Stolt-Nielsen reports 'disappointing' first quarter

Revenue for Q1 also fell slightly over the previous quarter, to $524.5m from $516.7m in Q4 2013.

The dip was largely attributable to Stolt Tankers, which saw operating profit drop from $15.8 in Q4 2013 to $9.8 million due to falling volumes and lengthy delays caused by difficult winter weather.

However, operating profits received a $5m boost at Stolthaven Terminals, to $18.9m, due to insurance payouts relating to damage at its New Orleans terminal caused by Hurricane Isaac in August 2012. Stolthaven recorded $15.5m in the previous quarter.

A drop in operating profit for Stolt Tank Containers, to $15.1m from $19.8m, was put down to a normal “seasonal softness” for the first quarter.Although Stolt-Nielsen’s first quarter showed a considerable improvement over the $1.5m profit recorded in same period in 2013, ceo Niels G. Stolt-Nielsen describedthe results as “disappointing”. He that they were disappointing, “particularly at Stolt Tankers, where both the spot and contract volumes were lower than normal, reducing fleet utilisation".

“In addition, adverse winter weather conditions in Houston and a number of Western European ports caused substantial delays. This, combined with a lack of spot cargo that resulted in ships sailing light, held down performance at Stolt Tankers. Notwithstanding the disappointing first quarter volumes at Stolt Tankers, we believe the underlying positive trend that started in the second half 2013 will resume as the year progresses.

“At Stolthaven Terminals, the construction of additional storage capacity was completed in New Orleans, Houston, Australia, and Singapore. Although most of the added capacity is already contracted out, the final commissioning of the tanks has taken longer than expected. Stolt Tank Containers' results were consistent with the seasonal softness we normally experience in the first quarter.”