Clarkson shares plunge despite dividend hike
Shares in Clarkson, the world’s largest shipbroker, tumbled on Monday despite the firm hiking its dividend amid “favourable” supply and demand dynamics in the global shipping industry.
In its unaudited interim results for the six months ended 30 June 2024, the company declared an interim dividend of 32p per share, up from last year’s 30p.
Clarkson has increased its dividend for 22 consecutive years.
However, the FTSE 250 shipbroker also said revenue for the period had dipped to £310.1m, down from £321.1m the prior year. Underlying pre-tax profit also fell marginally, from £53.1m to £51.5m.
Shares had fallen over 11 per cent by mid-afternoon.
Citing strong forward orders, chief executive Andi Case insisted the company had “confidence that we will be second half weighted,” with full-year results in line with expectations.
In the statement, the firm reaffirmed its full-year profit guidance despite flagging a “challenging” geo-political and economic backdrop.
Clarkson said seaborne trade was projected to grow by 2.3 per cent year-on-year. Disruption to shipping routes as a result of challenges in the Red Sea and Panama Canal meant the tonne-mile impact of the enhanced demand forecast would rise 5.4 per cent, it added.
Freight rates, which have exceeded the 10-year average during the first half of the year, are likely to stay high amid an oversupply of vessels to the market.
Shares in Clarkson, which employs over 2,000 people in 60 countries, are up over 38 per cent this year to date.