Stolt-Nielsen posted its 2Q25 (March-May) report this morning with stronger results than we expected, but uncertainty over the future. Geopolitical tensions and lack of clarity regarding tariffs imposed by US impacted trade flows. Although, as has been the case previously, diminishing Tanker performance was countered by non-shipping businesses. We are likely to make limited changes to our estimates.

Stronger results reported

Stolt Tankers’ EBITDA fell by 16% compared to the same quarter last year, nevertheless, other operations compensated the loss, indicating the importance of well diversified and maintained portfolio. Average TCE revenues for 2Q were USD 26,220/d, about 5% lower than the previous quarter, since the operating environment for tanker segment remains challenging. On the other hand, this remains over 30% above the historical average. This quarter 42% of company’s EBITDA came from outside the shipping segment. Tank container segment reported slightly inferior results caused by lower volumes, whereas Stolthaven Terminals and Stolt Sea Farm are on an upward trend.

Outlook: Volatility to continue

The second half of 2025 is expected to be softer than the first half. Market

fundamentals remain unchanged, although a firming in rates in adjacent markets could lend some support to chemical tanker markets in the latter part of 2025. Tanker markets remain exposed to geopolitical risks. Recent tensions in the Middle East, along with the ongoing war in Ukraine, and the confusion surrounding the tariffs illustrate the uncertainty the sector is facing. The varying outcomes of these risks are unknown and may cause disruption throughout the sector. However, the diversified nature of Stolt-Nielsen’s portfolio combined with strong supply and demand fundamentals for the markets, enhances the company’s endurance regarding uncertainties caused by such fluctuations.
Source: Norne Research