The decline in revenue for the quarter reflected the impact of reduced throughput and lower tank utilisation in both Houston and New Orleans, partially offset by an increase in capacity of 26,000 cubic meters in New Orleans. Utilisation at Santos improved, although throughputs declined. Utilisation overall slipped in the fourth quarter to 94.6% from 97.3% in the third quarter, while the total volume of product handled at Stolthaven’s wholly owned terminals declined by nearly 20% to 1.39 million cubic meters from 1.74 million cubic meters in the third quarter, reflecting difficult market conditions for chemical storage. The total average capacity of Stolthaven’s wholly owned facilities rose to 828,600 cubic meters from 802,600 cubic meters, as a result of the new storage capacity in New Orleans.
Stolthaven reported a fourth-quarter operating profit of $14.5 million, up from $14.0 million in the previous quarter. Operating margins at Stolthaven’s wholly owned terminals were in line with the previous quarter, with improved results at Santos balanced by decreases in Houston and New Orleans. Performance for the quarter also reflected increased equity income from the Company’s non-consolidated joint venture terminals, which rose to $3.7 million in the fourth quarter from $3.0 million in the third quarter. Stolthaven’s joint venture terminals in Antwerp and Ulsan both benefited from recent capacity expansions. Results in Antwerp also reflected strong activity in the non-chemical market. While the division’s joint venture terminals in Lingang and Ningbo are now both generating revenue, greater utilisation has been slowed emporarily by start-up delays.