Broking unit buoys profits at Clarkson

8th Aug 2022 07:05

(Sharecast News) - Shipping services company Clarkson reported a jump in interim profit, driven by its broking division.

Pre-tax profit rose to £42m from £27.3m. Revenue surged to £266m from £190.1m.

In the broking unit, results were boosted by strong performances in the dry cargo, sale and purchase and tanker markets as sustained volumes and rates buoyed profits.

Ongoing supply chain constraints due to the Covid-19 pandemic, including continued high levels of port congestion, reduced vessel speeds and the onset of the war in Ukraine, further disrupted seaborne trade.

In dry cargo, fears over future shortages, particularly of grains, resulted in clients securing supplies from further afield, adding to tonne-mile demand, Clarkson said on Monday.

"Subsequent sanctions on Russia have led to strategic stock builds, resulting in record commodity prices across the board."

"Whilst we are mindful of continued geo-political uncertainties, macro-economic challenges including inflationary pressures and disrupted shipping supply chains, nevertheless the outlook for the business remains strong due to the structural supply shortage in the global shipping fleet, which is positive for both freight rates and asset values," Clarkson said.

"The second half of the year has started encouragingly, and we are seeing a continuation of the trends seen in the first half of the year."

Reporting by Frank Prenesti at Sharecast.com