On Wednesday, the primary stock markets in Europe commenced trading without a clear trend.
Germany’s Dax experienced a slight fall of 0.2 percent, while France’s CAC 40 and Britain’s FTSE 100 both saw a minor rise of 0.1 percent.
The extensive Euro Stoxx 600 also observed a small increase of 0.1 percent.
During the earnings period for listed companies, the focus was on the financial results of companies in the energy sector.
German firm Siemens Energy reported a loss for another quarter, particularly facing challenges in its wind turbines unit, despite strong results in the gas and electricity grid operations.
Despite the loss, the company’s share price rose by 3.2 percent.
French energy behemoth TotalEnergies disclosed a 31 percent drop in profit for the fourth quarter, attributed to low oil and natural gas prices. Despite this, the company plans to increase its dividend payouts.
Total’s shares fell by 1.1 percent in the morning trading.
Norwegian oil titan Equinor mentioned that its results are under pressure compared to the peak year 2022, but it remains capable of bountiful capital returns. The company plans to invest a total of 14 billion dollars into share buybacks and dividends this year. However, the net profit for the fourth quarter of last year dropped by 60 percent compared to the previous year, slightly below analysts’ expectations.
Equinor’s shares fell by 3.2 percent in the morning trading.
Danish wind power technology firm Vestas returned to profitability last year and expects to see growth this year as well. The company predicted a profit margin of 4–6 percent, aligning with analysts’ expectations. The company primarily collected orders from the United States and Australia.
Shares of Vestas surged by 7.2 percent.
However, Denmark’s largest wind power reliant energy company Orsted fell short of market expectations by reporting a revenue of DKK 21.5 billion for the last quarter. The company has decided to abandon its plans for new green energy projects due to recent losses. Furthermore, the company announced that it would suspend dividend payments at least until 2025.
Orsted’s share value declined by 0.2 percent.
Beyond the earnings season, the focus now shifts to the interest rate outlook in Europe.
Isabel Schnabel, a member of the Executive Board of the European Central Bank, expressed that persistent inflation in service sectors, a robust labor market, and tensions in the Middle East are causing the ECB to proceed cautiously with interest rate reductions.
