Marine specialist hit by offshore oil slump

REDUCED activity in offshore oil activity has hit marine specialist James Fisher’s profits.

The listed Barrow-in-Furness company said its specialist technical, marine support and tankships divisions had performed well, increasing underlying profits by 18%, but that had been offset by the offshore oil reverse.

Revenue was down slightly to £209.3m for the half year to June 30 (HY 2015: £213.1m) and statutory pre-tax profits fell to £17.4m (HY 2015: £17.9m).

The company’s highlights included contract wins, Galloper Windfarm, Indian submarine rescue and Winfrith decommissioning which was progressing well.

The company has acquired Lexmar and Hughes since the period end.

Meanwhile, the interim dividend increased by 10% to 8.55p per share.

Chief executive Nick Henry said:  “Strong performances in specialist technical, marine support and tankships, which together increased underlying operating profit by 18%, offset reduced activity levels in offshore oil leaving the first half similar to last year. 

“With new contracts in renewables, defence and nuclear decommissioning contributing fully in the second half and continued firm demand for ship to ship services, we expect to see a resumption of growth in the second half leading to a good improvement in the result for the full year.”

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