Stolt Tankers has reported revenue of $443.8m for the three months to end February, up 6.8% compared to the year-earlier figure; average deepsea freight rates were up by 2.5%, though revenues were down as a result of the deviations from normal trade routes caused by the restrictions on Panama and Suez Canal transits. Revenue from regional operations rose by $37.7m over the year, following the formation of the SNAPS/Eneos pool in Asia and a strengthening market in the Caribbean. First-quarter operating profit was up $5.9m year-on-year at $93.0m, again reflecting the new SNAPS/Eneos pool.
“The firm market conditions enjoyed by Stolt Tankers during 2023 continued into the first quarter and have been further supported by the restricted transits of both the Panama and Suez canals,” says Udo Lange, CEO of parent company Stolt-Nielsen. “Spot rates continued to strengthen through the first quarter and we should start seeing the effect in the second quarter onwards. That said, we have seen some contract volumes decline as our customers adjust to the impact of supply chain disruptions.”
The strong market has prompted Stolt Tankers to return to newbuilding orders. “During the quarter our deep-sea joint venture, NYK Stolt Tankers, announced a newbuilding order for six stainless-steel fuel-efficient ships from Nantong Xiangju Shipyard in China, with estimated delivery from late 2026 onwards,” Lange adds. “We are pleased to have secured these additional newbuildings with a quality yard and a favourable delivery schedule that fits with the retirement of our older tonnage. This order brings our total deep-sea orderbook to 12 ships.”
In the immediate term, with continuing restrictions at both the Panama and Suez Canals, which is adding further tonne-mile demand to an already tight chemical tanker market, freight rates have climbed to record levels. “From an operational perspective this creates several challenges,” the company says. “However, Stolt Tankers is continuing to work closely with its customers to minimise any negative impact on their supply chains.” Together with a firm product tanker market, which is keeping swing tonnage out of the segment, the low orderbook provides a solid foundation for favourable chemical tanker markets to continue. The recent spot freight rate increases will be reflected in the second-quarter results when Stolt expects average timecharter equivalent earnings to increase by 6 to 8%.
