A batch of blue chip results will attract the most attention on Tuesday, including updates from two mining giants.
The world’s biggest miner BHP Billiton PLC (LON:BLT) reports its full-year results as the Anglo-Australian group carries on with business as usual in the face of pressure for change from activist investor Elliott Management - which last week revealed it has hiked its holding in BHP Billiton to 5%.
In a preview of the full year numbers, analysts at Deutsche Bank forecast the miner posting underlying earnings (EBITDA) of US$20.3bn and expects cash flow from operations of US$14.6bn after tax and interest.
They also predict a US$1.7bn half-on-half reduction in net debt to US$18.3bn, and forecast a final dividend of 46 US cents, up from the 40 US cents paid a year earlier.
The analysts said that, aside from the numbers, they will also be focused – among other things - on indications of a revamped strategy, focusing on returns with targets; progress on growth and latent
Copper focus for Antofagasta
Meanwhile, fellow blue chip miner Antofagasta PLC (LON:ANTO) will unveil its first half results, although the numbers from the Chilean-focused copper group are unlikely to surprise given it only issued an update a few weeks ago.
On July 26, Antofagasta said its first-half production rose by 7.1% and kept its full-year cost and output guidance unchanged after talks to avert strike action at its mines.
The company said full-year production was still expected to be between 685,000 and 720,000 tonnes, unchanged from a forecast from the beginning of the year, although output would be higher during the second half.
Persimmon proving resilient
And blue chip housebuilder Persimmon PLC (LON:PSN) is expected to deliver a strong set of first half figures today, having already said trading was “excellent” during the period even in the face of political uncertainty.
In a trading update last month, the FTSE 100-listed company said customer demand in the first half held up despite an unclear economic outlook, the snap UK general election and Brexit worries.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said with the trading update already giving an outline of what’s to come in the first half results, the focus will be on the outlook.
Significant events expected on Tuesday August 22
Finals: BHP Billiton plc (LON:BLT)
Interims: AFI Development PLC (LON:AFRB), Antofagasta PLC (LON:ANTO), Cape PLC (LON:CIU), Cairn Energy PLC (LON:CNE), Empresaria Group plc (LON:EMR), Hostelworld Group PLC (LON:HSW), Inspired Energy PLC (LON:INSE) Kenmare Resources PLC (LON:KMR), Persimmon PLC (LON:PSN), Quantum Pharma PLC (LON:QP.), John Wood Group PLC (LON:WG.)
Economic data: CBI industrial trends report