Chief executive James Kidwell will tell investors at the company’s annual general meeting that its first quarter performance was in line with expectations and the full-year outlook is favourable.

In a trading update today, Kidwell said Braemar ACM continues to reap the benefits of greater scale and a more cost efficient structure following a merger last summer. 

“The tanker markets, which are the largest part of our Shipbroking business, have continued to experience high rates and activity supported by increased worldwide oil production and refining activity,” he wrote.

“We have also been involved in concluding some good tanker and LNG secondhand sale and purchase business.”

The trading update covers the three months to the end of May, so is not thought to include any contribution from Euronav’s purchase of Metrostar’s VLCCs which market chatter suggests Braemar ACM handled.

Kidwell says the dry cargo market remains challenging and will take some time for a reasonable balance to be reached.

“The fall in the oil price has favoured the tanker market but has led to reduced offshore activity as exploration activity has been curtailed or deferred,” he added.

“Overall, the breadth of our market coverage and the strength of our teams means that Braemar is resilient in the face of changeable markets.”

Profit pointers strong

While Braemar does not offer any guidance for where its bottom line will end the financial year, analysts expect continued improvement on the back of the ACM merger.

Ian McInally of Cenkos said after the company’s full year results in May that 2016 core operating profit sold reach £13.8m, up from £11.3m in the previous 12 months. 

Robert Sanders and Neil Sargent of Westhouse expect 2016 revenue of £157.3m, with further improvement to £161.3m in fiscal 2017.

Away from shipbroking, Kidwell says LNG consultancy and design division Braemar Engineering performed strongly in the first quarter, with the tanker market also aiding the Logistics business.

The AGM will also see larger than life figure Johnny Plumbe and Braemar stalwart Denis Petropoulos stand down as directors.