Stolt-Nielsen S.A. Reports Unaudited Results For the Second Quarter and First Half of 2010
LONDON, July 1, 2010 - Stolt-Nielsen S.A. (Oslo B?rs: SNI) today reported unaudited results for the second quarter and first half ended May 31, 2010. Net profit attributable to shareholders in the second quarter was $27.5 million, with revenue of $463.0 million, up from $18.8 million and $428.3 million, respectively, in the first quarter.
Highlights for the second quarter of 2010, compared with the first quarter of 2010, were:
? Stolt Tankers reported an operating profit of $9.8 million, up from $3.0 million, due mainly to a higher number of operating days and gains from the sale and recycling of ships.
? The Stolt Tankers Joint Service Sailed-in Time-Charter Index was unchanged at 1.15 for the third consecutive quarter.
? Stolthaven Terminals reported an operating profit of $13.6 million, down from $15.5 million, due mainly to one-off items in the first quarter of 2010.
? Stolt Tank Containers reported an operating profit of $15.9 million, up from $10.6 million, driven by healthy demand in most markets worldwide.
? Stolt Sea Farm reported an operating profit of $4.8 million, up from $1.4 million, due to the positive impact of an IFRS fair value revaluation of inventories of $3.0 million.
? Stolt-Nielsen Gas reported a loss of $2.6 million, compared with a loss of $2.7 million, due to the continued weakness 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 results overall strengthened in the second quarter. Stolt Tankers' operating profit was up in absolute terms as the fleet size and volume of cargo transported increased compared with the prior quarter. Results at Stolt Tankers also benefited from gains on the sale and recycling of ships. Stolthaven Terminals continued to perform well, though second-quarter operating profits were down slightly due to one-time items that positively affected results in the prior quarter. STC's strong results were driven by increased shipments and improved margins. Stolt Sea Farm's results benefited from a revaluation of inventories, as well as improving turbot prices toward the end of the quarter. We continue to incur losses in our LPG transportation business, but we began to see some evidence of an improving trend as the quarter drew to a close."
"Our newbuilding order of eight large stainless steel parcel tankers from SLS in Korea will not be built as per the original contract and the Company is working closely with the yard and its banks to recover our progress payments of $296 million plus interest-all of which is covered by refund guarantees. Depending on market developments and newbuilding prices, the Company will consider replacing the order."
"We remain concerned about the strength of the global economic recovery, and believe that any growth will, at best, be modest in the coming years. We believe some interesting opportunities will eventually surface when over-leveraged companies seek second or third rounds of waivers and or have to raise further equity in a weak and uncertain market. We are keeping our powder dry in the meantime."
 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.