(Bloomberg) — Here’s the key business news from London-listed companies this morning.
Shell Plc: The energy giant posted yet another record profit this morning boosted by high oil and gas prices and will repurchase a further $6 billion of shares in the third quarter.
- It is the latest indication of how Russia’s invasion of Ukraine has delivered a windfall for investors in major energy producers, even as the soaring costs of fuel batters the economy and threatens a cost-of-living crisis
Barclays Plc: The British bank’s earnings fell short of forecasts in the second quarter after it booked charges and penalties in the US.
- The lender took a £1.3 billion charge for litigation and conduct costs, partly to cover buying back U.S. investment products it mistakenly oversold
Diageo Plc: The global drinks giant reported a beat in full year net sales, with Johnnie Walker whiskey and Guinness beer doing particularly well.
- Price increases and savings on supply chains offset the “absolute impact” of cost inflation and mostly compensated for the impact on its gross margin
BT Group Plc: The British telecoms company’s sales grew for the first time since 2017 after customers signed up to fiber optic connections and it raised tariff prices above inflation earlier in the year.
- The rollout of fiber optic rollout and customer connections are ahead of the company’s expectations, Chief Executive Officer Philip Jansen said, while also pointing to challenges in the Enterprise division
Elsewhere: Energy company Centrica Plc resumed dividend payments for the first time since the start of the pandemic as profits from selling oil and natural gas rose six-fold.
- Broadcaster ITV Plc sees a return to pre-pandemic activity as it is on track to exceed 2019 revenues over the full year
- Financial derivatives dealer CMC Markets Plc is feeling the impact of high costs due to higher personnel costs as well as higher professional fees and software costs
Outside The City
UK households are likely to see record energy prices this winter as Russia clamps down on Europe’s gas supplies. Average power bills are set to rise to just over £500 per consumer in January, more than three times last year’s level, according to analysis from BFY Group Ltd.
In Case You Missed It
A fresh row over the Bank of England’s independence is brewing. Current foreign secretary and Tory leadership candidate, Liz Truss, insulted the Bank of England’s inflation-fighting record in a televised debate and named the Bank of Japan as a model to follow, while other MPs have questioned the central bank’s role and mandate. Listen to this week’s In the City podcast to hear Bloomberg News’s David Merritt, Lizzy Burden and Phil Aldrick discuss threats to the bank’s future.
Looking Ahead
With one of heaviest days of earnings this year out of the way, attention turns to a further deluge of company reports tomorrow when we’ll hear from miner Glencore Plc, pharma giant AstraZeneca Plc, and British Airways-owner International Consolidated Airlines Group SA.
Also on Friday Mortgage approvals data for June will be released, giving an insight into how the market is handling rising interest rates.
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