Cash flow metrics will be the focus for investors when Royal Dutch Shell Plc (LON:RDSB) releases its first quarter financial results on Thursday May 4, so says UBS.
“As always, Shell will be a major focus for investors as they track the development of cashflow generation.
“We expect continued progress in that regard although the absence of production from Pearl GTL is expected to hold back the earnings contribution from the Integrated Gas business.”
UBS also noted that Shell is usually ‘seasonal’ in its approach to booking costs, and anticipates Q1 2017 to show less spending compared to the last three months of 2016.
The bank added: “we'd expect sequential earnings to benefit from that effect in the two Upstream segments, in addition to the lagged recovery in international gas prices in IG.”
Morrison’s sales growth to continue
In its results for the year to January 29 2017, Morrison’s reported its first annual profit and like-for-like (LFL) sales growth since 2012, with its fourth quarter LFL sales up 2.5%, after a 2.9% rise over Christmas, and a first-quarter trading update due on Thursday should also please.
‘House’ broker Shore Capital expects the strong growth to continue for the first-quarter of the current year, albeit at a slightly slower rate, with its analysts forecasting LFL sales growth in a range of 1.75%-2.00%, which would mark a sixth straight quarter of gains.
In a preview note, the ShoreCap analysts said that, despite the toughening comparatives and a slower UK grocery market, flagged up by Tesco’s boss Dave Lewis at the supermarket leader’s full-year results on April 12, they believe that Morrison’s has “sustained positive momentum into the new financial year.”
Thursday’s schedule
Interim Result
Royal Dutch Shell Plc (LON:RDSA), Lancashire Holdings Ltd (LON:LRE), Inmarsat Plc (LON:ISAT), HSBC Holdings Plc (LON:HSBA)
Trading Statement
Morrison Wm Supermarkets Plc (LON:MRW), Next Plc (LON:NXT), RSA Insurance Group Plc (LON:RSA), Ladbrokes Coral Group PLC (LON:LCL), IMI Plc (LON:IMI), esure Group Plc (LON:ESUR), Fisher (James) & Sons Plc (LON:FSJ), G4S Plc (LON:GFS), ConvaTec Group PLC (LON:CTEC)