Asia/Pacific News
Rena Cleanup Boosts Braemar Results
Braemar Shipping Services Plc. (Braemar) [LON:BMS] says the revenue boost it got from work on the MSC Rena shipwreck in New Zealand over the past year has helped the company balance difficult conditions for its shipbroking division.
The company said its environmental division's work on the Rena earned £15 million ($23.8 million) in the first half of its fiscal year, which began in March.
However revenue from the project fell faster than expected, amounting to £3.4 million ($5.4 million) in the third quarter, adding it expects to complete the effort entirely by the close of the fiscal year.
Braemer said its shipbroking division is facing challenges because of excess shipping capacity.
"An increasing proportion of Braemar's business is now done on the spot market," the company said.
"There were no significant changes in the market conditions in the past three months."
The company said its logistics division, Cory Brothers, performed as expected, with a new multi-year European agency hub contract starting in November and the Singapore business continuing to grow.
In its half-year results, released in October, the company said it made revenues of £79.4 million ($125.8 million) and pre-tax profits of £5.2 million ($8.2 million) in the six months ended August 31, 2012.
The company also said it plans to grow its international shipbroking, shipping, marine, and energy services businesses both organically and by acquisition.
