Braemar H1 revenue rises on strong shipping markets; raises dividend

Overview

• UK shipping advisory firm's H1 revenue up 16% yr/yr, with growth across all segments

• Underlying operating profit before acquisition-related costs rose 7%, reflecting strategic investment in growth

• Company raised interim dividend 10%, citing confidence in outlook and FY30 targets

Outlook

• Braemar expects full-year trading to be in line with market expectations

• Company maintains FY30 targets of £200m revenue and 15% underlying operating margin

• Company says trading since period end has remained strong, with forward order book at $80.7m

Result Drivers

• STRONGER SHIPPING MARKETS - Co said disruption in the Strait of Hormuz and increased volatility in shipping and energy markets lifted chartering rates and asset values, supporting revenue growth

• STRATEGIC INVESTMENT - Co invested £1.4m in senior broker hires and a new power desk, expecting these to generate increasing revenues in future periods

• SEGMENT GROWTH - All three segments—Chartering, Investment Advisory, and Risk Advisory—grew revenue, with Tankers and Sale & Purchase leading gains due to higher rates and asset values

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the marine freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Braemar PLC is GBp290.00, about 21.8% above its November 3 closing price of GBp238.00

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Nov 4 - Norway's Wallenius Wilhelmsen Q3 profit rises on Asia shipping demand

• Nov 3 - Ardmore Shipping Q3 revenue beats estimates on higher spot charter rates

• Nov 3 - Navigator Holdings Q3 operating revenue inches up

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)