) have given shareholders an impressive set of annual results on Thursday.
The home builder noted a record profit level across 2019, as revenues also surged on the back of higher completions and selling prices.
Vistry, who are formally known as Bovis Homes noted that pretax profit had totaled £188.2 million – seeing a 12% climb from the £168.1 million figure reported a year ago.
Revenue across the period jumped 6.5% to £1.13 billion from £1.06 billion. Notably, total completions also increased by 2.9% to 3,867 units.
Looking at the wider property market, Vistry said that the average selling price rose in 2019 from £273,200 to £280,200, which boosted the results posted today.
Vistry have said that the first few weeks of 2020 have been fruitful, as underlying sales rate per site per week have jumped 15% year on year.
The firms’ order book currently stands at £890 million, which is a slight fall from £960 million recorded a year ago.
Vistry declared a final dividend of 41p per share, bringing the total payout to 61.5p – this sees a 7.9% from 57p in 2018.
Greg Fitzgerald, Chief Executive commented,
“For the last three years, Bovis Homes has focused on putting the customer back at the centre of everything we do. As a result, and thanks to the hard work of our people, I am delighted we have achieved a 5-star HBF customer satisfaction rating. We have also made further operational progress in the year across all business areas resulting in another year of record profits.
It is from this position of strength that we completed the transformational acquisition of Linden Homes and Vistry Partnerships to create one of the UK’s leading homebuilders. We are making excellent progress with integration, and I am confident we will deliver the clear and significant benefits from this exciting combination.
With heightened uncertainty surrounding Brexit and the general election in December, we saw downward pressure on house prices in the second half of 2019. This was partially mitigated through a combination of the Group’s own build cost saving initiatives and a lack of cost inflation. As a result, we are pleased to have delivered further operating margin progression, reporting an increase of 60 basis points to 17.0%, pre-exceptional items.”
Vistry’s expectations match the results
In January, Vistry remained confident that they could deliver record results despite political uncertainty. The firm told shareholders in January that full year profit before exceptional items is expected to rise above market forecasts of £181.6 million. This is an impressive expectation, and shows growth from 2018 figure of £168.1 million with operating profit before exceptional items at £174.2 million. The company has only recently changed its name following two acquisitions from Galliford Try PLC (LON:GFRD). Looking at 2019 trading figures, the firm said that it had completed 3,867 new homes, 2.9% more than 3,759 in 2018 which would have pleased shareholders. Notably, the average selling price was £279,000, up 2.1% from £273,200 the year before. Shares in Vistry trade at 1,292p (-3.58%). 27/2/20 12:04BST.British American Tobacco’s profits fall due to litigation and restructuring costs
British American Tobacco PLC (LON:BATS) have reported falling profits due to litigation charges and restricting costs within their annual results.
Shares British American Tobacco trade at 3,264p (+1.40%). 27/2/20 11:37BST.
The tobacco multinational said that pretax profit amounted to £7.91 billion, which sees a 5.2% drop from the 2018 figure.
On a better note, revenues rose 5.7% to £25.88 billion, however depreciation, amortisation and impairment costs jumped 45% to £1.51 billion, as operating expenses also rose 18% to £7.85 billion.
British American added that they faced a £436 million charge on a class action lawsuit in Canada, and other litigation costs occurred.
Notable litigation costs included a £236 million charge in the US, a £202 million charge in Russia and a £172 million goodwill impairment in Indonesia.
Across 2020, British American have said that they expect adjusted revenue growth to lie within the 3% to 5% ball park, at constant currency.
Revenue is likely to be second half weighted, the firm added. Following the positive results, the firm raised its dividend to 210.4p.
Jack Bowles, Chief Executive said:
“When I became CEO, my commitment was to maximise value growth from combustibles, deliver a step change in New Categories and develop a simpler, stronger, faster, more agile organisation to create a better tomorrow. I am delighted with the progress we have made in all areas. We have delivered value growth from our combustible business and grown our New Categories business, now providing potentially reduced risk products to close to 11 million consumers. In September, we announced a significant restructuring and simplification programme, which is largely complete. This will create the capabilities and resources to continue investing in New Categories and allow us to deliver on our financial commitments. Looking into 2020, we are confident of another year of high single figure adjusted constant currency earnings growth.
