Statoil (NYSE:STO) claims to have a large enough cash chest to ride out a prolonged fall in oil and gas prices, this in the context of a somewhat disappointing Q2 profit. Expects to spend $18 billion in capex in 2012.
Dow Chemical (NYSE:DOW) CEO blames a deteriorated global economy for a dismal Q2 where profits fell 34.5 percent y-on-y; sales decline by 10 percent due to Europe and the Euro. Outlook for the second half in 2012 may also be affected by a “global macro environment not improving at the rate previously anticipated.”
Potash (NYSE:POT) reports higher sales of Nitrogen (up 12.4 percent) and Potash (up 5.7 percent) against a decline of 10 percent in Phosphate. Gross margin earned on fertilizers was $1.2 billion, slightly above 2011 levels. Keeps full year outlook the same as previous.
Merck’s (NYSE:MRK) Zolinza drug, has a two-pronged effect: apart from acting on a rare type of cancer, it may also help cure AIDS. Reportedly, existing AIDS drugs are unable to kill hidden HIV-infected cells which cause a re-emergence of the disease once treatment is discontinued. Zolinza is found to have reactivated these cells in eight patients – a precursor to the complete elimination of the virus from the patient’s body.
The Libor scandal now engulfs Lloyds (NYSE:LYG) as it is sub-peonaed by investigating authorities and is already embroiled in many lawsuits connected to the issue; Libernum Capital estimates Lloyds potential liabilities at 1.5 billion pounds whereas the bank does not appear to carry any provisions to cover these penalties.