Braemar Shipping Regulatory News (BMS)

13 Jan 2009 07:00



BRAEMAR SHIPPING SERVICES PLC

("Braemar" or "the Group")

Interim Management Statement

Braemar Shipping Services plc is today issuing its Interim Management Statement in relation to the period since the six months ending 31 August 2008. 

Business update

Shipping markets have experienced a significant correction over the past four months and in varying degrees dry and wet freight rates and vessel values are sharply lower, mainly in response to the slowing global economic demand and the significant contraction in the availability of bank lending. However, within our Shipbroking division chartering has remained active and to date there have been no significant cancellations within our forward order book. Our Technical Services businesses have maintained the high activity levels experienced in the first half and the Logistics and Environmental businesses are continuing to perform steadily. The Board is confident about the out-turn for the current financial year.

In the next financial year 2009/10 we expect to see lower revenues and profits from our shipbroking activities. Although the number of chartering transactions in which we are involved is expected to be broadly unchanged from 2008/9 levels, average commissions will be lower. Furthermore second hand sale and purchase income is expected to fall and this will only be partly offset by an increase in demolition activity. The appreciation of the US dollar relative to sterling, if it remains at current levels, will also ameliorate any reduction in dollar revenue. We believe our forward order book in respect of time charter and newbuilding business to be substantially secure, because the prices at which the majority of orders were placed are well below peak levels and because of the relative strength of the owners, yards and charterers with whom we conduct business.

While there is likely to be some effect of the global slowdown on our non-broking businesses, to date we have seen little impact, largely because the demand for their services is less dependent on the level of world trade and because of the longer term nature of the projects involved.

The Group is financially strong with cash reserves and no debt which should enable us to take advantage of attractive investment opportunities which may arise in current markets.

For further information, contact:

  Notes to Editors 

Braemar Shipping Services plc is a leading international provider of broking, consultancy, technical and other services to the shipping, marine and energy industries. 

The business is divided into the following business segments: Shipbroking, Logistics, Technical services and Environmental services. This growth has been through a mixture of organic and acquisition-led growth. 

Shipbroking services include: chartering tankers (including gas, chemicals and LNG), dry cargo, containers, offshore vessels, second hand sale and purchase, newbuilding, demolition, and sector research.

It is listed on the Official List of the London Stock Exchange in the transport sector. 

Recent Acquisitions

2006 - Braemar Howells, a pollution response service primarily in the UK for marine and rail operations.

2007 - Braemar Falconer, provides specialised marine and offshore services.

2008 - Braemar Steege, a specialist loss adjuster to the oil and gas industry. 

Principal businesses:

Shipbroking

Braemar Seascope provides specialised shipbroking and consultancy services to international ship owners and charterers in the sale & purchase, tanker, gas, chemicals, offshore, container and dry bulk markets.

www.braemarseascope.com

Logistics

Cory Brothers Shipping Agency provides port agency, freight forwarding and logistics services within the UK and Singapore.

www.cory.co.uk

Technical 

Braemar Steege provides specialist loss adjusting and other expert services to the energy (oil and gas), marine, power and other related industrial sectors. It has offices in London, Houston, Singapore, Calgary and Mexico City.

www.steegekingston.com

Braemar Falconer provides specialised marine and offshore services. It has offices at the following locations: Australia, China, India, Indonesia, Malaysia, Singapore, Vietnam, and the UK.

www.falconer-bryan.com 

Wavespec provides consultant marine engineering and naval architecture services to the shipping and offshore markets.

www.wavespec.com

Environmental 

Braemar Howells provides pollution response and advisory services primarily in the UK for marine and rail operations, and is now developing an international presence.

www.dvhowells.co.uk