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READY FOR RECOVERY
was generally weaker but contract renewals were done at levels on average 6.1 per cent higher.
RESULTS • STOLT-NIELSEN ENDED THE YEAR WITH A MIXED BAG OF FINANCIALS BUT IS OPTIMISTIC THAT UNDERLYING SUPPLY/ DEMAND FACTORS WILL SEE IT THROUGH 2021 IN COMFORT
INTO THE NEW YEAR Since the end of its 2020 financial year, Stolt Tankers has experienced “challenging” conditions, as is normal for the time of year. “Our fiscal first quarter tends to be seasonally slower, as the Christmas and Chinese New Year holiday season and weather-related delays impact results,” Stolt-Nielsen says. However, he adds that the favourable supply/ demand outlook should provide “a good foundation for continued improvements in the medium to long term”. Since the end of November, Stolt Tankers has begun taking delivery of the five 26,000dwt chemical tankers acquired from Chemical Transportation Group (CTG) in August 2020, two of which will join the NYK Stolt Tankers joint venture. Stolt Bismuth arrived at the start of January and the remaining four ships are expected to join the Stolt fleet over the next few months. The E&S Tankers joint venture commenced operations at the start of this year, following the announcement in early November 2020 that Stolt Tankers BV and the John T Essberger Group were to merge their regional parcel tanker fleets trading within Europe. E&S Tankers has 48 parcel tankers in its fleet, ranging in size from 2,800 dwt to 11,300 dwt, concentrating on the Baltic, Mediterranean and north-west Europe markets.
STOLT-NIELSEN LTD has reported revenues of $1.96bn for the year to end November 2020, slightly down on the $2.03bn recorded in 2019, though operating profit rose from $181.9m to $189.9m and net profit was up 33 per cent at $25.4m. The company’s fourth quarter also showed some improvement in profitability despite a 3 per cent slide in revenues compared to the year earlier figure. Stolt Tankers, the group’s largest division, saw a slight decline in revenues for the year, coming in at $1.11bn as against $1.15bn in 2019, though operating profit rose by 49 per cent to $84.6m. Fourth quarter operating profit was $31.9m, up from $28.1m in the
third quarter and more than double the $14.6m posted for the fourth quarter 2019. Commenting on the results from Stolt Tankers, Niels G Stolt-Nielsen, CEO of Stolt-Nielsen Ltd, says: “As expected, following a relatively strong third quarter, the fourth quarter saw an easing in tanker volumes. However, Stolt Tankers’ results for the quarter improved, driven by lower ship management costs, as crew changes have become easier in recent months.” The fourth quarter 2020 saw lower revenues from deepsea operations, down by 5.8 per cent, but there was a strong increase in freight revenues from Stolt’s regional fleets in Europe and the Caribbean. The spot market
TERMINAL ACTIVITY Stolthaven Terminals, Stolt-Nielsen’s bulk liquids storage division, recorded operating revenue of $238.5m for the year to end November 2020, slightly down on the $250.8m recorded in the 2019 financial year. Operating profit for the year was virtually flat at $68.8m. The fourth quarter was affected by a $12.4m impairment of goodwill recognised at its Australian terminals but the underlying operating profit was also off by $5.9m as a result of higher insurance costs and lower operating income in Singapore and Australia.
HCB MONTHLY | FEBRUARY 2021
