Oslo-listed Stolt-Nielsen Limited today reported USD 30.4 million in net profit for the first quarter ended February 29, 2016 with revenue of USD 464 million, up from USD 21.4 million posted in the fourth quarter of 2015.
Fewer ships brought the company’s tanker division Stolt Tankers to an operating profit of USD 31.2 million, against USD 35.4 million, reflecting the impact of fewer operating days in the first quarter.
“Stolt Tankers had another good quarter, helped by a continued strong spot market and low bunker costs. This was despite the impact of fewer operating days, as two of our deep-sea ships were out of service and two more were recycled during the period,” Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said.
Stolthaven Terminals reported an operating profit of USD 10.5 million, up from USD 2.6 million in the previous quarter when results were held down by write-downs of certain assets, accelerated depreciation and settlements of customer claims.
According to the company’s CEO, Stolthaven Terminals is on the road to recovery, and the group expects to see small, gradual quarterly improvements this year. However, ongoing actions to increase utilisation and enhance both profitability and operational performance are not expected to fully impact results until 2017.
Increased competition saw Stolt Tank Containers’ operating profit drop to USD 11.8 million from USD 13.1 million, as downward pressure on pricing continued.
Stolt Sea Farm reported an operating profit of USD 5.5 million, bouncing back from an operating loss of USD 2.5 million.
“Looking forward, at Stolt Tankers we expect the second quarter and possibly the third to look much like the first quarter, though with fewer lost operating days. The longer term outlook for tankers hinges on how long the spot market holds up. Thanks to lower feedstock costs, chemical exports out of the US Gulf have been good-one of the few bright spots in an otherwise lacklustre global market. We remain concerned about the impact of the orderbook, though delays and cancellations seem increasingly likely,” Stolt-Nielsen went on to say.