Stolthaven Terminals continues to deliver steady financials as the company implements a plan to improve its sustained long-term performance.
Its third quarter operating profit was $16 million, essentially unchanged from $16.1 million in the second quarter. Its utilisation rates fell from 87.5% to 85.6%, reflecting additional new capacity and a decrease in total contracted volume.
The company says the negative impact of the decrease in leased capacity and volume was more than offset, mainly by higher excess throughput revenue, along with increased utility revenue in Houston.
In its third quarter financial report, the company says that while Hurricane Harvey caused no physical damage to its property, due to the closure of the Houston Ship Channel, operational shutdowns and port delays, the third and fourth quarter results have been, and will be impacted.
Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: 'Results at Stolthaven Terminals were once again largely in line with those of the previous quarter, as we continue to implement actions aimed at improving that division's sustained long-term performance.
'Hurricane Harvey caused no material physical damage to the company's assets in Houston. In fact, we have taken steps in recent years to improve the hurricane preparedness of our terminal facility and our tank container depot along the Houston Ship Channel – and those actions proved effective.
'That said, our tanker, terminal and tank container operations all experienced some losses and additional costs because of the storm, through the financial impact, which is not expected to be material, will mostly be felt in the fourth quarter.
Looking ahead, Stolt-Nielsen adds: 'On balance, our overall outlook remains unchanged. For Stolthaven Terminals, we continue to expect a modest but steady improvement in results, driven by actions to enhance operational performance across our network of terminals.'
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