Good afternoon, and welcome to Stolt-Nielsen's earnings call for the first quarter of 2026. As always, the earnings release and related materials are available on our website. We will also be recording this session, and playback will be available on the website from tomorrow. Included in this presentation are various forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, and we refer you to our latest annual report for further details. I'm Alex Ng, Vice President of Corporate Development and Strategy. Joining me today are Udo Lange, CEO, and Jens Grüner-Hegge, CFO. At the end of the presentation, there'll be a Q&A session where we'll be taking questions online. To ask a question, simply type into the Q&A function on your screen. Thank you, and over to you, Udo.
Yeah. Thank you, Alex. Good afternoon, everyone, and thank you for joining us today for our first quarter 2026 results. The presentation will follow our usual format. I will begin with an overview of the group's results for the first quarter and share some key highlights. Jens will then take us through the financial detail before handing back to me to cover the performance of each of our divisions, our view of the market outlook, and some concluding remarks. Let's get started. In the backdrop of elevated market disruption and considerable global uncertainty, I'm pleased to report that Stolt-Nielsen has delivered a solid first quarter, achieving group EBITDA of just over $180 million. This result reflects the strength of our diversified business model and the resilience it brings to our earnings.
Our non-tanker portfolio contributed 44% of group EBITDA in the quarter, a clear demonstration that Stolt-Nielsen is not simply a shipping company. In fact, our Stolthaven Terminals business had its second highest ever quarter in terms of operating profit achieved. We are a global liquid logistics business, and our diversification continues to support earnings through periods of market dislocation. We are, of course, closely monitoring the conflict in the Middle East and, in particular, the effect on transits through the Strait of Hormuz. This introduces new complexities to global energy and chemical supply chains, which we are working through with our customers to keep products moving. We are thankful that our people remain safe, that none of our vessels are currently stuck in the Arabian Gulf, and that our assets are not impacted thus far, as our network continues to adapt to a rapidly changing situation.
Our priorities at this time are to keep our people safe, leverage our global logistics network to best support our customers through the disruption, and to maintain strict cost discipline and capital allocation for flexibility and long-term value creation while maintaining robust liquidity management. We have limited visibility on how the conflict in the Middle East will play out, and a range of outcomes are possible, which makes giving meaningful EBITDA guidance very challenging. Hence, we have withdrawn our previously issued EBITDA guidance for 2026. I would also like to highlight a number of strategic developments during the quarter. In Taiwan, our Stolthaven Terminals joint venture in Kaohsiung commenced operations, adding more than 60,000 cubic meters of new storage capacity.
We recently announced the planned sale of a 50% equity stake in Avenir LNG, which will be achieved through a strategic joint venture with Japanese shipping company NYK Line, consistent with our strategy of building the Avenir business for the future while preserving our own balance sheet flexibility. From a financial standpoint, we maintain robust liquidity of $546 million, and our net debt to EBITDA ratio stands at 3.02 x. In February, the board recommended a final dividend for 2025 of $1 per share, bringing the total for the full year to $2 per share, subject to shareholder approval at the AGM later this month. Let us now turn to our financial highlights. I'm satisfied with the results the company has achieved in the quarter against a complex and challenging market backdrop.
Looking across the key metrics, operating revenue for the quarter was $717 million, up 6% compared to the same period last year, predominantly driven by the inclusion of Suttons. EBITDA before the fair value adjustment came in at just over $180 million. This represents a modest decline of 4% year-over-year, driven principally by weaker freight rates in Stolt Tankers, lower margins within STC, and additional costs associated with integrating Suttons. Operating profit was $82 million, down 24% versus last year, mainly due to the performance in Stolt Tankers and Stolt Tank Containers, plus additional depreciation from lower residual values and the consolidation of the Hassel 4 ships, Avenir, and Suttons. Net profit was $47.5 million, driven by the same factors, as well as higher interest expense due to the consolidation of Avenir and Hassel Shipping 4's debt.
Free cash flow was nearly $120 million this quarter, which was significantly higher than the same period last year, which included the cash outflows for Avenir and Hassel Shipping 4. Our net debt to EBITDA ratio has improved slightly from 3.12x last quarter to 3.02x times. These results demonstrate the underlying resilience of our business, even as we navigate a period of heightened market complexity. Over the page, we look at some of the key drivers of performance. Stolt Tankers enjoyed increased volumes this quarter, but due to ongoing weaker freight rates, the average deep sea TCE revenue for the quarter was approximately $23,600 per operating day, a decline of 14.5% year-over-year. At Stolthaven Terminals, performance has been strong and steady. Utilization was stable at 91.2% in the first quarter versus 91.9% in the same period last year, and we saw some positive impact from storage rate increases.
