Stolt-Nielsen reported unaudited results for the third quarter ended August 31, 2018. Net profit attributable to shareholders in the third quarter was $3.0 million, after a $12.9 million negative impact resulting from a change in the accounting for the Company’s investment in Avance Gas Holdings Limited, with revenue of $543.1 million, compared with a net profit of $9.5 million, with revenue of $541.0 million, in the second quarter of 2018. Net profit attributable to shareholders for the first nine months was $51.3 million, with revenue of $1,599.4 million, compared with $49.2 million, with revenue of $1,490.2 million in the first nine months of 2017.
Highlights for the third quarter of 2018, compared with the second quarter of 2018, were:
- Stolt Tankers reported an operating profit of $21.4 million, down from $26.5 million, mainly reflecting a reduced gain on bunker hedges, along with a $2.1 million increase in bunker costs net of surcharges.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 0.58, compared with 0.59 in the prior quarter.
- Stolthaven Terminals reported an operating profit of $18.6 million, down from $20.2 million. The prior quarter benefited from $1.6 million in equity income related to an early contract termination by a customer.
- Stolt Tank Containers reported an operating profit of $17.7 million, down from $18.8 million, reflecting a seasonal decrease in the number of shipments.
- Stolt Sea Farm’s operating profit before the fair-value adjustment of inventories was $2.1 million versus $2.4 million.
- Corporate and Other reported an operating loss of $3.3 million, compared with a loss of $20.9 million in the prior quarter, which included an $11.8 million impairment related to two bitumen ships, losses on bitumen trading, and higher administrative and general expenses.
Commenting on the Company’s results, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: “SNL’s third-quarter operating results presented no surprises. At Stolt Tankers, bunker fuel prices continued to trend upward. The increase was only partially offset by bunker surcharges and the positive impact of our hedging programme, while spot rates were held down due to excess available tonnage. At Stolthaven, underlying operating results were essentially unchanged for the second quarter in a row, though utilisation continued to improve. While Stolt Tank Containers’ third-quarter results were down in line with seasonal patterns, underlying performance remained solid, with an additional 1,000 leased tanks added to the fleet in the quarter. Stolt Sea Farm’s results for the quarter reflected the continued strengthening of turbot prices, which at quarter-end stood at their highest level since the fourth quarter of 2016.”
“Looking ahead, the chemical tanker market is likely to remain weak until the tonnage picture improves later next year. In the meantime, fluctuating bunker prices will continue to impact results. At Stolthaven Terminals, we continue to see steady improvements in both utilisation and operational enhancements, in line with our long-term goals. At Stolt Tank Containers, the outlook remains positive as global tank container demand continues to grow and STC continues to leverage its strengths as the market leader. For Stolt Sea Farm, continued overall improvement is anticipated, driven by higher turbot prices and the broadening of our markets.”