Press Release

Stolt-Nielsen Limited Reports Unaudited Results For the Third Quarter of 2012

LONDON, October 4, 2012 - Stolt-Nielsen Limited (Oslo B?rs: SNI) today reported unaudited results for the third quarter ended August 31, 2012.  Net profit attributable to shareholders in the third quarter was $7.1 million, with revenue of $516.4 million, compared with $37.0 million and $538.8 million, respectively, in the second quarter of 2012.

Highlights for the third quarter of 2012, compared with the second quarter of 2012, were:

  • Stolt Tankers reported an operating loss of $0.8 million, compared with an operating profit of $4.5 million, excluding the second-quarter gain of $24.5 million on insurance compensation related to the loss of Stolt Valor, as global market conditions remained weak.
  • The Stolt Tankers Joint Service Sailed-in Time-Charter Index[1] was 1.12, compared with 1.18 in the second quarter.
  • Stolthaven Terminals reported an operating profit of $12.2 million, down from $18.1 million, due in part to a $2.3 million provision towards expenses related to the flooding of Stolthaven New Orleans by Hurricane Isaac, and lower income from joint ventures.
  • Stolt Tank Containers reported an operating profit of $20.1 million, up from $19.6 million, due to a $3.0 million reduction in depreciation resulting from a change to the salvage value of its tank containers.
  • Stolt Sea Farm reported an operating loss of $1.4 million, compared with an operating profit of $1.8 million, reflecting lower revenue and a negative impact of $1.3 million from the accounting for inventories at fair value, versus a positive impact of $1.4 million in the preceding period.
  • Stolt-Nielsen Gas reported equity income of $1.1 million from its investment in Avance Gas Holding Ltd (AGHL), compared with a loss of $0.9 million in the second quarter, as the LPG transportation market continued to strengthen.

Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said:

"Stolt-Nielsen Limited's weakened result in the third quarter reflects the underlying weakness in the parcel tanker market driven by a slowing global economy.  Stolt Tankers reported an operating loss, as overall market conditions remained soft and unscheduled drydockings resulted in fewer sailing days.  Lower results at Stolthaven Terminals were attributable to a provision taken towards the costs from the flooding of our New Orleans terminal due to Hurricane Isaac.  At Stolt Tank Containers, excluding the change to the salvage value of the containers, results were slightly down.  However, fundamentals remain healthy.  Stolt Sea Farm reported an operating loss due to a negative inventory adjustment, but revenues were also down on seasonally lower volumes sold.  A bright spot to report is the strengthening VLGC market."

"Managing our business with conservative assumptions about the global economic recovery has put us in a position to pursue unique opportunities as and when they arise".

[1] 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.


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Stolt-Nielsen Limited 3Q12 Earnings Results