Faroe Petroleum PLC (LON:FPM) has been an interesting stock to watch in 2016 with shares rising 40% since January and it reports interims on Tuesday.
It is one of the big companies featuring next week, alongside Kingfisher plc (LON:KGF), Mitchells & Butlers plc (LON:MAB) and Kier Group (LON:KIE).
In July, the North Sea oiler bought five Norwegian oil and gas fields for US$70.2mln from DONG as it snapped up assets amid the market downturn.
Chief executive Graham Stewart told Proactive the deal, which is expected to complete by the end of 2016, would double group production more-or-less and add a third to its proven reserves.
Including these assets, the firm's guidance for 2016 production stands at 15-17 thousand barrels oil equivalent per day (mboe/d) - up from 7-9 mboe/d before the deal.
Broker Numis reckons average production for the five months from Jan-May stood at 9.5mboe/d and first half production is likely to be a little below this level given the Njord area field shut-ins in the latter part of the first half.
"The DONG deal is expected to reduce opex to US$26/boe for 2016, from US$30/boe excluding the deal," said the broker.
Faroe has a balance of Norwegian and UK production and although UK operational spend in US dollar terms is likely to benefit from sterling's weakness post the EU referendum, guidance was provided post the EU referendum so Numis does not expect to see a significant currency impact in the first half numbers.
Faroe announced a £60.8mln placing in July to fund the DONG acquisition and accelerate development activity on Brage. At the end of March net cash stood at £52.5mln, notes analyst Thomas Martin.
Will PureCircle sweeten with final results?
Also reporting results next week is sweetener specialist PureCircle Limited (LON:PURE), whose final results will be of interest to investors after its July 6 update.
In a pre-close statement, the producer and marketer of high purity stevia ingredients told investors revenues would be “not less than” US$138mln for the 12 months to June 30.
Underlying earnings (EBITDA) are expected to be US$37mln, while net profit is expected to have grown 275% to US$15mln.
The company also said it generated positive cash flow in the period as it gave a reasonably upbeat assessment of the prospects.
As Numis, which rates shares a 'buy', points out: "The other factor that restrained the top line was that on 1 June the US Customs & Border Protection detained some shipments of stevia into the US refined and shipped by PureCircle after alleging these were made using forced labour.
"Despite vigorous protests that this was utterly false, these shipments were only released on 29 June."
Analyst Charles Pick said clarification was needed on how much these issues impacted the second half sales and what ‘retrieval factor’ there might be the current full year, although in theory the launch uncertainties could easily occur again as customers launch most new Food & Beverage products in the first half of the calendar year (Jan to June), which is PureCircle’s second half.
What's on the Horizon?
Finally next week, Horizon Discovery plc (LON:HZD), which specialises in gene-editing, namely altering the biological codes that tell a cell how to behave, reports interims on Tuesday and Numis sees growth in the products business and a trajectory towards EBITDA profitability in full year 2017 as the key performance metrics for investors to focus on.
Analyst Paul Cuddon said: "Horizon has made good progress with the products business in 2016, securing long term product deals in next-generation DNA sequencing (Qiagen and Illumina) and in tissue-diagnostics (Ventana/Roche) with global market leaders in their respective fields.
The core cell line business continues to expand as evidenced by the substantial growth in the catalogue (Haplogen) and range of products and in Abcam’s validated antibodies.
"Horizon is typically H2 weighted with large deals often secured in Q4 and so would expect sales of £11m-£12m in H1, with a stronger H2 required to achieve our £26.7m forecast for the full year."
Significant announcements expected:
Monday
Petra Diamonds Ltd (LON:PDL), Dairy Crest Group (LON:DCG).
Tuesday
Kingfisher plc (LON:KGF), French Connection Group PLC (LON:FCCN), Faroe Petroleum plc (LON:FPM) , Pennon Group (LON:PNN), Horizon Discovery PLC (LON:HZD).
Wednesday
Sinclair IS PHARMA plc (LON:SPH) Saga Ltd (LON:SAGA), Bed Bath & Beyond Inc,
Thursday
Kier Group PLC (LON:KIE), Haynes Publishing Group PLC (LON:HAYNS), Mitchells & Butler plc (LON:MAB), Lamprell plc (LON:LAM).