Stolt-Nielsen Profits Dip
Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the fourth quarter ended November 30, 2015. Net profit attributable to shareholders in the fourth quarter was $21.4 million, with revenue of $494.6 million, compared with a net profit of $30.1 million, with revenue of $500.7 million, in the third quarter of 2015. Net profit attributable to shareholders for 2015 was $132.7 million, with revenue of $1,983.7 million, compared with $77.1 million and revenue of $2,137.9 million in 2014.
Highlights for the fourth quarter of 2015, compared with the third quarter of 2015, were:
Stolt Tankers reported an operating profit of $35.4 million, compared with $37.5 million, mainly reflecting accelerated depreciation on ships scheduled for recycling and the continuing positive impact of lower bunker costs.
The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 0.77, compared with 0.75 in the third quarter.
Stolthaven Terminals reported an operating profit of $2.6 million, down from $6.4 million, mainly due to write-offs of certain assets, accelerated depreciation and settlements of customer claims.
Stolt Tank Containers reported an operating profit of $13.1 million, down from $15.6 million, mainly reflecting lower utilisation from a reduction in shipments and costs related to the early recycling of a certain series of tank containers.
Stolt Sea Farm reported an operating loss of $2.5 million including fair value adjustments, compared with an operating loss of $2.1 million. The accounting for inventories at fair value had a negative impact of $2.7 million, compared with a negative impact of $2.1 million in the third quarter.
Corporate and Other reported an operating loss of $5.0 million, compared with operating income of $2.4 million, reflecting increased employee profit-sharing allocations and higher equity loss on its investment in Stolt LNGaz Ltd.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: "Stolt Tankers' improved performance continued in the fourth quarter, driven mainly by lower bunker costs. Results included $4.1 million of accelerated depreciation on ships scheduled for recycling, due to falling steel prices. Poor results at Stolthaven Terminals were attributable to accelerated depreciation of certain assets and continued actions to enhance efficiency and improve profitability at Stolthaven Houston, though the underlying dynamics of the storage market remain solid. Stolt Tank Containers' performance softened in the fourth quarter, reflecting fewer shipments and costs associated with the recycling of a series of tank containers."
"Looking ahead in 2016, Stolt Tankers is likely to continue to perform well near-term, but unless global trade flows pick up, the additional newbuilding tonnage scheduled to come into the market this year and in 2017 may negatively impact our results. The outlook for the global economy and trade provides limited comfort. Considering the uncertain outlook we will continue to manage our businesses conservatively in order to be well positioned to capitalise on opportunities that may arise in a weak market."