Stolthaven Terminals reports steady first quarter 2019 financials as market conditions remained stable.
The division of Stolt-Nielsen reported revenue of $63.3 million in its first quarter, essentially unchanged from $63 million in the fourth quarter. A slight decline in storage and throughput revenue was offset by higher utility revenue, driven by increased steam usage at Stolthaven Houston due to seasonally cold weather conditions.
Utilisation increases to 92.3% from 91.4% in the previous period. Stolthaven reported a first-quarter operating profit of $18 million, up from $11.7 million in the fourth quarter, which included impairments of $6.1 million.
Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: 'Stolt-Nielsen's first-quarter results were in line with expectations. Results at Stolthaven Terminals were steady when excluding the impairments taken in the prior quarter, reflecting stable market conditions and operations.
'At Solthaven, our uneventful first quarter is, we believe, an indication of increased stability and better things to come, as the actions we have taken in recent years to strengthen the long-term performance of this business continue to take hold
'We are currently monitoring two situations that are likely to affect our business. First, the fire at ITC's facility in Houston last month is already impacting the local chemical industry, including both transportation and storage. We are at a minimum expecting a negative impact on Stolt Tankers, as parts of the Houston Ship Channel have been closed to traffic causing delays. We continue to follow the situation closely, as the full impact is unclear at this point.
'Second, the IMO 2020 regulations aimed at reducing sulphur oxide emissions are less than nine months away. It is economically unfeasible for the shipping industry to carry these costs. Customers, and ultimately consumers, must absorb them.'
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