BP first-quarter profits fall, Ferrexpo reports rise in Ukraine volumes

Stocks to watch

BP reported a fall in first-quarter profit on the back of lower oil and gas prices, an outage at a US refinery and “significantly weaker” fuels margins as it also started a $1.75bn share buyback. Underlying replacement cost profit for the quarter was $2.7bn, compared with $5bn a year earlier and $3bn for the final three months of 2023, BP said on Tuesday. Looking ahead, BP expects second quarter 2024 reported upstream production to be slightly lower than the first-quarter.

Ferrexpo said in an update on Monday that its Ukraine subsidiary Ferrexpo Poltava Mining (FPM) saw a significant increase in production and sales volumes in the first quarter, the highest since Russia invaded the country in early 2022. It said that despite a postponed preparatory hearing regarding an application from LLC PCC Kysen and ongoing legal proceedings against FPM's senior manager Viktor Lotous for potential underpayment of iron ore royalties, its operations in the country were unaffected, as it opted to make a partial payment of the bail amount amidst a detailed assessment by its board.

Newspaper round-up

Universal Music Group could become the latest company to face an embarrassing shareholder revolt this AGM season, after an influential advisory firm urged investors to reject an “excessive” €139m (£119m) payout for its chief executive, Lucian Grainge. Glass Lewis said it had “severe reservations” about supporting the Dutch-American music company’s pay decisions, which included a €92m share-based bonus for its British-born CEO that easily made up for a 51% cut in his salary, to €7.5m. – Guardian

A decline in mortgage rates has prompted a forecaster to reverse its predictions of a fall in UK house prices in 2024, instead suggesting the average cost of a property could rise by £61,500 over the next five years. The property company Savills had forecast in November that it expected the average price of a home to fall by 3% this year because recent rises in the Bank of England base rate had heightened the affordability pressures on would-be buyers. – Guardian

Employers are cutting back hours and hiring less to cope with the rise in the National Living Wage, the boss of one of Britain’s biggest recruiters has said. James Reed, chief executive of Reed, said April’s 9.8pc increase in minimum wage was already being reflected in hiring patterns. Mr Reed said: “We have seen some employers changing their behaviour. “They might be taking on people for shorter periods or fewer hours or fewer of them because of the increasing cost.” – Telegraph

Wayve, a British driverless car company, has raised over a billion dollars from three of the world’s most influential tech companies to commercialise its products. Led by investor SoftBank, with contributions from Nvidia and Microsoft, the funds will help develop the start-up’s artificial intelligence software, which can make any vehicle hands-free. – The Times

The UK is likely to have exited recession at the beginning of this year, with growth now gathering momentum in a suite of key economic sectors, analysis suggested. Figures shared with The Times by Lloyds Bank showed that more than half of sectors within the UK economy grew in the first three months of this year, suggesting that official GDP estimates this week will confirm that the economy left recession. – The Times

US close

Stocks on Wall Street closed higher on Monday, with the Dow Jones Industrial Average up 0.46% at 38,852.27.

The S&P 500 added 1.03% to 5,180.74, and the Nasdaq Composite was ahead 1.19% at 16,349.24.