Stolt-Nielsen’s Q1 results boosted by its Terminal business
Stolt-Nielsen has reported its results for the first quarter ended February 29, 2012. The company posted revenues of $505.7m and a net profit of $8.0m, compared to $512.9m and $22.2m respectively in the fourth quarter of 2011.
The company reported positive results for its Terminal and Tank Container businesses with profits of $23.3m and $19.2m respectively. Stolthaven Terminal’s profit increased 29% from $18m to $23.3m, the company attributed the gain to the acquisition of a terminal in Moerdijk, the Netherlands. Stolt Tank Containers‘ profit of $19.2m was a slight decline from $19.7m in Q4 2011, reflecting a modest decrease in margins attributed to higher administrative expenses.
However, the positive performance of its Terminal and Tank Container businesses was offset by losses in its other business interests. Stolt Tankers reported an operating loss of $8.6m, compared with an operating profit of $7.0m in the fourth quarter of 2011. This was attributed to lower utilisation of the deep sea fleet, ships taken out of service for unscheduled repairs and increased ship management costs.
Stolt Sea Farm also reported an operating loss of $2.7m, compared with an operating loss of $1.9m in Q4 2011, due to lower turbot prices. Further losses were experienced by Stolt-Nielsen Gas. The business reported a $1.2m loss on its investment in Avance Gas Holding, compared with equity income of $2.5m in the comparable quarter, as conditions softened in the VLGC (very large gas carrier) market.
Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, commented: ""The weakness in Stolt-Nielsen Limited’s first-quarter results was for the most part attributable to weak markets overall for Stolt Tankers. Higher operating costs and weak volumes, particularly on trade lanes to Europe and the Americas from Asia and in the regional European trades, held down Stolt Tankers‘ performance for the quarter. In addition, five ships were withdrawn from service for unscheduled repairs during the quarter, resulting in a substantial loss of operating days. In contrast, results at both Stolthaven Terminals and Stolt Tank Containers remained good and in line with expectations. Stolt Sea Farm posted a loss, due to lower turbot prices in the quarter."
Regarding the outlook for the business Niels G. Stolt-Nielsen concluded: "We continue to anticipate a slow improvement in the parcel tanker market. In the meantime we are continuing to invest in our terminal, tank container and fish farming businesses, where we see promising opportunities for growth. Given the actions we have taken to enhance our financial strength and liquidity, I believe we are well equipped to pursue our long-term growth plans."
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