Stolt-Nielsen Limited Reports Unaudited Results For the Second Quarter of 2011

Stolt-Nielsen Limited yesterday reported unaudited results for the second quarter ended May 31, 2011. Net profit attributable to shareholders in the second quarter

was $32.4 million, with revenue of $528.0 million, compared with $31.2 million and $458.7 million, respectively, in the first quarter of 2011.
Highlights for the second quarter of 2011, compared with the first quarter of 2011, were:
•    Stolt Tankers reported an operating loss of $3.5 million, compared with an operating loss of $1.0 million, reflecting an impairment taken related to assets held for sale and the impact of sharply higher bunker fuel costs, port congestion and resulting delays.
•    The Stolt Tankers Joint Service Sailed-in Time-Charter Index decreased to 1.05 from 1.09.
•    Stolthaven Terminals reported an operating profit of $15.7 million, down from $16.5 million, reflecting the impact of tanks taken out of service for maintenance as well as due diligence costs incurred related to recent acquisition projects.
•    Stolt Tank Containers reported an operating profit of $18.9 million, up from $18.5 million, as market conditions remained strong.
•    Stolt Sea Farm reported an operating profit of $9.3 million, up from $1.5 million, reflecting the positive impact of $5.9 million from the fair value accounting for inventories, compared with a negative impact of $1.9 million.
•    During the quarter, Stolt Bitumen Services recorded a $5.2 million gain on the sale of a 5,900 dwt bitumen tanker, sold shortly after delivery from the yard.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said:
"The chemical tanker market continues to slide sideways, and the increases we see in the freight rates are not sufficient to offset the increasing operating costs and higher bunker fuel costs. At Stolt Tankers, results were impacted by a write-down in value related to a ship and a barge that are to be sold.  Stolthaven Terminals had another good quarter.  Reported results were held down by increased maintenance and due diligence related project costs.  Stolt Tank Containers continued to benefit from good market conditions, with the ongoing integration of new tanks into STC's global fleet proceeding well.  Stolt Sea Farm reported record results for the quarter, as turbot prices rose to their highest levels in three years."
"In May, Stolt Sea Farm secured three new land-based farm sites that will enable us to significantly expand our production of sole.  A sole farm will be established in Barbate and a sole hatchery will be built in Puerto Santa Maria, both close to the port of Cadiz, Spain. In addition, Stolt Sea Farm has secured land in Iceland, with the intention of using warm water from a geothermal plant to achieve the optimal water temperature for sole farming.  It is estimated that once farming licenses have been obtained, sole production capacity at the secured sites will be close to 5,000 metric tons when fully operational some time toward the end of 2015."
"Subsequent to the close of the quarter, we announced that SNL had agreed to acquire a majority stake in Marstel Terminals, a privately held network of nine bulk-liquid storage facilities in Australia and New Zealand.  The acquisition is expected to be completed by September of this year."
"Also in June, SNL completed the successful placement of a NOK 1.6 billion (USD 300 million) five-year senior unsecured bond issue, the net proceeds of which will be used for funding of expansion opportunities and general corporate purposes.  The issue provides us with additional liquidity on attractive terms and gives SNL added financial flexibility for investments without having to rely solely on secured bank financing."
"Our outlook for Stolt-Nielsen Limited remains unchanged.  For tankers, market conditions for the rest of 2011 and 2012 are expected to remain soft, and we do not expect a significant recovery in earnings before 2013, however, we expect our terminal and tank container businesses to perform well driven by solid fundamentals. We expect the growth of our new businesses, Stolt-Nielsen Gas and Stolt Bitumen Services to contribute positively to the bottom line. With the additional sites in Stolt Sea Farm, we expect the division's contribution to become more significant."
Source: Stolt-Nielsen Limited