Stolt-Nielsen said it had profit of $22.2 million in the third quarter ending Aug. 31, compared to a profit of $26.6 million in the same 2010 period.
Profits were lower even though operating revenue rose to $529.8 million in the third quarter, compared to $449.6 million in the same 2010 period.
Based in London, Stolt-Nielsen transports bulk liquid chemicals, edible oils, acids, and other specialty liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-Nielsen Gas transports liquefied petroleum gas (LPG) with its fleet of very large gas carriers (VLGCs).
Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen, said operating results were similar to those in the previous quarter, when excluding the effects of one-time items and a negative adjustment to the value of inventory of its aquaculture subsidiary.
“The chemical tanker market continues to slide sideways,” he said. “We have seen a slight firming of spot freight rates in response to higher bunker prices and other operational costs. Contract renewals and overall volumes on our deep-sea trades also edged upward in the quarter.”
He added that results at Stolthaven Terminals remained “on track,” while Stolt Tank Containers experienced a seasonal slowdown, “but results were only slightly lower than the previous quarter,” he said.
He also said the company saw “the long-awaited turnaround of the VLGC market, with improved freight rates and reduced waiting times between loadings. This bodes well for the next quarter.”
Stolt-Nielsen: Chemical tanker market slides ‘sideways’
