Stolt-Nielsen reports profit decline

Stolt-Nielsen Ltd has reported a decline in revenues and profits for the first quarter of the year as shipping markets continue to weaken.Revenue of $505.7m for the period was down 1.4% on the previous quarter, with net profit dropping from $22.2m to $8.0m. Stolt Tankers slid into a loss, with more off-hire time and unscheduled dry-dockings, and Stolt Tank Containers also saw a slight slip in profits due to a decline in margins.

"The weakness in Stolt-Nielsen Limited's first-quarter results was for the most part attributable to weak markets overall for Stolt Tankers," says CEO Niels G Stolt-Nielsen. "Higher operating costs and weak volumes, particularly on trade lanes to Europe and the Americas from Asia and in the regional European trades, held down Stolt Tankers' performance for the quarter. In addition, five ships were withdrawn from service for unscheduled repairs during the quarter, resulting in a substantial loss of operating days.  In contrast, results at both Stolthaven Terminals and Stolt Tank Containers remained good and in line with expectations.
"We continue to anticipate a slow improvement in the parcel tanker market," Stolt-Nielsen adds. "In the meantime we are continuing to invest in our terminal, tank container and fish farming businesses, where we see promising opportunities for growth.  Given the actions we have taken to enhance our financial strength and liquidity, I believe we are well equipped to pursue our long-term growth plans."