Net profit for the group’s financial year ended 30 November 2016 was registered at $113.1m, down 14.8% compared to $132.7m posted in the 2015 financial year.
Revenue also declined by 5.1% year-on-year to $1.88bn due to lower contributions from Stolt Tank Containers but offset by higher earnings from Stolt Tankers and Stolthaven Terminals.
“At Stolt Tankers, the softness we observed in the prior period continued into the fourth quarter. Stolthaven’s results were essentially flat this (fourth) quarter, though utilisation continued to edge upward, reflecting continued progress toward our goal of sustainable improvements in operational performance,” said Niels G Stolt-Nielsen, ceo of Stolt-Nielsen.
“However, with our COA portfolio and continued focus on cost reductions, we expect Stolt Tankers to remain profitable in the year ahead,” he added.
“At Stolt Tank Containers, while total shipments were seasonally down, improvements in transportation margin per shipment suggest that price competition may be easing,” he commented.
Looking ahead, the outlook for 2017 is expected to be challenging for Stolt Tankers due to the lingering tonnage oversupply, coupled with significant newbuilding deliveries in 2017 and a weak product tanker market.
At Stolthaven, Stolt-Nielsen said the group’s efforts to improve the operations are starting to pay off and the business performance will remain positive this year.
“For Stolt Tank Containers, which faced intense price competition in 2016, we see signs of a bottoming out of the margin deterioration, as profitability can be sacrificed by some operators for only so long in an effort to gain market share,” Stolt-Nielsen said.
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