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Profits up at Stolt-Nielsen’s tank container division

Stolt-Nielsen has reported profit for the second quarter of $42.5 million, with revenue of $500.7 million, which includes an increased operating profit from its tank container division.

Stolt Tank Containers reported operating revenue of $131.3 million, up from $126.1 million in the first quarter, and an operating profit of $18.6 million, up from $16 million.

The revenue increase was driven by a seasonal 7.5% increase in shipments, which Niels G Stolt-Nielsen, CEO of the company, described as “lower than expected”. Utilisation rose to 71.3% from 70.2% in the first quarter. The company stated that the number of tanks in the company’s global fleet was unchanged in the second quarter and attributed the increase in operating profit to the 7.5% rise in shipments and the stronger US dollar.

“Chemical volumes appear to be slipping in tank container markets compared with a year ago, but Stolt Tank Containers has thus far managed to sustain its volumes,” added Stolt-Nielsen.

Elsewhere, the company benefited from the strong tanker market, with an operating profit at Stolt Tankers of $30.4 million, up from $19 million, reflecting lower bunker fuel prices, an improved spot market and the favourable impact of the stronger US dollar.

The earnings release is available here and the interim financial statements are available here.