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The Markets
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The Markets
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Energy

Thursday's agenda: Investors seek calmer waters at Amec Foster Wheeler

Amec said in November that it expected second half margins to be below those in the first half

Updates from companies in the oil & gas services, retail and financial sectors are set to provide food for thought on Thursday.

Investors will be hoping things have not got worse since last year at Amec Foster Wheeler PLC (LON:AMFW) when the oil services group reports full-year results.

Amec said in November that it expected second half margins to be below those in the first half and that it was halving its ordinary dividend.

In common with rivals, the group is facing reduced demand as oil producers slash jobs and cut investment in new projects.

But it said it had increased its cost-saving target by US$55mln to US$180mln by 2017.

Amec also pledged to renew its focus on improving, or getting out of, lower-growth parts of its business.

Analysts are likely to quiz management on any further planned recovery measures. They may also want to know whether the company thinks recent rises in the oil price are likely to last.

WM Morrison Supermarkets PLC (LON:MRW) is likely to face questions about how its new wholesale deal with online giant Amazon is likely to affect its fortunes when it posts annual results.

The group has also changed its deal with online grocer Ocado (LON:OCDO) to cover more of the UK by allowing Ocado to pick orders from its stores in areas where the latter does not have any distribution hubs.

Analysts say the numbers could well show a continuation of the turnaround since the start of the year, though industry data this week appeared to suggest that Morrisons still has some catching up to do.

Elsewhere, insurer Aviva PLC (LON:AV.) is also set to unveil full-year figures. Analysts at Barclays said in a note: "Aviva is our top pick in the sector and we believe full-year earnings - with the implementation of Solvency II and details around its "capital road-map" - will be a potential catalyst for the stock."

Other companies set to report include:

32RED; Aldermore; Cineworld; Ferrexpo; Ibstock; Michael Page; Ophir Energy; Robert Walters; SafeCharge; Savills; Stock Spirits Group; TT Electronics; Fenner; Home Retail Group, Faron Pharmaceuticals, Grupo Clarin, PPHE Hotel Group, Eagle Eye Solutions Group.

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