Stolt-Nielsen Reports Unaudited Third Quarter Results
Stolt-Nielsen Limited reported unaudited results for the third quarter ended August 31, 2013. Net profit attributable to shareholders in the third quarter was $21.8 million, with revenue of $521.8 million, compared with $25.7 million, with revenue of $533.8 million, respectively, in the second quarter of 2013.
Net profit attributable to shareholders for the first nine months was $49.1 million, with revenue of $1,575.0 million, compared with $52.0 million, with revenue of $1,560.8 million, respectively, in the first nine months of 2012.
Highlights for the third quarter of 2013, compared with the second quarter of 2013, were:
- Stolt Tankers reported an operating profit of $9 million, up from $5 million, as market conditions continued to slowly improve.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index increased to 1.28 from 1.2.
- Stolthaven Terminals reported an operating profit of $17.5 million, compared with $21.9 million. Adjusted for third-quarter proceeds of $5.5 million on business interruption insurance related to Hurricane Isaac and for a second-quarter gain of $8.3 million on the sale of a terminal in Ningbo, China, the operating profit was $12 million in the third quarter and $13.6 million for the prior quarter, with the difference primarily reflecting higher third-quarter insurance premiums.
- Stolt Tank Containers reported an operating profit of $17.1 million, down from $20.8 million, reflecting a seasonal slowdown in activity and increased competition.
- Stolt Sea Farm reported break-even operating results, compared with an operating profit of $7.4 million, reflecting a negative impact of $1.3 million from the accounting for inventories at fair value, versus a positive impact of $6.5 million in the second quarter.
- Stolt-Nielsen Gas reported equity income of $4.2 million on its investment in Avance Gas Holding Ltd. (AVACF) (AGHL), compared with a loss of $1.7 million as freight rates recovered strongly in the current quarter.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen Limited, said: "In August, the last month of the third quarter, Stolt Tankers was profitable for the first time since 2009-a significant milestone. We expect this trend to continue, but as we have mentioned repeatedly, we expect the recovery in the parcel tanker market to be long and slow. The underlying performance fundamentals at both Stolthaven Terminals and Stolt Tank Containers remain good, though we see increased pressure on margins in these businesses. Stolt Sea Farm is also well positioned, given the favourable pricing outlook for turbot and the forthcoming production from our new sole farm inIceland, which is expected to deliver its first sole to market in early spring next year. Subsequent to the end of the third quarter, we closed on the deal between Avance Gas Holding Ltd. and Frontline 2012, which was announced on August 22. I welcome them as shareholders in AGHLand look forward to working with them to grow this company in what looks to be a very promising market segment."
"The outlook for SNL hinges on the future strength of the world economy and global trade."