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Profit at last for Stolt Tankers

Profit at last for Stolt Tankers
Stolt Nielsen reports that its tanker division has made a return to profitability in August for the first time since 2009.

In the third quarter ended 31 August 2013 Stolt Tankers reported year-on-year increase in operating profit to $9m from $5m in the second quarter.

Stolt Nielsen ceo Niels Stolt-Nielsen called the news a “significant milestone”, and said that he expected the recovery and increasing profits to continue. Nielsen was careful to emphasise caution, however, adding that “as we have mentioned repeatedly, we expect the recovery in the parcel tanker market to be long and slow.”

Stolt-Nielsen’s slight dip in overall profits, to $49m for the first nine months of 2013 from $52m in 2012, was in part attributable to Stolthaven Terminals, which reported a drop in operating profit to $17.5 million, compared with $21.9 million previously.

"The underlying performance fundamentals at both Stolthaven Terminals and Stolt Tank Containers remain good, though we see increased pressure on margins in these businesses,” said Nielsen. “Subsequent to the end of the third quarter, we closed on the deal between Avance Gas Holding Ltd. and Frontline 2012, which was announced on August 22. I welcome them as shareholders in AGHL and look forward to working with them to grow this company in what looks to be a very promising market segment.”