Resurgent sale and purchase markets and accelerated ship scrapping have boosted UK shipbroker Braemar in the first quarter, its CEO says.
And with the broking house also avoiding the worst of a crash in the tanker market its full year results should be “satisfactory”, Alan Marsh told its annual general meeting today.
Marsh says Braemar’s first half showing should match up with the figures it posted in the final six months of last year.
He did not release any specific numbers, but the shipbroker booked a profit of £4.69m ($7.76m) in the second half of 2008.
Revenue for the period was £58.04m.
Marsh said: “The dry-bulk market, and in particular the capesize sector has recovered well in the last month driven mainly by renewed Chinese demand for raw materials.
“Braemar has also benefited from a high level of sale and purchase activity especially for bulk carriers while the group’s demolition business has continued to grow with increased scrapping of older ships, particularly in the container and tanker sectors.”
He adds deep-sea tanker market rates have weakened due to the impact of newbuilding deliveries, but the broker’s transaction numbers remain good.
Marsh said: “Overall the board remains confident of a satisfactory outcome for the year as a whole.”
By Andy Pierce in London