'Little cause for optimism' in 2009 and 2010

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jan 2009

Parcel and chemical tanker specialist Stolt-Nielsen S.A. (SNSA) says that relatively favourable fourth quarter (Q4) results for 2008 should not serve as an indication of the company's near-term performance. “Given the current global economic environment, we see little cause for optimism,” said the Oslo-listed company's CEO Niels G. Stolt-Nielsen on Thursday.
Net profit attributable to shareholders of the SNSA group of companies for Q4 2008 was $52.6 million, up 25% from the $42.3 million earned in the same period last year.
However, its tanker arm - Stolt Tankers, reported a decrease in operating profit “due primarily to the combined impact of the weakening business conditions and the effects of the hurricanes in the US Gulf.”
“While SNSA's performance in 2008 reflected four consecutive quarters of good results, the effects of softening demand and the steep decline in global economic activity have now begun to have a tangible impact on our operations,” said Stolt-Nielsen.
According to him, the company “became concerned about the outlook well over a year ago and as a result took a number of actions, including securing financing of our newbuildings, the accelerated recycling of five ships, and the sale of one ship.”
“We expect 2009 and 2010 to be extremely challenging years in our industry, and we are planning accordingly.”

Source: TankerWorld