29th Oct 2014 09:14
LONDON (Alliance News) - Braemar Shipping Services PLC Wednesday reported a sharp drop in first-half earnings, as costs associated with its July merger with ACM Shipping outweighed a rise in revenue.
Pretax profit was GBP191,000 in the six months to August 31 after the company booked GBP3 million in merger fees and integration costs, compared with a GBP4.5 million profit in the same period last year. Revenue was GBP64.5 million, up from GBP63.9 million.
Braemar's technical division was the largest contributor to earnings with GBP2.3 million in operating profit but saw a lower level of profitability, primarily due to weaker oil and gas exploration activity in the Far East. Shipbroking contributed GBP1.4 million and Logistics GBP1 million.
The company said its earnings continue to be in line with its expectations, supported by trading so far in the second half, and it plans to pay an unchanged interim dividend of 9 pence a share.
At 0907 GMT, shares in the company were up 3.9% at 465 pence.
By Ian Edmondson
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