Tanker Companies Report 3Q Earnings

Published Oct 12, 2006 12:01 AM by The Maritime Executive

Stolt-Nielsen, a large product and parcel tanker operator, reported increased operating revenues in the third quarter, but also saw its net profit dip. 3Q Earnings of 398 million, up from about $384 million a year ago were offset by payments of $17.8 million to some customers for the settlement of anti-trust issues and related ($10 million) legal expenses. Total profit dropped from $53 million to almost $37 million. The company’s ongoing legal battle with the US Department of Justice continues to weigh on the minds of investors, as well. Stolt-Nielsen continues to post good operational performance numbers, but anti-trust legal expenses are expected to continue to impact the firm’s bottom line.

Teekay Shipping Corporation has announced that its Board of Directors has voted to declare a cash dividend on its common stock of $0.2375 per share. The move represents a 14 percent increase over the previous quarterly dividend and is payable on October 27, 2006 to all shareholders of record as at October 13, 2006.

Analysts are continuing to report that the company’s acquisition of Petrojarl will be an important part of Teekay’s ongoing efforts to expand within the FPSO sector. The two firms, Petrojarl and Teekay, are expected to provide good synergy to one another’s operations. On Thursday morning, however, Reuters was reporting that Norwegian oilfield services group Prosafe had declined an offer of about $230 million for its near-30-percent stake in Petrojarl by Teekay. Prosafe had also hoped to merge with Petrojarl.

Teekay Shipping assets carry about 10 percent of the world's maritime oil traffic. They have also expanded into the liquefied natural gas shipping sector through a subsidiary unit, Teekay LNG Partners unit.