Revenues came in at $502 mill (versus $539 mill in Norne Research’s projections).
The main metric adjusted EBIT (adjusted for a $3.4 mill bunker hedge gain, $2.1 mill Stolt Sea Farm loss from accounting for inventories at fair value and $1.7 mill write-down of biomass inventory) was below the usual $50 mill level coming in at $43.1 mill (versus $49.4 mill Norne’s and $63.5 mill consensus expectations).
Reduction in Stolt Tankers revenues mainly reflected the decrease in operating days, while overall volumes were stable and average freight rates were essentially unchanged. Terminals provided stable results quarter-on-quarter while Tank Containers had the seasonally weakest period, due to Chinese New Year. Market conditions remained soft in the quarter with intensifying price competition.
Stolt-Nielsen still predicted a strengthening chemical tanker market, as the supply of new tonnage was slowing.
For Stolthaven Terminals stability is expected with a positive long-term outlook, while Tank Containers should experience a seasonal pick-up this quarter. Stolt Sea Farm is expanding into new geographic markets on schedule.
However, the fire in Houston last month will have a one-off negative impact on the figures, while the uncertainty towards IMO-2020 regulations and reaction from clients remains, Norne reported analysing the results.
Basically, the outlook remained unchanged, as Stolt still expected a strengthening chemical tanker market, while a seasonal pickup in Tank Containers and expansions for Sea Farm were taken into consideration.
No major changes are likely after a rather uneventful first quarter and no changes in outlook, Norne concluded.