Updates from Tullow Oil and Persimmon


The FTSE 100 saw a 59-point recovery on Tuesday, up +0.87% to 6,802.9. Miners were the main winners with Anglo American up 3.99% to 1487p and Fresnillo climbing 3.04% to 898.50p. Rio Tinto also gained strongly. But Morrisons saw its shares slump again, down 1.74% to 180.20p. Royal Mail also saw some pressure, down 1.56% to 491.20p.

Across the water, the Dow Jones climbed 0.77%, or almost 130 points, to 16,956.

We start with an operational update from Tullow Oil. 2014 half-yearly financial numbers are expected to deliver revenues and gross profits in line with expectations of approximately $1.3bn and $650m, the company claimed this morning.

However it also reports a a $415 million write-off in net exploration for the first half of 2014 following difficult progress in Ethiopia and Norway.

But Tullow claims a number of successful exploration, appraisal and testing results from the South Lokichar Basin onshore Kenya. Activity will continue during the second half of the year to refine and extend the basin potential including the Etom and Ekosowan exploration wells it says.

Next, a six-month update from house builder Persimmon. First six months of this year has seen revenues climb 33% to £1.2 bn (2013 : £0.9bn). The Group legally completed 6,408 new homes (2013 : 5,022) during the period, up 28% on the prior year.

Visitor numbers to our sites across the UK were 5% ahead and cancellation rates of 16% (2013:16%) have remained at low levels; the Group's average selling price has increased by 4% to c.£186,000 (2013 : £179,199).

"Our consented land bank at 30 June," says the company, "totals c.82,300 plots which provides an excellent platform for the future development of the business."

Finally, property player Kier Group says underlying trading performance for the full year ending 30 June remains on course with good visibility of earnings in 2015. The Group claims it's encouraged by its strong pipeline of opportunities.

Operating margins for its construction arm remain stable at around 2% it says and the order book of secured or probable work at approximately £2.6bn, represents approximately 90% of anticipated revenue for the year to 30 June 2015.

"The Property division," says the company, "has a pipeline in excess of £1bn giving good development growth potential for the next financial year."

Tullow Oil
Kier Group