Commenting on the Company’s results for the fourth quarter of 2017, Stolt-Nielsen Limited CEO, Niels G. Stolt-Nielsen, said that these results reflect the negative impact of one-time charges related to impairments and extraordinary events, while the chemical tanker market continued to soften driven by oversupply of tonnage, combined with the impact from Hurricane Harvey.
Namely, the UK-based company reported unaudited results for the fourth quarter ended November 30, 2017. Stolt Tankers reported an operating profit of $20.4 million, down from $34.4 million, mainly reflecting the impact of lower contracts of affreightment (COA) volume and freight rates. The quarter was negatively impacted by Hurricane Harvey, which closed down the Houston ship channel, disrupted cargo operations and affected onward voyages well.
Stolthaven Terminals reported an operating profit of $5.4 million, down from $16.0 million in the third quarter. The current quarter included an $8.4 million one-time impairment of assets in Stolthaven New Zealand.
“Our outlook for the first half of 2018 remains essentially unchanged. We do not anticipate any substantial improvement in the chemical tanker market until 2019 when the orderbook reduces and the supply/demand balance improves.”
“For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by operational improvements and better utilisation. At Stolt Tank Containers, we expect continued strength in rates and margins. Stolt Sea Farm’s results were strong in December in line with holiday demand, but are expected to decline consistent with seasonal patterns in January and February, though prices are anticipated to remain at higher levels than in 2017.”
The only improvement for the quarter was at Stolt Sea Containers results, with an operating profit of $17.0 million, up from $14.8 million, driven by stronger markets, increased demurrage revenue and improved margins.
