LONDON, January 30, 2020 – Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the fourth quarter ended November 30, 2019. Net profit attributable to shareholders in the fourth quarter was $5.9 million, with revenue of $497.5 million, compared with a net profit of $3.7 million, with revenue of $519.0 million, in the third quarter of 2019. Net profit attributable to shareholders for 2019 was $21.0 million, with revenue of $2,037.4 million, compared with $54.9 million1, with revenue of $2,125.5 million in 2018.
Highlights for the fourth quarter of 2019, compared with the third quarter of 2019, were:
- Stolt Tankers reported an operating profit of $14.6 million, down from $15.0 million, as lower revenue and joint-venture equity income were partially offset by lower deep-sea operating costs.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index was unchanged at 0.54.
- Stolthaven Terminals reported an operating profit of $11.7 million, down from $19.5 million, mainly due to a $5.5 million impairment.
- Stolt Tank Containers reported an operating profit of $15.7 million, up from $12.1 million, driven by higher transportation margins and increased demurrage revenue.
- Stolt Sea Farm reported an operating profit of $1.7 million, up from an operating loss of $0.4 million in the third quarter. The fair-value adjustment of inventories was positive $0.8 million in the fourth quarter, compared with a negative adjustment of $2.5 million in the third quarter.
- During the quarter, Stolt-Nielsen Gas sold its shares in Avance Gas Holdings Ltd for $25.9 million at a gain of $10.8 million, which was recorded in shareholders’ equity.
- Corporate and Other reported an operating profit of $4.2 million, compared with a loss of $2.0 million in the previous quarter, reflecting lower profit-sharing accruals and lower insurance deductibles.
Commenting on the Company’s latest results, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: “Excluding the impact of the previously reported incident on Stolt Groenland and fewer operating days, Stolt Tankers’ fourth-quarter results improved as deep-sea utilisation increased and fuel costs decreased. The fourth quarter was also the first quarter since 2016 in which we saw an increase in average contract rate renewals, while also achieving full recovery of cost increases related to the IMO 2020 low-sulphur fuel regulations. Stolthaven’s results decreased in the quarter, mainly due to the $5.5 million write-off of capitalised expenses at the Stolthaven Newcastle terminal and market softness, particularly in Asia-Pacific. Results at Stolt Tank Containers were up, mainly due to reduced shipping costs and higher demurrage revenue. Excluding the impact of fair-value adjustments, Stolt Sea Farm’s results were down from the prior quarter, reflecting seasonally lower turbot volume sold in the fourth quarter.”
“Looking forward in 2020, we continue to anticipate a gradual upturn in the chemical tanker market as the year unfolds. A continued strong CPP market has drawn swing tonnage away from the chemical markets, supporting a further firming of spot rates. Subsequent to the quarter-end, we have continued to see rate increases in our contract renewals. At Stolthaven, despite the recent market softness and the effects of the US-China trade dispute, we expect improvements in operational performance to continue to strengthen results. Stolt Tank Containers has seen an increase in bookings ahead of the Chinese New Year, which could eventually have a positive impact on utilisation. At Stolt Sea Farm, we anticipate seasonally strong results from turbot in the first quarter. In addition, the first of our two new recirculation farms has now been stocked with juveniles, with the first product expected by the end of this year. The second farm is expected to begin production in 2021.”
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act