LONDON, June 26, 2002 (PRIMEZONE) --
Replaces earnings press release sent earlier today to reflect
restatement of net operating revenue and operating expenses
within the Stolt-Nielsen Transportation Group's Tank
Container division. There is no impact on gross
profit, income from operations, or net income (loss).
Stolt-Nielsen S.A. (Nasdaq:SNSA) (Oslo Stock Exchange:SNI) today reported results for the second quarter and the six-month period ended May 31, 2002. Net loss for the latest quarter was $0.6 million, or $0.01 per share, on net operating revenue of $679.5 million, compared with a net profit of $4.8 million, or $0.09 per share, on net operating revenue of $644.3 million for the second quarter in 2001. The weighted basic average number of shares outstanding for the second quarter of 2002 was 54.9 million, which was the same as the second quarter of 2001.
The net loss for the six-month period ended May 31, 2002 was $4.3 million, or $0.08 per share, on net operating revenue of $1,290.6 million, compared with net loss of $3.4 million, or $0.06 per share, on net operating revenue of $1,186.4 million for the same period of 2001. Adjusted for $6.3 million of non-recurring restructuring charges in the Stolt-Nielsen Transportation Group, the net profit for the six-month period ended May 31, 2002 was $2.0 million or $0.04 per share. For the six-month periods of 2002 and 2001, the weighted basic average number of shares outstanding was 54.9 million.
Commenting on the results, Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA said, "While the results in the second quarter for the Stolt-Nielsen Transportation Group were down compared to last year, our core contract business, particularly for specialty chemicals, remains healthy. We continue to see improvements in Stolt Offshore's results. Stolt Sea Farm, similar to the rest of its industry, again posted poor results due to historically low salmon prices, the outbreak of disease in Chile and Canada, and the delay in the start of the harvest of bluefin tuna until the third quarter.
"Before restructuring charges, the Stolt-Nielsen Transportation Group (SNTG) reported income from operations of $30.9 million in the second quarter of 2002 compared to $35.8 million in the comparable quarter of 2001. For the six-month period in 2002, income from operations before restructuring charges was $59.8 million compared to $65.0 million last year. These declines are almost entirely attributable to the loss of income following the sale of the non-strategic Chicago, IL and Perth Amboy, NJ terminal facilities at the end of 2001 and the redelivery of nine simpler time-chartered tanker ships which operated primarily in the commodity chemical and clean petroleum markets that are now considerably weaker than in early 2001.
"While the Stolt Tanker Joint Service Sailed-in Time-Charter Index in the second quarter of 2002 was on par with both the comparable quarter of 2001 and the first quarter of 2002, as a result of the redelivery of the nine time-chartered ships, income from operations for SNTG's parcel tanker division fell to $20.5 million compared to $24.9 million in the second quarter of 2001 and $20.5 million in the first quarter of 2002. Contract volumes continue to remain strong. Contracts are being renewed at rates comparable to last year and we have recently won several new contracts, which should improve volumes. We expect volumes to further increase towards the latter part of this year, which should also benefit rates.
"SNTG's tank container division's income from operations improved significantly to $6.3 million in the second quarter of 2002 compared to $4.0 million in the same quarter of 2001. Utilization in the second quarter compared to the same period last year rose 7.0% to 74.4%. Shipments are up some 6% although pricing continues to be tight.
"SNTG's terminal division reported income from operations of $4.1 million compared to $6.9 million in the second quarter of 2001 and up from the $3.6 million reported in the first quarter of 2002. The lower result for the second quarter of 2002 compared to last year was entirely due to the loss of income from the two terminals sold at the end of 2001. Utilization is high at all terminals and throughput has also been strong.
"Before minority interests, Stolt Offshore (SOSA) reported a net income of $3.4 million for the second quarter of 2002 compared to a net loss of $6.3 million for the same period last year. The profit for the quarter, which includes the settlement of outstanding variation orders on the Girassol project, is less than we expected due to delays in the timing of several projects including the Scarab and Saffron project in Egypt and the Sanha Condensate contract in Angola. SOSA's backlog now stands at $1.6 billion, of which $764 million is expected to be realized in the fiscal year 2002. This compares with a backlog of $1.7 billion at this time last year of which $620 million was realized in fiscal year 2001. Bids outstanding now stand at a record level of $4 billion. SOSA's outlook continues to be good and we expect that several large field developments in West Africa will be awarded in the next six months. Uncertainties remain about the activity level in the spot market in the North America and the U.K. regions in the second half of the year.
"Earlier this week, SOSA's Board of Directors agreed to accept the offer from SNSA to exchange $24 million principal amount of outstanding debt owed by SOSA to SNSA for 3 million SOSA Common shares at an exchange price of $8.00 per share. This exchange brings SOSA into compliance with the covenants in its existing bank facility. Given the outlook for the business, this exchange of debt for equity and a new $100 million revolver, the SOSA Board is satisfied that SOSA now has sufficient funding in place to meet its operating needs.
"Stolt Sea Farm (SSF) reported a loss from operations in the second quarter of 2002 of $11.1 million compared to income from operations of $2.7 million in the comparable quarter in 2001. Second quarter 2002 harvest volumes in Norway and North America were similar to last year, and SSF's volumes in Chile were up significantly as a result of the Eicosal acquisition in the latter half of 2001. While salmon prices in the quarter did begin to recover from the lows of the first quarter of 2002, most of this increase in prices did not occur until late in the second quarter and so, on average, prices were still lower than they were during the comparable quarter for 2001. The low prices combined with higher volumes from the Eicosal acquisition resulted in poorer results compared to last year. During the quarter several regions also experienced disease outbreaks and SSF was forced to cull fish in Chile and British Colombia.
"With the seasonal harvest of bluefin tuna now in full swing we expect third quarter results to look significantly better. Our turbot business posted another strong result, and we recently announced plans to expand this profitable niche business.
"Optimum Logistics Ltd. (OLL) was recently awarded new contracts by Optimal (a Dow Chemical and Petronas joint venture), Bayer, Lubrizol, and Procter & Gamble. SeaSupplier Ltd. (SSL) recently announced new contracts with NYK, the world's largest shipping company, and Stolt Offshore S.A.
"We are anticipating improvements in all of our businesses in the latter half of the year, and estimate our earnings before restructuring charges to be in the range of $0.85 to $1.15 per share," Mr. Stolt-Nielsen concluded.
Stolt-Nielsen S.A. is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through its parcel tanker, tank container, terminal, rail and barge services, provides integrated transportation for its customers. The Company also owns 59 percent of Stolt Offshore S.A. (Nasdaq:SOSA) (Oslo Stock Exchange:STO), which is a leading offshore contractor to the oil and gas industry. Stolt Offshore specializes in providing technologically sophisticated offshore and subsea engineering, flowline and pipeline lay, construction, inspection, and maintenance services. Stolt Sea Farm, wholly-owned by the Company, produces and markets high quality Atlantic salmon, salmon trout, turbot, halibut, sturgeon, caviar, bluefin tuna, and tilapia.
This news release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Actual future results and trends could differ materially from those set forth in such statements due to various factors. Additional information concerning these factors is contained from time to time in the Company's U.S. SEC filings, including but not limited to the Company's report on Form 20-F for the year ended November 30, 2001. Copies of these filings may be obtained by contacting the Company or the U.S. SEC.
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Live Webcast conference call is available via the company's Internet site www.stoltnielsen.com commencing on Wednesday, June 26, 2002 at 10:00am EDT (3:00pm BST). A playback of the conference call commences on Wednesday, June 26, 2002 after 12:00 noon EDT (5:00pm BST).