Operating revenue of $443.4 million for the quarter, compared with operating revenue of $448.4 million in the same quarter last year.
Net income of $5.7 million for the quarter ($5.9 million from continuing operations), compared with net income of $3.9 million ($9.5 million from continuing operations) in the same quarter last year.
Stolt-Nielsen Transportation Group's (SNTG) performance reflected a continued strong parcel tanker market, improved margins from Stolt Tank Containers, and improved results from Stolthaven Terminals. The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased by 10% to 1.31 from 1.19 in the same quarter last year.
The completion of the merger of Stolt Sea Farm (SSF) and Marine Harvest on April 29, 2005.
Continued solid results from the turbot business.
Commenting, Mr. Niels G. Stolt-Nielsen, CEO of SNSA, said:
"Operationally, SNSA posted strong results in the second quarter of 2005 as we continued to see solid demand for SNTG's services. The second quarter of 2005 income from continuing operations of $5.9 million is net of deductions of $14.2 million for the early retirement of debt primarily relating to a pre-payment penalty on our senior notes and $9.8 million of SSF tax provisions arising from a legal restructuring in anticipation of the Marine Harvest transaction. The second quarter of 2004 income from continuing operations of $9.5 million included SNSA financial restructuring charges of $10.5 million.
"For SNTG, we believe the underlying fundamentals of the parcel tanker market remain strong. During the second quarter of 2005, rates on contracts renewed by SNTG increased by an average of approximately 23%, compared with average rate increases of approximately 20% in the first quarter. Contract volume remains strong. In recent months we have seen some choppiness in the spot market that we believe is due to a temporary slowing of demand as a result of an inventory correction in Asia. The results of SNTG's regional fleets continued to show improvements. Our tank container division again reported improved gross profit margins and our terminal division reported greatly improved results.
"The merger of SSF and Marine Harvest was completed on April 29, 2005 according to plan. SSF's results showed improvement over the first quarter of 2005.
"Our strengthened financial position and continued strong operating results enabled us to reinstate our dividend policy. We continue to expect that 2005 will be a strong year for SNSA, given the ongoing strength in SNTG's markets, the solid performance of our turbot business and the recent improvement in salmon prices, which should bode well for our investment in Marine Harvest."
**For the full press release please see "SNSA 2Q/05 Results."