Category: Top Story

BP (LSE:BP.) reported first-quarter underlying replacement cost (RC) profit of $3.2 billion on Tuesday, exceeding a company-compiled consensus forecast of $2.67 billion. The figure more than doubled both the $1.5 billion recorded in the previous quarter and the $1.38 billion posted a year earlier.

The improvement was largely driven by an outstanding performance in oil trading alongside stronger results from its midstream operations, the company said.

Shares rose around 3.1% by 07:47 GMT in London following the update.

Statutory profit reached $3.8 billion, marking a sharp turnaround from the $3.4 billion loss reported in the fourth quarter.

Upstream production averaged 2.33 million barrels of oil equivalent per day during the quarter, with plant reliability reported at 95.7%.

Reacting to the results, Jefferies analyst Mark Wilson said BP delivered “inline results better at net income due to lower tax rate.”

Operating cash flow came in at $2.9 billion after a $6 billion working capital build, while capital expenditure declined to $3.3 billion from $3.6 billion in the same period last year. Net debt increased to $25.3 billion, up from $22.2 billion at the end of 2024.

BP maintained its quarterly dividend at 8.32 cents per ordinary share.

“This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said BP CEO Meg O’Neill, who joined the company earlier this month.

“We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our U.S. onshore business – keeping production levels steady despite the ongoing disruption,” she said in the statement.

Looking ahead, BP expects upstream production to decline in the second quarter due to seasonal maintenance in the Gulf of America and continued disruptions in the Middle East.

The company reaffirmed its full-year capital expenditure guidance of $13 billion to $13.5 billion and continues to target $9 billion to $10 billion in divestment proceeds, with most of these expected in the second half, including contributions from the planned sale of Castrol.

Barclays (LSE:BARC) reported first-quarter 2026 results showing a return on tangible equity of 13.5% and unveiled a £500 million share buyback programme. The bank also reaffirmed its financial targets for both 2026 and 2028. Management highlighted that all divisions achieved double-digit returns, even after factoring in a one-off charge and higher impairment levels, underlining the group’s continued profitability and strong capital position.

Underlying performance focus and continued investor engagement

Barclays emphasised its use of non-IFRS performance measures to track underlying business trends and guide strategic decision-making. At the same time, it acknowledged that certain areas—such as impairment modelling—require significant judgement and can introduce variability.

The update also reinforced Barclays’ active role in global debt markets and its commitment to maintaining strong investor communication. The bank plans to continue engaging with investors through international meetings and roadshows following the results announcement.

Balanced outlook supported by capital returns and valuation

The bank’s outlook reflects a combination of improving profitability and strong cash generation in recent periods, balanced against higher leverage and some softness in revenue trends. Management’s guidance and ongoing capital return initiatives provide additional support to the investment case.

However, weaker near-term technical indicators suggest limited momentum in the share price. Valuation appears supportive, with a relatively low P/E ratio, though the dividend yield remains modest.

More about Barclays

Barclays PLC is a major UK-based universal bank with operations spanning retail banking, credit cards, corporate and investment banking, and wealth management. The group serves a broad customer base of individuals, businesses and institutions worldwide, with a strong presence in debt capital markets and a strategic focus on delivering attractive returns on tangible equity.

Anglo American (LSE:AAL) reported a steady operational performance in the first quarter, with copper production edging up 1% to 170,400 tonnes. Output of premium iron ore slipped by 2%, while manganese production more than doubled as operations recovered from earlier weather-related disruptions. Rough diamond production increased by 17%, despite softer pricing, whereas volumes of steelmaking coal and nickel declined. The group reaffirmed its 2026 production and unit cost guidance for continuing operations.

Portfolio reshaping and Teck merger progress remain in focus

The company continues to streamline its asset base, with management highlighting the return to normal production at Moranbah North and progress in the sale process for its steelmaking coal business. Plans to exit De Beers are also ongoing, reflecting continued weakness in diamond markets.

Anglo American’s proposed merger with Teck remains on track, subject to final regulatory approval from Chinese authorities. The deal is expected to transform the group into a more copper-focused producer, increasing its exposure to metals critical for electrification and the global energy transition.

Mixed outlook as operational strength meets financial and technical pressures

While operational performance has been resilient, the broader outlook is weighed down by declining revenues and consecutive net losses. Market indicators also point to a weaker technical picture, with the shares trading below key moving averages and momentum signals remaining negative.

Balancing these challenges, the company continues to generate solid cash flow and has outlined a more optimistic medium-term outlook, supported by cost-saving initiatives, deleveraging efforts and ongoing portfolio restructuring. However, guidance includes higher unit costs, and regulatory uncertainties—particularly around the Teck transaction—remain key considerations.

More about Anglo American

Anglo American is a globally diversified mining company with major operations spanning copper, premium iron ore, manganese, diamonds, steelmaking coal and nickel. The group is actively repositioning its portfolio toward future-facing commodities, with a particular emphasis on copper, while divesting assets such as diamonds and steelmaking coal to align with long-term demand for critical minerals.

Travis Perkins (LSE:TPK) reported a 1.7% drop in like-for-like revenue for the first quarter of 2026, as weak construction demand continued to weigh on trading. Merchanting sales fell 2.3%, while Toolstation Benelux recorded a sharper 7.1% decline. This was partially offset by a 2.6% like-for-like increase at Toolstation UK, offering some resilience within the group’s overall performance.

Cost control and pricing actions aimed at protecting margins

In response to the challenging environment, management is implementing measures to safeguard profitability and maintain market share. These include passing on supplier price increases to customers, improving procurement efficiency and focusing on margin enhancement initiatives. The group is also tightening overheads and reducing capital expenditure to strengthen its financial position during a period of softer demand.

