FTSE 250 movers: Auction Technology soars on Q1 revenues; DEC slips

(Sharecast News) - FTSE 250 (MCX) 19,389.79 0.41%

Art and antique online marketplace operator Auction Technology Group said it expected annual results to be in line with expectations after an 11% increase in revenue for the first three months of the year.

The company on Tuesday said total came in at $43.9m, driven by the continued strong growth in value-added services offsetting the wider market dynamics in gross merchandise value that continued from the end of the 2023 financial year into 2024.

ATG still expects full-year organic revenue growth of 5 - 8% and adjusted core earnings margins to be maintained.

Carnival's annual earnings will take a hit as the cruise line giant is forced to re-route ships that were due to transit the Red Sea up to May this year, the company said on Tuesday, but said strong bookings would offset the impact over the year.

It forecast an impact of 7 - 8 cents per share. Carnival in December forecast adjusted earnings per share of 93 cents for 2024. However, it expects continued strong bookings momentum "to deliver outperformance during the year, offsetting the Red Sea rerouting impact".

Shipping and cruise line operators have been forced to reroute vessels passing through the Red Sea and Suez Canal as the Yemeni militant Houthis continue to attack ships in solidarity with Palestinians currently under attack from Israel.

"Given recent developments and in close consultation with global security experts and government authorities, the company has made the decision to re-route itineraries for 12 ships across seven brands, which were scheduled to transit the Red Sea through May 2024," Carnival said in a statement.

"The company has not seen an impact on booking trends due to the Red Sea situation and has no other Red Sea transits until November 2024."

Carnival added that it had "experienced an early and robust start to wave season" with bookings volumes since November hitting an all-time high.

"For 2024, the company continues to have the best booked position on record, with both pricing (in constant currency) and occupancy considerably higher than 2023 levels. In fact, the first half of 2024 is almost fully booked."

Natural gas group Diversified Energy Company (DEC) said it expect to deliver record profits above consensus forecasts for 2023 despite a "challenging" commodity price environment as production increased to an all-time high.

DEC, which trades in London and also debuted on the NYSE last month, said adjusted EBITDA will come in at between $540m and $545m for the 12 months to 31 December, helped by higher prices and lower costs. The market forecast for EBITDA currently stands at $528m, up from $503m in 2022.

Adjusted operating costs per unit fell by 3% to $10.14 per barrel of oil equivalent (boe), while the average realised price increased by 2% over the year to $20.87/boe, which the company put down to its hedging strategy in light of a difficult period for commodity prices. Meanwhile, the adjusted EBITDA margin improved to 51% from 49% in 2022.

Average net daily production was 136.8m boe per day, up 1% on the year before but a new record for the group.

Chief executive Rusty Hutson Jr said DEC delivered a "solid financial performance" in 2023.

"Throughout the year, we have continued to focus our strategic initiatives on cash flow generation, capital discipline, and balance sheet management. Continued investment in our asset base resulted in substantial emissions reduction and operational efficiency gains," Hutson Jr said.

"We continue to evaluate opportunities to successfully execute our growth and return of capital strategies moving forward, as highlighted by our successful listing on the New York Stock Exchange - a key milestone that will deliver future value."

The UK-listed shares were up 3.4% at 975.73p by 0854 GMT.

Market Movers

FTSE 250 - Risers

Auction Technology Group (ATG) 550.00p 20.48% Baltic Classifieds Group (BCG) 243.00p 4.07% Kainos Group (KNOS) 1,132.00p 3.76% Trainline (TRN) 337.80p 3.43% Spectris (SXS) 3,678.00p 3.14% Carnival (CCL) 1,190.50p 2.98% Softcat (SCT) 1,460.00p 2.82% Computacenter (CCC) 2,922.00p 2.67% Darktrace (DARK) 359.50p 2.60% TP Icap Group (TCAP) 190.70p 2.58%

FTSE 250 - Fallers

Bakkavor Group (BAKK) 92.00p -3.56% Direct Line Insurance Group (DLG) 166.45p -2.40% Ithaca Energy (ITH) 139.40p -2.38% NCC Group (NCC) 120.20p -2.28% Wood Group (John) (WG.) 167.60p -2.22% Fidelity China Special Situations (FCSS) 191.20p -1.95% Jlen Environmental Assets Group Limited NPV (JLEN) 97.40p -1.72% Watches of Switzerland Group (WOSG) 370.00p -1.60% Elementis (ELM) 139.60p -1.55% Diversified Energy Company (DEC) 929.00p -1.54%