Clarksons Posts Lower Profits for 2016
CLARKSONS' profit fell by 11.3% in 2016 on increased costs amid challenges for its broking and support segments, as total revenues grew.
According to MANA, The shipbroker’s profit for 2016 fell to £33.6m ($41.1m) from £37.9m in 2015, on the back of a £9m increase in administrative expenses that undermined a £4.3m jump in revenues to £306.1m.
Revenues generated from the broking division fell from £239.5m to £233.6m in 2016 with underlying profits sliding to £49.1m from £40.2m. The prolonged downturn in the offshore sector as well as the distressed dry cargo market, particularly in the first half of 2016, hit the company’s earnings.
Payment collections from vessel deliveries are also expected to shrink this year, according to the company. After the global orderbook slid by 29% in 2016 to hit a 12-year low, Clarksons’ forward orderbook for 2017 was worth $112m as of the end of 2016 compared with $151m for 2016.