The net profit for the first six months of 2016 was $68.2 mill with revenue of $942.8 mill, compared with $81.2 mill and $988.4 mill, respectively in 1H15.
Highlights for 2Q16, compared with the first quarter, were:
Stolt Tankers reported an operating profit of $45.3 mill, compared with $31.2 mill, reflecting increased contract of affreightment (COA) volume and a $6.5 mill gain on bunker hedges.
Stolthaven Terminals reported an operating profit of $13.8 mill, up from $10.5 mill, driven primarily by improved utilisation and the results of cost saving initiatives.
Stolt Tank Containers saw an operating profit of $10.7 mill, down from $11.8 mill, as the positive impact of an increase in shipments and higher utilisation were offset by narrowed margins and lower results from joint ventures.
Stolt Sea Farm reported an operating profit of $3.4 mill, down from $5.5 mill, mainly due to the seasonal slowdown after the holiday sales period.
Corporate and other reported an operating loss of $3.9 mill, compared with a loss of $1.2 mill, due to higher equity loss on investments in associate companies.
Commenting on the company's results, Niels Stolt-Nielsen, Stolt-Nielsen Limited CEO, said: "Stolt Tankers' results continued to improve in the second quarter, driven by a combination of increased COA volumes and the positive impact of bunker hedges that we placed earlier this year. Stolthaven Terminals also reported improved results, from higher utilisation and cost-saving initiatives. At Stolt Tank Containers, shipments, utilisation and revenue were all up this quarter, but price competition held down operating income. While Stolt Sea Farm's results were marginally down in line with seasonal factors, we are encouraged by the price increases obtained for turbot this quarter.
"Going forward, we remain guarded with respect to the outlook for Stolt Tankers in 2017 and 2018. The orderbook stands at 27% of the existing fleet, but it remains unclear how this will ultimately play out, as some delays and cancellations of newbuildings seem increasingly likely. Also, higher exports of certain commodity chemicals from the US Gulf are pulling tonnage out of our niche market in specialty chemicals, thus helping to maintain our freight rates.
“At Stolthaven Terminals, we expect a continued gradual improvement in results into 2017, as we implement our business-improvement initiatives. At Stolt Tank Containers, price competition is unlikely to abate in the near term, so we will continue to leverage our scale and global strengths to achieve competitive advantage. The recent firming of turbot prices is good news for Stolt Sea Farm, and we expect to see improved performance at our sole farm in Iceland as the year progresses," he said.