The company 3Q17 results go up to the end of August, thus, the one-time negative Hurricane ‘Harvey’ effect will be accounted for not only in 3Q17, but also in 4Q17 figures.
Norne reiterated its hold recommendations at an unchanged Target Price of NOK125 per share, as the research team did not anticipate any turnaround in chemical markets soon.
Although three new vessels were scheduled to be delivered in 3Q17, Norne said that it didn’t expect the results to improve significantly quarter on quarter. Low market rates should be somewhat offset by a gradually improving terminal segment, but the turnaround point was thought to be moving further away, as the company expects the turnaround in 2019, when most of the current orderbook has been delivered.
Even in this challenging environment, Norne anticipated Stolt-Nielsen to deliver solid quarterly results with the main metrics being relatively in line quarter on quarter.
Although a one-time negative effect is expected for all the shipping companies operating out of Houston, as Stolt-Nielsen has its quarter accounted for to the end in August, the effect will be split between the 3Q and 4Q17 figures.
Despite the the company issuing an announcement that there are no reports of spills or product contaminations and that all the employees were safe, the operations were suspended for several days, due to storms and floods.
There were no comments about the tanker divisions’ restructuring process during the quarter, although it was previously announced that it was to be completed by the end of 3Q17.