Market Report: Genel may become an M&A target because it’s debt-free with a $1bn cash flow
Tuesday 26 November 2013
New plans to manage payments for oil in Turkey out of Kurdistan helped Tony Hayward and Nat Rothschild’s Genel Energy spurt up nearly 5 per cent yesterday. Analysts rated the oil explorer a buy and raised their price target after news on Friday that a deal has been reached with the Kurdistan Regional Government regarding payments that will now not contravene an existing agreement with Iraq.
All good news for Genel which UBS also predicted could become an M&A target because it is “debt-free” with cash flow estimated to rise to $1bn.
UBS gave it a 1,120p price target for shares that gushed 37p to 1,040p – above its June 2011 float price of 1,000p.
The wider market was boosted by news of the nuclear deal struck with Iran and the weakening oil price. The FTSE 100 rose 20.32 points to 6,694.62 as shares which will benefit from cheaper oil – such as airlines – soared. British Airways-owner IAG was top of the tree, up 10p to 372.8p.
Oil groups fell, though oil and gas services specialist Petrofac was an exception, having agreed a joint venture with Korean-based Daelim Industrial for a $2.1bn (£1.3bn) contract with Oman Oil Refineries and Petroleum Industries. It rose 21p to 1,212p.
At the other end of the pile, gold miner Randgold Resources lost 147p to 4,215p as the gold price weakened.
Construction and support services group Interserve won a £150m partnership with the University of Sussex and collected 11.5p to 635p.
AIM-listed digital entertainment group Amino Technologies warned its full-year 2014 revenue will be level with 2013 sales and it fell 6.25p to 89.25p.
Marine waste-management group Nature issued a profit warning and sank 8p to 27.25p.
Drug tiddler Summit agreed a deal with Oxford University to develop treatments for Duchenne muscular dystrophy and was 0.875p better at 10.125p.
Armadale Capital issued an update from its Mpokoto project in in the Democratic Republic of Congo and was 0.028p brighter at 0.2775p.
Alecto Minerals issued a positive exploration update from a Mali project and sparkled up 0.05p to 1.125p.
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Ian Brady: Moors murderer announces his support for Ukip and the SNP
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Ian Brady: Moors murderer announces his support for Ukip and the SNP
UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should convert and not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...