LONDON, October 1, 2015 - Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited results for the third quarter ended August 31, 2015. Net profit attributable to shareholders in the third quarter was $30.1 million, with revenue of $500.7 million, compared with a net profit of $42.5 million, with revenue of $500.7 million, in the second quarter of 2015. Net profit attributable to shareholders for the first nine months was $111.3 million, with revenue of $1,489.1 million, compared with $64.0 million and revenue of $1,605.5 million, in the same period a year ago.
Highlights for the third quarter of 2015, compared with the second quarter of 2015, were:
· Stolt Tankers reported an operating profit of $37.5 million, up from $30.4 million, reflecting lower bunker costs, a supportive spot market, and the favourable impact of the stronger U.S. dollar.
· The Stolt Tankers Joint Service Sailed-in Time-Charter Index was 0.75, compared with 0.72 in the second quarter.
· Stolthaven Terminals reported an operating profit of $6.4 million, down from $14.3 million, mainly reflecting a $4.3 million impairment of goodwill and $1.1 million in accelerated depreciation of terminal assets in Australasia, along with higher maintenance costs at Stolthaven Houston.
· Stolt Tank Containers reported an operating profit of $15.6 million, down from $18.6 million, reflecting the impact of downward price pressure on rates due to increased competition.
· Stolt Sea Farm reported an operating profit of nil compared with a profit of $0.6 million, excluding the impact of the accounting of inventory at fair value.
· The accounting for Sea Farm inventories at fair value had a negative impact of $2.1 million in the third quarter, compared with a positive impact of $4.6 million in the second quarter.
· Corporate and Other reported an operating profit of $2.4 million, compared with $2.8 million.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said:
"The continued improvements we see in Stolt Tankers were not because of increased cargo volumes and freight rates, but because bunker costs were lower combined with a strong U.S. dollar. Volumes from our contract customers remained flat for the quarter, but we have been able to pick up additional volumes in the spot market. While bunker prices have fallen, spot rates have remained flat. We suspect the current spot rates reflect the strength of the product market, which has kept swing tonnage away from our niche markets."
"Stolthaven's results continue to be disappointing. This quarter's results were further depressed by an impairment of goodwill relating to our terminal operations in New Zealand. Results for the quarter also reflected expenses aimed at enhancing the operational performance of our Houston terminal, in the wake of recent expansions."
"Results at Stolt Tank Containers softened this quarter as a result of low utilisation caused by increased competition in a slowing economy."
"Looking ahead, while we expect the current momentum at Stolt Tankers to continue into the fourth quarter, we remain concerned about the current orderbook for chemical tankers, which stands at just under 30%, and the impact of expected newbuilding deliveries during 2016 and 2017. The relatively healthy product spot market may come under pressure again once the large order book in the product tanker segment starts entering service, pushing swing tonnage into the fringes of our market."
"I am pleased to announce the appointment of Mark Martecchini as President of Stolt Tankers. Mark has spent 32 years in various positions at Stolt-Nielsen, including chartering, operations and most recently as Managing Director of Stolt-Nielsen Ship Owning."
