[ID] => 9818
[post_author] => 34
[post_date] => 2018-07-09 16:21:32
[post_date_gmt] => 2018-07-09 15:21:32
[post_content] => Stolt-Nielsen Ltd has reported half-year revenues of $1.06bn, up 8.2 per cent on last year, with operating profit up from $100.0m to $103.4m. Revenues were also up in the second quarter, rising by 8.0 per cent to $541.0m, even if operating profit slipped 6.0 per cent to $48.5m.
Niels G Stolt-Nielsen, CEO of Stolt-Nielsen Ltd, says the underlying operating results for the second quarter were “largely in line with our expectations”. The chemical tanker market appears to have bottomed out and storage terminal utilisation is creeping up. It is in the tank container sector where the company is most optimistic, with Stolt-Nielsen saying that Stolt Tank Containers reported “another strong quarter with solid underlying demand driving an increase in shipments”. He also says that the outlook for the sector remains positive, with continued growth in tank container demand.
Stolt Tank Containers (STC) reported second quarter operating revenue of $143.2m, an increase of 8.1 per cent compared to the prior period that was driven by a similar increase in shipments. Revenues per shipment have remained steady but rising demand increased utilisation rates and the company also enjoyed a 21.5 per cent increase in demurrage revenue as customers stocked up on tanks for inventory storage.
STC has responded to these positive market indicators with investment in new tanks for both chemicals and foodgrade products; its fleet grew by 3.9 per cent in the second quarter to more than 38,000 tanks.
In terms of revenue, Stolt Tankers represents Stolt-Nielsen’s largest business division. Operating profit for the first half was down 33.3 per cent on the previous year at $37.4m, although the second quarter saw a recovery both in revenues and profits. The volume of cargo carried was up by 3.5 per cent compared to the first quarter, although rates remained weak both in the spot and contract of affreightment (COA) sectors. The shortsea regional fleets performed particularly well and demurrage revenue also increased due to congestion in north-west European ports.
During the second quarter, the last of the newbuildings from Hudong-Zhonghua Shipbuilding was delivered to the NYK Stolt Tankers joint venture. Stolt Tankers also sold two ships, booking a net loss of $0.8m.
Looking forward, Niels G Stolt-Nielsen says that rising bunker prices will have a negative impact on earnings at Stolt Tankers, until spot rates begin to reflect the higher costs, although the bunker hedge programme has so far successfully covered the rising prices.
Stolthaven Terminals, the group’s bulk liquids storage division, reported essentially flat figures in the second quarter but there is a gradual improvement in underlying performance that it expected to continue. Part of that is coming from higher demand – which is generating higher utilisation rates, if not higher lease rates – and part from internal operational improvements. Utilisation was particularly strong at Stolthaven’s US terminals in Houston and New Orleans and at Singapore. Demand for chemicals storage is stable overall, the company says.
Next year Stolt-Nielsen will move into a new business area, with two 7,500-m³ LNG carriers due for delivery from Keppel Singmarine. Stolt-Nielsen Gas will focus on the development of small-scale LNG storage and distribution.
[post_title] => Stolt-Nielsen: Off the bottom
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[post_name] => stolt-nielsen-off-bottom
[post_modified] => 2018-07-09 16:21:32
[post_modified_gmt] => 2018-07-09 15:21:32
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[guid] => https://www.hcblive.com/?p=9818
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Stolt-Nielsen: Off the bottom
The chemical transport market may not be improving very fast but at least it has stopped falling, if Stolt-Nielsen's half-year results are a reliable indication