Shipping group Stolt-Nielsen Q3 profits down 5%

02 October 2008 17:58  [Source: ICIS news]

LONDON (ICIS news)--Stolt-Nielsen posted a 9.7% year-on-year drop in its third-quarter operating profit to $47.6m (€33.8m) from $50m mainly due to losses in its Sea Farm division, the chemical tankers group said on Thursday.

 

Group revenue was up 15% to $522.6m from $504.5m reflecting strong overall demand, the company said.

 

“While demand for our tanker, terminal and tank container services remained fundamentally strong in the third quarter, the turmoil in global financial markets and the signs of economic weakness, particularly in the US and Europe, combined with a slowdown in Asia are causes for concern,” CEO Niels Stolt-Nielsen said.

 

The group’s largest segment, Stolt Tankers, reported a 46% increase in operating profits to $39.6m driven by the improved spot market for freight rates, the company said.

 

Stolt-Nielsen said it had taken actions to mitigate the effect of higher bunker fuel prices, including hedge mechanisms, contract adjustments and bunker surcharges.

 

“As a result of these actions, combined with fuel-driven advances in spot-market prices, the company recovered a significant portion of its increased bunker fuel costs in the quarter,” it said.

 

The group’s overall profits downturn was primarily due to the Sea Farm division, which dropped $3.1m into the red, down from an $8.6m profit in the third quarter of 2007.

 

($1 = €0.71)

 

To discuss issues facing the chemical industry go to ICIS connect

By: Mark Watts
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly