[ID] => 11223
[post_author] => 34
[post_date] => 2019-07-09 11:09:45
[post_date_gmt] => 2019-07-09 10:09:45
[post_content] => Stolthaven Terminals, the bulk liquids storage division of Stolt-Nielsen Ltd, has reported revenues for the first half of 2019 of $126.3m, virtually unchanged from the $126.4m recorded a year earlier. Overall capacity utilisation improved from 89.3 per cent in first half 2018 to 91.6 per cent, with particularly strong demand reported in Singapore.
Nevertheless, the positive factors, which included rate escalations and higher revenues from ancillary services at Stolthaven’s US terminals, were offset by lower utilisation at the Newcastle terminal in Australia, the devaluation of the Brazilian real, and the sale of the Houston-based rail transport business in April 2019.
Stolthaven’s first-half operating profit decreased by $8.4m to $37.7m as a result of higher depreciation costs after the completion of a new jetty in Houston, accelerated depreciation of certain assets in Australasia and lower equity income from joint ventures, as well as the 2018 partial recognition of a one-time fee for the early termination of a land lease in New Zealand. This was partially offset by lower property tax expenses and the $0.7m million gain on disposal of the rail transport business.
Equity income from joint ventures decreased by $10.5m to just $11.1m for the six months to end May 2019, largely as a result of lower equity income from the joint venture with Oiltanking in Antwerp, Belgium in 2019, owing to lower utilisation. In addition, the figures for first half 2018 had been boosted by the positive impact of one-time items, including the reduction in net deferred tax liabilities of $8.2m and a customer penalty fee of $1.6m.
Niels G Stolt-Nielsen, CEO of Stolt-Nielsen Ltd, says the second-quarter results were “in line with expectations” although he is optimistic about the near-term outlook. “We expect continued gradual improvement in performance as a result of a strong US market combined with terminal expansions and enhanced operational efficiencies.”
Reflecting that optimism, Stolt-Nielsen continues to invest in its Stolthaven assets. During the first half of this year, new capacity was commissioned at its fully owned terminals in Santos, Brazil (15,900 m³) and Dagenham, UK (746 m³). In addition, 164,600 m³ of new capacity was added at the 50/50 joint venture Jeong Il Stolthaven Ulsan terminal in South Korea. Furthermore, new jetties in Houston and Newcastle have begun operations.
At the end of the second financial quarter, Stolthaven’s global terminal capacity stood at 1,718,328 m³, 0.4 per cent below the year earlier total.
Stolthaven Terminals currently has ongoing expansion projects in four countries. The Dagenham terminal in the UK has another 1,000 m³ under construction and due for completion by the end of Stolt’s financial year on 30 November. At New Orleans, 47,700 m³ of new capacity is due onstream in two phases over the course of 2020. A 5,612-m³ expansion in New Zealand is due for completion in third quarter 2020, while later this year a 27,000-m³ expansion is due for completion at the Stolthaven Westport terminal in Malaysia, in which Stolt-Nielsen has a 49 per cent interest.
Storage capacity in New Zealand will decrease by 30,277 m³ in 2020 as a result of non-renewal of the 2022 land lease contract and beginning of restoration of the property in Wynyard. The small (4,510-m³) terminal in Altona, Australia, which serves the local petrochemical complex, is currently listed as held for sale; the divestment is expected to be completed in the third quarter of this year.
[post_title] => Stolthaven: Forge ahead
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => stolthaven-forge-ahead
[post_modified] => 2019-07-09 11:09:45
[post_modified_gmt] => 2019-07-09 10:09:45
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=11223
[menu_order] => 0
[post_type] => post
[comment_count] => 0
[filter] => raw