3rd Mar 2020 13:39
(Alliance News) - Braemar Shipping Services PLC on Tuesday said the outbreak of coronavirus will impact earnings for the first quarter of the year ending February 28, 2021, due to a sharp drop in charter rates since the start of 2020 as a result of significant falls in volumes into China.
Ron Series, executive chairman of Braemar, said: "Whilst the current outlook is uncertain due to the coronavirus impact, I believe that we are well positioned to benefit from a return to normal trading conditions".
Shares in the company were down 2.2% at 136.50 pence each in London on Tuesday afternoon.
For the second half of the year ended February 29, the company said trading results will be roughly in line with current forecasts from company's corporate broker finnCap.
Shipbroking had a strong second half and is expected to end financial 2020 with a forward order book around 15% higher than USD43 million at the half year stage, the company said.
The company's financial division, Braemar Naves, continued to see growth in fees from mandated business, while the logistics unit, Cory Brothers, traded in line with the previous year.
The engineering division, Wavespec, saw continuing losses, the company said, due to delays on the LNG storage technology and further delays with current projects tied to China due to ongoing trade negotiations between the US and China.
Braemar is now reassessing the carrying value of Wavespec's assets and intends to seek alternatives to improve the unit's performance.
The company is slated to release its results for financial 2020 in May.
By Tapan Panchal; [email protected]
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