Braemar provides expert market knowledge and professional skills and advice to clients in the shipping and offshore energy markets. We do this through a global network of consistently trustworthy and commonly branded businesses. We are practically oriented, focusing on providing technical or physical advice and services. Our income is generated through commissions, project fees or charges on an hourly basis for our expertise.
Our clients are the owners and users of vessels, insurers and major energy companies and deal in multi-million dollar projects, where our knowledge and skill can add or protect significant value. We build long-term relationships with these clients so they understand and trust in what we do for them.
Each segment of our portfolio of businesses specialises in a different area of knowledge or skill but all are interconnected, complementary and often service the same client. Clients receive the same trustworthy service from all areas of the Group and as they do, so the value of the Braemar brand is enhanced.
Our brand allows us to stand out among the big players in our markets and also from the myriad of smaller concerns. Braemar is about expertise, trust, reliability, respectability and being ethically sound, which is a very significant advantage in our markets.
We invest in technology to enhance our ability to share knowledge and skills across the Group and we take every opportunity to streamline support systems and reduce costs. Most importantly we invest in the recruitment, training and development of the people in the business. We are able to allocate capital to the differing segments in which we operate, depending on where we perceive them to be in the economic cycle and to make appropriate and enhancing acquisitions when the opportunities present themselves.
Our assets are our people, our client relationships, our reputation and brand, and our IT and its knowledge. We have no other assets to invest in, so any surplus cash is available for rewarding our people, linked to the profit they generate, investing in new people, teams or businesses, or as distributions to shareholders. Our equity listing enables us to both reward staff with deferred equity, aligning their objectives with shareholders, and to raise capital to make significant acquisitions in a fragmented marketplace.
Current portfolio drivers
The shipbroking business is driven by the number of ship transactions that we conclude and the value of those transactions. Over a long period the volume of total global trade has been increasing and therefore so has the volume of deals. The value of trades varies with the supply and demand for ships relative to the amount of trade. Most of our business is denominated in US dollars.
The more offshore and marine activity the higher requirement for our technical services. Drivers include: new investment projects including exploration activity, rig installations, newbuilding activity and ordering.
The rate of growth in global trade, the frequency of port calls and the level of capacity utilisation, all drive the performance of the logistics business.
The high level of revenues in recent years have been significant events driven. The core environmental business is driven by the increasing level of environmental and safety regulation, legislation and government training requirements.