Europe

Jane Bordenave talks to Dragados Offshore about the company’s expertise in EPC contracting for the oil and gas industry and how it is applying its skills to new areas of business.

UK company Inmarsat has ordered a fleet of three advanced satellites from Boeing for about £629 million, in order to deliver faster broadband service to customers by the end of 2014.

The major upgrade to Ka-Band satellites will enable London-based Inmarsat to offer broadband to commercial and government clients at speeds up to 20 times faster and at less cost than its ageing L-Band fleet, which operates at the opposite end of the frequency spectrum.

Drax, the UK’s biggest power station, has said that government reforms of subsidies for renewable energy have put the company’s planned biomass expansion in jeopardy.

According to a report in the Financial Times, the UK government’s new subsidy rules have made it hard for the company to make the case to shareholders for its planned £2 billion biomass investment.

Xstrata, the world’s largest exporter of coal used for power, said its first half profit more than tripled on the back of a jump in metal prices from a year earlier.

The Zug, Switzerland-based company said that net income rose to $2.3 billion (approximately €1.7 billion) from $690 million a year earlier, beating analysts’ estimates. Sales rose by 43 per cent to $13.7 billion (approx. €10.3 billion).

EDFof France is to sell its UK electricity networks business to Cheung Kong Infrastructure (CKI) of Hong Kong for £5.8 billion.

EDF's UK unit, EDF Energy Networks, distributes electricity to 7.8 million customers and generates around a fifth of Britain's electricity.

In acquiring EDF Networks, CKI has obtained low-voltage electricity distribution networks in the east and south of England, and ongoing contracts with businesses including the London Underground, Heathrow and Gatwick airports, and the Channel Tunnel.

Defence group BAE Systems and engine supplier Rolls-Royce have signed a £700 million deal to supply products and services for 57 Hawk training jets to India’s Hindustan Aeronautics Limited.

Over £500 million will go to BAE and £200 million to Rolls-Royce, who will build the engines for the jets. BAE will be supplying products and services to enable the aircraft to be built under licence at Hindustan Aeronautics Limited (HAL)’s facilities in Bangalore, India.

Spain’s Telefonica has reached an initial agreement to buy Portugal Telecom’s stake in Brazil’s Vivo Participacoes after raising its bid a third time to €7.5 billion, according to reports.

The agreement was said to be reached late yesterday, with the boards of both companies yet to ratify it. Madrid-based Telefonica holds its monthly board meeting today.

African Barrick Gold has reported a half year net profit rise of 217 per cent.

Profits at the miner soared to $99 million (approx. €76 million) on the back of increased production and the rising price of gold.

Revenue rose by 64 per cent to $424 million (approx. €326 million) and production by 23 per cent to 356,208 ounces. Realised gold prices jumped by 28 per cent to $1,155 (approx €888) per ounce.

Shareholders in Dana Petroleum are attempting to force the UK-based oil explorer to open takeover talks with South Korean suitor Korea National Oil Corp (KNOC), according to reports.

The Financial Times has reported that Schroders, Dana's biggest shareholder with a 13 per cent stake, has urged its board to engage with KNOC over its £1.67 billion indicative offer.

UK-based snack food manufacturer United Biscuits, whose brands include McVitie's, Jacob’s and KP Nuts, is to be put up for sale by its private equity owners, Blackstone and PAI Partners.

A number of banks, including Goldman Sachs and JP Morgan, are understood to be in competition to handle the sale, which is likely to begin in the autumn.