Shares in Tullow Oil dropped 2% after the company said it had plugged and abandoned an exploration well offshore Guyana.
There was better news from drilling operations at the Beebei-Potaro exploration well which have been completed.
The company said the well encountered good quality reservoir in the primary and secondary targets but both targets were water bearing.
Tullow said it would integrate the well results into its regional subsurface models and work with its joint venture partners before deciding on next steps.
SP Angel said “Tullow’s disappointing run of high impact exploration wells continues, though we feel that investor focus remains on the proposed all-share merger with Capricorn Energy.”
WPP falls on concerns over the economic backdrop
Advertising agency WPP PLC (LSE:WPP) saw its shares fall by 6.83% in morning trading following release of its first half results.
The group announced like for like revenue growth of 8.7% to £6,755mln and a 6.1% increase in reported pre-tax profits to £419m.
AJ Bell Investment Director Russ Mould: ““WPP’s first-half numbers actually look fairly solid, but investors are so concerned about the economic backdrop, and what it says about WPP’s prospects, they have reacted negatively.”
“Clearly there is a belief that WPP’s recent momentum, which helped it lift its annual sales outlook, can’t last in the long-term.”
“While chief executive Mark Read argues WPP is yet to see any evidence of a big retrenchment in spending by its clients, this feels likely to come at some point.”
Hargreaves Lansdown results beat expectations
Hargreaves Lansdown PLC (LSE:HL.) benefited from better than expected first half results on Friday which helped send the shares to the top of the FTSE 100 risers list.
Shares advanced by 3.72% to 876.70p as the financial services company announced underlying pre-tax profits of £298mln ahead of the £283mln consensus.
Shore Capital analyst Ben Williams said he expects forecasts to be increased a little “driven by the higher revenue margin guidance and the new underlying costs guidance outputs to a cost number 3.5% lower.”
“Previous guidance for revenue margin on cash was for 60bp, but is now 90-110bp, and, speaking to the company, following yesterday’s rate rise, likely to be at the top end of that guidance” he added.
Williams said he sees some value in the company and has a fair value of 900p.
But concerns around new money expectations for the full year 2023 meant he retained a hold rating.
Pets at Home delivers "standout" quarter one
Shares in Pets at Home PLC (PETS) advanced 1.6% after the group announced quarter one numbers.
The pet care specialist retailer said total group revenue rose 7.1% to £404.7mln, with group like-for-like revenue ahead by 6.0%, reflecting broad-based growth throughout the quarter.
Liberum analysts’ described the performance as “a standout quarter one” with “all divisions and channels remaining in strong growth driven by very encouraging new customer acquisition.”
In a note published after the update they added: “such strong momentum, especially against the current backdrop, reflects the strength of PETS’ model, its clear market leadership and the resilience of earnings.”
“PETS’ earnings risk should be relatively low and the valuation is supported by a net cash balance sheet, a 3.5% div yield and an expected return to double-digit profit growth in FY24E.” they concluded.
Liberum kept their buy rating on the stock with a 510p price target.