James Fisher & Sons profits down due to cut back in oil spend

25th Aug 2015 08:22

(ShareCast News) - James Fisher & Sons said first half pre-tax profits were down by 14%, as the company expected, due to lower activity in its offshore oils division.First half pre-tax profits were down to £17.9m from £20.8m, as the marine engineering firm's shares fell, down by 4.36% to 966.88p at 0844 BST.Group revenue in the first six months of 2015 was £213.1m from £216.1m, which James Fisher said reflected businesses acquired and some benefit from more favourable currency rates, offset by lower revenue in offshore oil.Underlying diluted earnings per share were down to 29.5p from 34p, and the company proposed a 7.80p dividend, higher than the 7.10p issue for the same level last year.Chief executive officer Nick Henry said the company had expected a lower first half than in 2014 in light of anticipated challenges in the offshore oil division."We expect to see a stronger second half with good trading continuing in specialist technical and tankships, reinforced by a resumption of growth in marine support," Henry said.The board said performance in the second half of 2015 would be "slightly below" the same period last year but "significantly stronger" than the first half.N+1 Singer said in a note the impact of the collapsing oil was price more significant than originally anticipated."Customers are deferring essential expenditure and conserving cash as a number one priority. The timing of a change in this situation is difficult to gauge," analysts said in a note.