Stolt-Nielsen posts lower earnings in quarter
Parcel tanker operator Stolt-Nielsen reported fourth quarter profit of $36.3 million compared to $57.8 million in the same 2006 period.
Operating revenue for the quarter was $460.8 million compared to $404.4 million in the fourth quarter of 2006.
For the full year 2007, Stolt-Nielsen had a profit of $216.4 million up from $199.9 million in 2006. Revenue in 2007 was $1.76 billion versus $1.57 billion in 2006.
Niels G. Stolt-Nielsen, the company's chief executive officer, said it was a 'good year' with 'growth in revenue and operating income driven by strong markets in each of our businesses.' In addition to operating parcel tankers, Stolt-Nielsen is a large tank container company, and is involved in the terminal business and aquaculture.
'However, during the second half of the year we experienced significant operating cost increases in our tanker business, as well as a slowdown in certain markets. Despite growing global economic uncertainty, we have seen no significant impact on rates and volumes in our parcel tanker business so far,' Stolt-Nielsen said.
'It is still too early to determine the effect on the parcel tanker industry of the large new building order book, which stands at 28.5 percent of the current fleet, net of estimated recycling of ships,' he added.