At Stolt Tank Containers, gross profit per shipment declined by 33% year-over-year. Stolt Tank Containers is navigating a very challenging market environment where margins are squeezed and is focused on integrating Suttons. That is all from me now. Jens, I will hand over to you for the financials.
Thank you, Udo. Good afternoon, everyone, and good morning to those of you joining us from the U.S. I will compare the first quarter of 2026 against the first quarter of 2025. As a reminder, our first quarter runs from December 1st through February 28th. As such, the closure of Strait of Hormuz did not impact the first quarter results. Also, the company recently published its annual report for 2025, and this year, including the CSRD environmental report for the first time, and you can find this on the company's website, www.stolt-nielsen.com/investors. Let's dive into the financials. Revenue for the quarter was up $41.2 million over the same quarter last year due to the following main factors. This is the first full quarter with Suttons included, and they contributed $38 million in revenue this quarter.
SG&A saw a $16 million increase over the first quarter last year due to the acquisition of 100% of Avenir at the end of January 2025. Stolt Sea Farm had a $10 million increase in revenue on the back of firm prices. This was partly offset by lower revenue in Stolt Tankers, which declined by $22.5 million, mostly due to lower freight rates, lower demurrage revenue, and lower bunker surcharge revenue due to falling bunker prices. However, volume was up by 20%, but mostly due to somewhat shorter voyages and higher share of commodity chemicals versus specialty chemicals. Moving to operating expense, this increased by $33 million, mainly due to the additional Suttons shipments and related expenses. As well as the consolidation of Avenir and added shipowning expenses due to a larger wholly owned fleet, partly offset by lower time charter expenses and lower bunker cost.
Depreciation and amortization expense was $17 million higher than the same quarter last year, and this was due to a reduction in the residual value of ships following a fall in steel prices, requiring us to increase depreciation of ships. Also, the 100% acquisition of the two businesses towards the end of the first quarter last year, as well as the acquisition of the Suttons assets in November, increased our asset base and hence also increased our depreciation. JV equity income was lower, in part due to the purchase and consolidation of 100% of Hassel Shipping 4 last year and the weaker tanker markets in general, partly offset by a lower loss in Higas, our LNG terminal in Sardinia, Italy. As a consequence, operating profit for the quarter was $81.8 million, down from $107.9 million in the fourth quarter last year.
The finance expense was up $6 million compared to the first quarter 2025. That's due to the additional debt related to the acquisition and consolidation of Hassel Shipping 4, Avenir, as well as Suttons. As such, the net profit for the quarter was $47.5 million, with EBITDA of $180.8 million. Net profit is down from $151.4 million in the same quarter last year, but please note that in the first quarter 2025, we had a one-off gain on the step-up in value related to the acquisition of Avenir and Hassel Shipping 4 of $75 million. Also, as EBITDA excludes the impact of interest and depreciation, both of which increased year-over-year, the swing in EBITDA is significantly less than the swing in net profit. Now let's have a look at the cash flow statement.
Net cash from operations was down this last quarter, predominantly reflecting $50 million in weaker earnings and working capital outflows, $7 million lower dividends from joint ventures, $3.8 million higher interest payments, and $2.4 million lower interest receipts, partly offset by lower tax payments. Net cash used in investing activities was significantly down at $44.1 million from $232 million due to last year's business acquisitions. In the current year, cash spent on capital expenditures related mostly to tankers and terminal investments. The sales proceeds of $11 million that you can see there as well relate to the sale of a ship during the quarter. Net cash used in financing activities of $66.1 million reflect the dividends paid in December 2025, while the debt proceeds and repayments reflect refinancings concluded during the quarter. As such, total cash flow for the quarter was a + $10.1 million.
If you look at the graph on the bottom right, you can see we ended the fourth quarter with $546 million in available liquidity, as Udo has pointed out. Let's go and look at the capital expenditures. Capital expenditures during the quarter totaled $42 million, with most spent on tankers progress payments for new buildings, as well as terminals and Stolt Sea Farm expansion CapEx. Overall, for 2026, we expect to spend around $300 million, significantly down from the $511 million we spent on CapEx in 2025. This is to a large part driven by the sale of 50% of Avenir, removing CapEx of $112 million across 2026 and 2027 related to two new LNG carriers. In 2027, we expect to see capital expenditures increase again due to the significant progress and delivery payments on the new building program for tankers.
