Stolt-Nielsen Reports 2Q Results

Stolt-Nielsen S.A. reported results for the second quarter ended May 31, 2004. Net income for the latest quarter was $3.9 million on operating revenue of $448.4 million, compared to a net loss of $50.4 million, or $0.92 per share, on operating revenue of $760.7 million for the second quarter of 2003. The basic weighted average number of shares outstanding for the quarter was 62.8 million compared with 54.9 million for the same period in 2003. SNSA's reported results reflect the deconsolidation of Stolt Offshore S.A. (SOSA) in February 2004.

The net income for the six-month period ended May 31, 2004 was $14.9 million, on operating revenue of $1,116.4 million on operating revenue of $1,541.0 million for the same period in 2003. For the six-month periods of 2004 and 2003, the basic weighted average number of shares outstanding was 60.5 million and 54.9 million, respectively. A series of transactions in the first quarter of 2004 resulted in SNSA's deconsolidation of SOSA in February. Consequently, SNSA accounted for its investment in SOSA in accordance with the equity method of accounting, as reflected in the consolidated balance sheet of SNSA as of May 31, 2004 and the consolidated statement of operations for the three months ended May 31, 2004. In addition to the actual as reported historical information, SNSA has provided financial statements on a pro-forma basis reflecting the deconsolidation of SOSA in comparable prior periods, based on historical ownership percentages, as an attachment to this earnings release.

The results for the second quarter of 2004 included costs related to SNSA's financial restructuring of $10.5 million, which includes fees to financial and legal advisors as well as waiver fees paid to lenders, as well as SNTG legal expenses of $6.0 million, compared to nil and $4.8 million in the second quarter of 2003. The results for the first six months of 2004 included costs related to SNSA's financial restructuring of $19.9 million and SNTG legal expenses of $9.2 million, compared to nil and $5.5 million in the first six months of 2003. "SNTG reported income from operations of $40.7 million in the second quarter of 2004 compared with $32.5 million in the second quarter of 2003 and $29.2 million reported in the first quarter of this year.

"SNTG's parcel tanker division reported income from operations of $30.0 million in the second quarter of 2004, up substantially from $22.5 million in the second quarter of 2003 and $19.3 million in the first quarter of 2004. The Stolt Tankers Sailed-in Time Charter Index for the Joint Service in the second quarter of 2004 increased by 17% from the first quarter of 2004, which represents the largest single quarterly improvement in the Index since 1990. Parcel tanker operations are benefiting from strong volumes and higher rates in most major trade lanes. SNTG won several new contracts of affreightment during the quarter and contract renewals were up on average close to 10%. Bunker fuel prices remain at historically high levels. "SNTG's tank container division reported income from operations of $4.5 million in the second quarter of 2004, compared with $7.0 million in the second quarter of last year and $3.9 million in the first quarter of this year. The difference between the second quarter of last year and this year is primarily due to higher repositioning costs this year for empty tank containers. Utilization remains high at close to 80%. While the number of shipments is up 7.4% on a year-to-date basis compared with last year, competition keeps margins tight.”