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Thursday's agenda: Royal Dutch Shell to shrug off short-term turbulence

Last updated: 05:02 29 Jan 2015 AEDT, First published: 06:02 29 Jan 2015 AEDT

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Royal Dutch Shell (LON:RDSB) might not be so fussed about falling oil and gas prices as might be expected in Thursday’s fourth quarter update.

“The lag impact of gas pricing most especially in LNG [liquefied natural gas] suggests that Q4 results should look notably better than [its] peer [group],” suggests Deutsche Bank.

“An improved downstream should also provide an important plank of support and differentiation into 2015,” the German bank added.

“It is a reflection of just how poor results were a year ago that despite a circa US$30/bbl fall in the commodity price we expect Shell’s net income to be some 30% ahead year-on-year,” Deutsche analyst Lucas Herrmann commented.

Aside from the numbers, all of which is rear-view mirror stuff, the market will be focusing on guidance for capital expenditure, operating expenditure and the dividend; Shell sets its quarterly dividend for the next four quarters at the time of its fourth quarter results.

The German bank has also read the tea leaves for pubs group Mitchells & Butlers (M&B), which is scheduled to issue an interim management statement covering the last four months.

The company is up against some tough comparative figures from a year ago, and although, in Deutsche’s words, M&B has made some positive noises in the trade press about a very strong Christmas period, Deutsche is bracing itself for a modest slow-down t o2.1% in like-for-like growth in the 17-week period from the 2.4% gain seen in the first eight weeks.

Staying with the boozy theme, drinks brands owner Diageo serves up an update covering the second quarter of its fiscal year.

“The shares have outperformed the market since the company reported slightly disappointing Q1 figures in October. Since then an executive is reported to have indicated that sales in the US around Thanksgiving were not as good as hoped.

However, some analysts are expecting a boost from the strength of the dollar given the high proportion of sales to the US,” notes Sheridan Admans, investment research manager at the Share Centre.

Significant announcements expected

Finals: Royal Dutch Shell (LON:RDSB)

Interims: ANGLE (LON:AGL), CPL Resources (LON:CPS), Diageo (LON:DGE), Filtronic (LON:FTC), Hansard Global (LON:HSD), Haynes Publishing Group (LON:HYNS), Kofax Limited (LON:KFX), Rank Group (LON:RNK), Renishaw (LON:RSW)

Trading statements: 3i Group (LON:III), Euromoney Investor (LON:ERM), Great Portland Estates (LON:GPOR), Lonmin (LON:LMI), Mitchells & Butlers (LON:MAB), Paypoint (LON:PAY), RPC Group (LON:RPC).

Economic announcements: CBI distributive trades survey, EU business climate indicator, US pending home sales.

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