Incident in Stolt Groenland
On September 28th two powerful explosions shattered a Stolt Groenland tanker docked in Ulsan port, Korea. Explosions were followed by a major fire that spread to Odfjell’s owned tanker Bow Dalian moored along Stolt Groenland. The fire was taken care of successfully and is now official announced to have been extinguished. However, one major injury was reported. The company is reporting its 3Q19 results this week and we anticipate to hear an update on the situation during the presentation. One-time costs will be included in our 4Q19 estimates after the official announcement.
Cause of the incident – most likely styrene monomer overheating
While firstly an explosion with a consequent fire has been seen in Stolt Groenland this Saturday, it was later confirmed that there were two explosions most likely caused by the overheating of styrene monomer cargo. The fire spread to nearby Odfjell-owned Bow Dalian tanker. According to the latest Korean reports and the official announcement by Stolt-Nielsen, the fire was extinguished after much efforts with many firefighting teams deployment. From 10 Russian and 15 Filipino crew, information on injuries differs, but the company itself reported one crew member to have received medical attention, while other information channels are saying that there was one unidentified man who suffered serious injuries. The ship remains stable with no cargo or fuel reported as released into the water, while Bow Dalian has shifted away from Stolt Groenland.
Update on the situation during 3Q results presentation is awaited
Stolt-Nielsen is reporting its 3Q results this Thursday and we anticipate to hear more about the incident. There will be a one-time cost included in our estimates for 4Q19 following the awaited official calculations, however, our long-term view is based on the chemical tanker rate recovery expectations and will not be changed after this.
Source: Norne Research