London-based Stolt-Nielsen Limited expects a negative financial impact on its tanker business following a fire at Intercontinental Terminals Company’s facility in Houston.
Namely, the company noted that its future performance is expected to be affected by the fire which erupted on March 17 at ITC’s petrochemical storage facility, leading to a chemical spill in the Houston Ship Channel.
“The fire at ITC’s facility in Houston last month is already impacting the local chemical industry, including both transportation and storage,” Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen Limited, commented.
“We are at a minimum expecting a negative impact on Stolt Tankers, as parts of the Houston Ship Channel have been closed to traffic, causing delays. We continue to follow the situation closely, as the full impact is unclear at this point.”
The Oslo-listed company reported USD 501.9 million of revenue for the first quarter ended February 28, 2019, compared to a revenue of USD 515.3 million reported in the same period a year earlier.
Stolt-Nielsen’s net profit dropped to USD 6.6 million in the period from USD 38.8 million delivered in the first quarter of 2018.
“Stolt-Nielsen Limited’s first-quarter results were in line with expectations,” Stolt-Nielsen said.
“Freight rates and volumes overall were stable at Stolt Tankers. Results at Stolthaven Terminals were steady when excluding the impairments taken in the prior quarter, reflecting stable market conditions and operations. At Stolt Tank Containers, first-quarter results were down in line with seasonal expectations, though market softness remains, with intensified price competition.”
Stolt Tankers reported an operating profit of USD 14.3 million, up from USD 7.7 million delivered in the previous quarter, mainly reflecting a USD 3.4 million bunker-hedge gain in the quarter.
Stolthaven Terminals’ operating profit was at USD 18 million, up from USD 11.7 million in the fourth quarter of 2018, while Stolt Tank Containers reported an operating profit of USD 15.7 million down from USD 18.1 million quarter-on-quarter.