6th May 2016 11:21
LONDON (Alliance News) - Clarkson PLC warned on its short-term outlook ahead of its annual general meeting on Friday, citing "highly challenging" global shipping markets in 2016.
The shipping company said the ClarkSea index, which is a weighted average index of earnings for the main vessel types in shipping, was down 25% in the period from January 1 to May 5 on the same period the year before, and down 24% quarter-on-quarter.
Clarkson said that its broking business has seen good transaction volumes compared to the market, but these were still at lower rates than previously.
Meanwhile, the trading conditions across international markets in the financial division are being "hampered" by macroeconomic uncertainty, leading to a knock-on effect on overall activity levels, while the port services business is still being hit by the downturn in the oil and gas industry.
"The short-term outlook continues to be very challenging. Even though we have again improved market share, the risks to the outcome for the full year have increased and there will once again be a heavier weighting to the second half," Chairman James Hughes-Hallett said in a statement.
Shares in Clarkson were trading down 3.9% at 2,180.00 pence on Friday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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