Division Braemar Howells has been handling the cargo recovery from the 3,032-teu Rena (built 1990), a job which contributed revenue of £15m ($24.01m) in the first half of fiscal 2013.
“In the third quarter revenue from the Rena reduced faster than expected, to £3.4m,” London-listed Braemar said in an interim management statement today.
James Kidwell, CEO of the company, tells TradeWinds Braemar had previously thought the run rate from the Rena contract in the third quarter would continue at the same level as seen in the second quarter.
Its involvement in the project is now expected to finish before the end of the financial year on 28 February.
Kidwell says Braemar has not yet released any guidance on how the change will impact its full-year bottom line with figures expected from broker Westhouse Securities in the next few days.
Braemar tells the City its shipbroking division continues to face challenging conditions due to oversupply in most markets.
“An increasing proportion of Braemar’s business is now done on the spot market,” it said.
There was no indication of how individual desks were performing with Braemar likely to receive some benefit from today’s depressed environment given it is one of the most active brokers in the demolition sector.
Braemar made a profit of £3.69m ($5.92m) in the first half, from £3.58m in the same six months of 2011.
