Japan and South Korea are increasingly important sources of finance for owners as traditional sources of cash dry up in the coronavirus crisis, according to Braemar Shipping Services.
The UK shipbroker's finance director, Nick Stone told TradeWinds that corporate finance arm Braemar Naves has a busy year ahead as a result.
The London-listed parent company has reported an increase in activity at the unit so far this year.
"The phones have been ringing hot during the last month or so," Stone said.
"It's the fact that conventional sources of finance that were taken for granted just a few months ago are now drying up."
He noted that the ship finance market is similar to the housing in how loan to valuations can fluctuate.
"Naves was born in the last financial crisis. We're not at that level yet but there are elements of similarity. They've got a busy year ahead," he said.
Stone said one small deal was done this month, with money coming from Japan.
Japan and South Korean sources are "definitely" something the company is looking at and working with, he added.
Good banking relationship
In terms of its own finances, Stone said Braemar has a "good strong" relationship with HSBC, its only lending bank.
It has in place a revolving credit facility of $35m, which Stone says still has headroom in it, plus an untouched $5m accordion facility.
He stressed that based on current forecasts, liquidity levels are fine. "We'll be able to get through this," he added.
"But were are engaged with HSBC on a regular basis, to make sure there are no surprises if the social distancing goes on until the end of year. It's only sensible to keep talking."
The broker has cancelled its dividend for the 2019-2020 financial year, which amounts to savings of two payments of $3.2m and $1.6m.
The company switched its staff to working from home over a period of two weeks at the start of March.
"I was a bit nervous about how easily we'd get it done, but it helped that we moved data to the cloud over the last two years. That made a big difference," said the CFO.
"We are now doing audits without seeing the auditors face to face or getting our hands on pieces of paper."
Regarding the consequences of a longer lockdown on working practices, he said that some inefficiencies will be ironed out as it progresses.
"We will get better and better," he added.
The share price was up 15.5% at one point on Thursday, reaching £1.09 ($1.33).
