World’s largest shipbroker boosted by rising oil prices

World’s largest shipbroker boosted by rising oil prices

Oil rig and support vessel suppliers have been big beneficiaries as fossil fuel and renewables producers seek to boost output to tackle the global energy crisis, according to Clarksons, the world’s largest shipbroker.

Andi Case, chief executive of UK-listed Clarksons, said the offshore shipping sector had experienced a turnround on the steep rise in global oil and gas prices, which has been exacerbated by Russia’s invasion of Ukraine.

“We’ve seen a very significant change in the outlook. There were 10 years of under-investment and oil was in a bad place,” he said on Monday. “Now the world needs energy. We are seeing a reinvigoration of that trade.”

Clarksons Offshore index, which tracks the rates paid to lease rigs, subsea vessels and offshore supply vessels, has hit its highest level in seven years.

The improved business conditions for its clients have also benefited Clarksons, with underlying pre-tax profit increasing by half to £42mn on revenues of £267mn in the first six months of the year.

The group had flagged last month that its profits would be “materially ahead” of expectations, which sent its share price soaring. Its shares dropped 3.5 per cent on Monday.

Oil and gas producers have been attempting to increase output to make the