North Sea gloom sends oil stocks into the red

OIL stocks sank amid fears over the future of North Sea projects.

North Sea producer Harbour Energy shed 3.5pc, or 8.2p, to 226.7p, and global giants BP and Shell fell 2.2pc, or 10.3p, to 466.6p and 3pc, or 70.5p, to 2282p respectively amid reports that a future Labour government would block new North Sea oil projects.

There also remains uncertainty over whether Opec+, the group made up of 13 oil-exporting nations such as Iran, Saudi Arabia and Iraq, and allies including Russia, would increase their output cuts at its meeting on June 4.

Last month it announced plans to slash supply by nearly 1.2m barrels a day.

The price of Brent crude sank more than 3pc to hover below $75 a barrel.

The London stock market reopened from the bank holiday weekend on a mixed footing, with the FTSE 100 down 1.4pc, or 105.13 points, to 7522.07 and the FTSE 250 gained 0.1pc, or 13.28 points, to 18807.37.

There was good news for Greencore

after the supermarket sandwich maker increased its revenue despite a seasonally quieter first half of the year. Sales rose by a fifth to £925.8m in the six months to the end of March.

But it swung to a loss of £6.2m, having made a £1m profit the year before, amid higher costs and soaring interest rates.

The group also cut costs by axing 25 jobs at the end of March.

It also launched a share buyback yesterday worth up to £10m as part of a wider £50m repurchase programme. Shares grew 4.3pc, or 3.25p, to 79.05p.

Heading in the other direction was Dr Martens as analysts painted a bleak picture ahead of its results on Thursday. RBC lowered the boot maker’s rating to ‘sector perform’ from ‘outperform’ and cut target price to 180p from 230p. The broker flagged concerns over challenges the group faces in the US which makes up 37pc of revenues. Shares sank 5.1pc, or 8.2p, to 153.1p.

Lloyd’s of London insurer Hiscox has appointed the former boss of Prudential (flat at 1125p) to become its next chairman.

Jonathan Bloomer, who led the former M&G (down 0.03pc, or 0.05p, to 198.3p) parent company from 2000 to 2005, is set to join the group on Thursday and replace Robert Childs who will retire on July 1. Shares rose 1pc, or 12p, to 1182p.

The boss of Hochschild Mining is to step down after 13 years.

Ignacio Bustamante will leave his job at the gold and silver miner on August 26 to move to London and take up a new position at another company.

He will be replaced by Hochschild’s chief operating officer Eduardo Landin, who has held the role for 10 years. Shares rose 1pc, or 0.7p, to 72.75p. Rolls-Royce 3.1pc, or 4.65p, to 144.4p and BAE Systems dropped 0.8pc, or 8p, to 943.4p after the British defence giants were accused by India’s investigative agency of engaging in a ‘criminal conspiracy’ over the supply of fighter jets to the country between 2003 and 2012.

RHI Magnesita stormed to the top of the mid-cap index after the group, which makes heat resistant materials for the steel industry, received an offer for 20pc of its shares at 2850p.

The bid, which was tabled by the investment holding group Ignite Luxembourg, represented a 39pc premium to the company’s previous closing price.

Shares jumped 23.6pc, or 484p, to 2534p.

It was also a positive session for Hunting after the energy services firm increased its profit forecast for 2023 on the back of winning its biggest contract to date worth £73m with India’s Cairn Oil and Gas.

Shares soared 13.4pc, or 27p, to 228.5p yesterday.