Stolt-Nielsen has enjoyed some success in passing the anticipated extra fuel cost from IMO 2020 rules onto its customers, its chief executive says.
Oslo-listed Stolt is also working on a sale-and-leaseback deal involving multiple tankers, it has emerged.
Chief executive Niels Stolt-Nielsen says the company could face a $130m hike in its bunker bill when the new sulphur emissions rules arrive.
“Looking at our results you know that is not possible, so we know we will have to pass that onto our customers,” the executive said in a post-results presentation last week.
“In the negotiations we are doing now for COAs that go into 2020 we are successfully able to pass it on, not in all contracts but we are not accepting anything beyond passing it on.”
Stolt-Nielsen says in cases where a 2020 fuel charge could not be reached, an exit clause has been inserted into the deals.
“If we don’t reach an agreement both parties can walk away,” he said.
Stolt last week booked an adjusted net profit of $3.4m for the quarter, missing the $16.2m consensus, according to DNB Markets.
During a presentation with analysts and investors Stolt-Nielsen said the company was working on a sale and leaseback transaction involving four older ships.
Further details were not disclosed.
