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