29th Oct 2013 11:04
LONDON (Alliance News) - Braemar Shipping Services PLC Thursday reported lower profits and revenues for the first half of its fiscal year after a contract to rescue a grounded container vessel came to an end before the period started, although profits were up excluding this big contract, buoyed by demand for its technical services.
The marine and energy services company had been involved in rescuing containers, some that fell into the sea, when the Rena sea-container ship grounded on a reef, but this contract ended in February.
The end of that operation, worth GBP15 million in revenue and GBP1.8 million in pretax profit in last year's result, meant pretax profit fell to GBP4.3 million in the six months to end-August, from GBP5.2 million a year earlier, while revenue slid to GBP66.1 million, from GBP79.4 million.
However, if the Rena contract is stripped out of last year's figures, revenues grew 3%, the company said, buoyed by demand for its technical services. Those services include specialist loss-adjusting for insurance companies in the energy sector, marine surveying, ship hull and machinery damage surveys and marine engineering and naval architecture.
Its other businesses include shipbroking, logistics and environmental services like pollution cleanup.
"Although freight rates and vessel values continued to be depressed, during the period under review, there is now a degree of optimism in some shipping markets that a cyclical recovery is underway. We believe the Shipbroking division is well placed to benefit from this recovery," Braemar Shipping Chairman Graham Hearne said in a statement.
"Overall the group delivered a stable first half performance and our expectation for the full year remains unchanged," he added.
It kept its interim dividend unchanged at 9 pence.
Braemar Shipping shares were up 1.4% at 534.12 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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