LONDON, April 6, 2017 - Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the first quarter ended February 28, 2017. Net profit attributable to shareholders in the first quarter was $15.2 million, with revenue of $475.7 million, compared with a net profit of $22.8 million, with revenue of $463.0 million, in the fourth quarter of 2016.
Highlights for the first quarter of 2017, compared with the fourth quarter of 2016, were:
- Stolt Tankers reported an operating profit of $28.5 million, down from $30.4 million, reflecting continued softness in the chemical tanker market, higher bunker fuel costs and a loss on a ship sold for early recycling, partially offset by the positive impact from the JO Tankers acquisition.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 0.68, down from 0.72.
- Stolthaven Terminals reported an operating profit of $16.7 million, up from $14.0 million, mainly reflecting improved results at Stolthaven Houston, Stolthaven Singapore and increased income from joint ventures. The prior quarter included gains of $2.3 million related to changes in the Company's defined benefit pension and retiree healthcare plans.
- Stolt Tank Containers reported an operating profit of $9.0 million, down from $15.1 million, reflecting seasonally lower revenue, continued price competition and higher depreciation. The prior quarter included gains of $1.4 million related to changes in the Company's defined benefit pension and retiree healthcare plans.
- Stolt Sea Farm's operating profit before the fair value adjustment of inventories was $2.2 million, compared with $2.1 million. Strong wild catches in the quarter drove supply up and prices down. The fair value adjustment had a negative impact of $3.5 million, compared with a positive impact of $0.6 million in the previous quarter.
- Corporate and Other reported an operating loss of $4.6 million, compared with a loss of $10.0 million, with the latter figure reflecting $2.2 million in costs related to the acquisition of JO Tankers and a $2.7 million impairment for doubtful accounts receivable at Stolt Bitumen Services.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: "The downward slide in the chemical tanker market that we observed in the second half of last year continued during the first quarter. Newbuilding deliveries drove down spot rates, while rising bunker prices ate into margins. Looking ahead, the chemical tanker orderbook is shrinking and we are seeing at least some evidence that the market is now bottoming out. The rest of this year will still be a challenge, but we anticipate an improvement in the chemical tanker market once 2017 is behind us. The integration of JO Tankers into Stolt Tankers is proceeding well. Stolthaven's first-quarter results were in line with our expectations, as we continue the long-term improvements we are making in this business. Stolt Tank Containers' top-line performance was down, consistent with seasonal patterns, while operating income reflected the continued impact of price competition, though we believe we are near the bottom. At Stolt Sea Farm, the wild catch rose in the first quarter, increasing supply, pushing market prices down and, as a result, driving up both inventories and fair value losses at SSF during the normally strong holiday sales season."
