Stolt-Nielsen reports unaudited results for 3Q and first nine nonths of 2019
Stolt-Nielsen Limited (Oslo Børs: SNI) reported unaudited results for the third quarter ended August 31, 2019. Net profit attributable to shareholders in the third quarter was $3.7 million, with revenue of $519.0 million, compared with a net profit of $3.6 million, with revenue of $518.9 million, in the second quarter of 2019. Net profit attributable to shareholders for the first nine months was $15.2 million, with revenue of $1,539.9 million, compared with $51.3 million1, with revenue of $1,599.4 million in the first nine months of 2018.
Highlights for the third quarter of 2019, compared with the second quarter of 2019, were:
- Stolt Tankers reported an operating profit of $15.0 million, up from $12.8 million, mainly reflecting the impact of lower operating costs.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index edged upward to 0.54 from 0.53.
- Stolthaven Terminals reported an operating profit of $19.5 million, compared with $19.7 million, as markets remained stable.
- Stolt Tank Containers reported an operating profit of $12.1 million, down from $12.6 million, reflecting continued softness in markets overall.
- Stolt Sea Farm’s operating profit before the fair-value adjustment of inventories was $2.1 million in the third quarter, up from $2.0 million in the second quarter.
- Corporate and Other reported an operating loss of $2.0 million, compared with a loss of $2.1 million in the previous quarter.
On September 28, an explosion and fire occurred on Stolt Groenland, while the ship was berthed in Ulsan, South Korea. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: “We deeply regret the impact of this incident on the people that were in the vicinity of our vessel and hope for the speedy recovery of those injured. As always, safety remains our number-one priority in all that we do, and we are actively cooperating with the investigations now underway to determine the cause of this incident.”
Commenting on the Company’s results, Mr. Stolt-Nielsen said: “Stolt Tankers’ third-quarter results were flat, supporting our belief that the chemical tanker market has bottomed out. Stolthaven’s results also held steady for the quarter. At Stolt Tank Containers, shipments were down slightly, and we are observing continued softness in markets along with price competition. Excluding the impact of fair-value adjustments, Stolt Sea Farm’s results were in line with those of the prior quarter.”
“Looking ahead, with deliveries of new tonnage slowing, we expect the tanker market to slowly turn. At Stolthaven, we expect continued improvements in our results, driven by increased capacity and enhancements in operational performance and efficiency. At Stolt Tank Containers, the cyclical strengthening of tank container markets that we typically see at this time of year did not materialise, reflecting the combined impact of the US-China trade war, a softening of global economic conditions overall, and an oversupply of tank containers. At Stolt Sea Farm, we expect continued strong performance from turbot. In sole, the first of our two new recirculation farms will soon be stocked with juveniles, and we expect to bring its first product to market by the end of next year, with the second farm coming online in 2021.”
“The implementation of the IMO 2020 regulations to reduce sulphur oxide emissions is now less than three months away. Based on discussions in recent contract renegotiations, we expect to recover the increase in our fuel costs through bunker-surcharge clauses, thanks to a shared understanding among all parties that it is economically unfeasible for the shipping industry to absorb these costs.”