Strong third quarter as good momentum continues
LONDON, October 5, 2023 Stolt-Nielsen Limited (Oslo Børs ticker: SNI) today reported unaudited results for the third quarter ending August 31, 2023. The Company reported a third-quarter net profit of $90.1 million with revenue of $694.4 million, compared with a net profit of $8.3 million, with revenue of $721.9 million, in the second quarter. The second quarter of 2023 included an incremental loss provision of $155.0 million (net profit impact of $105 million) related to the MSC Flaminia. The net profit for the nine months of 2023 was $198.2 million with revenue of $2,125.0 million, compared with a net profit of $185.6 million, with revenue of $2,039.3 million, in the first nine months of 2022.
Highlights for the third quarter of 2023, compared with the second quarter before the impact of the MSC Flaminia loss provision, were:
- Stolt-Nielsen Limited (SNL) consolidated EBITDA1 of $200.3 million, down from $227.5 million.
- Stolt Tankers reported operating profit of $87.3 million, down from $96.8 million, as spot rates declined during the quarter.
- The STJS average sailed-in revenue for the quarter was $28,429 per operating day, down 7.9% from $30,880.
- Stolthaven Terminals reported operating profit of $26.0 million, down from $27.8 million.
- Stolt Tank Containers reported operating profit of $23.9 million, down from an operating profit of $39.7 million.
- Stolt Sea Farm reported an operating profit before fair value adjustment of biomass of $6.1 million, up from $4.4 million in the prior quarter, as the third quarter is a seasonally strong quarter.
- Stolt-Nielsen Gas reported an operating loss of $3.4 million, compared to a loss of $2.7 million.
- Corporate and Other reported an operating loss of $13.4 million compared to a $8.0 million loss in the prior quarter, reflecting amongst other things, pension related expenses and costs related to debt issuance.
Udo Lange, Chief Executive Officer of Stolt-Nielsen Limited, commented: "The third quarter results reflect the strong standing of the company and the strength of our diverse portfolio of businesses. Stolt Tankers had another strong quarter, benefitting from firm contract freight rates and improved volumes overall. The spot market, which came off the peak early in the quarter, has now stabilised. Stolthaven Terminals continues to enjoy high utilisation, which has enabled us to renew contracts with rate increases. At Stolt Tank Containers, we were able to increase shipment volumes, albeit at lower margins. For Stolt Sea Farm, the third quarter benefits from rising demand during the summer months, and this year we saw prices, for sole in particular, reach new record highs.
"Reflecting on our strong performance this quarter and my first few weeks at Stolt-Nielsen, I have been impressed with the strength of our businesses and the leading positions we enjoy in the markets where we operate. It is also good to see that we are operating in a market environment with ongoing positive momentum. Throughout the organisation our people are dedicated to excellence and possess a strong desire to do better for our customers and shareholders. I look forward to building on this positive energy as we drive the company forward."
1 Before fair value of biological assets, gain (loss) on sales of assets and other one-time, non-cash items.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.