Stolt-Nielsen Limited
oslo : SNI

January 26, 2012 02:42 ET

Stolt-Nielsen Limited Reports Unaudited Results For the Fourth Quarter and Full Year of 2011

LONDON--(Marketwire - Jan 26, 2012) - Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the fourth quarter and full year ended November 30, 2011. Net profit attributable to shareholders in the fourth quarter was $22.2 million, with revenue of $512.9 million, compared with $22.4 million and $529.8 million, respectively, in the third quarter of 2011.

Net profit attributable to shareholders for the full year was $108.2 million, with revenue of $2,029.4 million, compared with $106.1 million and $1,793.7 million, respectively, in 2010.

Highlights for the fourth quarter of 2011, compared with the third quarter of 2011, were:

  * Stolt Tankers reported an operating profit of $7.0 million, up from
    $6.6 million.
  * The Stolt Tankers Joint Service Sailed-in Time-Charter Index[1] was
    unchanged at 1.08.
  * Stolthaven Terminals reported an operating profit of $18.0 million, up
    from $15.8 million, reflecting the impact of the acquisition of Marstel
    Terminals and the opening of its new terminal in Singapore, both in the
    fourth quarter.
  * Stolt Tank Containers reported an operating profit of $19.7 million, up
    from $18.2 million, driven mainly by lower operating costs.  The
    quarter included a $2.0 million write-off relating to the withdrawal
    from the flexitank business.
  * Stolt Sea Farm reported an operating loss of $1.9 million, compared
    with an operating profit of $0.4 million, as turbot prices weakened for
    the second consecutive quarter.  The quarter included a negative impact
    of $4.3 million from the accounting for inventories at fair value
    compared with a negative impact of $4.0 million in the third quarter.
  * Stolt-Nielsen Gas reported equity income of $2.5 million on its
    investment in Avance Gas Holding Ltd (AGHL), compared with equity
    income of $0.3 million, as conditions in the very large gas carrier
    (VLGC) market strengthened during the period.

Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said:

"Operating results at Stolt Tankers continued to be held down by an oversupply of tonnage and continued soft market conditions. In contrast, Stolthaven Terminals and Stolt Tank Containers both reported strong operating results for the quarter and the year. Stolt Sea Farm had a good year overall, though it ended on a weak note due to falling turbot prices toward the end of the quarter."

"We expected 2011 to be a tougher year than 2010 and we were spot on. However, we also believed that the turnaround in the tanker market would come in 2012, which now looks a little optimistic."

"The outlook for 2012 remains challenging. The question is, will the western economies be able to gain control over their budgets while at the same time stimulating growth. We anticipate continued weak demand and therefore believe 2012 will at best be a flat year for SNL. That said, the nearly empty orderbook for sophisticated chemical tankers means that the supply of tonnage will continue to slowly tighten, resulting in a strong parcel tanker market once the global economy recovers, hopefully in 2013. Our terminal and tank container businesses continue to perform well and we continue to invest accordingly. Stolt Sea Farm made significant progress in 2011 toward the expansion of its sole operations, and both Stolt-Nielsen Gas and Stolt Bitumen Services are developing in line with our expectations. As a result of these factors, combined with our financial strength and liquidity, we believe Stolt- Nielsen Limited is well positioned for the foreseeable future."

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[1] 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.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.


Stolt-Nielsen Limited 4Q11 Results: http://hugin.info/154/R/1580211/493343.pdf


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Source: Stolt-Nielsen Limited via Thomson Reuters ONE

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Contact Information

  • Jan Chr. Engelhardtsen
    Chief Financial Officer
    UK +44 (0) 20 7611 8972
    Email Contact

    Jens F. Grüner-Hegge
    VP Corporate Finance
    UK +44 (0) 20 7611 8985
    Email Contact