We intend to continue to invest strategically in our businesses, but we also need to focus on integrating our added capacity into our operations to maximize long-term benefit for our customers and our shareholders. With the current geopolitical uncertainties, we will be cautious with committing to further CapEx until we see the full effect of the current unrest. This is our debt maturity profile, which is relatively smooth over the five-year horizon shown here. The debt profile reflects the recently refinanced debt for Hassel Shipping 4 and the deconsolidation of Avenir's debt. The gray boxes represent normal repayments, while the black and orange boxes reflect balloon payments on bank loans and bonds respectively. If you look at the bottom left graph, gross debt reduced in the first quarter due to Avenir being accounted for as held for sale.
$120 million in Avenir debt is no longer included in this overview. Our average long-term interest rate in the fourth quarter was 5.65%, an increase from the previous quarter, driven by temporary drawdowns on more expensive revolving credit facilities and a full quarter of the bond issued in October 2025. This shows our financial KPIs, and the continued steady performance of the company has supported our covenants. The decrease in debt during the first quarter supported a decrease in the net debt to tangible net worth on the top left quadrant, and net debt to EBITDA on the bottom left quadrant. Debt to tangible net worth is now at 0.98x, that's well below our covenant limit of 2.25x. With a lower EBITDA for the quarter, the last 12 months, EBITDA fell slightly to $777 million.
EBITDA to interest expense on the top right quadrant was down to 5.31x, while the net debt to EBITDA decreased from 3.12x to 3.02x, as Udo mentioned. Overall, we are well within compliance on all covenants. Finally, before handing back to Udo, let me finish up with a snapshot of our main sustainability metric, the annual efficiency rating for Stolt Tankers, which finished 2025 at 9.34 g/tonne-nm, just over 40% reduction from 2008. Also in 2025, we held gold ratings from EcoVadis for our three logistics businesses. Just to inform you, a gold rating indicates that a business is in the top 5% of companies in the industry.
Then again, to point out, the recently issued annual report for 2025 contains our first CSRD report, in case you want to read more about the company's ESG performance, and you can find the report on our website, as I mentioned. With that, I would like to pass it back to you, Udo.
Yeah. Thank you so much, Jens. I will now take us through the highlights from each of our operating divisions. Let's start with Stolt Tankers. Operating revenue at Stolt Tankers was $386 million for the quarter, down 5.5% on the year. This decline reflects the rate environment, which was only partially offset by a modest increase in operating days, driven by additions to the fleet. The rate decline is driven by a change in the mix of specialty versus commodity cargo as a result of near-term market conditions, which also drove up volumes. COA rates were renewed in the first quarter on an average rate decrease of 5.3%. This is improved versus the 9.6% decrease in Q4. EBITDA was $102 million, down 7%. Operating profit was just over $50 million, down 24% year-over-year. This reflects the lower freight rates on both regional and deep-sea spot trades.
We remember that previously Hassel Shipping 4 was a joint venture and so was included as equity income. As a result of the Hassel 4 transaction, within this quarter's results, we also saw higher owning expenses, additional depreciation, and lower equity income from joint ventures versus the prior year. Depreciation was further impacted by changes in residual value. Maren and her team continued to work diligently to navigate this highly complex and unpredictable market environment with a clear focus on delivering for our customers. I commend them for all their efforts during what continues to be a very challenging period. Looking now more closely at tanker rate trends.
While the TCE rate for the quarter declined to approximately $23,600 per operating day, down around 15% year-on-year, we continued to trade well above the 2018- 2022 down cycle average of $19,825 per day, and a level marginally above the long-term 10-year average of $23,300 per day. The early signs of rate softening that we saw last quarter have continued, with a quarter-on-quarter change of under 4%. The effects of the conflict in the Middle East and the disruption at the Strait of Hormuz are introducing new complexities for global trade flows, and we are keeping a watchful eye on developments. This global disruption has the potential to create additional upward movement in rates and ton mileage in certain routes and downward movement in others. I also want to reiterate a point we have made before. We are not simply a chemical tanker business.
We encourage investors and analysts to evaluate our performance across our diverse portfolio as a whole. I'm pleased to report a strong, consistent performance from Stolthaven Terminals, and I would like to thank Guy and his team for achieving the second-best operating profit in the company's history. Operating revenue was $79 million in the quarter, up 4% year-over-year. This improvement was driven by storage rate increases on existing contracts, as well as new business secured at improved rates and favorable foreign exchange impacts, partially offset by softer utilization in certain areas. Utilization remained essentially stable at 91.2% from Q4 to Q1, but declined versus the prior year's 91.9%. EBITDA was $45 million, up 4%. Operating profit was $28.6 million, broadly level year-over-year, as improvement in revenue was offset by inflationary cost increases and the impact of foreign exchange. We continue to progress adding storage capacity at existing U.S. sites.
