Braemar Shipping Services says low oil prices are boosting tanker rates

Braemar Shipping Services plc, an international provider of shipping, marine and energy services, today issues its interim management statement in relation to the period since the announcement of the interim results on 29 October 2014 to 14 January 2015.

As anticipated our Shipbroking division’s performance has improved significantly compared with the first half, reflecting the inclusion of ACM and the cost reduction actions taken as we have successfully continued to integrate the businesses. The merging of the two broking teams continues in line with our plans and we are encouraged by the progress of the enlarged division. While the oil price has continued to weaken, the freight rates, which drive our revenue stream, have risen in a number of sectors including VLCCs (Very Large Crude Carriers). The weaker oil price has led to an increased demand for oil tankers, improving shipbroking rates and our revenue in that sector.

The Logistics and Technical divisions have performed in line with management’s expectations with continued improvement in the freight forwarding side of Logistics and a strong performance from Braemar Engineering.

The full year outlook and the Board’s profit expectations for the Group remain unchanged, in what has been a year of significant transition and growth.
Source: Braemar Shipping Services plc