Norwegian tanker owner Stolt-Nielsen saw profit fall in the first quarter, but it expects markets to strengthen this year.
Last month's petrochemical fire and spill near the Houston Ship Channel is complicating the picture, however.
The Oslo-listed company said net earnings were down at $6.6m to 28 February, against $38.8m in the same period a year ago, when it was boosted by a tax gain of nearly $20m.
Revenue fell to $501.9m from $515.3m.
Stolt Tankers reported an operating profit of $14.3m as it booked a $3.4m bunker-hedge gain. It made $10.9m a year ago.
CEO Niels Stolt-Nielsen said the results were in line with expectations.
"Freight rates and volumes overall were stable at Stolt Tankers," he added.
"Looking ahead, while there are currently no definitive indications of a turnaround in the chemical tanker market, we do expect a strengthening market as the supply of new tonnage into our segment slows."
Delays in the US
The fire at ITC's facility in Houston last month closed parts of the Houston Ship Channel, causing delays.
This is "already impacting the local chemical industry, including both transportation and storage," Stolt-Nielsen said.
"We are at a minimum expecting a negative impact on Stolt Tankers. We continue to follow the situation closely, as the full impact is unclear at this point."
Turning to the IMO 2020 regulations aimed at reducing sulphur oxide emissions, the CEO said: "It is economically unfeasible for the shipping industry to carry these costs. Customers, and ultimately consumers, must absorb them."
Norne Research said the results were lower than it had predicted.
Adjusted EBITDA came in at $43.1m, against Norne's forecast of $49.4m and the $63.5m consensus of analysts.
"As we continue to see the rates slightly recovering and do not expect a large negative impact from IMO 2020 regulations, our long term positive view is likely to be reiterated with no major changes to our estimates," analyst Mindaugas Cekanavicius said.
Stolt Tankers' bunker fuel expenses decreased by $6m in the quarter, essentially offsetting the negative impact of the decline in bunker fuel surcharges.
Stolthaven Terminals produced operating profit of $18m, down from $25.9m, reflecting stable market conditions and operations despite an impairment charge.
At Stolt Tank Containers, earnings were $15.7m, against $16.2m, in line with seasonal expectations, though market softness remains with intensified price competition.
