The net profit for the first nine months of 2014 was $64 mill, with revenue of $1,605.5 mill, compared with $46.8 mill and revenue of $1,575 mill for the same period in 2013.
Highlights for 3Q14, compared with 2Q14, were:
Stolt Tankers reported an operating profit of $8.4 mill versus $8.5 mill, as an increase in contract freight rates and lower trading expenses was largely offset by fewer operating days and lower spot freight rates.
Stolthaven Terminals reported an operating profit of $16.2 mill, up from $11.8 mill, reflecting improved performance at the division's terminals in Houston, New Orleans and Australia, plus $3 mill of business-interruption insurance reimbursement related to Stolthaven New Orleans from Hurricane Isaac in August 2012.
Stolt Tank Containers reported an operating profit of $17.6 mill, compared with $18 mill, as a decrease in shipments was partially offset by an associated decrease in freight costs and an increase in demurrage revenue.
Stolt Sea Farm reported an operating profit of $2.8 mill, compared with a loss of $5.2 mill, as the accounting for inventories at fair value had a positive impact of $1.8 mill in 3Q14, compared with a negative impact of $4.7 mill in 2Q14.
Stolt-Nielsen Gas (SNG) reported operating profit of $4.4 mill, up from $1.6 mill. The $1.6 mill excluded one-off gains on its investment in Avance Gas Holding (AGHL) of $24.4 mill from the sale of AGHL shares in conjunction with the initial public offering (IPO) of AGHL, which was completed on 9th April, 2014.
Commenting on the Company's results, Niels Stolt-Nielsen, SNI CEO, said; "Contract freight rates strengthened at Stolt Tankers, though lower volumes continue to be a problem.
At Stolthaven Terminals we saw improved performance at Houston, New Orleans and Newcastle, Australia. Stolt Tank Containers also managed a good performance in what is normally a seasonally weaker quarter for the division. Stolt Sea Farm had a good quarter, thanks mainly to strong volumes of turbot sold.
"Looking ahead, we remain concerned about the market outlook for Stolt Tankers. Despite the third-quarter improvement at Tankers, the orderbook for chemical tankers continues to grow in what is already a difficult competitive environment, with low volumes and significant volatility in spot rates.
“On the upside, the first nine months of 2014 were an improvement over the same period in 2013. That said, the strength of the recovery at Stolt Tankers has been below our expectations to date and looking forward into 2015 we do not foresee any signs of a substantial improvement," he concluded.