Arabian Gulf deal adds £200m to oil rig maker
A TIE-UP with the world’s biggest oil company added nearly £200m to the value of oil-rig maker Lamprell yesterday.
Lamprell will enter a joint venture with Saudi Aramco and three other firms to help build the largest shipyard in the Arabian Gulf, for £4bn.
It should be finished by 2022 on the east coast of Saudi Arabia, and will focus on establishing, developing and repairing offshore drilling rigs and ships.
It is hoped the shipyard will reduce the country’s reliance on oil production.
Lamprell will invest a maximum of £109m in the project, while Saudi Arabia’s government will cover £2.7bn and Saudi Aramco will pay £272m. Shares in Lamprell rose 5.7pc, or 5.75p, to 106.75p, adding £197m to the company’s value.
Saudi Aramco is preparing for its IPO, which is expected to the biggest public offering in history.
BA-owner International Consol-
idated Airlines Group finished slightly down despite spending much of the day recovering from last weekend’s IT meltdown.
Investors flocking back to the stock after a panic sell- off on Tuesday pushed its share price to as high as 614.2p during the day’s trading but shares fell off dipping 0.3pc, or 1.5p, to 604p.
Low-cost peer Easyjet managed to sustain its gains until the FTSE’s close after analysts at JP Morgan raised its target price to 1210p from 875p. Shares were up 1pc, or 14p, to 1414p.
The FTSE 100 hit a new record high during the day’s trading following a fall in the pound. But it closed down 0.1pc, or 6.56 points, to 7519.95, driven down by metal miners hit as China’s iron prices fell to a six-month low.
Rio Tinto saw the index’s biggest losses, falling 2.5pc, or 80.5p, to 3102.5p, while BHP Billiton fell 2.5pc, or 29.5p, to 1173p.
A FTSE 100 reshuffle sees security firm G4S, down 1p to 325p, and property investor Segro, up 5.7p to 503p, replace Hikma Pharmaceuticals, up 13p to 1688p, and
Intu Properties, up 1.8p to 272p. Meanwhile, AO World, Allied Minds and Debenhams are among those being relegated from the FTSE 250, while Pershing Square Holdings and Sirius Minerals are among those replacing them.
Yorkshire- based polyhalite miner Sirius Minerals rose 2.5pc, or 0.75p, to 30.75p as a result of the move. The closely watched company is up 57.9pc so far this year following a successful £930m fundraise at the end of 2016.
Just Eat was one of the mid-cap index’s biggest winners after broker Peel Hunt began its coverage of the firm with a ‘buy’ rating and 895p price target.
Despite an ongoing investigation into Just Eat’s planned acquisition of rival Hungryhouse, analysts noted ‘ huge incremental opportunity’ in the online food takeaway market. Shares rose 3pc, or 19.5p, to 671.5p.
Capita was also boosted by rumours it was in talks with turnaround investor Endless over the sale of its recruitment division for roughly £25m.
The firm declined to comment, but its shares rose 2.7pc, or 15.5p, to 582.5p.
In small-cap land, mineral mining investor Primorus Invest
ments shot up after executive director Alastair Clayton bought 5m shares at 0.14p each, giving him a 3.6pc stake. Shares rose 14.3pc, or 0.02p, to 0.16p.
Meanwhile, waste treatment firm Nature Group tanked after revenues declined by more than a quarter in 2016 as a result of ongoing restructuring costs. Shares fell 12pc, or 1.12p, to 8.25p.