FTSE nips lower as Petrofac shares cliff dive

FTSE indices fell on opening with a profit warning from heavyweight oily Petrofac (PFC) seeing almost a quarter wiped off the value of its shares. Other resources stocks also acted as ballast. Wall St ended higher on Friday, while Asian markets were up this morning.

Petrofac, down 24.33% to 902.75p, was on track to deliver FY 2014 net profit towards the lower end of the guided $580m-$600m range. It reported a strong order intake of $10bn year to date and backlog at a record of about $21bn. It foresaw 2015 net profit of about $500m.

Shortly after the open, the FTSE 100 was down 7.7 points, or 0.11%, to 6743.06. FTSE 250 was down 11.33, or 0.07%, to 15,680.3. Other oily stocks figured lower on fears prices of the black liquid could tumble to $60 a barrel unless OPEC cuts output. Wood Group (WG.) was down 2.09% to 680.5p, followed by Tullow Oil (TLW), Royal Dutch Shell (RDSA) and Cairn Energy (CNE).

Mining stocks were at loggerheads to Friday's upward trend. Lonmin (LMI) shed 1.97% to 189.2p, followed by Rangdold Resources (RRS), Fresnillo (FRES), and Anglo American (AAL). The metals burrowers also suffered on concerns there could be a second interest rate cut in China given the bleak economic outlook.

To the plus side of the blue-chip ledger, banks enjoyed an uptick. Royal Bank of Scotland (RBS) added 1.23% to 382.35p, followed by Lloyds (LLOY). Supermarkets were mixed with Tesco (TSCO) and Marks & Spencer (MKS) firming, while Sainsbury (SBRY) and Morrisons (MRW) eased.


MoPowered (MPOW) said lower new-client wins and a delays in certain project revenues coming through means its H2 and FY revenue is expected to be lower than the market expectation of £1.6m. It has identified and is implementing cost savings. Its shares fell 24.24% to 5.5p.

Edenville Energy (EDL), up 20% to 0.06p, reported positive results from the first set of detailed coal sampling and test work at the Namwele deposit, part of the Rukwa Coal Project, near Sumbawanga in Western Tanzania.

MediaZest (MDZ), up 20% to 0.15p, has launched its retail data gathering product, MediaZest Retail Analytics. MediaZest has made its first sale and deployment of the product to a global retailer for an initial site. It expects to announce further similar deals in the next quarter.

Avingtrans (AVG), down 20.8% to 108.5p, has lowered FY expectations after a short-term fall in demand at its aerospace division. The board has decided to broaden the site rationalisation plans, delivering greater production efficiency and cost improvements to Sigma Components.


Ferro Metals (IFL), down 18.18% to 4.5p, said production at its two ferrochrome furnaces and pelletiser was suspended on Wednesday after two employees were exposed to carbon monoxide gas.

Accsys Technologies (AXS) has posted an H1 underlying pretax loss of 3.1m euros, from 3.7m euros. Revenues rose 38% to 21.8m euros and the underlying loss before interest, tax, depreciation and amortisation fell by 24% to 1.9m euros. Its shares fell 3.03% to 64p.

LGO Energy (LGO) said well GY-667 has been successfully recompleted in the upper C-sand reservoir. It was flowing under its own pressure at a stabilized rate of 350 barrels of oil per day of 42 degree API oil, without water or sand. Its shares rose 4.76% to 4.4p.

Sound Oil (SOU), down 6.98% to 10p, intends to launch a public offer for 100% of the share capital of Antrim Energy (AEY), up 8.16% to 3.38p. The offer for each Antrim share would be 0.3198 new Sound Oil shares, valuing the former at 3.44p each, and its entire issued share capital at about £6.35m.

Plexus Holdings (POS) has received a purchase order worth about £1.9m from a major oil and gas operator to supply surface wellhead and mudline equipment services for a gas and condensate exploration well in the UK Continental Shelf in the North Sea. Its shares rose 1.37% to 250.88p.