Braemar Shipping Services PLC AGM Trading Update (6157W)
August 19 2020 - 8:50AM
UK Regulatory
TIDMBMS
RNS Number : 6157W
Braemar Shipping Services PLC
19 August 2020
BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
19 August 2020
AGM Trading Update
Braemar Shipping Services Plc (LSE: BMS), a leading
international provider of shipbroking, financial advisory,
logistics and engineering services to the shipping and energy
industries, is pleased to make the following trading statement
ahead of its Annual General Meeting being held today at 2pm. As
previously announced, due to the ongoing COVID-19 pandemic and
current government advice, the AGM will be a closed meeting and
shareholders will not be permitted to attend.
Shipbroking
The Shipbroking Division has made a strong start to the current
financial year having overcome the COVID-19 related operational
challenges and downturn in global trade. This has been driven by
the Tankers desk where the volatility in the oil markets in March
and April led to high spot and long-term charter rates. Although
this volatility has now subsided and rates have fallen back to more
normal levels, other desks such as Sale and Purchase, Dry Cargo and
the Braemar Atlantic Dry FFAs have steadily improved their
performance as the coincidence of the oil market imbalance and the
initial COVID-19 shocks to the global economy have eased.
The ongoing strategy of diversification and geographic expansion
within the Shipbroking Division has continued with the recruitment
of a product tankers team for the new Geneva office. The team of
four has joined from Lightship Chartering and will strengthen the
new office and overall global market coverage in product tanker
broking. Overall revenues for the Division for the first five
months of the year are running higher than management expectations
and above the same period last year, with clear indications that
the Division will meet management expectations for the full
year.
Financial
The volatility in global markets has led to a number of
opportunities for the Financial Division in areas of restructuring,
recapitalisation and loan portfolio management. Retainer income has
also been robust for the Division's advisory services. In recent
weeks, a number of significant success fees have been invoiced
ensuring that the first half of the current financial year will be
ahead of the previous year and in line with management
expectations.
Logistics
The Logistics Division's overall trading for the current
financial year-to-date is in line with management expectations. The
Freight Forwarding business has seen revenue shortfalls due to
COVID-19-related slow-down in activity, but this has been offset by
careful cost management. The Division elected not to take advantage
of the UK furlough scheme and as a result has won some new business
in recent months as activity has picked up. On the agency side,
revenues have held up well and are in line with management
expectations and the same period last year.
Engineering
The Strategic Review of the Engineering Division is nearing
completion and Braemar will update the market as and when it is
appropriate to do so.
Outlook
Overall, Braemar has continued to trade strongly since the
beginning of the current financial year, despite the challenges
caused by the COVID-19 outbreak on global trade. None of the
Divisions have taken advantage of the UK furlough scheme and all
employees have been productive servicing clients at a high level.
The health and safety of employees remains a priority and Braemar
is grateful for all of their hard work during this period.
In the absence of any further deterioration in market
conditions, trading is expected to continue in line with previous
management expectations.
For further information, contact:
Braemar Shipping Services Plc
Ron Series, Executive Chairman Tel +44 (0) 20 3142 4100
Nick Stone, Finance Director
Peter Mason, Company Secretary
finnCap
Matt Goode/ James Thompson/ Kate Washington Tel +44 (0) 20 7220 0500
Buchanan
Charles Ryland / Victoria Hayns / Stephanie Tel +44 (0) 20 7466 5000
Watson / Matilda Abraham
Notes to Editors:
About Braemar Shipping Services Plc
Braemar Shipping Services Plc is a leading international
provider of shipbroking, financial advisory, logistics and
engineering services principally to the shipping and energy
industries. Founded in 1972, Braemar employs approximately 530
people in 28 offices 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
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END
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