InterBulk, the global logistics group where 3.6per cent shareholder Jim McColl is on the board, has said first-half profits will come in ahead of last year.
The group, offering intermodal services to the chemical, polymer, food and minerals industries, said the sharp oil price fall had improved the competitiveness of the European chemical industry. But it had created "uncertainty and volatility" in the short-term, with falling prices prompting destocking and lower levels of transportation activity.
The sharp appreciation of the dollar and weakening of the euro had also impacted the sterling-reported results.
Interbulk said the liquid bulk division had seen a slowdown in activity compared with the first half of 2014, with temporary plant shutdowns. Normal production levels had now returned, but divisional operating profit would be below the previous year.
In the European-based dry bulk division, however, profits would show an improvement as a result of the steps taken to slim down the organisation and sustainably reduce costs. "During the period a number of large tendering processes have been concluded by our customers and we have been able to maintain our position in key accounts."
Despite lower revenues, both operating and pre-tax profit were on track to beat the figures a year ago, the group said.
Loek Kullberg, who was installed as chief executive 18 months ago, said while liquid bulk had been hit by the oil price and the dry bulk environment remained challenging, the major reorganisation in dry bulk had proved to be a sustainable model . He added: "Whilst external market conditions remain somewhat unpredictable, especially in Europe, we will continue to focus on our controllable costs, and we expect to deliver continued improvement in our operating results in the second half of the year."
The shares were unchanged at 3.75p, down 19 per cent on a year ago.
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