Stolt-Nielsen Limited Reports Unaudited Results For the Fourth Quarter and Full Year of 2013
LONDON, January 30, 2014 - Stolt-Nielsen Limited (Oslo BÃ¸rs: SNI) today reported
unaudited results for the fourth quarter ended November 30, 2013. Net profit
attributable to SNL shareholders in the fourth quarter was $36.7 million, with
revenue of $524.5 million, compared with $21.8 million, with revenue of $521.8
million, respectively, in the third quarter of 2013.
Net profit attributable to shareholders for 2013 was $85.8 million, with revenue
of $2,099.5 million, compared with $70.2 million, with revenue of $2,071.7
million, respectively, in 2012.
Highlights for the fourth quarter of 2013, compared with the third quarter of
* Stolt Tankers reported an operating profit of $15.8 million, up from $9.0
million, as market conditions firmed for the third consecutive quarter.
* The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased to
1.39 from 1.28.
* Stolthaven Terminals reported an operating profit of $15.5 million, up from
$12.0 million, excluding third-quarter proceeds of $5.5 million from
business interruption insurance related to Hurricane Isaac.
* Stolt Tank Containers reported an operating profit of $19.8 million, up from
$17.1 million, due primarily to lower operating costs.
* Stolt Sea Farm reported an operating profit of $0.4 million, compared with
break-even operating results, reflecting a positive impact of $0.1 million
from the accounting for inventories at fair value, versus a negative impact
of $1.3 million in the third quarter.
* Stolt-Nielsen Gas reported equity income of $3.3 million on its investment
in Avance Gas Holding Ltd. (AGHL), excluding a $7.8 million dilution gain
after AGHL's issuance of shares in a private placement, compared with equity
income of $4.2 million, reflecting the withdrawal of two ships from the AGHL
fleet following the exit of a previous partner in the third quarter.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive
Officer of Stolt-Nielsen Limited, said:
"The improvement in Stolt-Nielsen Limited's operating results in the fourth-
quarter was largely attributable to the gradual pick-up in performance we are
seeing at Stolt Tankers, which returned to profitability in August of last year
for the first time since 2009. On a full-year basis, contract rates were up
about 9% in 2013, though spot rates were essentially flat. While the current
improvement in the market is welcome, we continue to expect a slow recovery in
"Operating results at Stolt Tank Containers were up in the quarter mainly due to
lower costs, with margins remaining under pressure due to increased competition.
We expect our earnings from Stolt Tank Containers to grow in line with our fleet
expansion, and we continue to invest in systems, our global network of depots
and our people to support our market position."
"Stolthaven posted higher operating results in line with our capacity
expansions, although cost increases have been impacting margins. We expect
earnings to grow in line with the additional capacity under construction that
will come online in 2014. We have seen increased competition with some pressure
on margins in the commodity part of our terminal business, but we expect margins
to return to a healthy level in our strategic core chemical business."
"Stolt Sea Farm's operating results were up slightly in the quarter due to
better size distribution of fish sold and less fish harvested by our
competition. We expect growth in earnings from Stolt Sea Farm in 2014 as more
turbot will be harvested following our Acuidoro acquisition and as our sole farm
in Iceland starts harvesting the first of its fish in the second half of the
"Stolt-Nielsen Gas' investment in Avance Gas has developed as expected. The
traditional winter low season levelled off at a sailed-in revenue of about
$30,000 per day, compared with approximately $10,000 per day last year, when we
barely covered our operating costs. This leads us to believe that the spring
market will be strong for VLGC owners.Â We believe increased exports of LPG from
the US, in addition to the growth from traditional markets, will create healthy
market conditions in this segment in years to come."
 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.Â 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 Fourth Quarter 2013 Press Release:
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Source: Stolt-Nielsen Limited via GlobeNewswire