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Market Update

BHP to Spin Off $15 B of Assets, Maersk Net Soars


Author: Nigel Thomas
ticker.com
Last Update: 12:45 PM ET August 19 2014

4:00 PM Frankfurt – Maersk profit surged 169% to 2.30 billion kronor and plans for share buy-back of 5.6 billion kronor. BHP Billiton net soared 23% to $13.8 billion and intends to spin off $15 billion of assets. Persimmon net climbed 63% to £163 million.

In London trading, FTSE 100 index increased 0.5% or 35.22 to 6,776.47 and in Frankfurt the DAX index jumped 1% or 90.03 to 9,335.36.

In Paris, CAC 40 index gained 0.5% or 20.45 to 4,251.10.

AP Moeller - Maersk A/S climbed 4.9% to 13,580 kronor after the Denmark-based shipping and oil company reported revenue in the second-quarter ending in June increased 2.2% to 11.95 billion kronor from 11.69 billion kronor a year ago.

Profit in the quarter surged 168.7% from a year ago to 2.30 billion kronor compared to 856 million kronor and diluted earnings per share soared to $1.02 from $0.35.

The shipping company decided to plans a share buy-back program of up to 5.6 billion kronor or $1 billion during the year.

BHP Billiton Plc declined 4.6% to 1,972.45 pence after the diversified natural resources company reported revenue in the year ending in June rose 1.9% to $67.21 billion from $65.95 billion a year ago period.

Net income in the year soared 23.3% to $13.83 billion compared to $11.22 billion and diluted earnings per share jumped to $2.59 from $2.10 a year earlier.

The miner announced a spin off its large portion of assets worth about $15 billion including silver, aluminum, manganese and coal plants and mines to make simpler and manageable portfolio.

BHP will continue to focus on its core business including iron ore, copper, coal, petroleum and potash operations that generate more than 90% of operating earnings. And the spin-off is expected to reduce cost and simplify operating structure.

The new company will be headquartered in Perth, Australia and employ 24,000 people and contractors. And the company’s stock will be listed in Australia and trade in South Africa and have American Depository Receipt trading in New York.


Imperial Tobacco Group Plc jumped 2.2% to 2.582.33 pence after the U.K.-based tobacco producer said net revenue in the nine-months ending in June slid 1% to £4.75 billion from a year ago period.

The company expected adjusted earnings per share and dividend for the year to increase at least by 10%.

Persimmon Plc gained 0.6% to 1,344 pence after the U.K.-based home building company reported revenue in the first-half ending in June soared 33% to £1.2 billion from £900 million a year ago period.

Profit in the period climbed 62.7% from a year ago to £163.2 million compared to £100.3 million and diluted earnings per share jumped to 53.4 pence from 33 pence.

Sixt SE increased 2.3% to €28.18 after the Germany-based mobility service provider reported revenue in the first-half ending in June climbed 6% to €823.8 million from €777 million a year ago period.

Profit in the period surged 16% from a year ago to €47.2 million compared to €40.7 million and earnings per share increased to €0.98 from €0.85.

The company added rental revenue soared 9.8% to €507.7 million and revenue from leasing segment jumped 4.9% to €204.9 million from a year ago.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc