Shipper Stolt-Nielsen sees Q4 spot market in line with Q3

Stolt-Nielsen

06/10/2016 15:29

OSLO, Oct 6 (Reuters) -   
    ** Stolt-Nielsen SNI.OL  expects the chemical tanker spot 
market in the fourth quarter to be in line with the third 
quarter, Chief Operating Officer Niels G. Stolt-Nielsen said on 
the third quarter conference call on Thursday 
    **Stolt-Nielsen is the worlds biggest chemical tanker 
operator, and operates terminals and tank containers  
    ** CEO says with 1-2 years contracts it will take time 
before weak spot rates will hit their COA rates (contract of 
agreements) 
    ** CEO says for the contracts that are up for renewal: "we 
see a pressure, we can't deny that"  
    ** CEO says he doubts the order book we see in 2016 will be 
delivered in 2016, some of it will be pushed into 2017, and 
scheduled deliveries in 2017 will be moved into 2018 
    ** CEO says it's still a large order book and it continues 
to be his biggest concern 
    ** CEO says the order book will be challenging and "we are 
partly to be blamed because we have newbuildings ourselves" 
    ** The chemical tanker order book stands at 24.3 pct of 
existing fleet whereof Stolt-Nielsen's (including acquired Jo 
Tankers) order book stands for 2.3 pct of existing fleet 
    ** CEO says has always been quite conservative predicting 
the chemical tanker market, but now thinks some predictions are 
too negative 
    ** CEO says some traders pulled out this summer and spot 
market weakened 
    ** CEO says now we see they are coming back, and volumes in 
spot market is coming back 
    ** CEO says we see that the contract nominations in general 
have been healthy 
    ** CEO says that's a good sign; "yes there is pressure in 
the market, but I am cautiously optimistic that the spot market 
will pick up" 
    ** CEO says expects Q4 to be similar to Q3  
    ** In terminals we see a gradually improvement 
    ** I don't see any big changes in tank containers. I am  
cautious optimistic (about tank containers), I don't see a pick 
up but on the same level  
    ** Stolt-Nielsen shares are down 3.7 pct after weaker than 
expected Q3 net result  
    ** This was due to an operating loss of $6.7 million in 
"corporate and other", predominantly due to an increased accrual 
for profit sharing and long-term incentive plans, and an 
impairment of accounts receivable 
 
 (Reporting By Ole Petter Skonnord, editing by Camilla Knudsen) 
 ((olepetter.skonnord@thomsonreuters.com; 0047 23 31 65 97;)) 
 
Keywords: STOLTNIELSEN RESULTS/