Ship broker Clarkson PLC (LSE:CKN) reported lower sales and profit in the first half of the year but increased its interim dividend by 7% due to favourable demand and supply dynamics in the shipping industry.
The FTSE 250-listed group declared a 32p per share interim dividend, up from 30p a year ago.
Total revenue for the first half of 2024 was £310.1 million, down 3.4% from the previous year.
Underlying profit before tax fell by 3% to £51.5 million, or down 4% on a reported basis to £50.1 million. Last year saw record profits.
A stronger pound continues to be a headwind, with an average GBP/USD rate of US$1.26 compared to US$1.24 for the same period last year.
Despite these figures, the company said 2024 has “started strongly”.
While the geopolitical backdrop and global economy remain “challenging” and “uncertain”, chief executive Andi Case said the “encouraging fundamentals of the shipping markets continue with global supply and demand dynamics remaining positive”.
He noted that supply-side constraints have resulted in relatively low order books in sectors such as tankers and bulk vessels, while the construction of new vessels is being constrained by limited availability of shipyard berths, high newbuild prices due to increased commodity and labour costs, and uncertainty around fuelling technologies.
“We are confident in the outlook for the second half, which has already started well, and our expectations for the full year are unchanged.
“Supply and demand dynamics both remain favourable, and we expect to start seeing a positive impact from our recent hires in the second half of the year and into 2025.”