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(Alliance News) - James Fisher & Sons PLC on Tuesday said it expects to report an improved operating profit for 2021, with a solid performance from its Offshore Oil business to date, as well as Tankships and Specialist Technical division.
For the year to date, the Cumbria-based marine services provider reported a strong performance in Offshore Oil, with new contract wins in oil and gas decommissioning projects.
In addition, the company expects a return to more normalised versions in Tankships, while Specialist Technical trades in line with management expectations.
However, the Marine Support business is trading below expectations, as the ship-to-ship transfer market remains challenging. There are signs of recovery in Marine Contracting, with the awarding of offshore wind projects at St Brieuc in France and Sofia in Dogger Bank.
Looking ahead, James Fisher expects profit to be more weighted in the second half, leading to an improved underlying operating profit for 2021, from the GBP40.5 million posted in 2020.
The group is also looking to bring forward a new strategy which will involve refocusing the portfolio on niche sectors within its markets, accelerate investments in responsible energy transition, as well as address underperforming assets and businesses.
For the medium term, James Fisher has set targets of an underlying operating margin above 10% and a return on capital above 15%.
"We have reset our strategy to reinforce our strengths and realise our full potential. This strategy leverages the group's fundamental strengths in marine services, with a renewed focus on driving better future performance and returns for all stakeholders. Our goal is to improve the quality of our business by focusing on structurally growing markets, improving operating margins and returns, and sustainably delivering enhanced value for all our stakeholders," said Chief Executive Officer Eoghan O'Lionaird.
Shares in James Fisher were down 3.0% at 885.05 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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