Projects in Houston and New Orleans are expected to come online in a staggered fashion, and we expect this incremental U.S. capacity to provide a contribution to earnings growth over the medium term. Stolt Tank Containers saw a strong increase in revenue this quarter, driven by the addition of the Suttons tanks to the fleet. Operating revenue was $184 million, up 20% year-over-year. Overall shipments totaled nearly 48,000 in the quarter, up 31% year-over-year, reflecting the addition of the Suttons volumes, while underlying volume was also slightly improved. Stolt Tank Containers recorded an operating loss of $5 million in the quarter, predominantly driven by weaker transportation margins and reduced demurrage in a highly competitive market, Suttons-related integration costs and the typical seasonal softness in the first quarter.
The integration of Suttons into our platform is going as planned, and we expect a positive EBITDA impact from the Suttons business to materialize from 2027 onwards once integration is more substantially complete. In the near term, Hans and his team are focused firmly on cost discipline, marginal improvement, and executing the integration effectively, and I thank them for their efforts. I now want to cover our view of the market and concluding remarks before we open for Q&A. Let me first give you some important context for understanding the operating environment we are navigating today. The Strait of Hormuz handles approximately 20% of global seaborne oil and CPP volumes, around 15% of global chemicals, 20% of LNG, and 40% of LPG. The closure of the Strait of Hormuz represents the largest supply shock to global energy markets since 1973.
The disruption to trade flows is already creating tangible effects in the chemical markets, with volatile energy prices, shifting demand patterns, and increased activity in the U.S. Gulf contrasting with a slowdown in other regions. We are also seeing spillover effects, including elevated bunker prices and availability constraints East of Suez, which are adding to the operational complexity for all participants in the market. This is not just a temporary disruption. It is a structural dislocation, and the downstream consequences for chemical and industrial supply chains are already being felt. Firstly, the supply shock itself. Approximately 20 MMbbl/d have been effectively removed from global seaborne flows due to the Hormuz closure. Middle East exports are down around 60% from around 25 MMbbl/d to a negative position when you account for the coordinated attacks across Saudi Arabia, the U.A.E., Qatar, and Iraq.
Critical infrastructure has also been impacted. The Saudi East-West Pipeline bypass, with a capacity of approximately 7 MMbbl/d , is already operating at a maximum, and even at full utilization, it can only reroute around 35% of Saudi Arabia's export volumes. There's simply insufficient physical replacement for what has been lost. In the center here on the chart, we begin to see system breakdown. Storage infrastructure is now approaching saturation, what the industry refers to as tank tops, and this is beginning to force production shut-ins. We are seeing force majeure declarations across LNG, LPG, and chemical cargoes. The physical constraints on rerouting, storing, and processing volumes are compounding the supply loss. The third shock is demand rebalancing, with Asia firmly at the epicenter. Japan, Taiwan, South Korea, Vietnam, and Singapore collectively import more than 70% of their crude from the Arabian Gulf. The feedstock consequences are severe.
Naphtha supply is down approximately 1.2 MMbbl/d , and LPG prices have risen sharply since late February. This could potentially translate into a feedstock crisis with shutdowns of crackers, PDH plants, methanol facilities, and aromatics units, resulting in lower volumes. China, Korea, and India have begun implementing export controls and rationing measures. The conclusion is clear. This is not a market we expect to normalize quickly. We are planning for a range of potential scenarios, spanning from a stabilized transit environment where trade flows largely normalize through to most restricted or even a closed transit regime. Across these scenarios, we have a clear set of operational and financial levers available to us.
These include deploying our tanker fleet to optimize utilization and our COA and spot mix, leveraging the diversification of a liquid logistics and aquaculture portfolio, providing some resilience to our earnings, adjusting capital allocation by deferring non-essential CapEx, and drawing on our strong liquidity and balance sheet capacity to absorb volatility. At this stage in time, it is unclear whether disruption will create more complexity or opportunity for our business. From a supply perspective, the stainless steel tanker order book stands at approximately 18% of the existing fleet, with net supply growth of around 4% expected in 2026. However, a significant feature of the current fleet is its age profile. Approximately 14% of the stainless steel tanker fleet is aged 25 years or older and eligible for retirement. This proportion increases to around 30% when you consider vessels aged 20 years and above.
