Under the terms of the partnership, Gulf Navigation will acquire two 44,000 deadweight ton (dwt) parcel tankers from ShinA Shipbuilding Co. Ltd. of South Korea, under options formerly held by SNTG. Upon entering service in mid-2009, the ships will join the Stolt Tanker Joint Service (STJS) pool.
Commenting on the partnership, Otto H. Fritzner, Chief Executive Officer of SNTG, said, "The Arabian Gulf is by far the world's fastest growing producer of chemicals. Gulf Navigation is an ambitious, emerging company well positioned to capitalize on this growth opportunity. SNTG's strategic partnership with Gulf Navigation will provide both immediate and longer-term mutual benefits that will enhance our competitive strengths in this key growth market. Expanding the STJS pool with quality partners like Gulf Navigation is also an effective way for SNTG to address its fleet-replacement needs and to ensure continued world-class service to its customers."
Speaking on behalf of Gulf Navigation, Managing Director Ghazi Al-Ibrahim said, "We are pleased to be joining the Stolt Tanker Joint Service. Access to SNTG's global network and premier marketing capabilities will contribute to Gulf Navigation's growth strategy in the global chemical market. By partnering, we aim to fulfill the long term tonnage requirements of the fast growing Arabian Gulf producers."
SNTG currently has four 44,000 dwt parcel tankers on order from ShinA Shipbuilding, due for delivery in 2008, plus options on two more ships, in addition to the options transferred to Gulf Navigation.
STJS is one of the world's largest chemical-tanker pools, marketing 70 ships to meet the bulk-liquid transportation needs of customers worldwide.
The Gulf Navigation group is a UAE company based in Dubai with subsidiaries and affiliates in the UAE and other GCC countries. Group companies and divisions operate crude, clean petroleum product and chemical tankers. Gulf Navigation shareholders includes leading individuals and institutions from the UAE, Saudi Arabia, Kuwait, Oman and Bahrain.
About Stolt-Nielsen S.A.
Stolt-Nielsen S.A. (the "Company") is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through the parcel tanker, tank container, terminal, rail and barge services of its wholly-owned subsidiary Stolt-Nielsen Transportation Group, provides integrated transportation for its customers. Stolt Sea Farm, wholly owned by the Company, produces and markets high quality turbot and Southern bluefin tuna.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 our current views and assumptions and are subject to risks and uncertainties. The following factors, and others which are discussed in our public filings and submissions with the U.S. Securities and Exchange Commission, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: the general economic conditions and competition in the markets and businesses in which we operate; changes in the supply of and demand for parcel tanker, tank container and terminal capacity in the markets in which we operate; changes in the supply of and demand for the products we transport, particularly the bulk liquids, chemicals and other specialty liquids that form the majority of the products we transport; prevailing market rates for the transportation services we offer and the fish products we sell; the cost and feasibility of maintaining and replacing our older ships and building or purchasing new ships; uncertainties inherent in operating internationally; the outcome of legal proceedings; Stolt-Nielsen S.A.'s relationship with significant customers; the impact of negative publicity; environmental challenges and natural conditions facing Stolt-Nielsen S.A.'s aquaculture business; the ability to complete the Marine Harvest sale transaction; the impact of laws and regulations; and operating hazards, including marine disasters, spills or environmental damage. Many of these factors are beyond Stolt-Nielsen S.A.'s ability to control or predict. Given these factors, you should not place undue reliance on the forward-looking statements. Should one or more of these risks or uncertainties occur, or should management's assumptions or estimates prove incorrect, actual results and events may vary materially from those discussed in the forward-looking statements.
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