Not every company exposed to energy markets suffered last year, as preliminary results for Braemar Shipping Services (BMS) can attest. Tanker markets - which are not directly affected by cargo values - have benefited from the oversupply of crude oil in 2015 as supertanker rates have pushed up to $40,000 per day. These levels, not seen since 2008, have been good news for Braemar's shipbroking business. The division, which accounted for 62 per cent of revenues, posted a 73 per cent increase in operating profit to £9.7m in the period.
The first full-year contribution from ACM - the Aim-traded shipbroker Braemar acquired in mid 2014 - also helped, as did cost savings from the merger. And should the group want to repeat the trick and buy another broker, it has a newly signed £30m finance facility with HSBC to do so.
Elsewhere, the fall in commodity prices had a less positive impact. Dry bulk markets have weakened with slowing Chinese growth, while underlying operating profit in the technical division fell by £1.1m to £5.2m, as a result of the fall in demand from offshore oil and gas exploration clients.
Analysts at Stockdale have lowered their pre-tax profit forecast to £13.7m for the 12 months to February 2017, giving EPS of 34.9p (from £13.4m and 34.7p in 2016).
BRAEMAR SHIPPING SERVICES (BMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 460p | MARKET VALUE: | £138m | |
| TOUCH: | 445-460p | 12-MONTH HIGH: | 514p | LOW: 410p |
| DIVIDEND YIELD: | 5.7% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 356p* | NET CASH: | £9.2m | |
| Year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 133 | 9.8 | 33.8 | 26.0 |
| 2013 | 144 | 9.3 | 32.8 | 26.0 |
| 2014 | 126 | 9.0 | 21.4 | 26.0 |
| 2015† | 146 | 5.1 | 10.0 | 26.0 |
| 2016 | 159 | 9.9 | 23.2 | 26.0 |
| % change | +9 | +94 | +131 | - |
Ex-div: 30 Jun Payment: 29 Jul *Includes intangible assets of £79.6m, or 264p a share. †Re-stated. | ||||
