London-based Stolt-Nielsen Limited foresees a negative financial impact on its tanker business, because of the fire at Intercontinental Terminals Company’s facility in Houston, which resulted to a chemical spill in the Houston Ship Channel.
Mainly, the fire erupted on March 17 at ITC’s petrochemical storage facility, leading to a chemical spill in the Houston Ship Channel.
The company commented that the fire at ITC’s facility in Houston last month is already impacting the local chemical industry, including both transportation and storage.
We are at a minimum expecting a negative impact on Stolt Tankers, as parts of the Houston Ship Channel have been closed to traffic, causing delays.
They continued that they are keeping up with the situation, as the full impact from the fire and the chemical leak, remains unknown.
The company reported USD 501.9 million of revenue for the first quarter ended February 28, 2019, compared to a revenue of USD 515.3 million reported in the same period a year earlier.
Stolt-Nielsen’s net profit decreased to USD 6.6 million in the period from USD 38.8 million delivered in the first quarter of 2018.
Additionally, freight rates and volumes overall were stable at Stolt Tankers. Results at Stolthaven Terminals were steady when excluding the impairments taken in the prior quarter, reflecting stable market conditions and operations. At Stolt Tank Containers, first-quarter results were down in line with seasonal expectations, though market softness remains, with intensified price competition.
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Concluding, the company reported an operating profit of USD 14.3 million, up from USD 7.7 million delivered in the previous quarter, mainly reflecting a USD 3.4 million bunker-hedge gain in the quarter.
