Aviva Turns To Profit In H1; Expects To Exceed Medium-term Targets

Aviva Plc. (AV.L,AV) reported that its profit attributable to equity holders of the company for the six month period ended 30 June 2023 was 366 million pounds or 12.1 pence per share compared to a loss of 209 million pounds or 6.3 pence per share in the same period last year.

Adjusted operating profit for the period increased by 8% to 715 million pounds from the prior year driven by strong performance in UK & Ireland General Insurance and Canada General Insurance.

The company said it remains confident and excited that there is so much more Aviva can and will achieve in 2023. It expects to exceed Group medium-term targets.

The company increased the interim dividend by 8% to 11.1 pence.

The company expects full year 2023 group operating profit to grow between 5% and 7% from 1.35 billion pounds in 2022. It expects to pay a dividend of 915 million pounds or 33.4 pence per share for 2023, with low-to-mid single digit growth in the cash cost of the dividend thereafter.

Aviva’s profit before tax for the six month period ended 30 June 2023 was 496 million pounds compared to a loss of 811 million pounds in the previous year.

Insurance revenue for the period grew to 8.90 billion pounds from 8.26 billion pounds in the prior year.

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European Economic News Preview: UK Unemployment Data Due

Unemployment from the UK and economic confidence survey results from Germany are the top economic news due on Tuesday.

At 2.00 am ET, the Office for National Statistics releases UK labor market statistics. The jobless rate is seen unchanged at 4.0 percent in three months to June.

In the meantime, consumer prices from Sweden and foreign trade from Norway are due. Sweden’s inflation is expected to remain unchanged at 9.3 percent in July.

At 2.30 am ET, the Federal Statistical Office is set to issue Swiss producer and import prices for July. Producer and import prices are forecast to drop 0.5 percent annually after falling 0.6 percent in June.

At 3.30 am ET, Russia’s central bank is slated to announce the outcome of its emergency policy meeting. The central bank had called an extraordinary meeting to step up measures to contain the sharp fall of the currency.

At 5.00 am ET, Germany’s ZEW economic confidence survey results are due. The economic confidence index is seen unchanged at -14.7 in August.

At 6.00 am ET, the European Commission is scheduled to publish summer economic forecast.

Glanbia H1 Profit From Cont. Ops. Rises, Revenues Down 10.0% In Constant Currency; Upgrades Guidance

Glanbia plc (GLB.L) reported that its first-half pretax profit increased to $214.0 million from $157.6 million, last year. Earnings per share from continuing operations, in cent, was 70.91 compared to 49.90. Pre-exceptional pretax profit increased to $158.1 million from $150.0 million. EBITA pre-exceptional was $198.6 million, an increase of 6.1% constant currency. Adjusted earnings per share was 60.78 cent, up 6.6% constant currency.

First half revenue was $2.77 billion compared to $3.09 billion, last year. GPN revenues grew by 3.4% constant currency on prior period. GN revenues declined 15.2% constant currency.

The Group upgraded its full year guidance to 12% to 15% growth in adjusted EPS constant currency.

The Board recommended an interim dividend of 14.22 euro cent per share, a 10% increase on prior year interim dividend. The interim dividend will be paid on 6 October 2023 to shareholders on the register of members as at 25 August 2023.

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Intel Terminates Planned Acquisition Of Tower Semiconductor

Chip maker Intel Corp (INTC) announced on Wednesday that it has agreed to terminate its agreement to acquire Tower Semiconductor (TSEM) due to the inability to obtain regulatory approvals in a timely manner.

According to the merger agreement dated February 15, 2022, Intel will pay a termination fee of $353 million to Tower.

“We are executing well on our roadmap to regain transistor performance and power performance leadership by 2025, building momentum with customers and the broader ecosystem and investing to deliver the geographically diverse and resilient manufacturing footprint the world needs. Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future,” commented Pat Gelsinger, CEO of Intel.

On Tuesday, shares of Intel closed at $34.77, down 2.55% on Nasdaq and TSEM shares closed at $33.78 down 0.47%.

Oil Prices Little Changed On Signs Of Tighter Supply

Oil prices were little changed in cautious trade on Wednesday amid mixed catalysts.
Benchmark Brent crude futures were marginally higher at $84.86 per barrel, while WTI crude futures were down 0.1 percent at $80.92.

China’s new home prices fell for the first time this year in July, data showed earlier today, the latest in a string of downbeat data pointing to weakening momentum in the world’s second-largest economy.

Oil prices were also weighed down by uncertainty over the future course of interest rates and the prospect of a possible downgrade of several U.S. lenders by Fitch Ratings.

On the positive side, industry data showed a bigger-than-expected draw in U.S. inventories.

Data from the American Petroleum Institute showed that U.S. oil stockpiles fell by about 6.2 million barrels last week, exceeding forecasts of a 2.3–million-barrel drop.

Investors await official inventory data from the Energy Information Administration later in the day for confirmation.