Stolt-Nielsen’s Profit Down
Oslo-listed Stolt-Nielsen Limited reported USD 49.2 million-worth net profit for the first nine months of 2017, considerably lower from USD 90.3 million posted in the corresponding period of 2016.
The company’s revenue in the reporting period stood at USD 1,490.2 million, against USD 1,416.9 million a year earlier.
Stolt Tankers’ third-quarter operating profit was USD 34.4 million, up from USD 27.6 million in the second quarter of 2017 and corresponding quarter of 2016 when it booked USD 31.4 million. For the nine-month period, the tanker division’s profit reached USD 90.5 million against last year’s USD 108 million.
“While SNL’s third-quarter results were up, the improvement was largely driven by unrealized gains related to the bunker-hedging programme at Stolt Tankers. Excluding the impact of that programme, results at Stolt Tankers were down slightly, as market conditions continued to soften during the quarter,” Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said.
“Results at Stolthaven Terminals were once again largely in line with those of the previous quarter, as we continue to implement actions aimed at improving that division’s sustained long-term performance. Stolt Tank Containers continued to show evidence of margin improvement, along with lower empty repositioning costs and improved contributions from joint-venture depots.”
The company’s terminals business reported a third-quarter operating profit of USD 16.0 million, essentially unchanged from USD 16.1 million in the second quarter, and a small increase when compared to third quarter of 2016 when it posted USD 14.8 million in operating profit.
Stolt Tank Containers’ third-quarter operating stood at USD 14.8 million, up from USD 13.7 million in the second quarter. For the nine-month period, there has also been an improvement with USD 37.5 million profit reported in 2017 against USD 33.1 million in the same period in 2016.
With respect to the Hurricane Harvey, which hit the US Gulf Coast in late August, the company said the hurricane did not cause any physical damage to its property. However, due to the closure of the Houston Ship Channel, operational shutdowns and port delays, the company’s third and the fourth quarter results have been and will be impacted, but the impact is not expected to be material.
The company’s outlook remains unchanged, with no substantial improvement in the chemical tanker market until the latter part of 2018, when the current orderbook will have been significantly reduced restoring tonnage demand-supply balance.
“For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by actions to enhance operational performance across our network of terminals. At Stolt Tanker Containers, we expect margins and utilization to hold steady at current levels. Consistent with seasonal patterns, Stolt Sea Farms’ results are expected to improve in the fourth quarter, driven in part by strengthening prices ahead of the holiday sales season,” Stolt-Nielsen CEO added.