UPDATE 2-Braemar Shipping H1 profit dips, confident of H2

* Revenue drops 17 pct

* Pre-tax profit from cont ops 7 mln stg

* Raises interim dividend by 3 pct to 8.75 pence

* Expects all business units to perform well in H2

* Comfortable with analysts view for FY pretax profit (Recasts, adds comments by analyst and FD)

By Aditi Samajpati

BANGALORE, Oct 27 (Reuters) - Braemar Shipping Services Plc (BRMS.L) posted a fall in first-half earnings, but raised its interim dividend and said it expected to perform well in the second half even as the market faced slowdown in new ship orders with some possible cancellations.

"We are seeing some of our income being deferred but very little has been lost...we have actually suffered only two cancellations," Finance Director James Kidwell told Reuters.

The company's forward order book of new buildings was currently over 100 ships, he added.

Kidwell also said the company was confident about meeting analysts' pretax profit estimate of 13.2 million pounds ($21.59 million) for the year.

Braemar, which provides broking, consultancy, technical and other services to the shipping, marine and energy industries, said while the second half of the year would not be "significantly different" from the first half, it expected all business units to perform well.

For the six months ended Aug. 31, Braemar Shipping earned 7.0 million pounds from continued operations, compared with a year-ago pretax profit of 9.8 million pounds.

Revenue shrank 17 percent to 57.1 million pounds.

The company raised its interim dividend by 3 percent to 8.75 pence.

In a note to clients, Arbuthnot analyst Gerald Khoo said while the company's results were broadly in line with his estimates, the increase in dividend was unexpected and a positive development.

With an estimated price-to-earnings ratio of 8.5 for February 2010 and a dividend yield of 6.3 percent, Khoo saw Braemar's stock as undervalued, with little or no recovery potential priced in. He has kept his "buy" rating on the stock.

Shares of the company was up more than 2 percent at 390 pence at 1230 GMT Tuesday on the London Stock Exchange. ($1=.6130 Pound) (Editing by Kavita Chandran Budhraja)