LONDON, July 6, 2017 - Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the second quarter ended May 31, 2017. Net profit attributable to shareholders in the second quarter was $15.6 million, with revenue of $500.8 million, compared with a net profit of $15.2 million, with revenue of $475.7 million, in the first quarter of 2017. Net profit attributable to shareholders for the first six months was $30.8 million, with revenue of $976.5 million, compared with $68.2 million, with revenue of $942.8 million, in the first half of 2016.
Highlights for the second quarter of 2017, compared with the first quarter of 2017, were:
· Stolt Tankers reported an operating profit of $27.6 million, compared with $28.5 million, reflecting continued softness in the chemical tanker market, as rates overall edged lower and bunker prices continued to rise.
· The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 0.67, versus 0.68.
· Stolthaven Terminals reported an operating profit of $16.1 million, down from $16.7 million, primarily reflecting lower utilisation at the Singapore terminal.
· Stolt Tank Containers reported an operating profit of $13.7 million, up from $9.0 million, as markets firmed after the seasonally weak first quarter.
· Stolt Sea Farm's operating profit before the fair value adjustment of inventories was $0.7 million, compared with a profit of $2.2 million in the peak holiday sales period. The fair value adjustment had a positive impact of $1.7 million, compared with a negative impact of $3.5 million in the first quarter.
· Corporate and Other reported an operating loss of $8.2 million, compared with a loss of $4.6 million, reflecting legal and other reorganisation expenses, higher administrative and general expenses, and lower earnings from joint ventures.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: "SNL's second-quarter results were disappointing overall, but in line with both our expectations and our results in the first quarter, as the fundamentals of our markets remained largely unchanged. At Stolt Tankers, the softening of the chemical market that we have seen since the third quarter of last year continued, but at a slower rate. While the demand side growth remains at historical levels, the pressure we see on rates is a result of excess supply from new ships entering the market. Results at Stolthaven Terminals were much in line with the prior quarter, with actions to improve sustained long-term performance continuing. The bright spot in the quarter was Stolt Tank Containers, which reported much improved results, up from the seasonally weak first quarter. Stolt Sea Farm posted weaker operating results, excluding the impact of fair value adjustments. Following SSF's seasonally strong first quarter, consistent production of large turbot continued to drive sales volumes, though prices were down in the second quarter. We were also pleased to see that the growth of sole from our farm in Iceland now seems to be improving."
"Our outlook remains cautious. We do not expect a significant improvement in the chemical tanker market until most of the current orderbook has been delivered, which, barring any new orders, is expected to be in the second half of 2018. For Stolthaven Terminals, we expect gradual improvements in earnings going forward, and for STC we expect market conditions in line with those of this latest quarter."