5th Nov 2025 14:34
(Alliance News) - Braemar PLC on Wednesday reported lower first-half earnings as softer chartering rates and geopolitical volatility weighed on performance, though the company maintained its full-year outlook and said market conditions are improving.
The London-based provider of investment, chartering and risk management advice to shipping and energy markets said pretax profit for the six months to August 31 dropped 74% to GBP932,000 from GBP3.6 million a year earlier.
Revenue fell 16% to GBP63.9 million from GBP76.0 million, mainly due to weaker tanker and dry cargo markets, where average rates declined by 29% and 17%, respectively. The company's risk advisory division continued to grow, however, with revenue up 9% year-on-year.
Underlying operating profit decreased 30% to GBP5.1 million from GBP7.3 million, while net debt rose to GBP5.6 million from net cash of GBP3.3 million a year earlier, reflecting working capital movements and a GBP2 million share buyback.
Braemar said it had returned to a net cash position by the end of October.
The company declared an interim dividend of 2.5 pence per share, down 44% from 4.5p a year earlier, payable on January 13, 2026.
Chief Executive James Gundy said: "Improvements in chartering rates, increasing sale and purchase activity and a strong forward order book in the second half of the financial year support the board's confidence in maintaining our full-year forecast, despite the challenging global market headwinds we have faced in the first half."
At the end of August, the company's forward order book stood at USD73.8 million, compared with USD80.9 million a year earlier, rising to USD81.2 million by the end of September.
Looking ahead, Braemar said it remains on track to meet the board's unchanged expectations for financial 2026, supported by improving charter rates and a "positive outlook" for the second half, though it cautioned that geopolitical uncertainty remains elevated.
Shares in Braemar were down 3.8% at 229.00 pence in London on Wednesday afternoon.
By Eva Castanedo, Alliance News reporter
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