Shipbroker Clarksons is sounding upbeat about shipping's medium-term prospects, despite its own headwinds from the strength of the UK pound.

The London-listed operation said it earns most of its revenue in dollars, which has been weaker against the UK currency.

But in a statement to be read at the company's annual general meeting in London on Wednesday, chairman Sir Bill Thomas said the medium-term outlook for shipping is positive as demand and supply dynamics continue to steadily improve.

"We have continued to invest in growth in this context," Thomas said.

"Our geographically and operationally diverse offering, in addition to our market-leading position, means that we remain well-positioned to capitalise on the opportunities arising from the expected global economic and trade recovery and the green transition in shipping."

Trading has been in line with expectations so far in 2021.

Thomas called the start to the year "encouraging" and continues to believe profit will be weighted towards the second six months.

The ClarkSea Index, which reflects earnings for the main vessel types in shipping, averaged $17,461 per day in the first quarter, up 6.5% on the same period last year, which was largely unaffected by Covid-19.

The first quarter figure is also 17.6% higher than the average for 2020.

"Our broking business has performed well, with an increase in new business executed compared to the same period last year," said Thomas.

Sale and purchase going along nicely

The dry cargo, gas, sale and purchase, and container teams have performed particularly strongly in 2021, offsetting comparative weakness in the tanker market due to the exceptional spike in rates seen during the same period last year, the chairman added.

"We have also seen continued momentum in the renewables sector," he said.

Clarksons' financial division has had a significantly better period compared to last year, Thomas added.

This is due to improved activity in global shipping and offshore capital markets.

Revenue has grown from primary transactions within the securities business, and the project finance teams also started the year well, Thomas said.

In March, Clarksons revealed a bigger loss for 2020 after taking a £60.6m ($84m) impairment hit on its securities and offshore business.

The company said shipping's capital markets and energy demand were "severely affected" last year by the Covid-19 pandemic.

The write-down was linked to a review of the goodwill from the acquisition of RS Platou in 2015.

Clarksons' net loss for the year grew to £25.8m, against £10.9m the year before, with revenue down at £358.2m from £363m.