Stolthaven Terminals has reported a Q2 2022 operating profit of US$25.7 million (€24.6 million), up from US$22 million in Q1 2022.
The firm says that this is due to improving margins at its terminals in Houston and New Orleans in the US, and ‘well-contained’ expenses. Stoltahven also made US$1.2 million on the sale of a terminal in Australia, which included a write-off of environmental provisions. Additionally, it made an US$800,000 gain from a no-claims insurance bonus at Houston and New Orleans.
Revenue was up from US$66.1 million to US$69.2 million, which Stolthaven says is down to an increase in utilisation at wholly-owned terminals from 96.3% to 97.2%, an improvement in rates and an improvement in throughput volumes has a result of increased activity levels.
‘At Stolthaven Terminals the increase in utilisation has allowed us to drive up margins in a tightening storage market,’ says Niels G Stolt-Nielsen, CEO of parent company Stolt-Nielsen, adding: ‘High utilisation will have a positive impact on margins for the rest of the year.’
Stolt-Nielsen as a whole reported net profits for the quarter of US$58.6 million, and a revenue of US689.1 million, an increase compared to Q1 2022, which saw a net profit of US$$52.3 million and a revenue of US$606.2 million.
‘The second quarter net profit is the company’s highest since 2007, which is encouraging considering we recognised an US$11.1 million write-off of debt issuance costs and hedge losses related to the refinancing of the revolving credit line, our main liquidity tool. The second quarter continued where the first quarter ended with growing demand and a shrinking orderbook for new ships, with the positive momentum continuing to build in the chemical tanker market,’ says Stolt-Nielsen.
He warns, however, that the company ‘cannot ignore the many external challenges that lie ahead’, including Russia’s war on Ukraine, and inflation resulting from excess liquidity in the private sector and the post-pandemic demand. He believes that a global recession may result from banks raising interest rates.
‘We are monitoring the potential impact these factors could have on our businesses. We remain cautious when making new investments, ensuring that the return hurdles account for higher inflation and funding costs in the future, and we are maintaining our focus on debt reduction to strengthen the balance sheet and continue to favour fixed rate loans to protect our cash flow against rising interest rates,’ he says.