London pre-open: Slight slip expected

2nd Feb 2010 07:37

Footsie is expected to slip into the red slightly in early dealings.Oil giant BP capped what chief executive Tony Hayward termed a 'very good' year for the company with a sharp increase in fourth quarter profits. Underlying replacement cost profit in the fourth quarter was up 70% on a year earlier at $4.4bn. Full year replacement cost profit eased 45% to $13.96bn from $25.59bn in 2008, largely as a result of weaker oil and gas prices and pressure on refining margins.Cigarette manufacturer Imperial Tobacco said it had made a strong start to the year, winning market share in growing markets such as Africa, the Middle East and Asia Pacific. The firm said its Davidoff brand has grown share in its top five markets and that West and JPS have also performed well.Market share gains and growing demand for smartphones kept chip designer Arm ahead of its rivals at the end of 2009, though sales and profits were still lower in the quarter. Fourth quarter revenues were $140m, down 6% on 2008, compared with an industry fall of about 15%. Sterling revenues were £85.2m, down 10% year-on-year.Engineering support services group Babcock remains on track for 'another year of excellent progress'. The group said the long term growth prospects of its main markets 'remain excellent' while the order book remains solid at around £6bn.Defence industry supplier Ultra Electronics has won a contract for nuclear sensors from British Energy. The contract is worth more than £20m, and is for the long term supply and management of neutron flux detectors to a number of reactors in the British Energy fleet.