As the banks and drugmakers move back in to the shadows during this third quarter results season, UK big oil steps into the limelight with BP PLC (LON:PLC) the first to unveil numbers on Tuesday with investors having now had a good amount of time to get used to the ‘new normal’ of US$50 for a barrel of crude.
In terms of the broader market trends there should be a degree of positivity - crude prices continued higher in the period, averaging about US$52 a barrel - and, according to analysts, refining margins were notably stronger.
RBC Capital analyst Biraj Borkhataria, in a recent note, highlighted that BP is the “most positively exposed” with regards to the refining story and investors may also expect “materially lower” impacts in respect of the Gulf of Mexico Macondo field disaster.
Ad agencies feeling the pinch
Meanwhile blue chip advertising giant WPP PLC (LON:WPP) has been squeezed recently due to an unsettled marketing spend environment following contrasting third quarter performances from major peers Omnicom and Publicis.
Given uncertainty around the marketing plans of large consumer advertisers - such as Unilever, Nestle, and Reckitt Benkiser following weak trading updates from all three - an update on short-term pricing pressure, the frequency of client review activity, and net new business wins will be keenly sought.
The FTSE 100-listed firm reported a 3% year-on-year decline in like-for-like net sales in July and trimmed its full year net sales guidance to 0%-1% from 2% growth.
Just East revenues remain solid
On the second line, app-based food delivery firm Just Eat PLC (LON:JE.) reports its third quarter trading update and investors will be looking out for any comment on its takeover of Hungryhouse, which got the provisional green light from regulators earlier this month.
Aside from that deal, the online food delivery marketplace upped its full-year revenue guidance over summer to between £480mln and £495mln, so any updates to that will also be eyed.
Significant events expected on Tuesday October 31:
Interims: BP PLC (Q3) (LON:BP.) , Ryanair PLC (LON:RYA), Great Eastern Energy Corp (LON:GEEC)
Trading updates: Croda International PLC (Q3) (LON:CRDA), DS Smith PLC (Q3) (LON:SMDS), Just Eat PLC (LON:JE.), Plus 500 Ltd (LON:PLUS), Weir Group PLC (Q3) (LON:WEIR), WPP PLC (LON:WPP)
Finals: Egdon Resources Plc (LON:EDR), Earthport plc (LON:EPO)