For the third quarter ended August 31, 2017, Stolt-Nielsen reported an improved net profit of 18.5 mill. $, with revenue of 513.8 mill. $. The company does not anticipate any substantial improvement in the chemical tanker market until the latter part of 2018.
Net profit in the se[ds_preview]cond quarter of 2017 was 15.6 mill. $, with revenue of 500.8 mill. $. Net profit for the first nine months was 49.2 mill. $, with revenue of 1,490.2 mill. $, compared with 90.3 mill. $ with revenue of 1,416.9 mill. $, in the first nine months of 2016.
Hurricane Harvey, which hit the US Gulf Coast in late August, caused no physical damage to Company property. However, due to closure of the Houston Ship Channel, operational shutdowns and port delays, the third and the fourth quarter results have been and will be impacted, but Stolt-Nielsen expects the impact not to be material.
Stolt Tankers reported an operating profit of 34.4 mill. $, up from 27.6 mill. $, mainly reflecting the impact of gains related to the Company‘s bunker hedging programme.
The Stolt Tankers Joint Service Sailed-in Time-Charter Index slipped to 0.64 from 0.67.
Stolthaven Terminals reported an operating profit of 16.0 mill. $ in the third quarter, essentially unchanged from the previous quarter. Stolt Tank Containers reported an operating profit of 14.8 mill. $, up from 13.7 mill. $, driven in part by improved margins and higher equity income from STC‘s joint venture cleaning and repair depots.
Stolt Sea Farm‘s operating profit before the fair value adjustment of inventories was 0.4 mill. $, compared with an operating profit of 0.7 mill. $ in the second quarter. The accounting for inventories at fair value had a negative impact of 2.9 mill. $ in the third quarter, compared with a positive impact of 1.7 mill. $ in the second quarter.
Corporate and Other reported an operating loss of 6.7 mill. $, compared with a loss of 8.2 mill. $, mainly reflecting lower restructuring expenses and implementation costs related to the acquisition of JO Tankers.
Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: »On balance, our overall outlook remains unchanged. We do not anticipate any substantial improvement in the chemical tanker market until the latter part of 2018, when the current orderbook will have been significantly reduced and the balance between tonnage supply and demand improves. For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by actions to enhance operational performance across our network of terminals. At Stolt Tanker Containers, we expect margins and utilisation to hold steady at current levels. Consistent with seasonal patterns, Stolt Sea Farms‘ results are expected to improve in the fourth quarter, driven in part by strengthening prices ahead of the holiday sales season.«
