Tanker, Gas Markets Boost Stolt-Nielsen Results

Stolt-Nielsen said the tanker market recovery drove higher results

Recovery in the tanker market helped Stolt-Nielsen Ltd. improve its performance in the fourth quarter of 2013 and for the full year, the company said in a statement Thursday.

"The improvement in Stolt-Nielsen Limited's operating results in the fourth-quarter was largely attributable to the gradual pick-up in performance we are seeing at Stolt Tankers, which returned to profitability in August of last year for the first time since 2009," said CEO Niels G. Stolt-Nielsen.

"While the current improvement in the market is welcome, we continue to expect a slow recovery in tankers."

The company's net profit for the year rose to $85.8 million on revenues of $2,099.5 million, compared with a profit of $70.2 million and revenue of $2,071.7 million in 2012.

Market conditions for Stolt Tankers have been firming for three consecutive quarters, and the division's operating profit rose to $15.8 million in Q4, up from $9 million the previous quarter.

The company also reported that Stolt-Nielsen Gas's investment in Avance Gas is going as planned, and the gas sector appears to be improving.

"The traditional winter low season levelled off at a sailed-in revenue of about $30,000 per day, compared with approximately $10,000 per day last year, when we barely covered our operating costs," Stolt-Nielsen said.

"This leads us to believe that the spring market will be strong for VLGC owners. 

"We believe increased exports of LPG from the US, in addition to the growth from traditional markets, will create healthy market conditions in this segment in years to come."

Stolt-Nielsen struck a deal with Frontline 2012 last year to make that company a part-owner of Avance Gas, which the companies predicted will help consolidate the liquefied petroleum gas (LPG) carrier market.