Stolt Nielsen – Bunker costs dent tankers, softer 4Q ahead

Stolt-Nielsen reported its third quarter earnings for 2026, with core figures aligning with market expectations but slightly below the firm's own projections. The company's net profit was bolstered by a $15.4 million gain from the sale of 50% of Avenir LNG. While stronger spot rates in Stolt Tankers were somewhat offset by higher bunkering costs and reduced spot volumes, Stolt Tank Containers returned to profitability as gains from the Suttons integration took hold.

The firm anticipates fourth quarter earnings to be modestly below the third quarter, prompting a slight reduction in its earnings estimates for the upcoming quarter.

Stolt-Nielsen generated revenue of $776.5 million, slightly surpassing both analyst estimates and the company's own expectations. Adjusted EBITDA came in at $184.4 million, in line with consensus projections but 4.5% short of the $194.1 million the firm had anticipated. Stolt Tankers reported an operating profit of $52.1 million, a decline from $57.2 million in the same period last year and below the $63 million the company had expected.

Deep-sea spot rates increased by 40.5% year-over-year, but bunker costs surged to $718 per tonne (up from $500 in the third quarter of 2025), and spot volumes dropped by 22.1%. The average deep-sea TCE revenue stood at $24,121 per operating day, down 2.9% year-over-year but up 3.2% quarter-over-quarter. Stolthaven Terminals maintained a consistent operating profit of $27.1 million, with utilization rates rising to 93.6%.

Meanwhile, Stolt Tank Containers reported an operating profit of $13.1 million, a marked improvement from a loss of $0.3 million in the previous quarter. Net debt fell to $2,113.5 million from $2,357.6 million, aided by the deconsolidation of Avenir LNG.

Despite strong performances in certain areas, the chemical tanker market has struggled to fully capitalize on the gains seen in crude and product tanker markets. The ongoing conflict in the Middle East remains a concern, casting a shadow over market visibility. While demand for restocking needs could potentially bolster the chemical tanker sector, constraints on feedstock availability and rising energy prices present significant risks.

The company also projects an average annual net fleet growth of 4% in the 2026-2028 period. For the fourth quarter of 2026, Stolt Tankers is expected to underperform the third quarter, while Stolthaven Terminals are projected to match the average performance of the previous three quarters. Stolt Tank Containers anticipates maintaining margins with a slight dip in seasonal volumes.

Overall, Stolt-Nielsen expects fourth quarter earnings to be modestly lower than those of the third quarter.