24th Jun 2015 10:37
LONDON (Alliance News) - Braemar Shipping Services PLC Wednesday said the overall performance of the group in the first quarter of its financial year was in line with its expectations and the outlook for the full year "remains favourable".
Braemar, which provides broking, consultancy, technical and other services to the shipping and energy industries, said that trading in the three months to May 31 in both its Shipbroking and Technical Services divisions was good, while the Logistics business saw a mixed performance.
The Shipbroking sector benefited from greater scale and a more cost-efficient structure, Braemar said, as the tanker market continued to experience high rates and activity supported by increased worldwide oil production and refining activity. The dry cargo market, however, remains more challenging, Braemar added, as it suffers from a surplus of tonnage and a slowdown in demand. The company said it expects the market to take some time to return to a more reasonable balance.
Meanwhile, the Technical Services division performed ahead year-on-year, driven by a strong performance from Braemar Engineering, which was tempered by some reduction in offshore-related business.
However, while the Logistics business started the year well due to buoyant tanker market activity, this was largely offset by a slower freight forwarding performance, Braemar said.
Shares in Braemar were trading up 1.3% at 486.25 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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