Friday, July 15, 2016

Salmon and financial burdened exchange – OBI Online

The main index on the Oslo Stock Exchange ended up 0.21 percent to 622.36 points after it was traded securities of 2.9 billion.

A number of European indices started the day with a decline after a terrorist attack on the Promenade des Anglais in Nice late in the evening of Thursday 14th July, at least 84 people were killed and around 50 will be badly damaged. Throughout the day drew indexes edged up by positive macroeconomic data from the US, and at closing on the Oslo Stock Exchange Paris Stock Exchange percent down only 0.60 percent while the German DAX index was down 0.14 percent.



Oil prices

The oil burdened still by concerns about a supply surplus, but the price rose throughout the day.

Brent oil (1 item) which cost $ 46.68 a barrel when the Oslo Stock Exchange closed Thursday, was up 0.74 percent intraday since Oslo Stock Exchange closed, to $ 47.72.

For the same time cost was the American light crude up 0.66 percent and cost $ 45.98 a barrel.

Statoil rose 0.54 percent to 149.80 kroner.

Bloomberg reports according to TDN Finans that Bank of America Merrill Lynch has upgraded Statoil share to neutral.



Bright Red salmon

in a recent market comment from Nordea Markets said the brokerage that it might be a good time to take profit in salmon farming shares now, so to come in at a lower level in the autumn.

– During the first half of 2016, salmon prices have risen more or less continuously, and this week is salmon prices averaging at 82 kroner per kilo, with big fish up to 92 kroner per kilogram. This corresponds to 9.10 euro per kilo, which is 100 percent above the price level has been in recent years, commenting on Allison Giskeødegård.

Later Friday came branjserapporter the sharp fall in salmon prices as last Friday went in all time high.

– I think that we are now seeing the beginning of time drop in the salmon market ever, says an exporter Intrafish according to TDN Finans. The exporter reported a fall of up to 20 kroner per kilo for individual weight classes.

Bakkafrost lowered by other news, but other salmon stocks also fell. Grieg Seafood and Scottish Salmon Company was down more than four percent. Salmar and NRS fell 2.8 percent. Leroy was down 1.8 percent while Marine Harvest fell just over one percent.



ISA suspicion on Faroe Islands

Bakkafrost announced Thursday evening that there is suspicion of infectious salmon anemia (ISA) at the company’s plant A-73 in Hvannasund Nordur the Faroe Islands. The company states that appropriate action is being prepared.

We believe the risk of contagion to other localities are very small. We have divided our operation in “fire cells.” All access between the plants go through locks where everything is disinfected. It should prevent infection, CEO Regin Jacobsen in Bakkafrost.

Analyst Lage Bøhren Carnegie says according to TDN Finans Intrafish that incident increases the company’s risk significantly.

-If they must withdraw everything reduced profits in 2017 by about 10 percent per share. In relation to what this could do with 2017 volume, and how high the stock was priced, we believe today’s case is a fair response, he said.

The stock fell 4.83 percent to 333.10 kroner .

Orkla better than expected

Orkla ASA recorded a profit after tax of 1.059 million in Q2 2016, compared to 1.109 million in the same period last year. According to TDN Finans was expecting a profit of 897 million kroner.

-This was consistently solid. For “branded consumer goods” was organic growth the major positive trigger. In sum, it looks very promising, Orkla makes a lot right here, says Kenneth Sivertsen SEB to TDN.

– For the ninth consecutive quarter we have organic sales growth in the brand business. Orkla had significant improvement in operating profit due to higher sales and internal improvement projects. In addition, efforts are demanding integration work by several acquisitions. I am also very satisfied with the development in the aluminum company Sapa, says Orkla President and CEO Peter A. Ruzicka.

Shares rose 4.20 percent to 78.15 crowns.

Orkla and Norwegian Hydro-owned SAPA also presented good figures.



Underlying EBIT for Sapa increased compared with the previous quarter, mainly due to seasonally higher market demand and higher margins.

Earnings increased across all business areas, driven by positive results from improvement programs, a shift towards more høymarginsalg and positive market development.

Norwegian Hydro ended flat.

Gjensidige down on good numbers

Gjensidige Forsikring reported a net profit of 1,294.8 million in Q2 2016 against 1195.2 million in the same period last year. According to TDN Finans was expecting a profit of 1.181 million.

– Gjensidige another strong insurance results. Relevant products and services for our customers, cost-efficient operations and good control of risk selection and risk pricing are key factors for success, says CEO
Helge Leiro Baastad.

The shares in Europe were under pressure and were able to entrain Gjensidige’s share price fell 4.75 percent to 136.30 kroner.

sunset times can be related to the “combined ratio” was marginally lower than consensus. The development has been so solid all the way that if you fall short marginally be punished, says chief broker Marius Aaserud Handelsbanken TDN Finans.

Bank Analyst Geir Kristiansen Fondsfinans believes Gjensidige numbers were good, but news agency says that the company must perform in order to defend the exchange rate.

Ekornes with doubled profits

Furniture Group Ekornes posted a profit after tax of 59.2 million in Q2 2016, compared with 28.3 million million in the same period last year.

– Ekornes is a solid business in the furniture industry, but we need to strengthen competitiveness and increase profitability and growth in order to maintain and further develop our position. We therefore work with production and cost efficiency and investing in innovation and market development, says CEO Olav Holst-Dyrnes.

The share rushing up 6.52 percent to 94 million.



Havfisk trawler in million surplus

Havfisk reported a profit after tax of NOK 64 million in Q2 2016, compared with 29 million in the same period last year.

the stock fell 0.55 percent to 36 , 10 million

Agree with banks

DOF ASA has received acceptances from all banks regarding a new long-term loans in DOF Rederi AS. The new loan is according to stock exchange notice totaling 3.8 billion.

Along with the conditions it will give the company will provide a total liquidity effect of 1.3 billion.

The share rushing up 15 , 69 percent to 1.18 million.



EMAS went on a slam

EMAS Offshore got it heavily in its Q3 ended 31 May. The company presented quarterly figures after the stock exchange closed in Oslo on Thursday.

Net profit totaled 23,152 million, equivalent to 194 million.

EMAS fell 11.76 percent to 60 cents .

contract NRC

NRC Rail Norway, a subsidiary of NRC, has been awarded a contract from Spanish Obrascon Huarte Lain, worth about 108 million.

NRC rose 1.90 percent to 53.50 crowns.

stock up on issue

BW Offshore jumped up 33.3 percent to 28 cents on the Oslo stock Exchange Thursday and was present winner, after it became known that several insiders had subscribed for shares in BW Offshore offering.

The subscription period ran out today at. 4:30 p.m. and the company will issue a total of 8,559,810,000 new shares with a par value of $ 0.01 at a price of 10 cents pr.aksje.

The issue is fully underwritten and will bring in scarce NOK 856 million in fresh capital .

the share flew further up 17.86 percent to 0.33 million.

Headwind

Fred. Olsen Energy has billions in debt, losing increasing numbers of contracts and can stand with one rig at work next year.

The stock fell 12.50 percent to 18.20 kroner.



Reins pessimism

Citi upgrades its recommendation on Yara to neutral and believe fertilizer prices will reach a nadir in 2016, writes TDN Finans.

The brokerage believes 2016 will represent low battery for earnings in this cycle, and writes update the outlook starts to look more balanced out in 2017.

shares rose 1.33 percent to 281.10 kroner.

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