Norwegian tanker and terminals group Stolt-Nielsen has sold out of LNG carrier owner Cool Company (CoolCo) for a profit.
In February last year, the Oslo-listed company bought 1m shares in the Golar LNG spin-off now led by Idan Ofer’s Eastern Pacific Shipping, giving it a 2.5% holding.
Stolt-Nielsen said on Thursday that during its December to February first quarter, 923,565 shares were offloaded for a gain of $2.5m, which was recorded as retained earnings.
After the end of the quarter, the remaining 16,000 shares were also sold. This suggests a limited sell-down was carried out over the year to 30 November as well.
The CoolCo share was trading at NOK 124.48 ($11.93) in Oslo on Thursday, up 3% from the close.
A year ago, the stock price was NOK 94.20.
CoolCo made its debut this month on the New York Stock Exchange, adding to its Oslo listing.
“The investment was driven by our belief in the LNG sector and support for our larger investment in Golar LNG,” Stolt-Nielsen said in its annual report earlier in March.
As of 28 February, Stolt-Nielsen’s total investments in other companies had a book value of $202.4m.
Last November, the figure was $217.8m.
Broad reach
The chemical tanker specialist still has a broad reach in gas shipping, as well as holdings in other tanker, logistics and aquaculture rivals.
Subsidiary Stolt-Nielsen Gas has a 47.2% stake in small-scale LNG carrier owner Avenir LNG and a 2.5% stake in Golar.
“Stolt-Nielsen holds strategic investments in companies where we believe we can contribute as a minority shareholder using our expertise in shipping, storage, distribution and land-based aquaculture,” the group added.
The shipping company also has 5% in chemical tanker rival Odfjell as it aims to drive consolidation in that sector.
Then there is an 8.3% holding in aquaculture player the Kingfish Company and 9.8% in Ganesh Benzoplast, a Mumbai-listed chemical logistics and storage company.
Stolt-Nielsen also set up Stolt Ventures in 2022, to identify and invest in sustainable technologies that will contribute to decarbonisation and support core operations.
“As the energy transition gathers pace and we look for innovative ways to maintain a leadership position in our key markets, we seek to be an active investor in new technologies that will boost our efficiency while reducing our environmental impact,” the group said.
Stolt-Nielsen revealed it made its first commitment in December by investing $750,000 in Motion Ventures, a seed fund backed by corporates in the maritime and logistics industries.
