CEO Niels G Stolt-Nielsen said the poor first quarter results were largely attributable to a loss at Stolt Tankers, where overall market conditions remain weak. Higher trading and operating expenses further depressed tanker earnings this quarter. Both Stolthaven and Stolt Tank Containers continued to perform well, though STC’s operating results were down modestly from the prior quarter due to higher ocean freight, inland haulage and depot costs. Stolt Sea Farm reported a slight loss for the quarter, though performance improved from the prior period, as turbot prices have begun to strengthen.”
Stolt Tankers reported an operating loss of $2.8 million, compared with $2.6 million, reflecting lower revenue and higher operating costs, and $2 million of one-time charges. Stolthaven Terminals reported an operating profit of $23.3 million, up from $22.9 million, as overall market conditions remained strong. Current results reflect one-time net gains of $6.9 million, compared with $7.4 million in the fourth quarter 2012.
Stolt Tank Containers’ operating profit was $15.2 million, down from $17.5 million, reflecting increases in both ocean and inland freight rates. The current quarter also included a $1.3 million tax provision relating to prior years.