Stolt-Nielsen Limited Reports Unaudited Results For the Fourth Quarter and Full Year of 2010
LONDON, January 27, 2011 - Stolt-Nielsen Limited (Oslo B?rs: SNI) today reported unaudited results for the fourth quarter and full year ended November 30, 2010. Net profit attributable to shareholders in the fourth quarter was $33.0 million, with revenue of $459.4 million, compared with $26.8 million and $449.6 million, respectively, in the third quarter. Net profit attributable to shareholders for the full year was $106.1 million, with revenue of $1,793.7 million, compared with $95.2 million and $1,645.1 million, respectively, in 2009.
Highlights for the fourth quarter of 2010, compared with the third quarter of 2010, were:
? Stolt Tankers reported an operating profit of $11.0 million, up from $7.5 million. Fourth-quarter results included a $3.3 million gain on the sale of Stolt Pride for recycling, versus a $0.8 million gain on the sale of assets in the prior quarter.
? The Stolt Tankers Joint Service Sailed-in Time-Charter Index decreased to 1.17 from 1.20.
? Stolthaven Terminals' operating profit increased to $14.4 million from $13.5 million, with good operating results from its wholly owned terminal in Houston and its joint venture terminals in Antwerp and Ulsan.
? Stolt Tank Containers reported an operating profit of $21.0 million, up from $16.9 million. STC's growth in operating profit was driven mainly by lower ocean freight costs and increased demurrage revenue.
? Stolt Sea Farm reported an operating profit of $3.9 million, up from $2.5 million. SSF's results reflected a positive impact of $2.5 million from the fair value accounting for inventories, compared with a positive impact of $0.3 million.
? Stolt-Nielsen Gas reported a loss of $1.1 million, compared with a loss of $0.4 million, as freight rates eased after having strengthened during the summer.
Stolt-Nielsen Gas' results are reported under discontinued operations as subsequent to year end they entered into a joint venture agreement with Sungas Holdings (Sungas).
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said:
"Considering current economic and business conditions, I am pleased with SNL's fourth-quarter and full-year results. Stolt Tankers' underlying results were essentially flat in the last quarter. Stolthaven Terminals had another good quarter, given the current environment. Stolt Tank Containers reported another solid year, though the fourth quarter reflected the usual seasonal slowdown in activity compared with the preceding quarter. Stolt Sea Farm also had a good quarter, as turbot prices held up well in the typically softer fourth quarter."
"Looking back on 2010 as a whole, SNL performed well in what was, as expected, a challenging year. It was also a year highlighted by a number of significant events and achievements. In settling with the South Korean shipyard SLS, we received a refund including interest of $340 million for the eight ships we cancelled, and with our joint venture partner Gulf Navigation we were able to secure four other newbuildings at a discount. In a time charter contract with JO Tankers, we took on six sophisticated parcel tankers for a period of three years, effectively bridging the tonnage gap created by the cancellation of the eight SLS ships. Finally, as the year drew to a close, we took advantage of attractive opportunities in the second-hand market to acquire seven all stainless parcel tankers for $255 million. As a net result of these transactions, Stolt Tankers' near-term tonnage needs have been effectively addressed. Other highlights of 2010 included finding a partner for Stolt-Nielsen Gas, a move that has substantially advanced our LPG plans. We were also pleased with the results of both Stolt Tank Containers and Stolthaven Terminals. These growing businesses generated a combined operating profit of more than $120 million in 2010. Given the multiple businesses that we operate and the cash flow they generate, combined with our current debt level, we believe SNL is well positioned to face 2011 and make the most of opportunities that may arise, as well as generate a healthy profit once market conditions eventually improve. However, in tankers we do not see any signs of an improving market and expect 2011 to be yet another challenging year, so we will continue to manage our businesses conservatively, to protect our balance sheet, and to appropriately prioritise our liquidity as we invest for the future."
 The Stolt Tankers Joint Service Sailed-in Time-Charter Index is an indexed measurement of the sailed-in rate for the Joint Service and was set at 1.00 in the first quarter of 1990 based on the average sailed-in time-charter result for the fleet at the time. The sailed-in rate is a measure frequently used by shipping companies, which subtracts from the ships' operating revenue the variable costs associated with a voyage, primarily commissions, sublets, transshipments, port costs, and bunker fuel.