The FTSE 250 was down 1.24% to 16,694.59 at 1545 BST.
Tullow Oil shares fell after Jefferies downgraded the stock to ‘hold’ from ‘buy’ and cut the price target to 48p from 77p.
The bank said Tullow’s interim results brought back into its investment view what it sees as the limitations of Ghana production improvement at the Jubilee field and TEN field.
“This, alongside more limited deleverage than (North Sea) peers and a proposed Capricorn Energy merger that has been withdrawn, means we move Tullow to a core NAV-based price target method of 48p a share and downgrade to hold.
“In simple terms, we view the circa $200m free cash flow that Tullow estimates in 2022 at $95/barrel oil price as an approximate annual limit of deleverage for the company.”
Jefferies said that because capex must continue at least at current levels to maintain drilling intensity, it does not see a step change in production either way and Tullow has no immediate exposure to the bank’s increased gas price assumptions.
Bellway shares were lower after a downbeat quarterly report from FTSE 100 rival Barratt highlighting a slowdown in new house sales.
Synthomer said on Wednesday that it has suspended dividend payments until the end of 2023, sending shares in the chemicals company tumbling.
Ahead of an investor seminar, Synthomer said its key priority is to return leverage to within its target range of 1-2 x.
“The company is in discussions with its banks to ensure that there is sufficient headroom for its covenants going forward,” it said. “As part of the waiver process, the board has suspended dividend payments until the end of 2023, including the payment that is due this November.”
FTSE 250 – Risers
Carnival (CCL) 529.40p 4.05%
Ferrexpo (FXPO) 126.60p 3.86%
Vietnam Enterprise Investments (DI) (VEIL) 582.00p 3.37%
Indivior (INDV) 1,455.00p 3.25%
3i Infrastructure (3IN) 300.00p 2.56%
SDCL Energy Efficiency Income Trust (SEIT) 98.40p 1.97%
BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 151.60p 1.74%
Morgan Advanced Materials (MGAM) 242.50p 1.68%
NB Private Equity Partners Ltd. (NBPE) 1,565.00p 1.62%
The Renewables Infrastructure Group Limited (TRIG) 120.00p 1.52%
FTSE 250 – Fallers
Target Healthcare Reit Ltd (THRL) 76.50p -8.05%
OSB Group (OSB) 375.40p -7.81%
Wood Group (John) (WG.) 109.30p -7.57%
Paragon Banking Group (PAG) 372.60p -7.41%
Mitchells & Butlers (MAB) 101.60p -7.13%
Synthomer (SYNT) 89.60p -7.05%
Future (FUTR) 1,166.00p -6.65%
ASOS (ASC) 507.50p -6.19%
Tullow Oil (TLW) 38.58p -6.13%
Bellway (BWY) 1,598.00p -6.06%
