Fisher's full-year profit up

UK shipping group James Fisher has come through 2009 with a slightly bigger profit despite a year of torment for its coastal tankers.

The London-listed owner said the recession has proved that its expanded marine services divisions are now strong enough to stand on their own without the “cash cow” of marine oil.

Net earnings were £18.42m ($27.66m) last year, up from £18.29m, while revenues reached £249.59m, against £233.57m in 2008.

Operating profit was down at £23.71m, from £26.91m year-on-year, but there was more profit from associates and joint ventures at £4.18m, compared to £2.54m the year before.

Tankers turned in a “disappointing” loss of £1.6m.

There was a double whammy of reduced contract business from oil majors and a resultant increased exposure to a weaker spot market with more vessels seeking cargoes.

Rates fell by up to 40%, while the spot exposure of the fleet rose from 20% to 30%.

This double bind has not happened in the UK's coastal tanker market “in the remembered past” because of the specialist nature of the service provided, Fisher said.

As a remedy, one bareboat charter has been allowed to expire and three small ships laid up, although one returned to service last month.

The other two should be redeployed when two more bareboat charters expire in September.

Fisher said: “It has not been possible to reduce the exposure further by selling vessels because, for the last eighteen months, there has been no active market for such vessels except at distressed prices.”

Contact volumes have been improving this year, but not spot rates.

The specialist technical and offshore oil decisions both performed well, however.

Chairman Tim Harris said: "James Fisher produced a robust performance in 2009 despite an economic environment which was significantly more challenging than for many years.

“The company has transformed itself over recent years and now has marine service divisions which are self sufficient and able to stand alone without the need for support from the strong cash flows provided by the marine oil division.”

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