Royal Dutch Shell Plc and BP PLC (LSE:BP.) got a boost on Monday afternoon after Brent oil prices broke to a new yearly high, edging closer to US$80 per barrel.
Demand is rocketing as economies worldwide reopen, with supply struggling to keep up.
The two oil majors jumped 4% to 1,588.8p and 3% to 330.4p respectively before the closing bell.
2.05pm: Rolls-Royce climbs after US Air Force decades-long contract, GBP1.45bn ITP Aero arm sale
Rolls-Royce Holding PLC climbed by a tenth after striking a GBP1.45bn deal to sell its ITP Aero arm as well as securing a 30-year contract with the US Air Force.
The FTSE 100 group said the sale to private equity group Bain Capital is a “key element” of the GBP2bn disposal programme it announced last August and is “consistent with the company’s strategy of reducing capital intensity while maintaining a key long-term strategic supply relationship”.
Under the USAF deal, Rolls will produce 650 engines at its Indianapolis site to power the B-52 Stratofortress.
“Rolls continues to remain popular with retail investors who see in it an ideal way of playing the rebound in travel and the global economy more broadly; this has come despite months of poor share price performance, but it looks like this particular value trade has been given a real boost this morning, rallying to eighteen-month highs,” analysts at IG said.
12.20pm: Journeo tumbles as supply chain issues risk delaying orders to next year
Journeo PLC (AIM:JNEO) tumbled 13% to 119p at noon as the information systems and transport technical services group isn’t immune to supply chain issues.
Some GBP300,000 in its forecast profit before tax for the year to December 2021 may be recognised in 2022 as delays in semi-conductor supplies may cause scheduling changes.
The group said this year’s orders will be delivered on time only if bus manufacturers scheduling also goes according to plan.
11.20am: Saietta in demand after operations update
Saietta Group PLC (AIM:SED, FRA:8ZM) surged 17% to 231p after updating investors on its operations.
The electric motor developer has started the planned expansion of its UK production and testing capabilities as well as eyed the Indian market.
It has also started work on the high-performance car market segment following industry interest, the firm added.
“The rapid progress since we revealed our range of AFT motors late last year has been maintained with commercial, product and R&D progress continuing on all fronts. The high level of industry interest in our AFT technology since IPO has been remarkable, and we are therefore deliberately being cautious and targeted as we select our initial customers and partners,” commented chief executive Wicher (Vic) Kist in a release.
10.15am: Novacyt dips as dispute with UK Department of Health and Social Care not over yet
Novacyt SA dipped 3% to 303.3p after interim revenues were lower than last year as it had to exclude GBP41mln due to a dispute with the UK Department of Health and Social Care.
The COVID-19 tests maker is waiting for outstanding revenue after a contract was terminated and has taken the matter to court.
Group revenue still increased by 20% to GBP54mln supported by people buying private tests in the UK.
Elsewhere, Real Good Food PLC (LSE:RGD) tumbled by a third to 1.9p after announcing its AGM will be on 20 October.
Normally, scheduling a meeting doesn’t justify such a huge decrease in share price, however the cake ingredients maker will ask shareholders to vote on its proposal to delist from AIM.
9am: 1Spatial (AIM:SPA) early riser after winning GBP8mln contract
1Spatial (AIM:SPA) Plc was an early riser on Monday, jumping 9% to 44.5p on the back of a five-year contract win.
The location software group said it will deliver “a significant multi-year digital transformation programme for a department of the UK Government”.
The total value is GBP8mln, pushing revenue forecasts for the year ending 31 January 2023 slightly ahead of expectations.
Elsewhere, Base Resources Limited (AIM:BSE, ASX:BSE, FRA:B4Z) added 5% to 14.75p after almost doubling the resource base at its Ranobe project in Madagascar.
The new estimate puts resources at 2.58bn tonnes at an average heavy mineral grade of 4.3%.
The 2018/19 drill programme revealed further significant additional mineralisation at depth in the lower sandy unit.
However, the mineralogy work required to include this geological domain in a Mineral Resources estimate has not yet been completed due to the suspension of on-ground activities.
