Miner and commodities trader Glencore has stepped back from the brink of collapse, but how far has it stepped back?
The programme of asset disposals has done wonders for the share price, which has more than doubled this year, helped by the recovery in commodity markets.
“With the investment grade credit rating looking increasingly secure a key question is what next in terms of strategy; does the company remain committed to debt reduction or move back to a more growth focused approach?” Credit Suisse suggested.
The company is targeting getting net debt down to US$17-18bn by the end of this year, so the interim results will give a good clue as to whether this is achievable.
Credit Suisse expects half-year annualised earnings before interest and tax to fall below the company’s full-year guidance of US$2.4-2.7bn.
Engineering solutions provider Costain said at the end of June it had enjoyed a strong first half and it was on course to deliver a result for the year in line with the board’s expectations.
Peel Hunt is forecasting half-year profit before tax of £14.2mln will be unveiled in Wednesday’s results, while net cash is expected to clock in at around £80mln.
The focus is likely to be on the improving quality of the order book and the underlying margin potential across both divisions of the group, the broker reckons.
“Management is likely to remain upbeat given the opportunities across key markets (organically as well as through further bolt ons),” Peel Hunt said.
Significant announcements expected
Interims: Atlas Mara Co-invest Ltd (LON:ATMA), Carillion PLC (LON:CLLN), Costain Group PLC (LON:COST), Glencore PLC (LON:GLEN), Gresham Computing plc (LON:GHT), Headlam Group PLC (LON:HEAD), Hikma Pharmaceuticals PLC (LON:HIK), Paddy Power Betfair (LON:PPB), Polymetal International PLC (LON:POLY), Sportech plc (LON:SPO), WPP group PLC (LON:WPP)