British American Tobacco maintain confidence
In November, the firm gave shareholders a confident update in regard to the results that had been released today. In the US, the FTSE 100 listed firm said it delivered good revenue on a constant currency basis, supported by pricing and reduced discounting. BAT continues to expect US industry volumes for 2019 to be down by 5.5%, while for 2020 it expects a drop in the range of 4% to 6%. For the Tobacco Heating Products division, the glo product in Japan held its volume share at 4.9% reborn with the launches of glo Pro and glo Nano in a highly saturated market. Overall, BAT said it expects to report a rise in adjusted operating profit for 2019 in the upper half of its 5% to 7% guidance range. Constant currency for the year is expected to grow in the upper half of its guidance range, between 3% and 5%. Following these expectations and the results today, British American Tobacco can be confident and content with the results produced.Reckitt Benckiser post annual loss following massive impairment charge
Reckitt Benckiser Group PLC (LON:RB) have told the market that they have seen an annual loss across 2019.
The firm noted that it faced a massive impairment cost over £5 billion which dampened the firms profits and annual results.
The firm noted that they will be investing heavily over the next three years in a three phase program. The emphasis will be on the transformation of digital, and innovation.
The CEO of Reckitt commented:
“We have started a journey of three phases: first stabilise and perform, then perform and build, and finally, outperform. We will create a strong company which can consistently generate mid-single digit organic revenue growth, 7-9 percent EPS growth and strong cash conversion.
We have a clear plan to invest £2 billion in our business over the next 3 years to make this happen. Specifically, in 2020 we will increase investment behind our digital capability, in-market competitiveness and operational resilience, particularly in customer service, as well as innovations, as we align around our new organisation. While we are growing faster than last year – and in some areas, significantly faster – we are targeting a higher level of like-for-like net revenue growth than we achieved in 2019, reflecting some of the uncertainty around the impact of the COVID-19. Our recurring investment of around £200m, combined with a step up in productivity of £1.3 billion over 3 years, builds a more stable and sustainable growth business.”
Going back to results, the impairment was made on good will related to a deal with Mead Johnson Nutrition. MJN, a US baby formula maker – notably this deal was concluded in 2017 for an estimated $18 billion.
As a result of this massive impairment, Reckitt posed a pretax loss of $2.11 billion across 2019.
This will disappoint shareholders, as the firm reported a profit of £2.72 billion in 2018 – which shows the magnitude of the swing.
Net revenue rose 2% on a better note for the FTSE 100 listed firm, and totaled £12.85 billion. This slightly beat company consensus of £12.83 billion net revenue.
Like for like revenue growth at actual rates was 0.3% and at constant rate 0.8%.
Looking at divisional performance, the firm saw Health Revenue rise 0.7% at actual rates, but fell 0.9% at constant rate to £7.82 billion.
The Hygiene Home sector revenue jumped 4.1% on actual rates to £5.03 billion, however fell 3.6% at constant rate.
The firm declared a final dividend of 101.6 pence per share for the year, which gives a total dividend for 2019 of 174.6p. Notably, this sees a 2.3% rise on the 2018 figure of 170.7p.
Commenting on these results, Laxman Narasimhan, Chief Executive Officer, said:
“We ended 2019 broadly in line with our expectations for net revenue growth and adjusted operating profit from October, as our Hygiene business delivered another stable performance. Health remained weak from a net revenue perspective, but consumption and market share trends are encouraging.
We now look forward to a new decade.
I am inspired by our purpose-driven brands that consumers love and have seen in action the benefit they bring to our communities. I have met customers around the world, and terrific talent in various parts of the organisation, who act as owner entrepreneurs. While the recent years have been difficult, I believe strongly in our ability to restore performance credibility, and over time, outperform, while making a positive impact on the world. I know that my leadership team and the broader organisation is inspired and ready to take on the work to make this happen.
RB operates in strong, structural growth categories and has an outstanding collection of trusted, market leading brands. When combined with an organisation structure that leverages both its category focus with its investment in capabilities at scale, RB is positioned well for faster growth and significant value creation as we look towards the new decade.”
