Cairn Energy Faces Disappointment in Bangladesh Licensing Round

Strategic Insights -

Oil exploration group Cairn Energy is preparing to share its dissatisfaction with the Bangladesh government over the allocation of licenses in the recent licensing round. Cairn, in partnership with Shell, had applied for six blocks but was granted a share in only one. This decision has sparked concern that Cairn may need to renegotiate its 50-50 arrangement with Shell. The company's shares have already taken a hit, closing at 163.5p on Friday, down from 499p earlier. As Cairn prepares to report its interim results tomorrow, the industry is eagerly awaiting news from other companies, including Aggreko, Rolls-Royce, and Reckitt & Colman, which are also due to release their interim figures this week.

Key Takeaways:

  • Cairn Energy has expressed disappointment with the Bangladesh government's decision to grant a share in only one block in the recent licensing round, despite originally applying for six blocks in partnership with Shell.
  • The company's shares have been affected, closing at 163.5p on Friday, down from 499p earlier.
  • Cairn may need to renegotiate its 50-50 arrangement with Shell if it does not secure a bigger share of the licenses.
  • Other companies, such as Aggreko, Rolls-Royce, and Reckitt & Colman, are also due to release their interim figures this week, providing insight into the state of the market.
  • Aggreko has had a busy year providing emergency power solutions at scenes of natural disasters around the globe.
  • Rolls-Royce is expected to highlight recent multi-million pound orders for its aero-engines, but investors will be looking for details on the impact of the Asian crisis on its spare parts business.
  • Reckitt & Colman is predicted to show good growth from its North American operations, but may struggle with its business with emerging markets due to the Asian crisis.
  • Mulberry has had a rough year, issuing three profit warnings in the ten weeks to March, and will be quizzed on its plans to source products from the Continent.
  • Rexam has been undergoing a refocusing and may provide news of further disposals of non-core businesses or future acquisitions.
  • Ladbroke's first half results are expected to be promising, with pre-tax profits up between 15 per cent and 20 per cent.

Statistics:

  • Cairn Energy's shares closed at 163.5p on Friday, down from 499p earlier.
  • Aggreko has provided emergency power solutions at scenes of natural disasters around the globe, including ice storms in Quebec and electricity blackouts in Auckland.
  • Rolls-Royce is expected to highlight recent multi-million pound orders for its aero-engines.
  • Reckitt & Colman's profits are predicted to be up by about 5 per cent on this time last year.
  • Mulberry has issued three profit warnings in the ten weeks to March.
  • Rexam has been undergoing a refocusing and may provide news of further disposals of non-core businesses or future acquisitions.
  • Ladbroke's pre-tax profits are expected to be up between 15 per cent and 20 per cent.

Sources:

  • "Cairn Energy expected to protest to Bangladesh over licence deal," by Mark McSherry, Business Editor, THE Edinburgh-based oil exploration group...
  • "Aggreko reports 'extremely busy' year," by Mark McSherry, Business Editor...
  • "Rolls-Royce to highlight new orders," by Mark McSherry, Business Editor...
  • "Reckitt & Colman profit growth expected to be 'disappointing'," by Wise Speke, Stockbroker...
  • "Mulberry warning: Three profit warnings in 10 weeks," by Mark McSherry, Business Editor...
  • "Rexam refocusing set to continue," by Mark McSherry, Business Editor...
  • "Ladbroke upbeat ahead of results," by Mark McSherry, Business Editor...