Niels Stolt-Nielsen has confirmed the plan is to float Stolt Tankers this year.
The chief executive of Oslo-listed chemical tanker and terminals group Stolt-Nielsen told a conference call: “We are looking at a 2023 IPO for Stolt Tankers.”
He explained that the group is now approaching the sort of debt levels it is comfortable with, through cash generation at Netherlands-based Stolt Tankers in strong markets.
“Now it’s more the timing opportunity, how the market looks,” he added.
The CEO has been talking about an IPO for Stolt Tankers since 2017 — but the timing has never been right.
“When it comes to the purpose of the IPO, Stolt-Nielsen will still be a big part of Stolt Tankers, but we would like to create this stand-alone business to further consolidation,” he told the call.
The idea is to create scale to make the chemical carrier sector sustainable through ups and downs in the cycle.
But Stolt-Nielsen admitted that because most chemical tanker companies are making money now, consolidation is not at the top of their agendas.
“We haven’t given up. We still stand by [our belief] that consolidation is what is needed for the industry, but I don’t think it’s going to happen while the market is as strong as it is,” he said.
Earnings are at their best level since 2007, the company has said.
Profit growing
Last week, it posted net earnings of $95.3m in the fourth quarter, up from $35m a year earlier, and revenue grew to $732.5m from $593m.
Stolt Tankers logged an operating profit of $78.2m, against $19.2m in 2021, driven largely by higher spot rates and improved volumes.
VesselsValue assesses the 57 handysizes and smaller tankers it lists in the fleet as worth $1.6bn.
