Stolt-Nielsen Limited reported unaudited results for the first quarter ending February 28, 2023.

The Company reported a first-quarter net profit of $99.8 million, with revenue of $708.7 million, compared with a net profit of $95.3 million, with revenue of $732.5 million, in the fourth quarter of 2022.

Highlights for the first-quarter 2023, compared with the fourth quarter of 2022, were:

• Stolt-Nielsen Limited (SNL) consolidated EBITDA1 of $215.6 million, up from $197.8 million.
• Stolt Tankers reported operating profit of $87.1 million, up from $78.2 million, largely driven by higher contract rates and improved spot volume.
• The STJS average sailed-in revenue for the quarter was $29,066 per operating day, up 7.0% from $27,162.
• Stolthaven Terminals reported operating profit of $25.1 million, compared with $20.8 million as operating revenue at the terminals in the US and Brazil improved.
• Stolt Tank Containers reported operating profit of $39.3 million, down from
• $44.9 million. Lower transportation and demurrage revenue was partly offset by lower ocean freight cost and an increase in shipments.
• Stolt Sea Farm reported an operating profit before fair value adjustment of biomass of $5.6 million, up from $3.3 million, reflecting seasonally higher sales volumes during the Christmas season and higher prices for sole.
• Stolt-Nielsen Gas reported an operating loss of $3.4 million, compared to a loss of
• $2.9 million.
• Corporate and Other reported an operating loss of $9.2 million compared with a loss of $10.4 million.

Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, commented: “The first quarter continued where 2022 ended, with a solid performance from all businesses during what is typically the seasonally weakest quarter of the year. Stolt Tankers improved on the prior quarter results as we began to see the impact of contract renewals on our earnings. Results at Stolthaven Terminals improved on the back of continued high utilisation, although throughput volume was down slightly. At Stolt Tank Containers a decrease in container liner freight rates impacted the rates we charge our customers, and with the easing of logistics bottlenecks customers are returning tanks more quickly, reducing demurrage revenue. For Stolt Sea Farm, the Christmas season is our peak period, and it did not disappoint. However, as we entered 2023, we saw a slight reduction in the volume of turbot sales as the cost-of-living increase impacted the hospitality industry.

“The average rate increase on contract renewals by Stolt Tankers in the first quarter was approximately 50%, a significant improvement over the fourth quarter’s 30% rate increase. In pushing hard for improved terms, a number of contracts were not renewed, but we continue to see most of those contract volumes resurface in the spot market, where we have been able to fix at higher rates – negotiations continue. With a continued favourable supply/demand balance expected in the chemical tanker markets during the coming years we should see continued firmness in our segment.

“At Stolthaven Terminals, tightness in the global storage market, especially for chemicals and specialty liquids including biofuel feedstocks, has allowed for higher storage rates. We are seeing an increase in inquiries, which indicates a stronger storage market towards the end of the year.

“The tank container market has been holding up remarkably well. However, our expectation in the coming months is that we will move towards normalized market conditions.

“At Stolt Sea Farm we are seeing the impact of the increased cost-of-living on the hospitality sector in the form of easing demand. Consequently, we continue to expand our sales channels and geographical reach to support sales growth and price improvements, while focusing on maintaining the good growth in our biomass.”