The losses represent a downturn from 2012’s fourth quarter $2.6m profit, with the company hampered by $2m in one-time charges, as well as heightened operating costs, and falling Tanker Sailed-in Time-Charter Index, which went down to 1.12 from 1.14.
"Stolt-Nielsen Limited's poor first-quarter results were largely attributable to a loss at Stolt Tankers, where overall market conditions remain weak,” said Niels Stolt-Nielsen, ceo. “Higher trading and operating expenses further depressed tanker earnings this quarter. Both Stolthaven and Stolt Tank Containers (STC) continue to perform well, though STC's operating results were down modestly from the prior quarter due to higher ocean freight, inland haulage and depot costs. Stolt Sea Farm reported a slight loss for the quarter, though performance improved from the prior period, as turbot prices have begun to strengthen."
"Any substantial improvement in Stolt-Nielsen Limited's performance is dependent upon a turnaround in the parcel tanker market, which, in turn, depends in part on the strength of the global economy. As stated earlier, we expect 2013 to be a challenging year for Stolt Tankers."
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