Deutsche Bank previewed next Tuesday’s interims from Cairn Energy (LON:CNE) – though the numbers are likely to play second-fiddle to an update on its exploration plans.
As Deutsche points out, the second-half-weighted programme could be transformational.
It said the timing and drilling locations for three wells in Senegal could be unveiled. While they are in deep waters off the coast of west Africa, they aren’t technically challenging, the broker says.
In fact each could be drilled in as little as 40 days. The work will help give a more accurate resource estimate. Currently, experts say the discovery could contain anywhere from 155-670mln barrels of oil.
Deutsche is also expecting a little more ‘visibility’ on the £1bn (US$1.6bn) tax dispute with Indian authorities that continues to rumble on in the background.
Financially, the bank’s analysts reckons Cairn has been in cash preservation mode, and estimates it has around £750mln on the balance sheet – the equivalent to half its current market capitalisation.
Also on Tuesday, Persimmon reports its half year results.
The housebuilder’s half year trading update back in early July saw it reporting a 12% increase in revenues to £1.34bn while the average selling price rose by 4% to £195,000.
Keith Bowman at Hargreaves Lansdown said: “Pre-tax profit for the half year is forecast to have risen by around 21% to £254 million, with current trading topping the agenda for investors.”
On Wednesday, investors will get an insight into the troubled mining sector when Glencore reports interims.
Falling commodity prices and concerns over the health of China’s commodity consuming economy provide the backdrop.
“Both the group’s traditional Mining and Marketing businesses are likely to have been pressured, with first half production proving mixed.” Bowman said.
Significant announcements expected
Monday
Interims: Bovis Homes Group (LON:BVS)
Economic: EU – Balance of Trade, US – Empire State Manufacturing Survey.
Tuesday
Interims: Cairn Energy PLC (LON:CNE), Persimmon (LON:PSN), Chime Communications (LON:CHW), Menzies (LON:MNZS), H&T Group (LON:HAT), John Wood Group (WG.), Alpha Pyrenees (ALPH)
Economic: UK – Consumer Price Index (CPI), Producer Price Index (PPI), US – Housing starts, Building permits.
Wednesday
Interims: Admiral Group (LON:ADM), Hochschild Mining (LON:HOC), Glencore (LON:GLEN), EnQuest (LON:ENQ), Hikma Pharmaceuticals PLC (LON:HIK), Inspired Energy plc (LON:INSE)
Trading statement: Imperial Tobacco Group (LON:IMT)
Economic: EU – Balance of Payments, Current Account, US – CPI, Crude Oil Inventories, FOMC Interest Rate Minutes
Thursday
Interims: Premier Oil (LON:PMO), Sportech (LON:SPO), UK Commercial Property Trust (LON:UKCM), Stock Spirits Group (LON:STCK), TT Electronics (LON:TTG), Kaz Minerals (LON:KAZ), New World Resources (LON:NWR)
Economic: US – Jobless claims, UK – Retail sales,
Friday
Interim: Spire Healthcare Group (LON:SPI), HellermannTyton Group (LON:HTY)
Trading statement: WH Smith PLC (LON:SMWH)
Economic: EU – Consumer Confidence