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BP may have already given a results spoiler, but there will be plenty else to digest on Tuesday

Last updated: 06:00 31 Jul 2018 BST, First published: 12:00 30 Jul 2018 BST

BP petrol station

After last Friday’s US$10.5bn US shale deal with mining giant BHP Billiton plc (LON:BLT), the boss of oil major BP PLC (LON:BP.)  Bob Dudley probably should’ve shouted spoiler alert.

The FTSE 100-listed firm continues the oil sector reporting season on Friday, and aside from the sheer gravity of the BHP deal - which will add 190,000 barrels of daily production and 4bn barrels of in the ground resources – BP’s communications team presumably decided to bring forward what would otherwise make the financial results headline.

Seemingly, as something of a sweetener for BP’s more conservative, income-focused shareholders the company also announced its first dividend hike for some fifteen quarters, with the payout rising 2.5% to 10.25 US cents per share for the second quarter.

The question now is whether BP has left any powder dry for the second-quarter results, particularly as having already seen results from blue chip peer Royal Dutch Shell PLC (LON:RDSA)  we know that cash flow metrics will be among remaining key focuses for the market, alongside the obvious earnings and profitability.

Centrica pricing power eyed

Pricing and dividends will likely be among the focal points for investors when British Gas owner Centrica PLC (LON:CNA) releases its second quarter financial results on Tuesday.

One of the major talking points around energy stocks at the moment is the upcoming changes to how much British Gas, e-On et al will be able to charge customers on a standard variable tariff.

Investors feared how hard regulator Ofgem would hit energy suppliers Obviously, as one of London’s main ‘utility’ stocks there’s a huge emphasis on pricing and margin, and, thus the ability for gas and power firms to maintain shareholder payouts.

JP Morgan last month suggested Centrica expects to maintain its 12p full-year dividend, keeping the British Gas owner’s yield way over the FTSE 100 average of just under 4%.

Whatever the City soothsayers reckon, the market will be keen to see Centrica’s own guidance.

The summer heatwave will also feature, according to Graham Spooner, an analyst at The Share Centre.

“Off the back of SSE’s recent warning over falling demand due to the warm weather, investors could be expecting something sIMIlar,” the analyst said.

“Areas to concentrate on will be the ongoing restructuring, outlook for the year ahead and the dividend.  Confidence in the group and management is at a low ebb and long-suffering investors may have to consider the future sustainability of the dividend. The share remains close to a 10-year low.”

Income levels need to be sustained at StanChart

The first of a quartet of bluechip banking to report results this week, emerging markets-focused Standard Chartered PLC (LON:STAN) will update the market on Tuesday.

Analysts at UBS forecast StanChart reporting adjusted pre-tax profit of US$2.4bn for the first half, with its Common Tier 1 equity ratio at 13.9%.

They pointed out that the banks first-quarter income was 2% below consensus, up 7% year-on-year after having starting the year up more than 10% year-on-year in January and February.

That income growth was driven by higher Transaction Banking and Wealth, while Financial markets, Corporate Finance and Retail Products were all softer than we forecast.

However, for 2018 consensus income forecasts to be realised, UBS added, the first quarter run rate income levels need to be sustained, reinforcing the role of capital markets – both within the wholesale bank and Wealth – to delivering the forecast top line.

Taylor Wimpey to test housebuilders’ heath

The last we heard from Taylor Wimpey PLC (LON:TW.) it said the underlying housing market had remained stable in the first four months of 2018.

It also had a moan about the impact the “Beast from the East” was having on visits to its sites and build rates so the recent glorious weather should have put the Senior management in a sunnier disposition.

As at 22 April 2018, Taylor Wimpey’s total order book value stood at around £2.155bn (2017 week 16: £2.210bn) and analysts will be watching this figure closely to determine the general health of the house-building sector.

Key takeaways for Just Eat

The World Cup and hot weather proved to be something of a god-send for the pUBS and supermarkets, but what about Just Eat PLC (LON:JE.)?

We should find out in Tuesday’s half-year results. In theory, it makes sense for takeaway orders to soar during big sporting events as people invite friends over and order in some pizzas or a Chinese. But the hot weather might have meant the public opted for beers and barbies rather than pizzas and pasandas.

As always, competition will be a key focus: are UberEATS and Deliveroo eating into some of its market share as their businesses mature? That was definitely the case in 2017, but UBS recently said it isn’t so sure about this year.

Other things to look out for are the integration of Hungryhouse – which is now completely under the Just Eat brand – and the performance of its international businesses. Fun fact: Just Eat delivered almost 22mln meals to households in Italy, Spain, Australia and Canada in the first quarter.

Little tasty expected from Greggs

Greggs plc (LON:GRG) issued a profit warning back in May which sent the stock tumbling, so the market isn’t expecting anything too tasty in Tuesday’s interim update.

The FTSE 250 bakery chain said like-for-like sales growth was slower than expected in the first quarter because of weak footfall on the high street and in shopping centres, which is where most of its shops are.

Some of that underperformance could be put down to the poor weather in March and April, so the recent run of warm weather might have helped; although, who wants a pasty in 30-degree heat?

Investors will be keeping an eye out for full-year profits guidance, which was reduced in May’s first-quarter update with the company now forecasts flat underlying profits this time around.

Also of interest will be the special dividend. Greggs is sitting on a decent little cash pile and analysts have long been speculating that an additional payout to investors could be on its way, although the slow start to the year might have thrown that into doubt.

Significant events expected on Tuesday July 31:

Interims: BP PLC (LON:BP), Centrica PLC (LON:CNA), Taylor Wimpey PLC (LON:TW.), Just Eat PLC (LON:JE.), Greggs plc (LON:GRG), Standard Chartered PLC (LON:STAN), Rentokil Initial PLC (LON:RTO), Travis Perkins PLC (LON:TPK), Weir Group PLC (LON:WEIR), Elementis PLC (LON:ELM), IMI PLC (LON:IMI), Fresnillo PLC (LON:FRES), Gocompare.com PLC (LON:GOCO), LSL Property Services PLC (LON:LSL), Sabre Insurance Group PLC (LON:SBRE)

FinalsNWF Group plc (LON:NWF)

Trading update: Thomas Cook PLC (Q3) (LON:TCG), Glencore PLC (LON:GLEN)

Economic data: GfK UK consumer confidence; US personal income, personal consumption; US Chicago PMI

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