Oslo Børs rejects – sharp drop for DNB – E24

Updated …

DNB delivered much weaker quarterly results than analysts had anticipated, and the main bank’s share price fell five percent just after the opening of the Oslo stock exchange.

The fall of the DNB weighs on the main index, which after a positive start has fallen. The main index has fallen 0.52 percent to 768.02 points.

At the same time, DNB’s share falls 4.26 percent to a price of NOK 119.10.

DNB ended with an after-tax profit of NOK 4 billion in the first quarter, below analyst expectations of 7.5 billion. The main bank reserves about NOK 5.8 billion in credit losses in the first quarter, and almost half is tied to oil and abroad.

– That’s a lot, says Carnegie analyst Johan Ström about NOK 5.8 billion in credit losses in the quarter.

He says the big question is how credit losses will develop in the coming quarters. He believes that losses may also be high in the second quarter, before declining again.

Cutting oil

Wall Street rose sharply on Wednesday after positive results from tests of the crown medicine Remdisivir by the pharmaceutical company Gilead. After the shutdown, Facebook, Microsoft and Tesla released surprisingly strong quarterly reports.

The price of oil (Brent) has risen 4.23 percent to $ 23.68 a barrel, and has clearly risen since trading closed on the Oslo Stock Exchange on Wednesday.

Norway reduces oil production by 250,000 barrels per day in June and 134,000 barrels per day in the second half, the Norwegian Petroleum Directorate reported Wednesday night.

The cut will help raise the price of oil, writes DNB Markets in a morning report.

“In the oil market, reports of cutbacks in output from Russia, Nigeria and Norway, along with yesterday’s update of US stock numbers, have helped to drive prices up in the last half day,” the agency writes. brokerage.

Crown-bang

Several companies listed on the Oslo Stock Exchange have submitted quarterly morning reports.

Oil services company Aker Solutions believes this year’s revenue will drop even more than previously thought and they now forecast a 30 percent drop this year. Chief Executive Luis Araujo believes the second quarter will be the most uncertain and disruptive the industry has ever seen. Still, shares are up nearly four percent after 45 minutes of trading.

Submarine Contractor 7 Submarine delivered weaker than expected: gross operating profit (ebitda) was $ 68 million, up from $ 140 million expected. Subsea 7’s stake is down 1.50 percent

The owner of Norwegian bank Norwegian Finans reserves NOK 230 million for corona losses, the real estate company Entra hit a collapse in interest rates, while life and pension insurer Storebrand deducts this year’s dividend. Shareholders appear to be very satisfied with the result, sending the stake up to 7.44 percent.

Nordnet Morning Report