Stolt-Nielsen Limited Reports Unaudited Results For the Third Quarter and First Nine Months of 2020
LONDON, October 8, 2020 – Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the third quarter ended August 31, 2020. The Company reported a third-quarter net profit attributable to shareholders of $29.2 million, with revenue of $474.0 million, compared with a net profit attributable to shareholders of $3.6 million, with revenue of $503.5 million, in the second quarter of 2020. The net profit attributable to shareholders for the first nine months was $12.9 million, with revenue of $1,474.5 million, compared with a net profit attributable to shareholders of $15.2 million, with revenue of $1,536.2 million, for the first nine months of 2019.
Highlights for the third quarter, compared with the second quarter of 2020, were:
- Net profit from continuing operations was $30.5 million in the third quarter with an EBITDA of $143.5 million, up from a net profit of $12.3 million and EBITDA of $123.1 million, mainly driven by healthy volumes, lower fuel prices in Stolt Tankers and Stolt Tank Containers and overall lower administrative and general expenses.
- Stolt Tankers reported improved operating profit of $28.1 million, up from $20.0 million, as lower bunker costs and improved results from bunker hedging more than offset a reduction in revenue, which was mainly due to fewer operating days and lower freight rates driven by the lower bunker prices.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index rose to 0.61 from 0.56.
- Stolthaven Terminals reported operating profit of $22.7 million, up from $19.2 million. Underlying business performance improved slightly, while one-off losses in the second quarter and gains in the third quarter added to the improvement in results.
- Stolt Tank Containers reported operating profit of $17.5 million, up from $13.0 million, reflecting lower move-related expenses.
- Stolt Sea Farm reported an operating loss before fair value adjustment of biomass of
$0.6 million compared with an operating loss of $5.0 million, as sales volumes of all species recovered significantly in the third quarter. The prior quarter included impairments of
- Corporate and Other reported operating profit of $1.2 million, down from $2.7 million, mainly reflecting a higher profit-sharing accrual.
Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, commented: “During the third quarter all of our divisions generated improved results in the face of continued challenges brought on by the Covid pandemic. While the global economic outlook remains uncertain, we are cautiously optimistic about the fourth quarter and beyond, based on the contract portfolio we have secured across our three logistics businesses.
“Stolt Tankers’ continuing focus on efficiency initiatives is starting to have a positive impact. Results for the quarter improved, however the Covid pandemic continues to impact scheduling, necessitating costly rerouting of ships in order to make overdue crew changes. During the quarter we were able to secure five modern 26,000 deadweight tonne stainless steel chemical tankers in the second-hand market at a very attractive price, a deal made possible by our resilient business model and financial strength. The ships are expected to be delivered starting December 2020. Results at Stolthaven Terminals continued to improve, as demand for chemicals used for packaging and healthcare products remained strong, offsetting weak demand for those bound for the automotive and construction sectors. At Stolt Tank Containers, August brought an increase in shipments following June and July’s seasonal summer slowdown. As restaurants in Stolt Sea Farm’s key European markets began to reopen, we saw a strong recovery in volumes sold, rising to levels close to the same quarter last year.
“We are cautiously optimistic that the momentum of a strengthening chemical tanker market will continue. Longer term, the favourable supply/demand outlook should provide a good foundation for continued improved results at Stolt Tankers. At Stolthaven, we expect to see healthy demand in most regions. Following the seasonally slow third quarter at Stolt Tank Containers, we are seeing signs of improvement, particularly in Asia. At Stolt Sea Farm we have seen volume and prices return towards pre-Covid levels, however the possible impact of a second lockdown on the hospitality industry, particularly in southern Europe, remains a concern.
“At the beginning of the pandemic we took early and decisive action to reduce costs and preserve cash, and at the end of the third quarter we had approximately $500 million in available liquidity. We continue to focus on safe and reliable operations that deliver quality services and products to our customers, while protecting our revenue base. Our diverse portfolio of businesses, dedicated employees and forward-looking strategy mean that we are well positioned for what may come.”
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act