19th Aug 2020 14:41
(Alliance News) - Braemar Shipping Services PLC on Wednesday said trading in the year to date has been in line with management expectations despite challenges presented by the pandemic, and it expects the positive performance to continue.
The London-based firm - whose annual general meeting was scheduled for Wednesday - said its Shipbroking division had a strong start to the year driven by the Tankers desk where the volatility in the oil markets in March and April led to high spot and long-term charter rates.
It added that while the volatility has now faded and rates have fallen back to more normal levels, performance of other desks such as Sale and Purchase, Dry Cargo and the Braemar Atlantic Dry FFAs have improved as the oil market imbalance and the initial Covid-19 shocks to the global economy have eased. Overall revenue for the Shipbroking division for the first five months of the year was higher than expectations and above the same period year-on-year.
In Braemar's Financial division, market volatility has led to a number of opportunities in areas of restructuring, recapitalisation and loan portfolio management. The company said retainer income has been robust for the division's advisory services, adding that it expects performance for the first half of the year to be ahead of the year prior.
The Logistics division's trading for the current financial year-to-date is in line with management expectations. While the Freight Forwarding business has seen revenue shortfalls due to Covid-19-related slow-down in activity, this has been offset by cost cuts.
Braemar said the strategic review of its Engineering division is almost complete.
Looking ahead, the company said: "Overall, Braemar has continued to trade strongly since the beginning of the current financial year, despite the challenges caused by the Covid-19 outbreak on global trade. In the absence of any further deterioration in market conditions, trading is expected to continue in line with previous management expectations."
The stock was trading 7.8% higher at 145.00 pence each on Wednesday afternoon in London.
By Ife Taiwo; [email protected]
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