Low Bunker Prices Boost Stolt-Nielsen Q2 2015 Results

by Ship & Bunker News Team
Wednesday July 8, 2015

Lower bunker prices and an improved spot market have helped Stolt-Nielsen Limited earn an operating profit of $30.4 million for the second quarter of 2015 compared to $19.0 million for the same time period last year, the company reports.

According to unaudited results released this week by the tanker and terminal operator, Stoltz-Nielsen also earned a net profit of  $42.5 million and revenue of $500.7 million, compared to Q2 2014 net profits of $38.7 million and $487.7 million in revenue.

Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen, said the Q2 2015 figures were driven mainly "by improved performance at Stolt Tankers, which benefited from higher spot-market rates, combined with lower bunker costs, and the positive impact of a stronger U.S. dollar."

The U.S. dollar, along with increased shipments, helped Stolt Tank Containers achieve an operating profit of $18.6 million, up from $16.0 million in Q2 2014.

Stolt-Nielsen noted that while the improved figures for the tank container portion of his business are welcome, "the seasonal rebound in shipments that we normally see in this quarter was less than expected."

Increased maintenance costs at Stolthaven Houston resulted in Stolthaven Terminals reporting a Q2 2015 operating profit of $14.3 million, down from $15.6 million in Q2 2014.

In looking toward the future, the CEO remarked that "We see little evidence of strengthening volumes in the parcel tanker market, which is essential if we are to see a sustained turnaround, especially considering the substantial number of newbuildings scheduled to enter the chemical tanker market in 2016 and 2017."

Earlier this year, falling bunker prices were credited for a near tripling of Stolt-Nielsen profits in Q1 2015.