Braemar performs better

Braemar Shipping Services highlighted strong showings from its sale and purchase, offshore, dry cargo and gas divisions in what is likely to be its last update to the City before its merger with ACM.

Chief Executive James Kidwell explains the improvements have seen the company’s shipbroking division’s performance enhanced in the first quarter compared to the same period a year ago.

At the company’s AGM, Kidwell is set to reveal an improvement in the shipping markets has led to growth in the total forward orderbook.

“In particular the offshore and sale & purchase departments have performed well, as expected,” Kidwell will say at the meeting, according to an interim management statement released this morning.

“There has been a significantly improved performance from the dry cargo department compared with quarter one of the prior year. Weaker freight rates have affected the income attributable to the tanker department; however, that department has been involved in some significant long-term charters in the gas market.”

As TradeWinds was first to reveal, Braemar is merging with AIM-listed ACM in a deal which Kidwell says is moving according to plan.

Chairman Graham Hearne wrote in the company’s annual report that the merger will achieve the step change Braemar has been seeking.

“We believe the proposed merger with ACM represents a transformational change in the development of our group,” he said.

ACM has 160 global brokers and Braemar 282.

“Following the merger, we plan to establish broking desks which maintain succession and have strength in depth and will create a leading broking platform for the next decade,” Hearne said in the report.