Profitability pressures and weak technical signals cloud outlook

The company’s outlook remains constrained by ongoing profitability challenges, having reported net losses in both 2024 and 2025. Market indicators also point to a negative trend, with the shares trading below key moving averages and technical metrics such as MACD and RSI/Stochastic signalling weakness.

That said, relatively solid operating and free cash flow, along with moderate leverage, provide some support. Valuation remains mixed, reflecting a negative P/E ratio, although a dividend yield of დაახლოებით 2.28% offers a degree of income appeal.

More about Travis Perkins

Travis Perkins is the UK’s leading distributor of building materials, supplying professional tradespeople and the wider construction sector. Its operations include a large Merchanting division and the Toolstation retail network, covering both general and specialist building supplies. The company continues to prioritise operational efficiency and disciplined capital allocation as it navigates softer construction market conditions.

AstraZeneca plc (LSE:AZN) has received approval from the U.S. Food and Drug Administration for a new self-administered version of SAPHNELO (anifrolumab-fnia), allowing adult patients with systemic lupus erythematosus (SLE) to use a once-weekly autoinjector alongside standard therapy.

The decision is supported by findings from the Phase III TULIP-SC study, which showed that subcutaneous delivery of SAPHNELO significantly reduced disease activity compared to placebo in patients with moderate to severe SLE who were also receiving standard treatment. The safety profile aligned with that already established for the intravenous formulation.

The treatment will now be offered as a 120mg weekly dose via the SAPHNELO Pen autoinjector or a pre-filled syringe for at-home use. Since 2021, SAPHNELO has been available as an intravenous infusion administered by healthcare professionals in clinical settings.

Subcutaneous use of SAPHNELO has already been approved in the European Union and Japan, and regulatory reviews are ongoing in several other markets. The intravenous formulation is currently authorised in more than 70 countries for moderate to severe SLE, with over 40,000 patients treated worldwide.

The TULIP-SC trial was a Phase III, multicentre, randomised, double-blind, placebo-controlled study involving 367 patients aged between 18 and 70 with moderate to severe SLE. Participants were evenly assigned to receive either a 120mg subcutaneous dose of anifrolumab or a placebo using a single-use pre-filled syringe.

SAPHNELO is a fully human monoclonal antibody that targets subunit 1 of the type I interferon receptor, inhibiting type I interferon activity. Under a revised agreement with Bristol-Myers Squibb (NYSE:BMY), AstraZeneca will pay a mid-teens royalty on U.S. sales of the drug.

Homebuyers and homeowners looking to remortgage benefited from another round of mortgage rate reductions last week, as major UK lenders continued to sharpen their offerings shortly after earlier cuts.

Banks including Barclays plc (LSE:BARC), HSBC UK (LSE:HSBA), Santander UK (LSE:BNC), Skipton Building Society (LSE:SG52) and Virgin Money UK (LSE:91XR) all revised their mortgage deals, underscoring intensifying competition across the market.

Data from Moneyfacts showed that the average two-year fixed homeowner mortgage rate stood at 5.83% on the morning of April 22, down from 5.87% the previous day.

Santander implemented its second round of cuts this month, lowering rates by up to 0.25 percentage points from April 24, with the changes affecting first-time buyers, home movers and remortgaging customers.

HSBC UK also updated its mortgage range after reducing rates the week before, introducing further cuts across products aimed at both new buyers and those refinancing.

Meanwhile, Barclays and Skipton Building Society had already trimmed their rates earlier in the week, while Virgin Money applied reductions across both residential and buy-to-let mortgage products.

What’s driving the changes?

Mortgage pricing, which is closely linked to swap rates, has started to ease, allowing lenders to pass on some savings to borrowers.

However, ongoing global uncertainty—including geopolitical tensions in the Middle East—has continued to create market volatility and sustain expectations of relatively high interest rates, limiting the scope for more significant declines.

Rolls-Royce Holdings plc (LSE:RR.) has secured a key role in Australia’s naval modernisation, with its MT30 marine gas turbine selected to power a new fleet of up to 11 general-purpose frigates. The decision follows Australia’s move last year to adopt Japan’s upgraded Mogami-class design to replace its current vessels.

The Mogami-class already operates with the MT30 in Japanese service, and the Royal Australian Navy has confirmed it will use the same propulsion system for its own ships. The first three frigates will be constructed in Japan by Mitsubishi Heavy Industries and delivered to Australia, with the initial vessel expected in 2029 and entering service in 2030.

Alex Zino, Director of Business Development and Future Programmes, UK and International at Rolls-Royce Defence, said the company was “delighted to continue this long-standing partnership by powering their new general-purpose frigates with our MT30 engine” and added that Rolls-Royce was “pleased to support this collaboration between two nations that are combining capabilities to enhance the security across the region.”

Alongside the MT30 turbine, the upgraded frigates will feature mtu Series 4000-based diesel generator sets from Rolls-Royce Power Systems, supplied through licensed partner Daihatsu InfinEarth, to provide onboard electrical power for multiple ship systems.

The MT30 engine is designed, assembled and tested at Rolls-Royce’s Bristol facility and is already in use with several navies worldwide. These include the Royal Navy’s Queen Elizabeth-class aircraft carriers and Type 26 frigates, the United States Navy’s Freedom-class Littoral Combat Ships and Zumwalt-class destroyers, as well as the Republic of Korea Navy’s Daegu and Chungnam-class frigates.

The same engine is also set to power Australia’s Hunter-class frigates under a separate programme linked to the AUKUS framework, providing greater commonality across the Royal Australian Navy’s major surface fleet.

Rolls-Royce noted that the MT30 is the world’s most power-dense marine gas turbine currently in service, offering strong performance margins, design flexibility and long-term efficiency and reliability.