Clarksons confident of global shipping recovery

Clarksons first half of the year profit increases because of stellar performances from tanker and gas broking spaces

News ID: 80517

Date: 11 August 2020 - 11:45

Broking and research performed particularly well during the first half of 2020 amid challenging times, company says.

CLARKSONS, one of the world’s largest shipbrokers, said it remains confident the global shipping industry can bounce back from the coronavirus slump.

It expects its broking division to remain robust through the second half of the year, after a 35% increase in underlying profits in the first six months of 2020, driven by “standout performances” in the tanker and gas divisions, the London-based company said in a statement.

It also expects a return to profitability in its finance unit following cost-cutting initiatives and improved profits from its support services, while its offshore business made “great headway” in the renewables market.

Clarksons noted how the world was increasingly looking at cleaner tonnage, with 23% of the current orderbook slated for alternative fuel use compared with only 3% of the existing fleet.

Coronavirus has worsened investor sentiment, it said, with many projects postponed. However, it expects a “catch-up effect” with more activity in the second half of the year.

But it refrained from issuing full-year guidance because of uncertainty related to the “speed and shape” of global trade recovery, combined with geopolitical sensitivities and ever-changing exchange rates.

The company reported an 8.8% rise in first half of the year profits before tax of £20.9m ($27.3m) compared with the same period a year earlier.

“Given the impact of Covid-19 on global GDP and short-term trade shock, we anticipate some impact on activity in the second half of 2020, with each of the markets at different stages of reaction/rebalancing and the impact of logistical delays, storage, increased scrapping, layup and docking also having an effect on localised demand and supply balances,” it said.

“GDP growth, spurred by the raft of global financial stimulus packages being rapidly rolled out by governments around the world, together with an end to the pandemic, will create the foundations for a sustained recovery,” the company added.