Stock-market investors will have a busy time this week, as many big names are reporting results - including energy groups Shell and Centrica.

The companies, which both have significant operations in Scotland, are both announcing half-year figures on Thursday.

Laura Hoy, an equity analyst at Hargreaves Lansdown, reported that Shell will have benefited from the high oil price at over $100 per barrel through the second quarter.

She added: "Some of that influx has been funnelled into buybacks and dividend hikes. Last we heard, management said it would pay out upwards of 30% of free cash flow from operations in the second half. And, earlier this month, CEO Ben van Beurden said that 'giving back more to shareholders' is a priority."

Laura said that the group's liquid natural gas arm will also be of interest.

She went on: "Abandoning operations in Russia is expected to lower production by 0.8million tonnes in the second quarter, with guidance in the range of 7.4million-8million tonnes. Given this was meant to be a growth avenue, we'd like an update on where management sees this business heading.

"Renewables will also be in focus as the conversation around how big oil can use the current conditions to supercharge their transition to greener alternatives.

Shell's renewable arm

"This unproven part of the business requires a lot of investment, and has yet to turn free cash positive. Any indication that Shell's renewable arm is nearing profitability will be welcome news."

Meanwhile, the Sunday Times has reported that Centrica chief executive Chris O'Shea has a date with destiny on Thursday.

He is expected to unveil bumper half-year results for the British Gas owner - piling pressure on him to return the dividend after more than two years.

There is one problem: customers are facing a cost-of-living crisis largely fuelled by high energy prices.

Nick Purves of Redwheel, a top-10 Centrica shareholder, told the Sunday Times: "Like many companies, they're having to walk a bit of a tightrope.

"They need to be sensitive to realise they shouldn't be paying out bumper dividends at a time when so many people are finding life so difficult. But, at the same time, Centrica shareholders have had a pretty-uncomfortable ride for a long period. It's only fair they are rewarded to some extent for their patience."

Credit Suisse bank estimates Centrica will rack up adjusted pre-tax profits of close to £1billion this year, up £200million on last year. Revenues are expected to jump from £18.3billion last year to £27.8billion in 2022.

FTSE 100

The UK's top share index, the FTSE 100, was down 20 points at 7,255 shortly after opening this morning, following Friday's five-point gain.

Brent crude futures slipped by 1.01% to $102.26 a barrel.

Companies reporting today

  • Trading updates: Ryanair, Vodafone

More like this…

View all