The potential for fleet retirements to absorb new supply is considerable and also acts as a buffer in case of potentially prolonged demand contraction. We expect these supply dynamics to continue to provide underlying structural support to the chemical tanker market over the medium term. To wrap this up, we are operating in an exceptionally uncertain global environment. The geopolitical pressures we face, particularly from the conflict in the Middle East and the disruption at the Strait of Hormuz, introduce real complexity and market risk. Our immediate priority is to protect our people, our assets, and our earnings. We are maintaining a clear focus on what we can control. In that context, I want to leave you with four key themes. Firstly, we are safeguarding earnings and maintaining our focus on customers. Our ships are not currently directly affected, and our fleet is adapting swiftly to the changing situation.
Our global network is agile and well-positioned to support customers through the current period of supply chain disruption, and we are working closely with customers to find solutions with them. Secondly, we are leveraging our diversification. The resilience of our non-tanker portfolio provides 44% of group EBITDA, providing earnings and support at a time when the tanker market faces headwinds. Thirdly, we are maintaining disciplined management of our costs and capital allocation. We have a clear set of financial levers available to us, and we will deploy them appropriately as the situation evolves. Fourth, we enter this period of uncertainty from a position of financial strength. We have robust liquidity of $546 million, a well-structured balance sheet, and the capacity to absorb volatility while still pursuing strategic opportunities. Despite the challenges ahead, our strategic foundations are strong, our portfolio is resilient, and our team is focused.
We continue to navigate this complex environment, delivering long-term value for our shareholders, our customers, and all of our stakeholders. Thank you for your attention. I will now pass you back to Alex for Q&A.
Thank you, Udo. As a reminder, please submit your questions online via the Q&A function. We will start with the first question. First one for you, Jens F. Grüner-Hegge, in relation to EBITDA guidance. Could you provide a bit more comment around the rationale for removing the EBITDA guidance, and then any information about when you would expect to resume that guidance?
Thank you, Alex, and thank you for the question. As Udo talked about, we're living in a situation which is rather unpredictable, and this could go either way, up or down, and therefore we feel that there's no real foundation to provide an EBITDA guidance at this stage. I think once we start seeing things normalize, which would mean a number of the factors that are currently causing disruptions coming back to normal, then we can reconsider providing an earnings guidance at that point.
Yeah, maybe let me add. What is really the value of guidance? The value of guidance is that we see more in the business than you as an outsider, and that we provide basically guardrails where there's a lower level or an upper level. When you have a situation like this, if the guidance range becomes ridiculously large or it's so foggy, then it's a little bit like the COVID time. Nobody was surprised when companies stopped providing guidance during COVID. This is not a decision that we take lightly. We really had long conversations around this, and we just came to the conclusion, what we are seeing right now is not good enough to provide reasonable guidance. Exactly what Jens said, it can go up, and it can go down, and we will come back when we have more clarity.
Thank you, Udo. Next question is in relation to tank containers. Would you be able to provide some guidance, Jens, in relation to where the integration costs sit in the line items? Are they entirely booked in SG&A, as a starting point? Maybe just another comment around Stolt Tank Containers, SG&A, more broadly. Apologies, Jens, I think you're on mute.
I am indeed. Thank you. To the first part of the question, yes, the integration cost is in SG&A. As I mentioned in my speaker notes, it was about $5 million that we incurred during the first quarter. As for SG&A in general, as we compare the first quarter of 2026 with the first quarter of 2025, you have pretty much one year of inflationary expenses that have come in, and that impacts the results. Other than that, I think for STC, I think it's fair to say they are in a tough market, and when you are in a tough market, you're always having a close eye on your expenses. That is also the case with STC at the moment.
When this then will normalize, it's hard to say, again, because they are in the midst of a significant integration following the acquisition, plus we also have the market disruptions that we have to consider as we look forward.
Thank you very much, Jens. Also continuing on STC. Udo, would you be able to provide a bit more color into the current state of the market, and any potential views on outlook in relation to potential improvements in the underlying markets there?
Yeah. The market, as you see, continues to be very challenging. When you look at what is really the underlying driver, it is an oversupply. As you know, during COVID, there's a long tail of competitors that got added. This is starting to shake out with our acquisition of Suttons and some other consolidation that are happening in the market. There is consolidation going on, but this is of course not changing overnight. You take a Middle East situation, and that of course added extra pressure to the whole situation. I think what we are really focused on is, of course, working with our customers, delivering value there, but also being focused on margins. We are very clear on looking at how do we do margin management overall in the business.
