(Updating with full report)
OSLO (Thomson Financial) - Share prices closed higher, led up by Acergy after yesterday's 635 mln nkr order received by its part-owned unit NKT Flexibles, and by Renewable Energy Corporation (REC) on positive analyst comments, while Tomra Systems and TGS-NOPEC Geophysical fell on disappointing earnings news.
The OSEBX Benchmark index closed 1.50 points higher at 519.69 and the OSEAX All Share index rose 2.51 points to 601.47.
Total turnover amounted to 14.73 bln nkr.
Acergy closed 5.25 nkr higher at 158.5. NKT Flexibles, where it owns 49 pct, yesterday received a letter of intent worth about 635 mln nkr from Statoil. The group's recent second-quarter earnings and raised sales guidance resulted yesterday in Lehman upping its target on the stock to 26.5 usd from 25.5 on a reiterated 'overweight' stance, while SG Securities upgraded the stock to 'buy' from 'hold' with a 170 nkr target.
Statoil rose 0.25 to 191.5. Analysts in Moscow think there is a good chance StatoilHydro will be awarded the remaining 24 pct stake in the Shtokman operating company, daily Dagens Naeringsliv said.
Norsk Hydro added 3 to 246. According to Carnegie, Hydro's investor relations director said the firm 'is highly involved in the current industry consolidation talks', but declined to say who with.
TGS-NOPEC fell 9 to 115 after it warned that delays to key projects were likely to hit its full-year results, and that it is now expecting 2007 sales growth of 15-20 pct, down from the 20-25 pct figures given in previous guidance.
Frontline fell 3 to 301 after the stock was cut to 'reduce' from 'neutral' at UBS.
Petroleum Geo-Services was down 1.25 at 152.5, while Seadrill added 0.25 to 126.5.
Renewable Energy was up 3.5 at 235.5. The company could be the best share in the Nordic solar segment in the second half of this year, Esbjorn Lundevall, head of analysis at SEB, told the online version of Swedish business weekly Affaersvaerlden.
'There is an enormous interest in investments in alternative energy but few listed companies in the sector can overcome the quick expansion with good profitability while having a strong position globally in a business with fairly high start-up barriers,' he said.
'Valuations and risks are high, however, and in the longer term the customers' reliance on public support is also a threat.'
Aker Kvaerner rose 3.75 to 158 as yesterday's announcement regarding the development of the Shtokman gas field put the Norwegian engineering firm back in the spotlight, dealers said.
Russian oil giant Gazprom announced that France's Total has been chosen as its main foreign development partner for the mammoth Shtokman gas field.
'If Statoil isn't going to be involved - at least not in a leading role - then I would say Aker Kvaerner is likely to benefit due to its expertise of operating in such environments,' one analyst said.
Aker Yards fell 2.25 to 73.25. The group's subsidiary, Aker Oilfield Services, said it has decided to fast-track the construction and delivery of the first two of its recently-ordered oilfield vessels after winning long-term charter contracts from Norwegian peer DOF Subsea. No financial details were given on the contract wins.
DOF Subsea was up 1 at 57.25.
Tomra Systems fell 6.8 to 47 on renewed concerns about the firm's outlook following second-quarter results which came in largely in-line with expectations, dealers said.
Following the market close last night Tomra posted operating profits of 111 mln nkr for the quarter, marginally below the 113 mln consensus forecast, on sales of 887 mln, slightly up on the 870 mln forecast.
Despite the in-line results, analysts said concerns about the firm's prospects were hitting its shares, particularly due to delays to a key Tesco contract and a lower number of machines delivered to the important German market.
Carnegie cut its earnings estimates for 2007-08 by 12 pct and 5 pct respectively, but reiterated its 'outperform' recommendation.
But the broker remained confident in the firm's longer-term prospects. 'We consider this a buying opportunity,' it said.
DnB NOR Markets noted the slowdown in orders from Germany, as well as the Tesco contract concerns. It retained its 'buy' rating on Tomra but cut its share price target to 60 nkr from 60-65 nkr.
Ementor was 2.5 higher at 54.5 after the group beat market forecasts with its second-quarter operating profits, fuelled by higher-than-expected revenue growth across the group, dealers said.
Ementor posted second-quarter operating profits of 85.5 mln nkr, up from a pro-forma 60.7 mln last time, and ahead of the 76 mln consensus forecast of analysts polled by TDN Finans.
EBITDA came in at 115.8 mln nkr, up from 81 mln last time, and well ahead of the 98 mln consensus forecast.
Revenues, meanwhile, came in at 3.42 bln nkr, up from the pro forma figure of 3.20 bln, and ahead of the 3.12 bln consensus forecast of analysts.
Analysts welcomed the forecast-beating numbers, with SparNord Bank reiterating its 'buy' recommendation.
Telenor rose 2.25 to 113, while Fast Search & Transfer fell 0.2 to 14.45 and Eltek shed 0.6 to 46.4.
Yara International added 1 to 165. The group is tipped to post strong earnings on record fertiliser prices, higher volumes and historically low energy prices when it reports its second-quarter results on Tuesday, but higher energy prices continue to loom in the background and threaten to undo much of the stock's recent strong performance, analysts said.
Norske Skog was 0.3 lower at 85.2
Orkla shed 2.25 to 113. Carnegie placed 20 mln shares in Orkla at 113 nkr each.
Schibsted added 3 to 253, Storebrand was up 3.2 at 94 and DnB NOR added 0.1 to 77.4 michael.delaine@thomson.com mdl/rfw COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
