Braemar Shipping Services has seen its first half operating profit fall by 80% to just £1.4m ($1.7m), figures released on Tuesday show.

Revenue for the London-listed shipbroker came in at £70.2m a year-on-year decline of 11.8%.

Braemar’s shipbroking arm reported a 13% decline in interim operating profit to £4m as revenue slipped 7.5% to £30.8m.

“As highlighted previously, rates in most shipping markets fell during the first half of this financial year compared with the equivalent period last year,” said chief executive James Kidwell.

“Our teams continued to generate healthy transaction volumes, but softer freight rates resulted in a lower overall result for the division.

“A sustained weaker sterling exchange rate against the US dollar will benefit earnings, although the full beneficial impact will not be evident until the next financial year due to our rolling hedging policy.”

Braemar said its total shipbroking forward book at 31 August 2016 was about $46m, of which about $22m relates to the second half of the year.

Braemar’s technical division reported an operating loss of £2m, which includes £1.5m one off costs following project completions and restructuring.

Braemar said this achieved office consolidation, a reduction in divisional headcount by about 7% and annualised cost savings of about £3.2m.

“The technical division, particularly our offshore and engineering businesses, suffered from the slowdown in oil and gas exploration activity,” said Kidwell.

“We made a number of senior management changes in the division during the period and the new management team is implementing a restructuring programme to cut costs and create a better platform for division-wide service delivery and improved utilisation of professional staff.”

Despite the weak performance Braemar interim dividend remains unchanged at 9 pence per share.

“The board remains confident in our long term strategy to diversify and grow the business through organic and acquisitive development,” said chairman David Moorhouse.

“Recent management changes and business restructuring will ensure that we are able to continue to develop the business in the prevailing extreme market conditions.

“We believe the proactive actions that are being taken will result in an improved performance during the second half of the year.”