Norway’s Stolt-Nielsen has increased earnings in its third quarter despite spot chemical tanker rates falling.
The Oslo-listed group logged a net profit of $90.1m to 31 August, against $74.7m a year ago.
Revenue dropped to $694.4m from $744m, but operating costs fell more quickly.
Ebitda of $198m was a little ahead of consensus.
These are the first results overseen by new chief executive Udo Lange, who moved from FedEx Express on 1 September to take over from Niels Stolt-Nielsen, who is now chairman.
Lange said the result reflected the strong standing of the company and the strength of its diverse portfolio of businesses, including terminals and tank containers.
“Stolt Tankers had another strong quarter, benefitting from firm contract freight rates and improved volumes overall,” Lange said. “The spot market, which came off the peak early in the quarter, has now stabilised.
“Reflecting on our strong performance this quarter and my first few weeks at Stolt-Nielsen, I have been impressed with the strength of our businesses and the leading positions we enjoy in the markets where we operate.”
“It is also good to see that we are operating in a market environment with ongoing positive momentum.”
Stolt Tankers reported operating profit of $87.3m, up from $61.1m a year ago.
The average sailed-in revenue for the quarter was $28,429 per operating day, down 7.9% from $30,880 in the previous three months.
Deepsea freight revenue decreased by $9.9m as rates fell, but volumes were up 3.9% as trading days increased.
Contract renewal season
Contract rates rose 4.8%, reflecting strong renewals in prior quarters.
“Whereas the chemical industry experienced declines in output during late 2022 and the first half of 2023, we expect this negative trend reverse, with the global chemical industry expected to grow slowly again,” the company said.
Stolt Tankers is now heading into contract-renewal season and expects deals to be done at strong rates.
A low newbuilding orderbook and indications that swing tonnage will move away from the chemical segment, as the outlook for product tankers improves, provide a good foundation for steadily improving markets, the owner said.
There was no update on a potential initial public offering for Stolt Tankers.
