London pre-open: Footsie to ease

8th Feb 2011 07:39

It's expected to be a slow start, with the leading index giving back a handful of points after closing at its highest in almost three weeks last night.The sixth consecutive day of gains on Wall Street and buying in the Far East could limit losses over here.In company news, BG Group grew fourth quarter profits by 3% thanks to higher energy prices and a lower exploration charge. Operating profit rose to $1.80bn in the last three months of 2010 from $1.76bn the year before. When disposals and one-offs are included the number drops from $1.49bn to $1.42bn. Profit before tax slipped to $1.45bn from $1.49bn. The company predicts exploration and production growth will approach the lower end of its long-term range of 6-8% in 2011 before accelerating above that from next year as new production ramps up in Brazil, Australia and the US. Mining giant Xstrata enjoyed a sharp surge in profitability in 2010, as the benefits of 2009's restructuring activities kicked in and production volumes soared. Profit before tax rose to $7.11bn, excluding exceptional items, from $1.87bn. Revenue jumped to $30.50bn from $22.73bn in a year in which the group saw record production volumes for coking coal, semi-soft coking coal and mined and refined nickel.The drilling results at Premier Oil's Catcher North Well in the UK Central North Sea have indicated an oil pay at the lower end of the company's expectations. As a result of the lower than expected oil pay encountered at Catcher North, Premier now estimates the overall oil reserves range for the combined Catcher, Catcher North and Catcher East discoveries at between 40 mmbbls (millions of barrels) and 80 mmbbls.The political turmoil in Egypt and Tunisia will knock £20m from Thomas Cook's profits this quarter, the travel group warned, disrupting what had been a good start to the year. Revenue in the first quarter rose by 7% to £1.81bn reflecting increased volumes and improved product mix, while the traditional seasonal loss fell to £37.3m.