Shipping broker booms after oil rush

DEMAND for oil storage when prices tumbled in April saw a rush to secure tanker space, global shipping broker Clarkson said today.

The shipping services group’s chief executive Andi Case said its broking division had a “very strong” first half to June 30 as it updated investors on dividend plans.

Shares in the FTSE 250 London-headquartered firm jumped 232p, or 11%, to 2332p.

It was boosted as oil traders and companies sought vessels that could carry and store crude. US oil prices went negative for the first time in history in April, in part due to a supply glut when

Storage crunch: prices turned negative

the virus crisis put drivers off the road across the globe, damaging demand.

Clarkson, which gets commission from ship owners on any deals it brokers, said first-half revenues increased to £180.4 million from £167.8 million in the same period last year.

A note from HSBC said: “Whilst it had been expected that tankers would be strong, one suspects nobody recognised it would be this strong.”

Pre-tax profits increased to £20.9 million from £19.2 million, and Clarkson said it would pay the previously deferred 2019 final dividend of 53p per share as an interim dividend on September 21.

It also declared a further interim dividend for 2020 of 25p per share.

The company also said its research business performed strongly as clients sought advice, data and analysis “during a period of high volatility and very different working environments”. But its container shipping arm took a hit due to lower output of components and finished goods from factories.