Stolt-Nielsen, the world’s largest chemical tanker owner, may cancel the desulfurization plant modification project to reduce expenses as much as possible.
Stolt-Nielsen has already saved up to $ 30 million in capital expenditures in its tanker division. CEO Niels Stolt-Nielsen said: “The severity and duration of the recession is clearly unpredictable, so while we look forward to the best results, we are also planning for the worst.”
“So far, we have found savings of approximately US $ 83 million from capital expenditures, operating, administrative and general expenses, including the board’s agreement to cut board fees by 50%, and our senior management team voluntarily accepted a 20% salary reduction from 1st April.
Stolt-Nilesen has not ordered any new ships at present, so its expenses mainly come from the desulfurization plant modification project. Niels Stolt-Nielsen said: “If there is an opportunity, we will cancel the desulfurization plant modification project.”
It is understood that in the past few years, Stolt Tankers, a subsidiary of Stolt-Nilesen, has received 14 new chemical tankers from Chinese shipbuilding companies, including 6 38,000 DWT duplex pipe chemical tankers, and 8 33,000 DWT stainless steel chemical tankers ferry.
Stolt Tankers has spent $ 16 million to install desulfurization units for the last two ships of each series. Earlier, the company stated that it would expand the desulfurization plant conversion project to a total of 20 ships based on operating experience and economic conditions.
