UK group Braemar Shipping Services has revealed shipbroking operations are proving stronger so far this year than bosses had expected.
Broking arm Braemar ACM, headed by James Gundy, has made a "strong start" in its current year beginning 1 March, the company said.
This has been driven by the tankers desk, where the volatility in oil markets in March and April led to high spot and long-term charter rates.
"Although this volatility has now subsided and rates have fallen back to more normal levels, other desks such as sale and purchase, dry cargo and the Braemar Atlantic Dry FFAs have steadily improved their performance as the coincidence of the oil market imbalance and the initial COVID-19 shocks to the global economy have eased," the group said in a trading statement ahead of its annual general meeting being held on Wednesday.
Broking revenue in the first five months of the fiscal year is running higher than management expectations.
Revenue is also above the same period last year, with clear indications that it will meet expectations for the full 12 months, the group added.
Earlier in August, Braemar ACM hired four product tanker specialists from rival Lightship Chartering in a move that will bring a fresh team to its new Geneva office.
It revealed the new recruits five months after announcing its plans to set up shop in the Swiss city.
The new team is headed by William Bebb, who spent four years as a partner at Geneva-based Lightship Chartering after six years in the same city as a broker for Clarksons.
Joining him from Lightship are brokers Andrea Burlando, Jean-Francois "Jeff" Demage and Jamie Maclean.
Finance arm winning opportunities
The financial division, Braemar Naves, has seen a number of opportunities for restructuring, recapitalisation and loan portfolio management during the pandemic.
"Retainer income has also been robust for the division’s advisory services," the company said.
"In recent weeks, a number of significant success fees have been invoiced ensuring that the first half of the current financial year will be ahead of the previous year and in line with management expectations."
Overall, Braemar said it has continued to trade strongly since the beginning of the current financial year, despite the challenges caused by the Covid-19 outbreak on global trade.
It has not furloughed any staff.
"In the absence of any further deterioration in market conditions, trading is expected to continue in line with previous management expectations," the group added.
The London-listed company announced a net profit of £4m ($5m) for the fiscal year ending on 29 February, against a loss of £27.4m in the previous 12 months, when it was hit by discontinued loss-making offshore, marine and adjusting businesses.
