UK WINNERS & LOSERS SUMMARY: Energean Rises After Amending Edison Deal

Mon, 29th Jun 2020 10:40

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.

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FTSE 100 - WINNERS

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BP, up 1.5%. The oil major said it has agreed to sell its petrochemicals business to privately owned UK chemicals company Ineos for USD5 billion as part of a plan to "reinvent BP". Under the agreement, Ineos will pay BP a deposit of USD400 million and will pay a further USD3.6 billion on completion. An additional USD1 billion will be deferred and paid in three separate instalments of USD100 million in March, April and May 2021 with the remaining USD700 million payable by the end of June 2021. The sale, which is slated to complete by the end of 2020, is expected to strengthen BP's balance sheet and delivers its USD15 billion divestment target a year early than originally scheduled, it noted. Proceeds from the sale will be used by BP for general corporate purposes.

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FTSE 100 - LOSERS

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Unilever, down 2.5%. UBS downgraded the consumer goods firm to Sell from Neutral.

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FTSE 250 - WINNERS

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Energean, up 12%. The oil and gas explorer amended the terms for its acquisition of Italian utility Edison's exploration & production portfolio. The Mediterranean-focused explorer said the deal now will exclude Edison's Norwegian subsidiary. The latest change follows the exclusion of Edison's Algerian asset. The purchase is now valued at USD284 million, as opposed to the original sum of USD750 million. It still includes Edison's UK portfolio, with a stake in Glengorm, the largest gas-condensate discovery in the Central North Sea. The USD466 million reduction in sale price includes a USD155 million from the Algerian exclusion and USD200 million from the Norwegian exclusion. The remaining USD111 million is due to "additional reductions relating to the macro environment".

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TUI, up 3.5%. The Anglo-German travel operator said it is now ready for holidaymakers from all markets, with Cyprus, Portugal, Greece, the Balearic Islands, and Croatia to be the first holiday destinations to be on offer. With the summer season underway, the package holiday company said all of its airlines and tour operators are prepared to restart with the first leisure flights having already occurred. TUI noted the ongoing European Commission talks about re-opening travel to non-EU countries soon. Budget airline easyJet was up 4.5% and Irish carrier Ryanair Holdings was up 1.9% in a positive read-across.

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FTSE 250 - LOSERS

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Balfour Beatty, down 4.0%. Jefferies downgraded the construction firm to Hold from Buy.

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Calisen, down 1.5%. The smart energy meter firm said it is planning to start meter reading and non-essential smart meter installations again in July as the UK lockdown eases. The company announced the temporary suspension of all non-essential smart meter installations and field services back on March 25. However, as some of its energy retail customers have resumed smart meter installations, Calisen has decided to do the same and resume non-essential smart meter installations as well, along with other non-essential field services. Calisen noted that it had still been responding to emergency call-outs during the lockdown with engineers using personal protective equipment. The use of PPE will continue for non-essential work. The company's return to normal activity is likely to be "gradual" over the course of "several months", and so Calisen feels it is too soon to reinstate 2020 smart meter installation guidance.

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By Arvind Bhunjun; arvindbhunjun@alliancenews.com