Stolt-Nielsen Reports Improved Fourth Quarter

MarineLink.com
Thursday, January 30, 2014
Photo: Stolt Tankers

Stolt-Nielsen Limited has reported unaudited results for the fourth quarter ended November 30, 2013. Net profit attributable to SNL shareholders in the fourth quarter was $36.7 million, with revenue of $524.5 million, compared with $21.8 million, with revenue of $521.8 million, respectively, in the third quarter of 2013.

Net profit attributable to shareholders for 2013 was $85.8 million, with revenue of $2,099.5 million, compared with $70.2 million, with revenue of $2,071.7 million, respectively, in 2012.

Highlights for the fourth quarter of 2013, compared with the third quarter of 2013, were:

  • Stolt Tankers reported an operating profit of $15.8 million, up from $9.0 million, as market conditions firmed for the third consecutive  quarter.
  • The Stolt Tankers Joint Service Sailed-in Time-Charter Index [1] increased to 1.39 from 1.28.
  • Stolthaven Terminals reported an operating profit of $15.5 million, up from $12.0 million, excluding third-quarter proceeds of $5.5 million from business interruption insurance related to Hurricane Isaac.
  • Stolt Tank Containers reported an operating profit of $19.8 million, up  from $17.1 million, due primarily to lower operating costs.
  • Stolt Sea Farm reported an operating profit of $0.4 million, compared with break-even operating results, reflecting a positive impact of $0.1 million from the accounting for inventories at fair value , versus a negative impact of $1.3 million in the third quarter.
  • Stolt-Nielsen Gas reported equity income of $3.3 million on it investment in Avance Gas Holding Ltd. (AGHL), excluding a $7.8 million dilution gain after AGHL's issuance of shares in a private placement, compared with equity income of $4.2 million, reflecting the withdrawal of two ships from the AGHL fleet following the exit of a previous partner in the third quarter.


Commenting on the Company's results, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said "The improvement in Stolt-Nielsen Limited's operating results in the fourth-quarter was largely attributable to the gradual pick-up in performance we are seeing at Stolt Tankers, which returned to profitability in August of last year for the first time since 2009. On a full-year basis, contract rates were up about 9% in 2013, though spot rates were essentially flat. While the current improvement in the market is welcome, we continue to expect a slow recovery in tankers."

"Operating results at Stolt Tank Containers were up in the quarter mainly due to lower costs, with margins remaining under pressure due to increased competition. We expect our earnings from Stolt Tank Containers to grow in line with our fleet expansion, and we continue to invest in systems, our global network of depots and our people to support our market position."

"Stolthaven posted higher operating results in line with our capacity expansions, although cost increases have been impacting margins. We expect earnings to grow in line with the additional capacity under construction that will come online in 2014. We have seen increased competition with some pressure on margins in the commodity part of our terminal business, but we expect margins to return to a healthy level in our strategic core chemical business."

"Stolt Sea Farm's operating results were up slightly in the quarter due to better size distribution of fish sold and less fish harvested by our competition. We expect growth in earnings from Stolt Sea Farm in 2014 as more turbot will be harvested following our Acuidoro acquisition and as our sole farm in Iceland starts harvesting the first of its fish in the second half of the year."

"Stolt-Nielsen Gas' investment in Avance Gas has developed as expected. The traditional winter low season levelled off at a sailed-in revenue of about $30,000 per day, compared with approximately $10,000 per day last year, when we barely covered our operating costs. This leads us to believe that the spring market will be strong for VLGC owners. We believe increased exports of LPG from the US, in addition to the growth from traditional markets, will create healthy market conditions in this segment in years to come."

[1] The Stolt Tankers Joint Service Sailed-in Time-Charter Index is an indexed measurement of the sailed-in rate for the Joint Service and was set at 1.00 in the first quarter of 1990 based on the average sailed-in time-charter result for the fleet at the time. The sailed-in rate is a measure frequently used by shipping companies, which subtracts from the ships' operating revenue the variable costs associated with a voyage, primarily commissions, sublets, external time charter expenses, transshipments, port costs, and bunker fuel.

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

K-Line Executive Pleads Guilty to Price Fixing

An executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) was sentenced to 18 months in a U.S. prison after pleading guilty to his involvement in a conspiracy to fix prices,

CSIC, CSSC Dismiss Shipbuilder Merger Rumors

China's state-backed shipbuilding giants said they have not received any merger-related information from authorities, after an executive swap between the firms sparked a market rally in their shares.

Russia Names Nominee for IMO Secretary General

Russia has for the first time put forward a candidate to compete for the post of IMO Secretary General   The Russian Federation has nominated Vitaly Klyuev, Russia’s

Tanker Trends

Helios LPG Pool to Start Operating

Dorian LPG Ltd. today announced the commencement of operations of Helios LPG Pool LLC on April 1st, 2015.  Helios LPG is jointly run by Dorian LPG and Phoenix Tankers Pte.

Stolt-Nielsen Completes Bond Issues

Stolt-Nielsen Limited announced the placement of senior unsecured bonds in a total amount of NOK 1,100 million in a new five-year bond issue carrying a coupon of 3M NIBOR plus 4.

Icebreaker Murmansk Launched at Arctech Helsinki Shipyard

The 16 MW Icebreaker for the Russian Ministry of Transport was launched at Arctech Helsinki Shipyard on March 25th, 2015. Before floating the vessel, she was

Finance

K-Line Executive Pleads Guilty to Price Fixing

An executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) was sentenced to 18 months in a U.S. prison after pleading guilty to his involvement in a conspiracy to fix prices,

Asia-Europe Box Rates Fall Almost 6 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 5.5 percent to $586 per 20-foot container (TEU) in the week ended on Friday,

Cosco Bulk Shipping Losses Down in 2014

China Cosco said losses in its main dry bulk shipping business fell sharply in 2014 and its container shipping gross profit grew amid a still subdued global shipping market.

Energy

CSIC, CSSC Dismiss Shipbuilder Merger Rumors

China's state-backed shipbuilding giants said they have not received any merger-related information from authorities, after an executive swap between the firms sparked a market rally in their shares.

Statoil: Polarled Pipe-Laying Kicks Off

On 26 March, the Solitaire pipe-laying vessel started on the first stage of the Polarled installation project. The 482-kilometre long pipeline will transport gas

Cosco Bulk Shipping Losses Down in 2014

China Cosco said losses in its main dry bulk shipping business fell sharply in 2014 and its container shipping gross profit grew amid a still subdued global shipping market.

News

CSIC, CSSC Dismiss Shipbuilder Merger Rumors

China's state-backed shipbuilding giants said they have not received any merger-related information from authorities, after an executive swap between the firms sparked a market rally in their shares.

Russia Names Nominee for IMO Secretary General

Russia has for the first time put forward a candidate to compete for the post of IMO Secretary General   The Russian Federation has nominated Vitaly Klyuev, Russia’s

Asia-Europe Box Rates Fall Almost 6 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 5.5 percent to $586 per 20-foot container (TEU) in the week ended on Friday,

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4565 sec (2 req/sec)