In addition, of course, we have a fantastic digital platform and a strong Best Shore center. We just need to deliver even more value on productivity and operational efficiency. We are fast-tracking also on the Suttons integration. We do everything that is in our control to improve the situation. We know that this was an exceptionally weak quarter, and Hans's team are fully focused on that. Of course, there's also a market piece in there, and it's too early for me to tell when the market will change.
Thank you, Udo. Next is an accounting question. For tankers, you mentioned that there was an uptick in depreciation quarter-over-quarter due to a change in residual values driven by steel prices. How should we think about the Q1 level? Would it be a new run rate for the tankers depreciation, or is there an element of one-off effects here?
Typically what we do is we adjust steel prices, or we do an assessment of the residual value once per year, and this is done based on steel prices. Steel prices reflect the recycling value of older tonnage. That sets the target depreciation when the ship reaches its fully depreciated age. Once a year, we reset this value, unless there are any demand shocks. Then that sets really the level of depreciation for the following year. Yes, there was a significant increase this time around, but you should expect that other than changing in our asset base due to acquisitions or sale of assets, that it should remain steady accordingly.
Yeah. Next question is in relation to Avenir and the sell down there. Are you able to provide a sense for the proceeds, both in cash and more broadly relating to the balance sheet you receive from this? How will you allocate those proceeds?
We are not allowed to talk about the actual sales price of this. It's unfortunately confidential and as often is the case in such transactions. As I mentioned, we have removed the debt from our balance sheet now. We also removed future CapEx, future CapEx being approximately $120 million, impacting 2026 and 2027, and the debt being reduced by $112 million. Hence you see that reduction now already in our balance sheet.
Let me add what Jens says. We are super excited about this deal, because it's really a double whammy. On the one hand, we can accelerate our strategic ambitions in this space because we have a strong partner with NYK who can also bring offtake for the business, and we can jointly grow. On the other hand, it also helps us both on our balance sheet side and, as you saw, it has a significant impact on reducing our CapEx exposure, and that is quite relevant during a time like this.
Thank you. A question relating to the results and how they're presented. Jens, last quarter, there was a like-for-like income statement, which was very helpful. Is it possible to get something like that for this quarter? Particularly given the number of moving items that have been occurring during the period. Also, do you expect similar in the coming periods?
Yeah, I think previously there were a lot of movements related to acquisitions of Suttons and also with the two acquisitions we did in the beginning of the year. We haven't presented that at the moment. Going forward, when we compare next quarter, it will be on a like-for-like basis because you will have had a stable second quarter of 2025 and a stable second quarter of 2026. You'll probably see a little bit less volatility other than, of course, Avenir. We can put that in when we present the next quarter's earnings so that you get a like- for- like then, and then we can share it broadly with the whole market at the same time.
Thank you. Next question is in relation to the performance of Stolt Sea Farm. Stolt Sea Farm performance looked particularly strong. Q1 is typically strong, but is it primarily volumes or price driven, this development? How do you expect this to continue? Jens, maybe that's one for yourself around the Q1s.
Yeah, I think first of all, Q1, we have this typically seasonally strong Christmas season, where you have good volumes that are being sold, particularly in December, afterwards it tapers off a little bit in the beginning of the new year, typically. This quarter we saw good movement in prices, favorable movements in prices, and that is reflected in the improvement in the results. That's really the main driver. I think we've elected to not report in detail on Stolt Sea Farm, but there are sections in the interim financials that were issued together with the earnings release that have more detail on Stolt Sea Farm. It remains strategic. It is important to us, and we will continue to invest in it. You can find more details about Stolt Sea Farm in the interims.
In the presentations itself, we want to focus on the liquid logistics, which is really the bulk of the company's assets and what drives the performance of the company, particularly in times like this when you have disruptions in the global supply chains. That said, under such circumstances, it's nice to have a business like Stolt Sea Farm contributing steadily to the performance overall of the group.
Very good. That concludes all the questions that we have. Thank you very much. Just as a reminder, we'll be posting a recording of our call on our website tomorrow. Udo, back to you.
Yeah. Thank you so much, everybody. I really appreciate you joining us today, and I look forward to talking to you again when we present our results for the second quarter of 2026 in July. Of course, like all of us, I hope that by then, the world has come to a more peaceful landing than where we are right now. With that, all the best for today.