The slow start to the week on the corporate results front is set to continue on Tuesday, with just three sets of interim results on the agenda.
In a trading update at the start of July, the company reported that its revenues dropped by 18% during the second quarter of 2020, reflecting continued downward pressure on oil and gas prices and the impact of the coronavirus (COVID-19) pandemic.
In Fisher’s Marine Support division, the second quarter saw subsea service projects being deferred, in both renewables and in the oil and gas sector, together with supply chain challenges due to COVID-19 across all businesses.
As a result, the company said the Marine Support unit’s financial performance will be lower in the first half, year-on-year, despite the ship-to-ship oil transfer business trading strongly during that period.
The Specialist Technical division had proved resilient, however, with Offshore Oil – which had good momentum entering 2020 – trading well despite the COVID-19 challenges and it is expected to report improved profitability compared to the first half of 2019.
Net debt was approximately £175mln at the end of June, compared to £203mln at the year-end, and investors will be interested to see what this figure is currently.
In a first-quarter trading update on May 15, Arrow said its pre-tax profit had fallen by 43% to £9mln, compared with £15.8mln in Q1 2019, as coronavirus lockdown restrictions across the UK and Europe affected cash collections and portfolio acquisitions.
In the UK market, the company described its cash deployment as “conservative”, with new portfolio purchases at £28.1mln compared to £56.4mln in Q1 2019, while underlying earnings (EBITDA) fell by 23% to £59mln.
Arrow withdrew its financial guidance for the 2020 financial year and delayed its interim results until August 25, to provide the maximum time for economic forecasts to stabilise.
Given the level of operational and economic uncertainty across Europe, Arrow said it hopes to provide revised guidance for its 2020 performance at that time. So fingers crossed.