Reckitt Benckiser reduce full year outlook
In October, the rissued a warning to shareholders when they reduced their full year outlook. The consumer goods company reduced its full year 2019 like-for-like sales growth target to 0-2% from the previous reduction issued in July. The owner of Nurofen and Dettol added that it expects full year 2019 adjusted operating margins to experience a “modest” decline. Shares in the Reckitt Benckiser trade at 6,245p (+2.39%). 27/2/20 11:29BST.Coronavirus: hysteria and business warnings
The coronavirus outbreak in Europe has accelerated over the past few days as Italy has become a hotbed of the infection.
Latest figures show that cases of the virus in Italy have risen to 400, whilst the UK has only 15 confirmed cases.
The outbreak in Italy is centred in the north of the country, with 11 towns in the regions of Lombardy and Veneto put into lockdown.
Hysteria and anxiety seems to be taking over the country, with images of empty supermarkets in Milan emerging as citizens panic buy supplies.
https://platform.twitter.com/widgets.js#Milan residents empty supermarket shelves amid #coronavirus panic#Italy pic.twitter.com/XwGQRhwIqD
— Ruptly (@Ruptly) February 24, 2020
Business warnings
As the coronavirus continues to spread across the globe, many businesses have warned that the outbreak will hit their results. Indeed, global businesses have cited problems with supply chains, product shortages, staff shortages and the decreasing volumes of international tourism to the Asia Pacific region as being problematic for their companies. SSP Group (LON:SSPG), the owner of Upper Crust, warned that the sharp decline in both domestic and international air passenger numbers in China will hit its results for the month of February. Meanwhile, two leading brands in the sportswear industry, Puma (ETR:PUM) and Adidas (ETR:ADS), are expecting business in China to be heavily impacted by the outbreak of the virus. Apple (NASDAQ:AAPL) warned that iPhone supply shortages and a low demand for its products within China will cause it to miss its quarterly revenue guidance. Likewise, Associated British Foods (LON:ABF) said that Primark may face supply shortages on some lines as the year progresses in the event that delays to factory production are prolonged. Fears mount among the public as the virus continues to spread. Here is an update from the Department of Health and Social Care on the situation in the UK:https://platform.twitter.com/widgets.js We will keep you updated as the situation develops.Update on #coronavirus:
Two further patients in England have tested positive for #COVID19, bringing the total number of UK cases to 15. Patients have been transferred to specialist NHS infection centres. More info: ▶️https://t.co/NIDom2yqyM pic.twitter.com/aoWIuKR7Ps — Department of Health and Social Care (@DHSCgovuk) February 27, 2020
Standard Chartered unveil steady annual results
Standard Chartered PLC (LON:STAN) have seen their profits rise within their annual profits published on Thursday.
The banking firm reported double digit profit growth across 2019, but noted that it does not expect to meet its medium term targets next year.
Standard Chartered added that amid slowing economic growth, medium term targets would be harder to reach.
For the London based bank, pretax profit for 2019 increased by 46% to $3.71 billion from $2.55 billion seen a year ago.
Notably, operating income also rose by 4% to $15.42 billion from $14.79 billion.
The firm managed to also lower its operating costs by 6% to $10.93 billion from $11.65 billion a year ago.
The firm noted that external challenges are expected to bruise income levels in 2020, which are now expected to be lower than the 5% to 7% range initially anticipated.
Standard Chartered declared a final dividend of 20 cents per share, giving a full-year dividend of 27 cents per share, increasing 29% on 2018’s payout.
Bill Winters, the Group’s Chief Executive commented:
“This time last year, I said that Standard Chartered stood at an infl ection point, poised for sustainable and higher-returning growth. Guided by the refreshed strategic priorities we set for ourselves in 2019, we are now delivering on that promise.
By maintaining discipline on the things within our control and keeping a sharp focus on the areas in which we are most differentiated, we grew underlying earnings per share 23 per cent and generated a further signifi cant improvement in our return on tangible equity (RoTE). This is despite volatile geopolitics and lower interest rates.
We also passed several strategic milestones, demonstrating our ability to execute at pace. Highlights include obtaining one of the fi rst virtual bank licences in Hong Kong, successful completion of the Group’s fi rst ever share buy-back – our next will start shortly – and agreeing to sell our stake in our Indonesian joint venture, Permata. We also resolved in April our previously disclosed investigations in the US and UK into historical sanctions and financial crime controls issues.”
