Stolt-Nielsen reports unaudited second quarter results
Stolt-Nielsen Limited has reported unaudited results for the second quarter ended May 31, 2013.
Net profit attributable to shareholders in the second quarter was US$25.7 million, with revenue of US$533.8 million, compared with US$1.5 million, with revenue of US$519.4 million, respectively, in the first quarter of 2013.
Net profit attributable to shareholders for the first six months was US$27.2 million, with revenue of $US1053.2 million, compared with US$45 million, with revenue of US$1044.4 million, respectively, in the first half of 2012.
Highlights for the second quarter of 2013, compared with the first quarter of 2013, were:
- Stolt Tankers reported an operating profit of US$5 million compared with an operating loss of US$2.8 million, which included US$2 million of one-time charges. The improved operating profit was mostly due to higher deep-sea contract rates.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased to 1.20 from 1.12.
- Stolthaven Terminals reported an operating profit of US$21.9 million, down from US$23.3 million, due primarily to a decrease in volume handled at Stolthaven Santos related to the delay of sugarcane-based ethanol production.
- Stolt Tank Containers reported an operating profit of US$20.8 million, up from US$15.2 million, reflecting strong seasonal demand in its major markets.
- Stolt Sea Farm reported an operating profit of US$7.4 million compared with an operating loss of US$0.1 million, reflecting a positive impact of US$6.5 million from the accounting for inventories at fair value caused by rising turbot prices.
- Stolt-Nielsen Gas reported a loss of U$1.7 million on its investment in Avance Gas Holding Ltd. (AGHL), compared with a loss of $1.2 million.
Commenting on the company's results, Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen Limited, said: "Stolt Tankers' results for the quarter reflect the modest rate increases we have achieved in our contract portfolio over the last 12 months-this in a market where the spot rates have moved in the opposite direction.
"Volumes continue to be the challenge. Stolthaven's results softened in the quarter, mostly attributable to our terminal in Santos, Brazil, which was impacted by a delay in Brazilian ethanol production.
"Stolt Tank Containers had a good second quarter, driven by seasonally strong demand in markets worldwide. Stolt Sea Farm also had a good quarter, with turbot prices rising as market supplies tightened.
"The outlook for the global economy remains highly uncertain. We question the resilience of the US growth once quantitative easing tapers off. The European economies continue to struggle and the recent slowdown in China is also a concern.
"While we have been able to achieve modest gains in our contracts of affreightment, we do not yet see any acceleration of momentum in the market, which is still plagued by excess tonnage and low volumes. We continue to believe the recovery will take time.
"At Stolthaven, we continue to add storage capacity, which will have a positive impact on the results going forward. At Stolt Tank Containers, we expect increased margin pressure due to more competition. We expect Stolt Sea Farm to continue to benefit from a price recovery for both turbot and sole going forward."