Market report: Smooth movement for Shell as the oil giant raises its dividend after rising profits on the back of soaring crude oil prices
Savers and retirees got another payment for their bonuses after Shell raised its prize pool.
The increase is modest by 4 percent to 12.4 pence a share – but encouraging for the average British, whose finances were hit by the energy giant’s decision to drastically cut its payments by two-thirds last year after the company was hit by the pandemic.
Yesterday, the oil giant revealed that profits for the first three months of the year rose to 2.3 billion pounds on the back of soaring crude oil prices.
Davy boost: Shell raised its dividend payout by 4 per cent to 12.4 pence per share after it revealed that profits in the first three months of the year rose to 2.3 billion pounds on the back of higher crude oil prices.
This was more than the £ 2.1 billion it made in the same period last year – when prices began to decline as the spread of the Coronavirus became clear – and eight times more staggering than the £ 280 million it made in the last quarter of the year. 2020.
The stock buybacks on the cards are no longer for Shell – which is delayed until its debt pile drops to £ 47 billion. It is currently at £ 51 billion.
On the other hand, Rival BP brought back share buybacks after it hit its debt target more than a year ago – but it hasn’t raised its dividend yet.
But shares in Shell (down 1.4 percent, or 18.6 pence, to 1,299.2 pence) slipped yesterday, indicating that the city has already benefited from the boost from higher oil prices, while BP fell 0.8 percent, or 2.5 pence, to 302 pence.
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Game maker and designer Character Group is headed for best ever after soaring sales.
The company said the reason for this was that it had a strong roster of brands, with Peppa Pig, Scooby Doo and Pokemon equipment beating sales forecasts.
Character Group was one of AIM’s biggest startups – up 21.3 per cent, or 100.5 points, to 572.5 points – after it said first-half profit rose to £ 7.6m, compared to £ 2.2m for the year. the previous.
Expecting sales to get a boost now, stores are reopening again.
Their decline came even as crude oil prices rose 1.4% to $ 68 a barrel – fuel talk among market analysts of us entering a new “giant cycle” for commodities.
There was other evidence elsewhere, as iron ore and copper prices rose to new highs.
Copper traded above $ 10,000 per ton for the first time since 2011, during the last era of bumper metal prices.
Copper is often seen as a major factor in the global economy and the metal’s rise is partly due to major countries starting to recover from Covid.
But copper is also gaining ground due to sweeping environmental pledges from governments, as it is a key material in green technology.
In a quarterly production report, Glencore (down 0.9 percent, or 2.85 pence, to 300 points) said its trading arm had a strong start to the year due to the commodities boom.
The Trade and Mining Group said annual profits in this division would be at the maximum of its range between £ 1.6 billion and £ 2.3 billion.
The FTSE 100 rose again above 7000 during yesterday’s trading – but by the end of the session it was in the red, dropping 0.03 percent, or 2.19 points, to 6,961.48.
The FTSE 250 index fell 0.2 percent, or 46.88 points, to 22,392.94 points.
Elsewhere, another day with company results, demand for Smith & Nephew and DS Smith was high.
DS Smith packaging maker (up 2.5 percent, or 10.2 pence, to 424 pence) said sales were strong and well on their way to meeting year-round targets.
DS Smith is also investing in new fund factories in Europe to take advantage of the online shopping trend that has taken hold during the closures.
Prosthetic hip and knee maker Smith & Nephew (who rose 5.6 percent, or 83 pixels, to 1,568 pixels) was confident enough about his prospects for reorientation throughout the year as the number of elective surgeries began to rise again.
Many non-emergency measures were suspended during the height of the epidemic as hospitals focused their attention on Covid patients.
British American Tobacco (down 2 percent, or 54.5 points, to 2,626 pence) and Imperial Brands (down 0.5 percent, or 8 pence, to 1,470 pence) shares plunged after the U.S. Food and Drug Administration proposed to ban menthol cigarettes.
Kenneth Dart, the reclusive billionaire based in the Cayman Islands, was also shown to have earned 7 percent on BAT and 3 percent in Imperial.
Two other companies – technology group Alphawave IP and cargo ships group Taylor Maritime Investments – announced their intention to float.