North Sea: Shell maintains oil production and hikes investor payouts

The oil giant said on Wednesday that it expects to increase dividends per share by 15 per cent from the current quarter and to return at least $5 billion (£4bn) to investors through share buybacks in the second half of this year.

The news came in an update on strategy in which the company said it expected to maintain oil production at current levels to 2030 and to remain a leader in the global gas business.

The company was accused by campaigners of backtracking on a pledge made in 2019 to reduce production by two per cent annually to 2030.

“This U-turn from Shell is a climate bombshell and exposes the hollowness behind the setting of such a target,” claimed Jonathan Noronha-Gant of Global Witness.

Hundreds of Scottish jobs transfer to Ireland’s ABP

Family-owned meat processor Scotbeef has sold two of its facilities employing hundreds of people to Ireland’s ABP Foods.

The abattoir at Bridge of Allan near Stirling and a meat packing facility at Queenslie in Glasgow will become part of ABP’s UK meat division, which includes an existing processing facility in Perth. The deal, which has been completed for an undisclosed sum, is expected to close at the end of July.

A spokesman for Scotbeef, which was founded in 1920 and run by the fourth generation of the Galloway family, declined to comment on whether the sale of the two facilities was linked to recent events at its Wolverhampton operation.

It was reported in April that more than half of the 98 employees at Wolverhampton were at risk of redundancy after Scotbeef lost a large contract with Aldi, meaning there was no longer enough work to sustain staffing levels. Scotbeef produces primary and added-value red meat products for the UK retail sector, food service providers, and for export.

Bellway issues warning over demand for homes

Shares in housebuilder Bellway fell sharply on Tuesday morning after it warned the continuing cost of living crisis and uncertainty over interest rates “could impact housing demand”.

Investors sent shares down nearly four per cent as the company reported that its overall reservation rate was nearly 25 per cent lower between February 1 and June 4 compared with the same period in 2022, at 190 per week versus 253.

Bellway said reservation rates were lower against the backdrop of higher mortgage rates compared with last year, following a succession of hikes by the Bank of England in a bid to curb inflation. The base rate currently stands at 4.5%, following a quarter per cent increase in May, and there is speculation further hikes could be in store as inflation remains stubbornly high.

Farmfoods profits up as rivals suffer from inflationary pressure

Farmfoods has reported rising profits, making it a rarity in the food retailing sector as supermarkets labour to shield consumers from rampant inflation.

Headquartered in Cumbernauld, the frozen food specialist made a pre-tax profit of £22.2 million in 2022 on sales of £1 billion across its network of more than 300 stores and four distribution centres. That was up from a profit of £20.5m the previous year on sales of £941.6m.

Tesco, Asda, Sainsbury’s and Morrisons have all reported hefty declines in profitability in recent months as they contend with the rising cost of goods, utilities and staff on one hand, while on the other attempting to keep prices down to retain customers.

Tesco chief defends grocery pricing as inflation squeezes households

Tesco chief Ken Murphy declared on Friday that there are “encouraging early signs that inflation is starting to ease” as he defended the pricing strategies pursued by the major supermarkets.

The UK’s biggest grocer maintained its profit guidance for the year as it booked total sales of £14.8 billion for the 13 weeks ended May 27, up 8.2% on the same period last year.

The results came as UK households remain embroiled in a cost-of-living crisis, with inflation on food remaining stubbornly high.

Official figures published last month showed the annual inflation rate for food and non-alcoholic beverages was 19.1% in the year to April, the second highest seen for over 45 years, easing slightly from an annual rate of 19.2% in the year to March.