Last checked at (Sharecast News) - Shipping services firm Clarkson said on Wednesday that it is trading in line with its expectations and has made an "encouraging" start to the year.
In an update on trading for 1 January to 4 May to be made at the company's annual meeting, Clarkson said it continues to believe the year will be weighted to the second half.
The company pointed to improved conditions across many of the shipping sectors in which it transacts.
The ClarkSea Index, which reflects earnings for the main vessel types in shipping, averaged $17,461 a day in the first quarter, up 6.5% on the same period last year, it noted, largely unimpacted by Covid-19. It was 17.6% higher than the average for 2020.
The group said its broking business has performed well, with an increase in new business executed compared to the same period last year. Clarkson said its Dry Cargo, Gas, Sale and Purchase and Container teams have performed "particularly strongly" this year, offsetting comparative weakness in the Tanker market due to the exceptional spike in rates seen during the same period last year.
"We have also seen continued momentum in the renewables sector,""it said, adding that the financial division has had a "significantly better" period than last year.
"As outlined in our results for 2020, whilst the strength of sterling against the dollar is a headwind given the majority of our revenue is earned in USD, the medium-term outlook for shipping is positive as demand/supply dynamics continue to steadily improve and we have continued to invest in growth in this context.
"Our geographically and operationally diverse offering, in addition to our market-leading position, means that we remain well-positioned to capitalise on the opportunities arising from the expected global economic and trade recovery and the green transition in shipping."
5 Mar 2024 16:13
Canaccord Genuity raises target price on Clarkson
(Sharecast News) - Analysts at Canaccord Genuity raised their target price on shipping services firm Clarkson from 4,325.0p to 4,500.0p on Tuesday after the group delivered a 23% incremental pre-tax profit margin in FY23, lower tax, and a dividend per share of 102.0p with still sizeable net free cash balances at end of the trading year.
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