Shipping company Clarksons has published profits of GBP6.2mln, down 36.7 per cent on the first six months of the previous year, citing “severe challenges faced by the dry bulk market” (of unpackaged raw commodities) as the primary cause of the decline.
Its interim results showed its pre-tax profit fell to GBP10.8 million from GBP14.1 million in the same period last year, despite the shipping services company reporting a strong performance in the 1H.
Andi Case, Clarkson’s chief executive, said: “The multi-cyclical and volatile nature of our markets has once again been demonstrated by the sudden shift in oil and other commodity prices, giving rise to a consequential change in the demand supply balance in many markets.”
It reported a strong performance in tankers, but rates in the dry bulk markets halved compared to the same time last year.
The company's broking division saw returns of GBP22 million, up from GBP15.1 million in the 1H14, led by a strong tanker market, and a rise in sale and purchase activity for container ships towards the end of the half.
The declines in oil have meant that offshore drilling services have been left "in a more challenging state than seen in many years", Clarkson said. "Consequently, few listed players are prepared to increase exposure or to raise capital for new projects."
However, market analysts say that Clarkson’s outlook remained broadly positive, with its takeover of Norwegian shipping broker and investment bank RS Platou, completed in February 2015, likely to have significantly increased its growth prospects.