James Fisher sees improvements in marine oil

MARINE services and shipping specialist James Fisher & Sons continues to see improvements in its marine oil division.

The oil business has been sluggish for some time, held back by lower spot market rates for petroleum tankers. The spot market describes the system whereby docked ships agree to take cargo immediately for other companies.

In an interim management statement the company said the small tanker market – 4,000 tonnes – had largely recovered while there is still some weakness with the larger vessels – 6,000-10,000 tonnes.

The division has been profitable but James Fisher added: “Trading within the UK has been slightly weaker than anticipated with the seasonal slowdown for tankships extending into September”.

For company data and the lastest share price click here

The quoted Barrow-in-Furness-based business, which has a market value of £255m, said its marine services arm was performing well. But its nuclear division, which ships radioactive waste, has remained quiet. The submarine rescue business, James Fisher Defence, has benefited from contracts agreed last year.

“Despite the challenges being thrown up by the current economic environment, James Fisher’s strategy to grow its range of marine services both organically and through bolt-on acquisitions is working,” it said in a statement. “The company is well placed, with a proven track record, to provide further growth and value for our shareholders.”