Standard Chartered’s Third Quarter
The third quarter proved very fruitful for Standard Chartered, as they updated the market in October. In the trading update, pre-tax profit for the three months that ended in September grew 16%. Pre-tax profit came at $1.24 billion compared to $1.07 billion reported last year. Net profit for the quarter was $772 million, increasing 3% from the $752 million Standard Chartered reported a year ago. Standard Chartered earlier this year announced plans to increase returns and dividends over the next three years by cutting $700 million in cost and targeting income growth between 5% to 7%. The bank also added that operations in North America and China brought in $1.58 billion, a 2% increase on-year, whilst income grew in Hong Kong, Korea and China. Notably, Standard Chartered said its corporate and institutional banking operating income grew 13% to $1.87 billion, retail banking was up 4% from a year ago to $1.32 billion. Private banking income increased by 14%. Shares in Standard Chartered trade at 570p (-3.52%)/ 27/2/20 11:06BST.Coronavirus Infects Oil Markets
WTI Crude Oil Prices Reverse After Coronavirus Outbreak
Midway through February 2020, oil prices are down. The price of WTI crude oil, listed on the Nymex, is approximately $50.65 per barrel, while the price of Brent crude oil, listed on the ICE, is approximately $54.80 per barrel. Futures contracts on crude oil, for delivery in March and April 2020 are slightly down, in tandem with current expectations in the oil market. The volatility of black gold is well known to traders and investors; it is both revered and reviled owing to the impact of wild price swings on profitability. Just recently, it was reported that British Petroleum (BP) profits plunged after weak gas prices and oil prices were reported. Yet, this didn’t stop the retiring chief executive officer of British Petroleum, Mr. Bob Dudley from increasing dividends to shareholders as a parting gift. Driving negative sentiment in the oil markets is the global health crisis – the coronavirus outbreak. There is a growing sense of concern that this virus could become a pandemic if it is not contained quickly. Already, experts are talking about a reduction in oil demand by approximately 500,000 BPD. This is precisely the type of information that traders want to know. Plus500 offers oil trading to its clients and it reported a spike in put options on crude oil, given the hullaballoo taking place in markets of late. Speculators have pounced on the flu outbreak with short options on crude.Macroeconomic Variables Weighing Heavily on the Price of Crude Oil
The impact of reduced oil demand is felt immediately in the price of crude oil. Given that the demand curve is a downward sloping curve from left to right, the lower the demand, the lower the price. By the same token, suppliers are forced into a situation where their production is not being used up by the market and results in increased inventory levels. This will invariably increase stockpiles of crude oil well into the foreseeable future, cutting production and profitability in the process. BP has suffered greatly as global oil markets recoil with the current outbreak. Profits for the year ending in 2019 plunged by 21%, to just £7.7 billion. The fear, as driven by speculative sentiment, is that China’s once voracious appetite for energy commodities like crude oil and natural gas is waning. If this is true, it is a negative omen for the industry. OPEC is not taking this lightly either. They have called for emergency meetings to be convened to discuss the current downturn in oil demand, owing to reduced productivity and speculative fears. At the end of January, Royal Dutch Shell (NYSE: RDS) reported its quarterly earnings and full-year results for 2019. As expected, profitability was down by 48%, despite warnings issued ahead of time. The actual results were far short of expectations, leading to a rout of the RDS stock price on the markets. Year on year (Q4 2019 versus Q4 2018) Shell earnings dropped from $4.767 billion to $2.9 billion. These reduced profits were the direct result of lower prices for liquefied natural gas, realized oil, and standard gas. For the full year, Royal Dutch Shell reported an earnings slip of 23%, at just $16.462 billion, reducing cash flow for the full year and the final quarter of 2019. Yet, for Shell the reasons cited for reduced earnings were lower natural gas and oil prices, and macroeconomic variables for chemicals and refining. The company will continue its $25 billion share buyback program, although at a slower clip.How Are Traders Approaching the Oil Markets?
