Norway's Stolt-Nielsen posts better-than-expected Q2 net profit (updated)

Stolt-Nielsen

07/07/2016 14:10

(Adds quotes from CEO) 
    July 7 (Reuters) - Stolt-Nielsen Ltd  SNI.OL  says: 
    * Q2 revenues $478.9 million (Reuters poll $481 million) 
    * Q2 net profit $37.8 million (Reuters poll $24.4 million) 
    * Going forward, we remain guarded with respect to the 
outlook for Stolt-Tankers in 2017 and 2018 
    * Orderbook stands at 27 percent of existing fleet, but it 
remains unclear how this will ultimately play out, as some 
delays and cancellations of newbuildings seem increasingly 
likely 
    * Also, higher exports of certain commodity chemicals from 
U.S Gulf are pulling tonnage out of our niche market in 
specialty chemicals, thus helping to maintain our freight rates 
    * At Stolthaven Terminals, we expect a continued gradual 
improvement in results into 2017 
    * At Stolt-Tank Containers, price competition is unlikely to 
abate in near-term, so we will continue to leverage our scale 
and global strengths to achieve competitive advantage 
    * Recent firming of turbot prices is good news for Stolt-Sea 
Farm, and we expect to see improved performance at our sole farm 
in Iceland as year progresses 
    * Chief executive officer Niels G. Stolt-Nielsen says that 
while spot rates (for its tanker division) out of the U.S have 
been relatively strong, other markets are suffering  
    * He says even though we are able to get our ships out from 
the U.S to the far east, it's a dog fight to get them back with 
cargo 
    * Says revenue for Stolt Tank Containers driven by growth in 
shipments  
    * "We are now seeing stronger competition, but it's still a 
very healthy business" 
    * Says the container business is the most profitable 
business  
    * "I hope we see and have reached the bottom, still it's a 
healthy business" 
    * Stolt-Nielsen says our entry in the LNG space will 
leverage on our experience in chemical logistics 
    * Says projects aimed at serving stranded demand customers 
out of reach of conventional pipeline gas 
    * Says firm has signed letter of intents but has not yet 
signed binding agreements 
    * Says is exploring potential LNG projects in the 
Mediterranean, Caribbean, South America ehile also looking at 
projects in Europe    
 
Source text for Eikon:  ID:nGNXVFGKKa  
Further company coverage:  SNI.OL  
 
 (Reporting by Gwladys Fouche and Henrik Stolen, editing by 
Stine Jacobsen) 
 ((gwladys.fouche@thomsonreuters.com;))