Braemar Shipping Services plc (LON:BMS) shares were falling in Friday’s early deals as a weak performance in its technical services unit undermined strength elsewhere in the business.
It told investors that its shipbroking division is expected to deliver full-year profits ahead of expectations.
The company, in an update for the 10 months ended 31 December, highlighted that the improved performance is mainly due to increased dry cargo chartering business at better market rates in the first half.
In the second half, the division has followed up with a stronger tanker performance.
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Elsewhere in the business, the financial division continued to perform strongly, in line with expectations, and, it noted that revenue is becoming increasingly driven by ‘success related transaction and advisory fees’.
The logistics division is said to be trading in line with expectations and the company described a good performance from UK port-hub and liner agency, offset by weaker freight forwarding.
Braemar, however, reported that its technical division continued to face tough market conditions and it described the quarter as disappointing.
The company said that it has been taking costs out of the business although the division is expected show results of some £1mln below expectations.
“The board has reviewed strategic options for the technical division and is currently working on delivering a structural change which is expected to allow the group to recognise the inherent value of the division,” Braemar said.
Braemar shares fell 8.4% to trade at 196.95p.