In a broadcast of BNR Nieuwsradio's Investor Panel, Mary Pieterse-Bloem, Professor of Financial Markets at Erasmus School of Economics, discusses profit warnings by listed companies.
Shell has already warned of the possibility that earnings may disappoint, with quarterly results also turning out to be less than previously expected. Although oil prices are high, the group is experiencing setbacks in the refinery, chemicals and liquefied gas markets. Nevertheless, profits in the energy sector are still rising sharply.
Expectations
According to Pieterse-Bloem, a lot is still unclear now that the season of publishing figures has only just begun. For instance, some major banks in America have already published their figures, but they are often ahead of the curve. Since their revenue model is different from many other companies, not too much can be inferred from the banks' figures. The professor does indicate that expectations will be further revised downwards. Part of this is that energy prices, mainly in the manufacturing industry, are rising significantly. Once contracts setting prices for energy expire, profit margins decline.
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You can listen to the BNR News Radio broadcast, 11 October 2022, here.