The volatility of crude oil markets has not dampened sentiment with traders. This is particularly true of oil futures contracts which are highly active. Since oil is sensitive to macroeconomic variables such as geopolitical shocks, the recent coronavirus outbreak, global tensions, speculative sentiment and others, it is a prized commodity for day traders and swing traders. This volatility comes with a caveat: oil price movements can generate substantial losses for traders. Many peripheral markets are dependent on the price of crude oil, notably natural gas and petroleum. Beyond energy commodities, crude oil pricing also impacts energy-based stocks. There is a clear correlation between oil prices and economic performance, given that the global economy relies heavily on energy to fuel growth. While alternative technologies are being touted as potentially viable means of supplanting the oil industry, this has not happened and likely will not happen at scale for decades. Crude oil contracts are traded on the Nymex under the ticker CL. The contract size is a minimum of 1000 US barrels, and contracts are valid for each of the12 months, January through December. Prices are quoted per barrel and the tick size is $0.01 PB. Oil futures trading is best left to the experts, and not advised for novice traders. Traders typically rely on a handful of economic data releases to make important trading decisions vis-à-vis crude oil. These include the Weekly Energy Stocks Report released by the US Energy Information Administration. This report is released on Wednesdays 13h:00 (Eastern Standard Time). Seasonal fluctuations in demand have an outsized impact on the prices of crude oil, with high demand in winter when it is cold and generators need to be used for heating, and in summer when people are traveling more.Producers Willing to Step in and Bring Equilibrium to Markets
Since OPEC is the leading body for Brent crude oil, any announcements to cut production are geared towards clearing inventory from the markets and reestablishing equilibrium between demand and supply. Increases in supply typically reduce prices. At this time, China purchases 200,000 BPD from the US. That’s a small fraction of the 8.5 million BPD that the US currently exports. When WTI crude oil falls below the critical $50 per barrel support level, this hurts US manufacturers and leads to the shuttering of operations. Adding fuel to the fire is the tightening in credit markets. With lenders less inclined to advance lines of credits to buyers, oil exporters are suffering. When WTI crude oil drops below $50 per barrel, oil companies adopt belt-tightening measures. These include layoffs, and sometimes even shuttering of operations entirely. The EIA reported on December 20, 2019 that US oil production reached 12.04 million barrels per day in December 2018, while natural gas withdrawals reached 108.56 Bcf/d at the same time. The total US oil rig count for the week of January 31, 2020 is 675,000, down from 862,000 a year ago. All of this points in the same direction: oil production is lower year on year, and there are many macroeconomic factors contributing to this. A speedy resolution to the coronavirus will serve the needs of the oil industry well and allow prices to rise. Speculative sentiment will turn bullish and this will pave the way for additional productive capacity.Reabold Resources set to expand operations in California
Reabold Resources PLC (LON:RBD) have said that they are looking to increase production across their operations in California.
Reabold noted that it had seen success at the which lies within West Brentwood licence in California. This means that it has unlocked a new field with more running room than initially anticipated.
The firm said: “VG-6 was designed to test a new geological horizon at West Brentwood, the Third Massive, different from the Second Massive which is the producing horizon for the VG-3 and VG-4 wells. Success at VG-6 has therefore opened up a new play on the West Brentwood field and therefore additional follow on targets.”
Reabold said that the VG-6 well was tested at 350 million standard cubic feet of gas per day, and following the results a decision has been made to put it on permanent production.
The oil and gas exploration firm added that gross oil production across California, was 50,286 barrels of oil equivalent between July and December 2019. At these sites, the firm holds a 50% interest.
Additionally, net revenue from hydrocarbon sales in California was $1.3 million between July and December 2019.
Stephen Williams, co-CEO, commented:
“We are delighted to have drilled our fifth successful well in California and to see strong rates of production from a previously untested horizon. Success at VG-6 has unlocked a new play with more running room at West Brentwood than we had previously anticipated.
“The excellent economics of our operations in California are evident from the high gross profit margin we are delivering for minor expense. With the addition of VG-6, production is set to continue to increase through 2020, following a strong 2019 where we added incremental wells and grew our income profile.”
