Braemar Shipping Services PLC AGM Trading Update (8154C)
June 30 2016 - 6:46AM
UK Regulatory
TIDMBMS
RNS Number : 8154C
Braemar Shipping Services PLC
30 June 2016
BRAEMAR SHIPPING SERVICES PLC
("Braemar", "the Company" or "the Group")
30 June 2016
AGM Trading Update
At the Annual General Meeting of the Company to be held at 12
Noon today, James Kidwell, the Company's Chief Executive, will make
the following statement:
We recently announced our results for the year ended 29 February
2016, which showed the benefits of our strategy to diversify and
grow the business. As anticipated, our market conditions have
continued to be challenging. However, we believe that the balance
between our divisions creates greater stability which will enable
us to continue to build the Group in the long term through organic
and acquisitive growth.
We do not believe that demand for our services will be
materially impacted by the recent referendum result and the
associated market volatility, however there may be second order
economic effects that are difficult to foresee at this time. At
present, we do not believe that the referendum result will affect
our long term strategy.
Shipbroking
Trading for the three months ended 31 May 2016 in the
Shipbroking division followed the wider market patterns. The tanker
markets, the largest sector of our Shipbroking business, have
continued to experience high trading volumes as a result of
increased worldwide oil production and refining activity but, as
expected, tanker freight rates have been lower. Our sale and
purchase desk remains good, with similar levels of activity to the
previous year. The dry cargo market continues to suffer from a
surplus of tonnage and a slow-down in demand and, while our volume
of transactions remains good, the rates remain low. Our Offshore
desk remains weak due to low activity levels in the sector. We
expect the difficulties in these markets to take some time to
correct and we will continue to ensure that we are appropriately
structured to respond to these market conditions.
Technical
The performance of the Technical Services division for the three
months to 31 May 2016 was behind the equivalent period last year.
In particular, Braemar Offshore and Braemar Engineering are
suffering the consequence of project delays and reduced activity,
which are currently impacting most service providers to the energy
sector. We have implemented aspects of our existing succession plan
making several senior management changes throughout the division,
including the recently announced appointment of Grant Smith as
Managing Director of the Technical Division. The leadership team
will ensure that we are appropriately structured for the prevailing
market conditions and broaden our service offering to strengthen
the division over the longer term.
Logistics
The ship agency business started the year well as a result of
new client business and an active tanker market. Although this was
partially offset by a slower freight forwarding result, overall
divisional performance is in line with the Board's
expectations.
Outlook
Although the short term outlook remains difficult we expect that
our diverse portfolio will provide opportunities to build the Group
further and our recently completed bank facility of GBP30 million
puts us in a good position to take advantage of these.
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 Bossi / Henry Tel +44 (0) 20 7601 6100
Willcocks
Buchanan
Charles Ryland / Victoria Watkins Tel +44 (0) 20 7466 5000
/ Stephanie Watson
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
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