Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Centrica suspends share buybacks to preserve capital
Centrica [LON:CNA] has this morning issued full year results, noting a challenging market backdrop. Whilst adjusted earnings didn’t fall by as much as had been expected, profitability was hammered with this metric coming off by almost 50% whilst the company also advised that it would pause further share buybacks to prioritise the most valuable investments. A 22% increase in the dividend may offer some concessions here, although EBITDA guidance for the year ahead is also being pressured.
2. Rio Tinto fails to benefit from rising commodity prices
Full year numbers are out from Rio Tinto [LON:RIO] with record output boosting underlying EBITDA by 9% although underlying earnings are looking flat. Guidance is for production next year to be broadly unchanged, although there’s some expectation that production costs, notably on iron ore, will tick marginally higher. The dividend is being held steady at 402c per share.
3. Mondi to slash dividend as macro and political concerns weigh
Paper and packaging business Mondi [LON:MNDI] issued full year results today as well, with group revenues up 3%, underlying EBITDA down by 5% and pre-tax profits some 29% lower. Geopolitical and macroeconomic factors are weighing on the company, whilst visibility as to when improvements will be seen here remains lacking. There’s also a recommendation that the dividend is realigned with covered policy and this is likely to rattle a number of investors as it equates to a 60% cut.
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