LONDON, July 3, 2023 Stolt-Nielsen reported today that the Court of Appeals has affirmed by two to one, in all material respects the ruling on liability from 2018 by the US District Court for the Southern District of New York regarding the 2012 incident on board the MSC Flaminia. Stolt Tank Containers BV has been found at fault together with Deltech for 45% and 55%, respectively. The Company is disappointed by the decision of the Court of Appeals upholding the lower courts 2018 decision. The Company is currently assessing the legal and financial implications of the Courts decision, which included a dissenting opinion, and is considering further appeals and mitigations.
The potential liability for the full award is being assessed. The Company will record a loss provision related to the ruling in its second quarter financials, due to be reported on July 6, 2023, of $155 million, which net of tax will impact the Companys net profit for the quarter by approximately $115 million. The Company has liquidity in place to fund its potential liability and remains in a financially strong position.
As reported in our annual reports, the ruling concerns the incident that took place on July 14, 2012, during which a fire broke out in cargo hold number four aboard the MSC Flaminia during the ships crossing of the Atlantic Ocean. During the crews attempt to extinguish the fire, an explosion occurred. Stolt Tank Containers had 29 tank containers onboard the ship, three of which were stowed in cargo hold number four. On May 29, 2013, the vessel interests, namely the owner, manager and operator filed counter and crossclaims against Stolt Tank Containers and Deltech, the shipper of the three tank containers stowed in cargo hold number 4, alleging that these tank containers were the cause of the fire and that Stolt Tank Containers did not adequately warn of the inherently dangerous nature of the cargo. The Phase 2 trial was completed in August 2018. The US District Court for the Southern District of New York delivered a judgment on September 10, 2018, which held the Group jointly and severally liable with Deltech for the incident.
For additional information please contact:
Jens F. Grüner-Hegge
Chief Financial Officer
U.K. +44 (0) 20 7611 8985
Head of Corporate Communications
UK +44 (0) 20 7611 8926
About Stolt-Nielsen Limited
Stolt-Nielsen (SNL or the Company) is a long-term investor and manager of businesses focused on opportunities in logistics, distribution and aquaculture. The Stolt-Nielsen portfolio consists of its three global bulk-liquid and chemicals logistics businesses Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers Stolt Sea Farm and various investments. Stolt-Nielsen Limited is listed on the Oslo Stock Exchange (Oslo Børs: SNI).
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
This press release contains forward-looking statements based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statement. These statements may be identified by the use of words like anticipate, believe, estimate, expect, intend, may, plan, project, will, should, seek, indicates and similar expressions. The forward-looking statements reflect the Companys current views and assumptions and are subject to risks and uncertainties. The Company does not represent or warrant that the Companys actual future results, performance or achievements will be as discussed in those statements, and assumes no obligation to, and does not intend to, update any of those forward-looking statements other than as may be required by applicable law.