Norwegian tanker and terminals group Stolt-Nielsen believes chemical carriers are set for an upturn after weaker results for its vessels in the fourth quarter.
The Oslo-listed company said group net earnings in the three months to 30 November were stronger at $35m, against $13.4m the year before.
Revenue rose to $593.1m from $480.6m in 2020.
But Stolt Tankers reported operating profit of $19.2m, down from $24.1m in the third quarter due to weaker contract of affreightment (COA) volumes and rising voyage expenses.
The fourth quarter profit in 2020 was $31.9m.
Chief executive Niels Stolt-Nielsen, who is standing down after 22 years at the top of the family company, said Stolt Tankers saw lower volumes and higher voyage costs that reduced margins.
Staying positive
He remains positive about the 2022 market outlook for all the businesses, including Stolthaven Terminals and Stolt Tank Containers.
“Although the first quarter tends to be our seasonally weakest quarter, initial signs are that volumes and rates in all three logistics businesses are holding or even improving,” the CEO added.
Chemical tanker markets are poised to strengthen as the delivery rate of newbuildings slows down and volumes increase, he believes.
Stolt Tankers' revenue was $307.8m, against $310m in the third quarter, as deep-sea turnover fell.
COA volumes dropped 6.6%, with only a partial recovery made through additional spot volumes.
Spot rates dipped 1.4% compared to the third quarter, while bunker costs rose 6.7%, or $1.4m.
Charter costs increase
The company had to pay more charter hire as a result of adding extra pool ships in the third three-month period.
Barging and transhipment expenses also rose, partly offset by lower port expenses.
Fearnley Securities said group Ebitda of $157m beat analysts’ consensus, largely due to a strong tank container market.
Norne Securities said this sector was a “surprise” to the market, with revenue 13% higher than expected.
The Stolt-Nielsen Gas unit reported operating earnings of $1.8m, compared with $0.2m in the third quarter.
The company consists of the group’s investments in gas carrier companies Golar LNG and Avenir LNG.
During the period, a $3.2m gain on the sale of a property in Canada was banked.
Profit for the full year 2021 was $78.8m, against $39.2m in 2020.
Revenue rose to $2.2bn from $1.95m.
Stolt-Nielsen had $123.9m of cash and cash equivalents, and $309.9m of available and undrawn committed revolving credit lines, as of 30 November. Net debt stood at $2.3bn.
