Stolt-Nielsen Limited Reports Unaudited Results For the Second Quarter and First Half of 2012
LONDON, July 5, 2012 - Stolt-Nielsen Limited (Oslo B?rs: SNI) today reported unaudited results for the second quarter and first six months ended May 31, 2012. Net profit attributable to shareholders in the second quarter was $37.0 million, with revenue of $538.8 million, compared with $8.0 million and $505.7 million, respectively, in the first quarter of 2012. Net profit attributable to shareholders for the first six months was $45.0 million, with revenue of $1,044.4 million, compared with $63.6 million and $986.6 million, respectively, in the first half of 2011.
Highlights for the second quarter of 2012, compared with the first quarter of 2012, were:
- Stolt Tankers reported an operating profit of $29.0 million, reflecting a net gain of $24.5 million on insurance proceeds related to the loss of MT Stolt Valor following the incident in the Persian Gulf in March. Net of this gain the operating profit was $4.5 million for the current quarter, compared with an operating loss of $8.6 million.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased to 1.18 from 1.05, reflecting improved freight rates and utilisation in terms of tons carried per day.
- Stolthaven Terminals reported an operating profit of $18.1 million, compared with $23.3 million. The previous quarter included a one-time gain of $5.8 million in connection with the acquisition of the Moerdijk terminal in the Netherlands.
- Stolt Tank Containers reported an operating profit of $19.6 million, up from $19.2 million, as the impact of strong global demand was largely offset by increased freight rates and repositioning costs.
- Stolt Sea Farm reported an operating profit of $1.8 million, compared with an operating loss of $2.7 million, reflecting a positive impact of $1.4 million from the accounting for inventories at fair value in the second quarter, versus a negative impact of $4.3 million.
- Stolt-Nielsen Gas reported a loss of $0.9 million on its investment in Avance Gas Holding Ltd (AGHL), compared with a loss of $1.2 million, reflecting an improving freight market for the transportation of LPG.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said:
"Stolt-Nielsen Limited's performance strengthened slightly in the second-quarter. Excluding the insurance gain on Stolt Valor, the improvement was attributable primarily to better operating results at Stolt Tankers, driven by improved COA freight rates and higher utilisation in terms of tons carried per day. Both Stolthaven Terminals and Stolt Tank Containers once again reported solid results for the latest period. Operating results at Stolt Sea Farm reflected increased sales of turbot, partially offset by seasonally lower sales of caviar."
"Volumes in Stolt Tankers continue to be weak with no indications of any further improvements in the near future. We expect continued growth in earnings from Stolthaven Terminals as more capacity comes on line. We also expect growth in earnings in Stolt Tank Containers as new containers are delivered over the next 12 months. We are pursuing our strategy in Avance Gas by consolidating through acquisitions of second-hand tonnage with prompt delivery into what we believe is a promising market."
 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.