Reabold work with Union Jack Oil
In December, the firm said that the West Newton field is being operated in a joint partnership by both Reabold Resources and Union Jack Oil (LON: UJO) was close to commencing in operation. Reabold Resources PLC has a 39% stake in West Newton, via its 59% holding in operator and 67% shareholder Rathlin Energy UK Ltd. Union Jack Oil holds a direct 17% stake in West Newton. This review has now been completed and work is imminently pending subject to regulatory approval. The design was reviewed following the discovery the Kirkham Abbey formation also contained liquid hydrocarbons, having previously been anticipated to be a “major” gas discovery. Shares in Reabold Resources trade at 0.60p (-3.23%). 26/2/20 14:56BST.BP cut links with three US trade associations over environmental policy differences
BP Plc (LON:BP) have said that they will cut links with three US trade associations, including the US’s main refining lobby.
The decision to cut ties today came about as the firm faced disagreements over their climate related policies and actives.
BP have made an extra effort to become a more environmentally friendly company, and in a statement a few weeks back they announced their intentions to be a net carbon zero firm.
The oil major’s new Chief Executive, Bernard Looney has told shareholders, investors and global businesses that a change is required by all to ensure that the effects of climate change are reduced and more environmentally friendly policies are advocated.
“Trade associations have long demonstrated how we can make progress through collaboration, particularly in areas such as safety, standards and training. This approach should also be brought to bear on the defining challenge that faces us all, supporting the rapid transition to a low carbon future. By working together, we can achieve so much more,” said BP Chief Executive Bernard Looney.
“BP will pursue opportunities to work with organisations who share our ambitious and progressive approach to the energy transition. And when differences arise we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.”
BP said today that they will cut ties with the American Fuel and Petrochemical Manufacturers (AFPM). Notably, this follows in the same manner as two other oil majors in Shell (LON:RDSB) and French firm Total (EPA:FP).
The multinational also added that they will quit the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA).
BP told the global business scene that they saw differences in its views on carbon pricing, with those stances taken by AFPM and WSPA. Interestingly, they will not renew EA membership because of significant differences around the federal regulation of methane.
“My hope is that in the coming years we can add climate to the long list of areas where, as an industry, we work together for a greater good,” Looney added.
“This is an ongoing process – BP will actively monitor its memberships, participation and alignment with trade associations to which it belongs and will provide periodic updates, internally to the board of directors and to stakeholders as appropriate. BP plans to undertake another review in around two years’ time,” said BP.
BP’s plans to become net carbon zero
A fortnight ago, BP announced their intentions to become a net carbon zero oil major. 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. 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. Looney concluded by saying: “Together we will aim to build a more agile, innovative and efficient BP. A purpose-driven, digitally-enabled, fully-integrated organization. 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”. Shares in BP plc trade at 425p (-0.70%). 26/2/20 14:37BST.SSP Group speculate over coronavirus as Asian business faces bruising
SSP Group PLC (LON:SSPG) are the latest firm to tell the market that their results and performance will be hindered by the outbreak of the coronavirus.
The food and drinks brand have specific operations at travel destinations, including airports and train stations. Brands within SSP Group include Upper Crust, Millie’s Cookies, Burger King and Starbucks – to name a few.
The firm noted that February sales in the Asia Pacific region will be bruised by the spread of the coronavirus, which was led to the firm enforcing cost reduction methods.
SSP also noted that it had seen a 90% crash year on year in air passengers in China, and 70% in Hong Kong.
The Asia Pacific region roughly accounts for 14% of the firm’s revenue – and the outbreak of the coronavirus is continuing to dampen global businesses, stocks and indices.
SSP also noted that the full year impact of the coronavirus is ‘uncertain at this stage’.
On a better note, trading was inline with expectations in the UK and continental Europe.
The firm commented today:
“In terms of the financial impact of COVID-19, our expectation is that for the month February sales across the Asia Pacific region (which accounts for approximately 8% of SSP Group revenues) will be approximately 50% lower YOY. Together with the impact in the Middle East and India, this is expected to reduce overall Group revenue in February by approximately £10m – £12m, with a corresponding reduction in operating profit of approximately £4m – £5m.
Clearly the duration of the COVID-19 virus and its impact on global travel is uncertain at this stage, as are its consequences for our financial performance for the full year. We will continue to take all the necessary action as appropriate. Our strategy remains unchanged, and we continue to be well placed to benefit from the significant structural growth opportunities in our markets over the medium term and to create ongoing value for our shareholders.”