Stolt-Nielsen S.A. Receives Refund For Remaining Six Newbuildings
LONDON, September 17, 2010 - Stolt-Nielsen S.A. (Oslo B?rs: SNI) announced today that it has received refunds of $211.3 million, plus accrued interest, as part of an early termination agreement with SLS Shipbuilding Co. Ltd. (SLS) of South Korea. The refunds were for progress payments made on six ships ordered in 2006 and 2007 as part of a series of eight parcel tankers to be built by SLS. Due to extensive delays at the yard it was unlikely that the ships would have been delivered within the terms of the shipbuilding contracts.
Upon receipt of these refunds the Company has cancelled four of the newbuilding contracts with SLS. It is anticipated that the final two newbuilding contracts will be cancelled shortly on receipt of outstanding interest of approximately $300,000.
As announced on August 17, 2010, the Company earlier received a full refund of $84.5 million, plus accrued interest for two of the other ships in the series, bringing the total refund received for the eight ships to $295.8 million plus accrued interest.
The refunds will be used by the Company to repay loans taken to fund the cancelled newbuildings and for general corporate purposes.
Commenting on the refunds, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA, said: "We are pleased with the cooperation demonstrated by SLS and the Korean banks allowing for the early termination of the shipbuilding contracts, resulting in the full refund of all progress payments made. We continue to explore alternatives to grow the fleet either through newbuilding orders or acquisitions in the second hand market, but we are in no rush to replace the orders as we believe time is working in our favour due to the present difficult market conditions."
For additional information please contact:
Jan Chr. Engelhardtsen
Chief Financial Officer
UK +44 (0) 20 7611 8972
Jens F. Gr?ner-Hegge
V.P. Corporate Finance
UK +44 (0) 20 7611 8985
About Stolt-Nielsen S.A.
Stolt-Nielsen S.A. (SNSA or the "Company") is a leading global provider of integrated transportation solutions for bulk liquid chemicals, edible oils, acids, and other specialty liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-Nielsen Gas transports liquefied petroleum gas (LPG) with its growing fleet of very large gas carriers (VLGCs). Stolt-Nielsen S.A. is listed on the Oslo Stock Exchange.
This press release contains "forward-looking statements" based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statement. These statements may be identified by the use of words like "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "will," "should," "seek," and similar expressions. The forward-looking statements reflect the Company's current views and assumptions and are subject to risks and uncertainties. The Company does not represent or warrant that the Company's actual future results, performance or achievements will be as discussed in the those statements, and assumes no obligation to, and does not intend to, update any of those forward-looking statements other than as may be required by applicable law.