Clarksons ups outlook as Hormuz disruption drives record first half

(Sharecast News) - Shipping services group Clarksons said it expects full-year results "materially ahead" of market forecasts following a record first-half profit as it benefited from the volatility caused by disruptions in the Strait of Hormuz. The firm, which plays an intermediary role in the movement of the majority of commodities, reported an underlying pre-tax profit of £61.5m over the six months to 30 June, up from £39.4m the year before,

Revenues surged to £413.5m from £297.8m on the back of a surge in freight rates and a strong performance in the Broking and Financial divisions.

"Clarksons delivered a record first half performance, reflecting both the investment into our underlying business and the exceptional volatility caused by the disruption to global trade from global conflict including the situation in the Strait of Hormuz," said chief executive Andi Case.

The company raised its interim dividend to 35p per share, up from 33p the year before.

As a result of the strong first half, full-year outturn are no longer expected to be second-half weighted as normal, but results are "now expected to be materially ahead of market expectations".

Looking ahead, the company gave an upbeat outlook, saying: "While it is possible that trade flows may improve in the second half, we remain measured in our outlook, recognising that instability in the Middle East remains elevated, and that it takes time for markets to stabilise and for the full impact of geo-political changes to unfold."

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