Stolt-Nielsen reported a fourth-quarter result that showed slight improvement from a year-ago. But the soft market for chemical tankers in 2016 impacted full-year results.
The Oslo-listed shipowner and terminal operator reported quarterly profit of $22.8m versus result of $21.1m a year earlier. Revenue for the period was down 6% to $462.9m.
Results were weaker than anticipated.
Adjusted core operating profit of $48.9m missed the Bloomberg consensus by almost one tenth, according to analysts at DNB Markets. Adjusted net profit of $18.4m compared to the $25m charted by analysts.
Stolt Tankers operating profit of $30m was $5m clear of the figure DNB Markets had projected.
Results were helped by lower operating expenses and a gain in US pension settlements. Norne says one-off gains helped stabilise profit.
For the full-year 2016, Stolt-Nielsen reported profit declining 15% to $113.2m with revenue falling 5% to $1.88bn.
Chief executive Niels Stolt-Nielsen said the result was "in line with our expectations" as rates for chemical tanker markets remained soft.
Stolt Tankers reported an operating profit of $30.m, which was down from the $31.4m reported in the third quarter. The outlook for 2017 is for those trends to continue, Stolt-Nielsen said.
"There is still an oversupply of tonnage, and with significant newbuilding deliveries in 2017, combined with a weak product tanker market, we believe the year will be challenging," he said.
Total shipments were seasonally down. But margin per shipment improved, which suggests price competition may be easing.
Stolthaven Terminals reported an operating profit of $14m, which fell from $14.8m in the third quarter.
Stolt Tank Containers' operating profit was $15.m, compared to $10.7m in the third quarter. Stolt said the unit enjoyed lower ocean freight and repositioning costs, and lower overhead expenses.
Stolt also reported a $2.7m impairment for doubtful accounts receivable at Stolt Bitumen Services and costs of $2.2m related to the acquisition of Jo Tankers.
