BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News



Stolt-Nielsen posts 50% jump in bunker costs as annual net profit is more than halved

Net income down $63.1 million as marine fuel expenses rise by $72.2 million.



The Stolt Virtue was refuelled during the first concurrent bunkering operation at Stolthaven's facility in Jurong Island, Singapore, on January 30, 2018. Image credit: Stolthaven Terminals


Updated on 15 Mar 2018 11:05 GMT

Stolt-Nielsen - a specialist in the transportation and storage of chemicals and other bulk liquids - reports that bunker fuel costs increased by $72.17 million, or 50.5 percent, to $214.98 million in fiscal 2017, which runs between December 1 and November 30, up from $142.81 million the previous year.

The average price paid by Stolt-Nielsen subsidiary Stolt Tankers for intermediate fuel oil (IFO) rose by almost $100 in 2017 compared to the previous year.

The mean price for IFO consumed jumped $98, or 45.4 percent, to $314 per tonne, up from $216 in 2016. However, the impact was said to be largely offset by lower bunker surcharge rebates to customers.

Stolt Tankers also reported that $66.0 million of the increase in operating expenses last year was the result of higher marine fuel costs.

Bunker hedging

Stolt-Nielsen also confirmed that it had purchased forward contracts on 92,000 tonnes of bunker fuel for delivery in 2016, 111,000 tonnes for delivery in 2017 and 2018, and 48,000 tonnes for delivery in 2019, with initial expiration dates ranging from three to 24 months forward.

The group recorded total realised and unrealised gains from bunker contracts of $13.5 million for the year ended November 30, 2017, which was $6.1 million higher than in 2016.

In a breakdown of the gains, Stolt-Nielsen's bunker swap programme yielded $7.4 million in realised gains (offsetting bunker price increases since the start of the swap programme) and $6.1 million in unrealised gains (mark-to-market of the remaining outstanding swaps).

Back in December 2015, Stolt Tankers entered into a bunker swap programme to hedge a significant part of the uncovered portion of the estimated bunker consumption according to the budget for the period up to December 2017.

In June 2017, Stolt Tankers added hedges for the uncovered portion of the estimated bunker consumption through the next 24 months (the third quarter of 2017 until the second quarter of 2019).

Stolt-Nielsen said its policy will be to hedge at least 50 percent of expected bunker purchases within the next 12 months through either bunker surcharges included in contracts of affreightment (COAs) or through hedging.

Financial results

In its annual results for the 12-month period up to November 30, 2017, Stolt-Nielsen achieved a net profit after tax of $50.1 million, which was a fall of $63.1 million, or 55.7 percent on the 2016 result.

Gross profit dipped $16.4 million, or 4.1 percent, to $388.1 million, with operating revenue rising by $117.2 million, or 6.2 percent, to 1,997.1 million, and operating expenses increasing by $87.9 million, or 7.1 percent, to $1,329.2 million.

Stolt Tankers, meanwhile, reported an operating profit of $111.0 million, which was a 20 percent decline compared to the prior-year figure of $138.4 million.

Stolt Tankers' revenue increased by $97.6 million, which was attributed to $42.9 million lower bunker surcharge rebates and $48.3 million in higher freight revenue. The lower bunker surcharge rebates were said to be a result of the increase in bunker prices during the period.






Related Links:

First concurrent bunkering operation performed at Stolthaven Singapore
Bunker costs up $3.7m for Stolt Tankers as profit drops

Latest News:

Itsas Gas secures Cepsa supply contract; Oizmendi starts bunkering in Huelva
Eco Marine Power to expand Aquarius Eco Ship Project
Wartsila in first optimised maintenance tie-up for LNGPac system
Bullish momentum sends oil prices above three-year high
Oil and fuel oil hedging market update
Nor Lines LNG-fuelled ships to include Rotterdam in weekly service
Maersk targets 60% CO2 emissions reduction by 2020
Vopak posts decline in Q1 profit
Brent holds steady above $71
Oil and fuel oil hedging market update
Aegean Marine Petroleum appoints new CFO
World Fuel Services shareholders to vote in May annual meeting




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events