Stolt-Nielsen reports first quarterly downturn but Covid-19 impact ‘relatively modest’
The company recorded revenues of $498. 8 million (€459 million), compared with a net profit of $5.9 million (€5.4 million) with revenues of $497.5 million (€458 million) in the fourth quarter of last year.
But in its annual report to shareholders, Stolt-Nielsen said the firm had $519 million (€479 million) in available liquidity.
Niels Stolt-Nielsen, Chief Executive Officer, said: While the effects of the Covid-19 pandemic have substantially altered our outlook for 2020, our first quarter results were only slightly impacted.
“The underlying recovery of chemical tanker markets that started in 2019 continued in the first quarter, with both higher spot rates and contracts renewed at an average increase of 4.74%.
“However, Stolt Tankers’ first quarter results were negatively impacted by higher bunker costs resulting from the switch over to low Sulphur fuel and delays due to scheduling issues arising from delays in drydocking associated with scrubber and waste water treatment installations.”
But Mr Stolt-Nilesen added that the impact of the global pandemic on the business ‘remained relatively modest’ but the threat of a global recession remained as trade slows down.
The company operates a global fleet of deep-sea, regional, coastal and inland parcel tankers and employs 6,000 people across 30 countries.