Jørgen Lian
EUR 467.66 For Business Accounts Only

Stolt-Nielsen (Buy, TP: NOK385.00) - Fighting for top dollar

Stolt-Nielsen reported that COA renewals rose c30% in Q4, which we believe should support earnings momentum for 2023e, while 16% of its contracted volumes were not renewed, with clients instead opting for spot markets. We find the company’s firm stance encouraging given the solid tanker-market fundamentals despite a near-term dip in product tanker rates into 2023. In our view, a market rebound is likely, which should coax clients back and improve its COA terms, supporting stable and attractive business. We reiterate our BUY and have raised our target price to NOK385 (375).
Stolt-Nielsen Ltd.

Stolt-Nielsen is a holding company. Co. through its subsidiaries is engaged in maritime industries. Co.'s operating units include Stolt Tankers, providing transportation services for bulk liquid chemicals, edible oils, acids, biofuels and clean petroleum products; Stolthaven Terminals, offering storage for bulk liquid chemicals, edible oils, acids, biofuels and clean petroleum products; Stolt Tank Containers, operating a fleet of tank containers for shipments of bulk liquid chemicals, food-grade products and bitumen via road, rail and container ship, as well as Stolt Sea Farm, focused on the production of fish including turbot, sturgeon, sole and caviar.

DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.


Jørgen Lian

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