2nd Jul 2025. 9.01am
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Balfour Beatty lands £833m Teesside contract
Balfour Beatty (BBY) has secured an £833 million deal to help build Net Zero Teesside Power, set to become the world’s first gas-fired power station with carbon capture and storage.
Working with Technip Energies and GE Vernova, and backed by Shell technologies, the project aims to capture up to two million tonnes of CO2 a year. The plant, a joint venture between bp and Equinor, will compress and pipe emissions for permanent storage beneath the North Sea via the Northern Endurance Partnership.
The scheme will deliver up to 742 megawatts of low-carbon electricity, enough to power more than a million UK homes. Balfour Beatty will contribute its full range of civil engineering, mechanical and electrical capabilities, drawing on its power transmission and infrastructure experience. The contract highlights the UK’s push for cleaner energy and builds on the government’s £21.7 billion pledge last year to accelerate carbon capture and hydrogen technologies.
Construction is set to begin later in 2025 and complete in 2028. The project will employ around 1,500 people at peak, with a minimum of 5% made up of apprentices and graduates. Group Chief Executive Leo Quinn called the development a key milestone in the UK’s journey to net zero and a major boost to the North East’s economy, generating long-term jobs and opportunities across the region.
BBY Daily Candle Chart
BP caught in the crossfire as oil prices slide
BP (BP.) shares dropped around 5% last week as oil prices slumped on the back of easing geopolitical tensions in the Middle East. Investors had priced in the risk of a wider conflict and potential disruption through the Strait of Hormuz, but news of a tentative ceasefire between Israel and Iran triggered a sharp unwind in the oil trade. Brent has now fallen nearly 10% over the past week, weighing heavily on energy majors across Europe.
For BP, the recent sell-off is less a reflection of its fundamentals and more a symptom of market sentiment shifting rapidly. The company remains a key long-term player in the energy transition and has attracted M&A interest in recent months. But in the short term, softer crude prices will pressure cash generation and could delay buyback expectations if the downtrend extends.
Despite the pullback, we continue to see BP as a core portfolio holding for investors seeking diversified exposure to energy markets. With a strong balance sheet, a disciplined capital return framework, and options in both traditional and renewable energy, we do not see the share price weakness as a reason to waver from our long-term view.
BP. Daily Candle Chart
EasyJet gets lift from easing tensions
EasyJet (EZJ) shares have gained some ground back as investor sentiment improved across the travel sector, buoyed by a short-term drop in oil prices and the reopening of Middle Eastern airspace. A brief wave of optimism followed news that Israel had paused further escalation after a direct request from President Trump, offering hope that international routes through key hubs like Dubai and Doha can operate without further disruption.
For carriers like EasyJet, a double tailwind of falling fuel costs and stabilising geopolitical risk is a welcome reprieve. While long-haul players like British Airways and Lufthansa saw the biggest bounce, the relief has rippled across the sector. EasyJet, with its strong European footprint and lean operating model, is especially well-placed to benefit if summer travel demand continues to strengthen in the absence of major airspace closures.
We remain bullish on EasyJet, which continues to rebound from pandemic lows with improving load factors and a tighter focus on profitable routes. The stock remains undervalued relative to its pre-Covid levels, and while macro risks remain, we see scope for further upside as consumer appetite for travel holds firm.
EZJ Daily Candle Chart
Saga breaks out on solid trading and new growth plans
Shares in Saga (SAGA) broke above key resistance last week following a well-received AGM trading update that confirmed a strong start to the year.
The group reported trading in line with expectations across all divisions, with standout performances in its Travel segment. Cruise bookings remain particularly robust, with load factors for both ocean and river cruises ahead of last year at 95% and 93%, while holiday bookings are up 14% in revenue terms and 13% in passenger numbers.
Investors were also encouraged by Saga’s continued shift toward a simplified, partnership-led model. Its insurance underwriting business is on track to complete its sale to Ageas by the end of July, while the transition of its insurance broking operations into a 20-year distribution agreement remains on schedule. At the same time, Saga is making inroads into financial services, entering final negotiations with NatWest to launch new personal banking products which is a strategic move aimed at scaling its Money division without taking on balance sheet risk.
Saga’s improving financial profile adds weight to the technical breakout. Net debt has continued to fall, down to £569.5 million as of May, reflecting tighter control over costs and improved operational cash flow. With interim results due in September, momentum is building around a recovery story that’s beginning to deliver.
SAGA Daily Candle Chart
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