Thursday, February 2, 2023
spot_img
HomeHeadlinesBraemar continuing to build momentum

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Braemar continuing to build momentum

Braemar Shipping Services Plc (LSE: BMS), a leading international Shipbroker and provider of expert advice in shipping investment, chartering, risk management and logistics services, is pleased to make the following trading update relating to trading for the six months to 31 August 2021.

The new management team is encouraged by the performance of the Group in the first half of the year, where trading has been well ahead of the same period last year. The Board is pleased to see its recent investment in people to increase the strength and diversity of services offered to clients paying dividends. Following the upgrade to market forecasts and the adoption of a progressive dividend policy that followed its full year results announcement, the Group continues to trade well and is now modestly ahead of those upgraded expectations.

Shipbroking

The Shipbroking Division had a strong first half of the year and has benefitted from the investment in recent years to build the Dry Cargo and Securities desks, which have both achieved a good trading performance. The Sale and Purchase desk has also been very active on the back of the buoyant dry bulk and container markets. As anticipated the Tanker market continues to be affected by the pandemic-related weaker demand for oil, in comparison with the exceptional conditions seen in the previous year that were driven by demand for storage capacity. Overall revenue and profits for the period were higher than in the comparative period last year.

The strong trading in Sale and Purchase, Dry Cargo and Securities looks set to continue in the second half of the year as the demand for dry bulk and container capacity remains high. Whilst the tanker market remains flat, there are already indications that demand will strengthen as global demand for oil increases. The forward order book has increased in the first half of the year and is expected to close the half year at $56m compared to the $43m seen at the beginning of the period. Revenue and profits for the full year look set to exceed the previous year and meet current expectations.

Financial

The resurgent interest in the shipping industry from both a lending and equity investment point of view has meant that the Financial Division, Braemar Naves, had a successful first half of the year. Several restructuring opportunities and one significant leasing transaction in the container market were closed during the period, and revenue will consequently be significantly higher than in the first half of last year. Whilst the nature of the corporate finance work that is done by Braemar Naves means that revenues can be unpredictable, current activity levels point to a strong year as a whole.

Logistics

The Logistics Division, Cory Brothers, had a strong first half of the year, particularly from its Freight Forwarding activities. The pressure on container space and Brexit-related import/export complexities has led to greater demand for its services with a consequent increase in revenue and profits compared to the same period last year. Trading has also been good on the Port Agency side and, overall, the Division is expected to continue trading ahead of last year and in line with our expectations.

The planned joint venture for Cory Brothers with Vertom Agencies is progressing well and is expected to be concluded during the second half of the financial year. Once completed Braemar will have disposed of the current Cory Brothers legal entities in exchange for a significant minority stake in a much larger European port agency business. In anticipation of this transaction completing, those assets are likely to be classified as ‘held for sale’ in this year’s interim results and then the joint venture interest will be accounted for as an associate following completion.

Outlook

The Group has traded well since the beginning of the current financial year and will deliver interim results well ahead of the interim period last year and modestly ahead of the upgraded expectations. The board continues to look forward with confidence as it sets about delivering on its growth strategy and expects to announce an interim dividend with the interim results for the period to 31 August 2021 which will be released to the market in early November 2021.

Source: Braemar Shipping Services Plc

Related Posts

Video

Finance & Economy
Shipping News
Ports

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Bahri sees profits soar in 2022

Saudi Arabia’s Bahri has seen its profits soar by over 400% in 2022 following a boom in tanker rates, boosting the shipping giant’s oil...

Euronav Files Second Arbitration Against Frontline

Euronav NV hereby informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation...

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...