Braemar Shipping Services PLC Trading Update (2991I)
August 30 2016 - 1:00AM
UK Regulatory
TIDMBMS
RNS Number : 2991I
Braemar Shipping Services PLC
30 August 2016
BRAEMAR SHIPPING SERVICES PLC
("Braemar", "the Company" or "the Group")
30 August 2016
Trading Update
Braemar Shipping Services plc provides the following trading
update, further to our AGM Trading Update on 30 June 2016:
Shipbroking
Over the summer, the tanker markets have seen both lower
activity levels and freight rates which is resulting in reduced
revenues. While we expected the tanker market to soften after the
high levels experienced during 2015 there has been a marked
slowdown. In the dry cargo markets, despite healthy demand and good
transaction volumes, overcapacity continues to suppress freight
rates to historically low levels. Accordingly, we have put in place
a programme to reduce our costs in this area and ensure we are
appropriately structured. Our sale and purchase and offshore desks
continue to perform in line with our expectations, with similar
levels of activity to the previous year. In addition, our US dollar
denominated earnings will benefit from the weakness of sterling if
the exchange rate is sustained at current levels; however the full
beneficial impact from weaker sterling will be felt in the next
financial year due to our rolling hedging policy.
Technical
As previously reported, the slowdown in oil and gas exploration
and new project work is impacting our surveying and engineering
businesses, particularly in relation to offshore activity. To
respond to these tough market conditions, we have already made a
number of senior management changes in the Braemar Technical
division. The new leadership team have implemented a restructuring
programme to reduce costs, create regional hubs with responsibility
for division wide service delivery and improve the utilisation of
our professional staff. This has particularly focused on
engineering services and Asia related energy businesses which are
the most exposed to reduced industry activity.
Logistics
Our Logistics division is performing well and in line with our
expectations.
Outlook
Braemar is well financed with a strong balance sheet and
substantial forward order book. We remain confident in and
committed to our long term strategy of organic and acquisitive
investment together with diversification and expansion in our core
markets. However, while the results for the year ending 28 February
2017 will be materially lower than 2016, the structural management
changes and cost reduction measures we have put in place (the costs
of which will substantially fall in the first half of the current
year) will result in an improvement in business performance.
The Group will release its interim results for the six months
ending 31 August 2016 on Tuesday 25 October 2016.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information, contact:
Braemar Shipping Services
James Kidwell, Chief Executive Tel +44 (0) 20 3142
4100
Louise Evans, Finance Director Tel +44 (0) 20 3142
4100
Stockdale Securities
Robert Finlay / Antonio Tel +44 (0) 20 7601
Bossi / Henry Willcocks 6100
Buchanan
Charles Ryland / Victoria Tel +44 (0) 20 7466
Hayns / Stephanie Watson 5100
Notes to Editors:
About Braemar Shipping Services plc
Braemar Shipping Services plc is a leading international
provider of knowledge and skill-based services to the shipping,
marine, energy, offshore and insurance industries. Founded in 1972,
Braemar employs approximately 1,000 people in more than 70
locations worldwide across its Shipbroking, Technical and Logistics
divisions.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, visit www.braemar.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTPFMATMBJTBJF
(END) Dow Jones Newswires
August 30, 2016 02:00 ET (06:00 GMT)
Braemar (LSE:BMS)
Historical Stock Chart
From Apr 2024 to May 2024
Braemar (LSE:BMS)
Historical Stock Chart
From May 2023 to May 2024