Stolt-Nielsen Q4 Net Profits Rise 31%, Warns of Tough Times Ahead
29 January 2009 13:00 [Source: ICIS news]
LONDON (ICIS news)--Stolt-Nielsen’s fourth quarter net profits rose 31% due to a net tax benefit, the Norwegian shipping group said on Thursday, but warned of an extremely challenging time ahead.
Net profits came in at $52.6m (€40.2m) from $40.2m in the same period last year due to a net benefit from the reversal of prior year tax provisions of $9.5m, while revenue rose 6.2% to $489.5m from $460.8m in the fourth quarter of 2007.
Operating profits dropped 5.9% to $48.1m from $51.1m, due primarily to the combined impact of the weakening business conditions and the effects of the hurricanes in the US Gulf, the company added.
Stolt Tankers reported fourth-quarter operating revenue of $322.5m, down from $356.2m in the third quarter of 2008, mainly reflecting the impact of 9% lower deep-sea volumes being shipped as a result of Hurricanes Gustav and Ike in the US Gulf.
Shipment volumes also decreased as chemicals production slowed in response to weakening demand, and chemical companies turned their focus to working down inventories, Stolt-Nielsen said.
"Business conditions continued to deteriorate in December, which strongly suggests that SNSA's relatively favourable fourth-quarter results should not serve as an indication of our near-term performance," CEO Niels G Stolt-Nielsen said.
LONDON (ICIS news)--Stolt-Nielsen’s fourth quarter net profits rose 31% due to a net tax benefit, the Norwegian shipping group said on Thursday, but warned of an extremely challenging time ahead.
Net profits came in at $52.6m (€40.2m) from $40.2m in the same period last year due to a net benefit from the reversal of prior year tax provisions of $9.5m, while revenue rose 6.2% to $489.5m from $460.8m in the fourth quarter of 2007.
Operating profits dropped 5.9% to $48.1m from $51.1m, due primarily to the combined impact of the weakening business conditions and the effects of the hurricanes in the US Gulf, the company added.
Stolt Tankers reported fourth-quarter operating revenue of $322.5m, down from $356.2m in the third quarter of 2008, mainly reflecting the impact of 9% lower deep-sea volumes being shipped as a result of Hurricanes Gustav and Ike in the US Gulf.
Shipment volumes also decreased as chemicals production slowed in response to weakening demand, and chemical companies turned their focus to working down inventories, Stolt-Nielsen said.
"Business conditions continued to deteriorate in December, which strongly suggests that SNSA's relatively favourable fourth-quarter results should not serve as an indication of our near-term performance," CEO Niels G Stolt-Nielsen said.
"Given the current global economic environment, we see little cause for optimism,” he added. “We expect 2009 and 2010 to be extremely challenging years in our industry, and we are planning accordingly.”
source: www.icis.com
