Oil tanker firm turns the tide as it reports profit as prices rise

Marine services firm James Fisher yesterday said its fleet of petroleum tankers turned in a profit following a recovery in volumes and spot market rates.

The marine oil division, which carries in excess of eight million tonnes of refined product every year, reported a surplus of 657,000 for the six months to 30 June, as improved economic conditions helped the unit recover from the loss of 2.3 million seen during the previous half year. The dividend is raised 5 per cent to 5.04p.

Barrow-in-Furness-based Fisher, which operates submarine rescue service Rumic from Renfrew and Inverurie-based Buchan Technical Services, said there was a long way to go until the operation achieved historic levels of profitability.

It added: "The spot market, particularly for the larger vessels, remains weak in the high summer months and it will be interesting to see how far it recovers in the winter months when it is usually stronger."

With a limited number of new tankers entering the market, Fisher is hopeful it will start to benefit from improved levels of supply and demand.

Across the business, which also provides specialist marine services for the defence and oil sectors, underlying profits were 4 per cent higher at 13.5m following an "encouraging" trading performance.

In offshore oil services, profits declined by 1.2m to 4.6m as a recent boom in work from the renewables sector in Aberdeen dried up. The company said BP's Gulf of Mexico crisis should not have an immediate impact on its market.

"We have little or no exposure to the US Gulf and may benefit from the transfer of rigs elsewhere - for example to Brazil," it told investors.

The group, whose remote-controlled deep sea rover helped save the lives of seven Russian submariners in 2005, said its defence and specialist technical divisions improved profitability.