Stolt-Nielsen S.A. Reports Unaudited Results For the Third Quarter and First Nine Months of 2010
LONDON, September 30, 2010 - Stolt-Nielsen S.A. (Oslo B?rs: SNI) today reported unaudited results for the third quarter and first nine months ended August 31, 2010. Net profit attributable to shareholders in the third quarter was $26.8 million, with revenue of $456.8 million, compared with $27.5 million and $463.0 million, respectively, in the second quarter.
In the third quarter, SNSA received a full refund of $84.5 million plus accrued interest for progress payments made to SLS Shipbuilding Co. Ltd. (SLS) of South Korea on two cancelled newbuildings. In mid-September, subsequent to the close of the Company's third quarter, SNSA received refunds totalling $211.3 million plus accrued interest for progress payments made on the remaining six ships in the cancelled series, for a total refund of $295.8 million, plus accrued interest of $43.9 million.
Highlights for the third quarter of 2010, compared with the second quarter of 2010, were:
? Stolt Tankers reported an operating profit of $7.5 million, down from $9.8 million. Gains from the sale of assets were $2.2 million lower in the third quarter.
? The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 1.20, up from 1.15, where the index had stood for three consecutive quarters.
? Stolthaven Terminals' operating profit was essentially unchanged at $13.5 million, reflecting sustained demand for storage.
? Stolt Tank Containers reported an operating profit of $16.9 million, up from $15.9 million, reflecting improved utilisation and continued strength in global demand for tank containers.
? Stolt Sea Farm reported an operating profit of $2.5 million, down from $4.8 million. The third-quarter reflected a positive impact of $0.3 million from the fair value accounting for inventories, compared with a positive impact of $3.0 million in the previous quarter.
? Stolt-Nielsen Gas reported a loss of $0.5 million, compared with a loss of $2.6 million, reflecting improved market conditions in the very large gas carrier (VLGC) market.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA, said:
"SNSA's third-quarter results were in line overall with our second-quarter performance. While revenue was down at Stolt Tankers, operating profit reflected the impact of lower shipowning costs. Stolthaven Terminals reported good results once again, reflecting the sustained demand for storage in our key markets worldwide. Stolt Tank Containers had another strong quarter, with improved utilisation in its well-balanced global fleet. At Stolt Sea Farm, the turbot market is recovering slowly, though price competition remains intense. Stolt-Nielsen Gas nearly broke even this quarter, as market conditions improved."
"We are pleased to have fully recovered our progress payments of $296 million plus interest on the eight large stainless steel parcel tankers we had ordered from SLS in Korea. We will continue to evaluate opportunities and will replace these orders if the right project arises. However, we see no signs of a sustainable improvement in our tanker market in the near term, and the longer current market conditions persist, the better our opportunities are likely to be."
 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.