Week ahead in business and economics: February 4-7

Corporate week ahead

BP is set to become the latest oil and gas major to report falling profits and production next week when it unveils full-year profits. But there should be none of the profits shockers served up recently in results from rivals Shell and BG Group.

The oil giant has sold almost $40bn (£24.3bn) of assets in recent years, in the wake of the Deepwater Horizon oil spill catastrophe in the Gulf of Mexico, to help to pay for the $42.5bn set aside for clean-up costs, fines and compensation payments. And such divestments have taken a toll on production.

Exits from Colombia, Venezuela, Vietnam and Pakistan and other disposals have cost the group 150,000 barrels of oil a day in 2013, while falling refining margins and the sale of two refineries have hit profits.

Analysts expect underlying fourth-quarter replacement cost profits of about $2.7bn, against $3.9bn for the same period in 2012, with BP’s full-year earnings expected to drop from $17.1bn to $13.3bn.

Monday February 3

Ryanair stunned investors and analysts when it downgraded its full year profit guidance from a range of €570m-€600m to €570m and then down again to €510m (£418m). The low-cost carrier has since launched a public relations blitz, promising a raft of customer service improvements. Ryanair is expected to post a loss of €35m for the third quarter, compared to an €18m profit at the same point last year. However, the City is more interested in the next financial year, when the improvements are expected to filter through and Ryanair will take the delivery of the first of its new Boeing 737-800 aircraft.

Full-year resultsAnglo Platinum, Goldenport Holdings, Randgold Resources, RM

Interim results None scheduled

Trading update Creston, Future, Ryanair

Economics UK Manufacturing PMI for January

Meetings BlackRock Frontiers Investment Trust (AGM), Darty (EGM), Future (AGM)

Tuesday February 4

• After operating for 14 years, online grocer Ocado is close to reporting its first pre-tax profit. The company last year agreed a transformational £216m tie-up with Morrisons which involves Ocado operating the Yorkshire-based supermarket’s new online service. The cash from that deal should mean that Ocado posts a full-year pre-tax profit either in its annual results this week or in 2014. The consensus in the City is that Ocado may just miss out on moving into the black this week by reporting an adjusted pre-tax loss of £4.2m for the year to the end of November.

Full-year results BG Group, Low & Bonar, Ocado Group, St Modwen Property

Interim results Alumasc Group, Kofax Limited

Trading update ARM Holdings, BP, Delphi Automotive, TalkTalk Telecom Group, Victrex

Economics UK Construction PMI for January

Meetings Victrex (AGM)

Wednesday February 5

• Financial services adviser Hargreaves Lansdown reports interim results that are expected to show revenues of £164.3m, up 17pc year-on-year, according to broker Charles Stanley. Shareholders will be focusing on whether second-quarter business benefited from the Royal Mail IPO. Charles Stanley says questions remain over “whether the company’s growth and high profitability levels can be sustained as its 'first mover’ advantage dissipates and competition intensifies”.

Full-year results Wolfson Microelectronics

Interim results Hargreaves Lansdown

Trading update Daily Mail and General Trust A, GlaxoSmithKline, GW Pharmaceuticals, Homeserve, Quintain Estates & Development

Economics Eurozone composite PMI for January

Meetings Daily Mail and General Trust A (AGM), Grainger (AGM), Imperial Tobacco Group (AGM)

Thursday February 6

• M&A is likely to be top of the agenda at Vodafone once again after America’s AT&T issued a statement last week saying it did not plan immediately to bid for the company. AT&T is likely to rekindle interest once a six-month cooling-off period expires, while Vodafone is eyeing assets across Europe, with Spain’s Ono in its sights. Consensus estimates in the City are for a 4.9pc fall in service revenue, with emerging market growth offsetting European declines.

• AstraZeneca will continue to chart its fall off the patent cliff when it posts another year of sliding revenues on Thursday. Analysts forecast, on average, that sales will drop 8.1pc year-on-year to $25.7bn (£15.6bn). The company is likely to draw investors’ attention to the future potential of its pipeline, especially the diabetes franchise. Investors will eagerly await any update on an investigation into AstraZeneca’s blockbuster heart drug, Brilinta.

Full-year results AstraZeneca, Beazley, Smith & Nephew

Interim results None scheduled

Trading update Avon Rubber, Compass Group, Dairy Crest Group, Darty, easyJet, Enterprise Inns, Grainger, Investec, LondonMetric Property, SuperGroup, TUI Travel, Vodafone Group

Economics Bank of England monetary policy announcement, European Central Bank interest rate announcement

Meetings Avon Rubber (AGM), Compass Group (AGM), Enterprise Inns (AGM), TUI Travel (AGM)

Friday February 7

Full-year results None scheduled

Interim results None scheduled

Trading update Acal

Economics UK trade balance for December, UK industrial production for December, US employment data for January

Meetings Melrose Industries (EGM), Restaurant Group (EGM), Shaftesbury (AGM)

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