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UK stocks opened moderately lower on Tuesday amid a mixed bag of earnings updates that included market-pleasing numbers from BP and Direct Line that were offset by a profit slump at Diageo.
At 0824, the benchmark FTSE 100 index was down 12.89 points, or 0.2%, at 6,019.96.
BP rose 5.8% to 297.35p even as it slashed it dividend by 50% to 5.25p per share on the back of a $16.8bn second-quarter loss.
The loss included $9.2bn of impairment changes pinned on falling oil prices that BP had already signaled to investors that may have been expecting worse.
Alcoholic drinks maker Diageo slumped 6.2% to £27.02 as its profit more than halved on the back of lower sales and a $1.3bn hit from impairments owing to the pandemic.
The impairment charges at Diageo were largely associated with businesses in emerging markets, including India, Nigeria and Ethiopia.
Insurance company Direct Line rallied 6.2% to 326.6p despite posting a 9.5% fall in first-half profit.
Direct Line also lifted its interim dividend 2.8% to 7.4p per share and reinstated its 2019 final dividend of 14.4p, citing the strength of its financial position.
EasyJet ascended 8.3% to 549.18p on announcing that it would expand its flight schedule in the fourth quarter following higher-than-expected demand, while reporting third-quarter performance in line with expectations.
The budget carrier said it had notched a load factor of 84% in July, as destinations like Faro and Nice remained popular with customers.
Rival carrier Ryanair gained 3.1% to 11.2c on announcing that it carried 70% less passengers during the month of July compared to the same month a year earlier.
The airline sector in general is making a shaky and gradual recovery as lockdowns are eased, with Ryanair operating at around 40% of its normal July schedule with a 72% load factor.
Fellow budge airline Wizz Air rose 2.4% to £32.52 on news that it carried 53% less passengers during the month of July compared to the same month last year.
Aerospace and defence company Babcock International slumped 12% to 255.1p after it said it would not pay a final dividend for its financial year ended March amid a fall in quarterly profit owing to lower revenue.
Industrial flow control equipment manufacturer Rotork firmed 3.6% to 296.2p even as after posted a 4.3% fall in first-half profit after sales were hit by Covid-19 related disruptions to production facilities.
Rotork did not declare an interim dividend, but did decide to pay its previously deferred 2019 final dividend of 3.9p per share.
Precision measurement group Spectris dropped 3.7% to £25.46, having posted a deeper first-half loss that included asset write downs, though sales were better than expected in the second quarter.
Spectris held its interim dividend steady at 21.9p per share and said an additional dividend of 43.2p would be paid in October in lieu of the 2019 final dividend.
Engineering group Melrose Industries jumped 5.8% to 93.28p after it agreed improved financial covenants with its banking syndicate up until the end of 2022, for a 'modest' cash cost.
Software group Oxford Metrics added 0.4% to 75.3p on news that its motion measurement division Vicon had signed a contract with Electric Playbox, targeting the location-based entertainment market.