Stolt-Nielsen Limited Reports Unaudited Results For the Second Quarter and First Half of 2013
LONDON, July 3, 2013 - Stolt-Nielsen Limited (Oslo B?rs: SNI) today reported unaudited results for the second quarter ended May 31, 2013. Net profit attributable to shareholders in the second quarter was $25.7 million, with revenue of $533.8 million, compared with $1.5 million, with revenue of $519.4 million, respectively, in the first quarter of 2013. Net profit attributable to shareholders for the first six months was $27.2 million, with revenue of $1,053.2 million, compared with $45.0 million, with revenue of $1,044.4 million, respectively, in the first half of 2012.
Highlights for the second quarter of 2013, compared with the first quarter of 2013, were:
- Stolt Tankers reported an operating profit of $5.0 million compared with an operating loss of $2.8 million, which included $2.0 million of one-time charges. The improved operating profit was mostly due to higher deep-sea contract rates,
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased to 1.20 from 1.12.
- Stolthaven Terminals reported an operating profit of $21.9 million, down from $23.3 million, due primarily to a decrease in volume handled at Stolthaven Santos related to the delay of sugarcane-based ethanol production.
- Stolt Tank Containers reported an operating profit of $20.8 million, up from $15.2 million, reflecting strong seasonal demand in its major markets.
- Stolt Sea Farm reported an operating profit of $7.4 million compared with an operating loss of $0.1 million, reflecting a positive impact of $6.5 million from the accounting for inventories at fair value caused by rising turbot prices.
- Stolt-Nielsen Gas reported a loss of $1.7 million on its investment in Avance Gas Holding Ltd. (AGHL), compared with a loss of $1.2 million.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said:
"Stolt Tankers' results for the quarter reflect the modest rate increases we have achieved in our contract portfolio over the last 12 months-this in a market where the spot rates have moved in the opposite direction. Volumes continue to be the challenge. Stolthaven's results softened in the quarter, mostly attributable to our terminal in Santos, Brazil, which was impacted by a delay in Brazilian ethanol production. Stolt Tank Containers had a good second quarter, driven by seasonally strong demand in markets worldwide. Stolt Sea Farm also had a good quarter, with turbot prices rising as market supplies tightened."
"The outlook for the global economy remains highly uncertain. We question the resilience of the US growth once quantitative easing tapers off. The European economies continue to struggle and the recent slowdown in China is also a concern. While we have been able to achieve modest gains in our contracts of affreightment, we do not yet see any acceleration of momentum in the market, which is still plagued by excess tonnage and low volumes. We continue to believe the recovery will take time. At Stolthaven, we continue to add storage capacity, which will have a positive impact on the results going forward. At Stolt Tank Containers, we expect increased margin pressure due to more competition. We expect Stolt Sea Farm to continue to benefit from a price recovery for both turbot and sole going forward."
 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, external time charter expenses, transshipments, port costs, and bunker fuel.