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Saudi Aramcoā€™s (SA:2222) first-quarter profits climbed on higher oil prices, which made up for a cut to exports caused by the Iran war. Adjusted net income for the three months to 31 March was $33.6bn (Ā£24.7bn), up 26 per cent compared to last year. This was also ahead of the analyst consensus forecast of $31.2bn.

Aramco chief executive Amin Nasser warned of a long recovery because of the volume of oil kept out of the market after Iran shut down trade through the Strait of Hormuz in retaliation for US and Israeli missile strikes. Tehran also attacked energy infrastructure in the Gulf states, further cutting oil and gas supply.

ā€œFrom a macro point of view, [Aramco] management highlighted the macro impacts of the recent disruption in the Middle East, pointing to a cumulative loss of 1.4bn barrels of global crude supplies due to the closure of the Strait of Hormuz, translating to 880mn barrels of losses when offset by rerouted exports and inventory draws,ā€ said RBC analyst Biraj Borkhataria.

The Saudi state producer did not say in detail what happened to its own exports beyond reporting a new east-west pipeline had hit capacity of 7mn barrels of oil per day (b/d), ā€œsupporting exports via Saudi Arabiaā€™s west coastā€.

Aramco reported a total output of 12.6mn boe/d, from 13.2mn boe/d in the fourth quarter. It held onto the base quarterly dividend of $21.9bn.

Shares in specialist chemicals Victrex (VCT) fell 5 per cent in morning trading after the half-year results revealed an awkward non-cash impairment of Ā£60.6mn relating to its troubled manufacturing plant in Panjin, China.

After investigating the problems at the plant, the company has now concluded that one of the production units cannot deliver 1,500 tonnes of product a year that had been advertised, forcing it to book the non-cash charge on the physical assets.

Consequently, profits swung to a reported loss before tax of Ā£44mn, with underlying pre-tax profits down by 18 per cent to Ā£19mn. On a full-year basis, management now expects underlying pre-tax profit for 2026 to be in the range of Ā£42mn-Ā£44mn.

IAG (IAG) has offered to buy back ā‚¬825mn (Ā£714mn) of convertible bonds. The bonds, which pay a low annual coupon of 1.125 per cent, are due to mature in 2028.

The company has offered ā‚¬138,500 for every ā‚¬100,000 of bonds held, which ā€œis broadly in lineā€ with their current market price, Panmure Liberum analyst Gerald Khoo said.

If enough bondholders accept the offer, it will mean net interest costs tick up but shareholders should benefit from a 5.6 per cent reduction in IAGā€™s fully diluted share count, he added.

Shares in IAG are up 6 per cent this morning, following a 3 per cent slide on Friday when the group warned that fuel prices would be about ā‚¬2bn higher than previously forecast. The airline added that it expects to recoup 60 per cent of these costs.

Despite this cost increase, Deutsche Bank has kept its forecasts for the airline unchanged. Although fuel costs will be about ā‚¬400mn higher than the bank had previously estimated, this will largely be offset than a stronger than expected first quarter and an assumption that higher prices will boost passenger revenues, analyst Jamie Rowbotham said.

Shares in Compass Group (CPG) climbed 5 per cent in early trading, after the catering giant signalled full-year profit growth could come in ahead of expectations.

The FTSE 100 corporate caterer reported an 11 per rise in revenue to $25bn (Ā£18.3mn), while pre-tax profit jumped 15 per cent to $1.47mn for the six months to 31 March. The business put this down to high client retention levels, and a 14 per cent rise in new business wins due to a growing market for offices outsourcing their canteen services.

The group, which makes over two-thirds of its sales and three-quarters of its profits in the US, also said that the integration of its Vermaat acquisition, a Dutch catering service provider, was progressing well.

Compass paid $1.7bn for Vermaat last year as part of efforts to replicate its buy-and-build model in Europe.The group spent $2.3bn on M&A over the period.

As a result, the operator raised its operating profit growth guidance for 2026 from 10 per cent to ā€œaboveā€ 11 per cent. Guidance of organic revenue growth of 7 per cent, and 2 per cent growth from M&A, remains unchanged.