Braemar Shipping Services plc (LSE: BMS), a leading international provider of shipbroking, financial advisory, port and marine consulting services principally to the shipping and energy industries, will make the following trading statement at 2pm today at its Annual General Meeting:
The Shipbroking division has performed well during the first quarter, being ahead of budget compared with the same period in the prior year. Our newbuilding activity has been strong in recent months and has added to the forward order book. The Dry Cargo chartering rates started the year weakly because of the Brazilian iron ore supply interruptions and Tanker chartering has been impacted by a combination of weaker oil demand and unusually high delivery of new vessels. However, we are now starting to see improvements in both markets. Market indicators and forward rates suggest these improvements will continue over the balance of the year.
The Financial division continues to be active across a wide range of advisory and refinancing projects.
Our retainer fee base remains strong, although revenue will mainly be driven by the ability to deliver success fees from completed projects which can be difficult to predict.
The Logistics division’s first quarter is slightly below our expectations mainly due to the mix of business. However, we have recently renewed two important customer contracts which helps to underpin revenue for the remainder of the year. We have also embarked on a number of cost-saving initiatives which includes the downsizing of office facilities.
The Engineering business has traded in line with expectations, close to breaking even. This business has a number of LNG projects which are due to start later in the year.
As announced last month the disposal of the other parts of the former Technical division to AqualisBraemar was successfully completed on 21 June 2019. Braemar now holds a 26% stake in the Enlarged business and we very much look forward to the development of this investment over the coming years.
Overall, the first quarter has begun in line with our expectations and we continue to be positive about the prospects for the remainder of the year.
For further information, contact:
|Braemar Shipping Services|
|James Kidwell, Chief Executive||Tel +44 (0) 20 3142 4100|
|Nick Stone, Group Finance Director|
|Peter Mason, Company Secretary|
|Robert Finlay / Antonio Bossi / Henry Willcocks||Tel +44 (0) 20 7601 6100|
|Charles Ryland / Victoria Hayns / Stephanie Watson / Tilly Abraham||Tel +44 (0) 20 7466 5000
Notes to Editors:
About Braemar Shipping Services plc Braemar Shipping Services plc is a leading international provider of shipbroking, financial advisory, port and marine consulting services principally to the shipping and energy industries. Founded in 1972, Braemar employs approximately 530 people in 30 locations worldwide across its Shipbroking, Financial, Logistics and Engineering divisions.
Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.
For more information, including our investor presentation, visit www.braemar.com