BP record profits fail to cheer FTSE
Record half-year profits of £6bn (€8.7bn) for oil giant BP failed to prove sufficient for the London market today.
BP shares were down by more than 1%, although the weakness failed to derail the FTSE 100 Index, which stood 2.7 points higher at 5273.4 by mid-morning.
As well as BP, a lacklustre close for the Dow Jones Industrial Average and heavy falls for news and information group Reuters weighed on the market.
This was offset by mobile phone group Vodafone, which posted gains of almost 2% as brokers revised their guidance in the wake of encouraging subscriber numbers yesterday.
The stock was 2.25p higher at 147.5p and gave shareholders cause for celebration as they attended the company’s annual meeting in London.
Among other telecom companies, O2 gained 2.5p to 144p and BT Group lifted 3.5p to 232.75p.
Reuters was the heaviest faller as a warning of higher investment and restructuring costs overshadowed positive results – causing shares to fall 8% or 32.25p to 380p.
BP was in the red despite unveiling record first-half profits of $10.47bn (€8.7bn), as it continued to benefit from rising oil prices. Shares weakened 7.5p to 635p as analysts pointed to a bout of profit-taking following a strong run for the stock in recent weeks.
Among other firms reporting today, confectionery firm Cadbury Schweppes was upbeat after saying its flagship Dairy Milk brand had helped it increase group sales by 6%. The stock lifted more than 2% or 11p to 553p after it reported 9% growth in sales of the famous brand.
Directories group Yell surged 3%, or 14.5p to 453.75p, after it reported a strong first quarter and said it was on-track to meet full-year hopes.
Yell said post-tax profits before one-off items in the three months to June 30 came in 22.9% higher at £47.8m (€69.2m).
