Stolt-Nielsen first half profit plunges 54.8%

Net profit for the six months ended 31 May 2017 was recorded at $$30.9m, a sharp fall of 54.8% compared to $68.3m in the same period of last year.

First half revenue improved to $976.5m compared to $942.8m in the previous corresponding period.

“SNL’s second quarter results were disappointing overall, but in line with both our expectations and our results in the first quarter, as the fundamentals of our markets remained largely unchanged,” commented Niels G. Stolt-Nielsen, ceo of SNL.

“At Stolt Tankers, the softening of the chemical market that we have seen since the third quarter of last year continued, but at a slower rate. While the demand side growth remains at historical levels, the pressure we see on rates is a result of excess supply from new ships entering the market,” Stolt-Nielsen said.

The first half of 2017 saw the impact of the predicted oversupply of ships resulting from a large oderbook in the deepsea stainless steel chemical tanker market.

SNL forecast that continuing deliveries from a still-high deepsea chemical tanker orderbook will supply more tonnage than required by current cargo demand.

The bright spot for the group during the second quarter was Stolt Tank Containers, which reported much improved results, up from the seasonally weak first quarter.

“Our outlook remains cautious. We do not expect a significant improvement in the chemical tanker market until most of the current orderbook has been delivered, which, barring any new orders, is expected to be in the second half of 2018,” Stolt-Nielsen said.