Stolthaven Terminals' reported its operating profit declined primarily as a result of lower utilisation at its terminal in Singapore.
However, the segment's operating revenue for the second quarter rose from $59.7 million in the first quarter to $60.7 million in the second quarter. Utilisation fell to 87.5% compared to 91.1% in the first quarter due to the expiry of certain customer contracts.
Utilisation fell at Stolthaven Singapore, while revenue at Stolthaven Houston was held down by reduced throughput and lower steam revenue as weather conditions moderated in the second quarter.
Results from the second quarter reflected good results at Stolthaven Santos and higher equity income from joint ventures, mainly due to increased leased capacity at the joint venture terminal in Lingang, as new business continues to ramp up following the effects of the explosion in the Port of Tianjin in 2015.
Construction work has started on a third deep-sea jetty at Stolthaven Houston, which is due to be completed by the first quarter of 2019.
Commenting on the overall company results, Niels G. Stolt-Nielsen, CEO of Stolt-Nielsen, says: '[The] second quarter results were disappointing overall, but in line with both our expectations and our results in the first quarter, as the fundamentals of our markets remained largely unchanged.
'Results at Stolthaven Terminals were much in line with the prior quarter, with actions to improve sustained long-term performance continuing.
'Our outlook remains cautious. For Stolthaven Terminals, we expect gradual improvements in earnings going forward.'
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