EMEA News
Strong Start to 2015 for Stolt-Nielsen, Expects to Continue to Benefit from Low Bunker Prices
Tanker and terminal operator Stolt-Nielsen Limited (Stotl-Nielsen) Thursday credited falling bunker prices for a near tripling of profits in the three months ended February 28, 2015, (Q1 2015) versus the prior quarter (Q4 2014).
The group reported a profit of $38.7 million for Q1 2015 compared with $13.1 million in the prior quarter.
The spike in profitability was achieved despite a fall in revenue from $532.3 million in Q4 2014 to $487.7 million in the latest quarter.
"The improvement this quarter derives primarily from lower bunker costs in Stolt Tankers, but also from initiatives taken to lower overall costs in the group," said CEO Niels G. Stolt-Nielsen.
Stolt Tankers saw a rise in profit from $12.5 million to $19 million over the period, while Stolt Tank Containers' profit dipped and Stolthaven Terminals' profit improved slightly.
"Looking ahead, we expect to continue to benefit from lower bunker fuel prices in the second quarter, but cargo volumes must increase if we are to see any material improvement in the chemical tanker market," said the CEO.
"We have yet to see any sustained increases to date and, unfortunately, there are no indications of any improvement in the near future."
The company also reported that its results had taken a significant boost from the curtailment of its defined benefit (also known as "final salary") pension scheme.
In February, Scorpio Tankers said "we think the product market will not just be stronger but it will be so for longer" amid a rebound in fortunes for the tanker market.
