Norway’s Stolt-Nielsen has posted a rise in profit as chemical tanker rates hit new highs.
The Oslo-listed group said a strong quarter to 29 February marked a solid start to 2024.
Net profit was $104m, against $99.8m in the same period of 2024.
Revenue dipped to $707.3m, from $708.7m, while Ebitda came in at $207.2m, down from $215.6m the year before.
A lower tax bill helped the bottom line.
Stolt Tankers reported operating profit of $93m, up from $87.1m in 2023.
Revenue for the Netherlands-based division was $443.8m, versus $415.5m.
The average time charter equivalent revenue for the quarter was $29,944 per operating day, up 3% from $29,066 a year ago.
Chief executive Udo Lange said firm market conditions enjoyed by Stolt Tankers during 2023 continued into the first quarter.
They have been further supported by the restricted transits at both the Panama and Suez canals, he added.
“Spot rates continued to strengthen through the first quarter and we should start seeing the effect in the second quarter onwards,” the CEO said.
Volumes dip from some clients
“That said, we have seen some contract volumes decline as our customers adjust to the impact of supply chain disruptions,” he added.
Stolt-Nielsen is tipping TCE earnings to rise by between 6% and 8% as spot gains feed through.
The company explained that disruption in Panama and Suez has seen rates climb to record levels as tonne-miles rise.
From an operational perspective the situation creates several challenges, the owner said.
“However, Stolt Tankers is continuing to work closely with its customers to minimise any negative impact on their supply chains,” the group added.
Stolt-Nielsen also noted the firm product tanker market is keeping swing tonnage out of chemical trades.
Deepsea freight revenue was down $3.2m as operating days fell 2.8%.
The contract ratio for the fleet was at 46.1%, down from 57% in the same quarter last year.
Owning expenses were up 10% or $5.6m, mainly due to higher crewing expenses and adjustments to insurance claims.
