Slowdown in Shipping Industry Impacts Clarksons’ Earnings
- Business & Finance
London-based provider of integrated shipping services Clarkson PLC (Clarksons) has seen a robust performance during the first half of 2016 despite continued challenging market conditions in many of its markets.
Namely, Clarksons recorded a slight increase of 1 percent in its revenue for the period which increased from GBP 145.3 million (USD 187.6 million) seen in the first half of 2015 to GBP 147.2 million (USD 190.1 million) reported in the first half of 2016.
Underlying profit before taxation was GBP 21.8 million, down from last year’s GBP 23.6 million, which after acquisition related costs resulted in a reported profit before taxation of GBP 17.5 million, against GBP 10.8 million seen in the same period a year earlier.
The first half of 2016 incorporates a full six months of results from Platou, whereas the first half of 2015 included five months post acquisition.
“The global shipping industry is experiencing the most challenging rate environment seen in many years which, as previously highlighted, has inevitably impacted the group’s performance for the first six months of 2016,” Andi Case, Chief Executive, said.
“In the current uncertain macro-economic environment, we believe our markets will continue to be highly challenged, with low levels of newbuilding contracting and a prevalence of spot business continuing to limit forward visibility of earnings,” Clarksons said.
Global economic and political uncertainty continues to impact the international shipping, offshore and capital markets, Clarskons said, adding that the difficult trading environment would be reflected in the group’s performance for the year.