RAMSEY CROOKALL & CO

EVENING REPORT 22 February 2011

BHP Billiton recovered today from the previous days losses, closing up 38p at £24.13. The firm is usually thought of as a miner but it has oil and gas assets too, and it bolstered those Tuesday with the acquisition of Chesapeake Energy’s Fayetteville shale assets at a cost of $4.75bn.

Oil prices were higher again, with the price of the most widely traded futures contract of Texas light sweet crude surging more than $7 above $93 a barrel as the US rushes to play catch-up after its market holiday yesterday.

The oil price rise was not good news for British Airways owner IAG, no frills airline easyJet or package tour operator TUI Travel.

The high oil prices stoked by the Libya turmoil didn't worry coal-fired power station operator Drax, though the chairman, Gordon Horsfield, did warn of "pressure on coal generation margins due to today's commodity market conditions," as he unveiled forecast-busting 2010 earnings.

Government spending cuts alarmed shareholders in defence firm BAE Systems. Defence Secretary Liam Fox is due to give a speech later today in which he is expected to criticise spendthrifts at the Ministry of Defence. BAE closed down 15p at 326p.

Shares in Lamprell have jumped after the provider of engineering services to the international oil and gas industry, defied the trend after announcing a contract win. The company has received a new contract award from Singapore company Greatship Global Energy Services for the construction and delivery of a completely outfitted and equipped, LeTourneau designed, self-elevating Mobile Offshore Drilling Platform of a Super 116E (Enhanced) Class design.

THE FTSE 100 CLOSED DOWN 18 @ 5996

THE DOW JONES AT 4.40 IS DOWN 97 @ 12,294

THE NASDAQ COMP AT 4.40 IS DOWN 47 @ 2786

Exchange Rates

GBP – USD 1.6119 GBP - EURO 1.1806