Stolt Tank Containers Q1 results
Stolt-Nielsen has reported unaudited results for the first quarter ended February 28, 2018. Net profit attributable to shareholders in the first quarter was $38.7m, with revenue of $515.3m, compared with a net profit of $1.1m, with revenue of $506.8m, in the fourth quarter of 2017.
Stolt Tank Containers reported first-quarter operating revenue of $132.5m, compared with fourth-quarter operating revenue of $136.9m. While total shipments held steady and utilisation edged upward in the quarter, freight revenue per shipment slipped by 2.6% due to a change in shipment mix, in line with seasonal patterns.
Demurrage revenue declined by 13.1% in the quarter, mainly due to the seasonal surge in demurrage in the prior quarter. The number of tanks in STC’s fleet increased by 3.6% in the first quarter, consisting of both additional leased and managed tanks. STC reported first-quarter operating income of $16.2m, compared with $17m in the fourth quarter. Overall results for the first quarter mainly reflected the sustained strengthening of volumes observed in 2017 and ongoing efforts to manage costs.
Stolt Tankers reported an operating profit of $10.9m, down from $20.4m, mainly reflecting the impact of higher bunker costs. Stolthaven Terminals reported an operating profit of $25.9m, up from $5.4m in the fourth quarter. The fourth quarter included an $8.4m impairment of assets, while first-quarter joint-venture income included an $8.2m gain from a reduction in deferred taxes. Excluding these one-time items, operating income increased by $3.9m.
“Looking ahead, the fundamentals remain unchanged,” said Niels G. Stolt-Nielsen, Chief Executive of Stolt-Nielsen Limited. “While the chemical tanker market appears to have bottomed out, we are unlikely to see any meaningful improvement until next year, as the orderbook shrinks and new deliveries are absorbed in the market. At Stolthaven Terminals, we expect continued slow, but steady improvements in performance driven by increased utilisation and ongoing operational enhancements. At Stolt Tank Containers, the outlook is positive as global tank container demand continues to grow.”
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16th April 2018