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Highlights
- The UK shipbuilding sector is all set to receive investments worth £4 billion (US$5.3 billion).
- Last year, the UK announced its goals of reaching the zero global shipping emissions target by the year 2050.
The UK shipbuilding sector is all set to receive investments worth £4 billion ($5.3 billion) as the Boris Johnson government strives to increase its spending on the shipbuilding industry as well as on zero-emission vessels. On 10 March, PM Boris Johnson will declare the plan of action and provide a pipeline of over 150 new civil and naval vessels.
The shipbuilding industry in the UK provides jobs in ports to around 42,600 Brits while contributing over £2.8 billion towards the British economy, as per reports. Last year, the UK announced its goals of reaching the zero global shipping emissions target by the year 2050. In line with its target, the UK is planning to invest in R&D on zero-emission vehicles and green shipping infrastructure by channelising £206 million towards the UK Shipping Office for Reducing Emissions.
Here are 5 UK shipping stocks that may be impacted by the heavy investments in the shipbuilding industry.
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Babcock International Group plc (LON: BAB)
UK-based engineering services firm, Babcock International Group plc, is engaged in vessel designing and building next-gen complex ships. With a market cap of £1,667.96 million, Babcock International Group plc’s shares closed at GBX 316.60, down by 4.03%, on 9 March. The FTSE250-listed company has performed decently and has delivered a return of 24.65% to its shareholders over the last one year as of 9 March, however, its year-to-date return stands at -0.63%.
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BAE Systems Plc (LON: BA.)
UK-based aerospace company BAE Systems Plc is engaged in the designing and production of naval ships, submarines, and advance combat systems. With a market cap of £23,717.23 million, BAE Systems plc’s shares closed at GBX 722.60, down by 4.22%, on 9 March. The FTSE100-listed company has performed quite well and has delivered a return of 44.82% to its shareholders over the last one year as of 9 March, while its year-to-date return stands at 31.43%.
Clarkson plc (LON: CKN)
London-headquartered shipping company Clarkson plc offers integrated shipping services across the globe. With a market cap of £1,057.78 million, Clarkson plc’s shares closed at GBX 3,470.00, up by 8.44%, on 9 March. The FTSE250-listed company has performed well over the past year and its one-year return stands at 39.64% as of 9 March, however, its year-to-date return is negative, standing at -10.57%.
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Ocean Wilsons Holdings Limited (LON: OCN)
Bermuda-based investment firm Ocean Wilsons Holdings Limited offers maritime and logistics services across Brazil via its subsidiaries. With a market cap of £322.69 million, Ocean Wilsons’s shares closed at GBX 912.50, up by 0.27%, on 9 March. The company has performed well over the past year and its one-year return stands at 10.74% as of 9 March, however, its year-to-date return is negative, standing at -2.25%.
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Global Ports Holdings plc (LON: GPH)
UK-based marine cargo handling firm Global Ports Holdings plc is the biggest operator of cruise ports across the globe. With a market cap of £78.53 million, Global Ports Holdings plc’s shares closed at GBX 125.00, up by 5.04%, on 9 March. The company has performed quite well over the past year and its one-year return stands at 40.59% as of 9 March, however, its year-to-date return is negative, standing at -2.34%.
