LONDON, April 3, 2003 (PRIMEZONE) -- Stolt-Nielsen S.A. (Nasdaq:SNSA) (Oslo Stock Exchange:SNI) today reported results for the first quarter ended February 28, 2003. Net loss for the latest quarter was $13.0 million, or $0.24 per share, on net operating revenue of $764.2 million, compared to a net loss of $3.7 million, or $0.07 per share, on net operating revenue of $611.2 million for the first quarter of 2002. The basic weighted average number of shares outstanding for the quarter was 54.9 million compared with 54.9 million for the same period in 2002.
Commenting on the results, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen S.A. said, "The results for the Company reflect both positive and negative developments within each of our businesses. Despite firm markets, results for the Stolt-Nielsen Transportation Group were down, primarily because of higher bunker costs and increased tank container freight costs. Stolt Offshore reported a weak quarter as anticipated as it continues to progress on low margin contracts in its backlog. Stolt Sea Farm reported improved, but still depressed results.
"Before restructuring charges, the Stolt-Nielsen Transportation Group Ltd. (SNTG) reported income from operations of $24.0 million in the first quarter of 2003 compared to $29.7 million in the first quarter of 2002.
"SNTG's parcel tanker division reported income from operations of $16.1 million in the first quarter of 2003 compared to $20.4 million in the first quarter of 2002. The Stolt Tankers Joint Service Sailed-in Index in the first quarter of 2003 was 7 percent lower than in the comparable quarter of 2002 and 5 percent lower than in the fourth quarter of 2002. The decline in the index is almost exclusively attributable to higher bunker costs and weather related delays in the most recent quarter rather than a weakening in the market. On the positive side, volumes continue to be strong. Spot rates are steady, due in part to the strong product tanker market. We continue to renew our contract portfolio at close to rollover levels. In addition there have been a number of recent cases where we have won new business as well as extended the terms of existing contracts.
"SNTG has also entered into long-term time-charter agreements for two 31,200 deadweight ton stainless steel ships with Japanese owners. SNTG now has long-term flexible time charter agreements for a total of nine ships, with delivery between 2003 and 2006, to replace tonnage that we expect to scrap over the next several years.
"SNTG's tank container division's income from operations declined to $3.4 million in the first quarter of 2003 from $4.8 million in the first quarter of last year. Market activity continues at high levels. Utilization in the first quarter rose to a record 78.7 percent and shipments were up some 24 percent compared to the first quarter of last year and up 7 percent compared to the fourth quarter. Margins however continue to be under pressure due to a competitive pricing environment and difficulty in passing on increased freight costs to the customers.
"SNTG's terminal division's income from operations was $4.5 million during the first quarter of 2003 which was the same as the first quarter of 2002. Utilization continues to be high in all terminal facilities and our expansion programs are progressing well in our Braithwaite, Houston, and Santos facilities as well as in our joint venture in Shenzhen.
"Before minority interests, Stolt Offshore S.A. (SOSA) reported a net loss of $18.3 million compared to a net profit of $0.2 million in the first quarter of 2002. We experienced significant delays and cost over runs on two major EPIC projects in Africa due to operating problems, program changes, bad weather and local community difficulties. The good news is that performance on most other projects was better than anticipated. Our order backlog now stands at $1.4 billion of which $864 million is for 2003. This compares with a backlog of $1.5 billion at this time last year of which $909 million was for 2002. The level of bids outstanding now stands at $5.0 billion, which compares to $3.7 billion at this time last year. 2003 will be a tough year for Stolt Offshore as we work through the low margin contracts.
"Stolt Sea Farm Holdings plc (SSF) reported a loss from operations in the first quarter of 2003 of $1.7 million compared to a loss from operations of $5.3 million in the first quarter of 2002. Prices in the first quarter of 2003 compared to the first quarter of 2002 were up 20% to 40 percent. Spot salmon prices in North America are relatively strong due in part to extreme weather in the Northeast and low volumes from Chile. However, pricing in Europe continues to remain depressed. The important Japanese market was negatively impacted by lower sales volume. The turbot operations in Iberia continue to perform well.
"On April 2, we closed the previously announced sale of substantially all of the assets and ongoing business operations of Optimum Logistics Ltd. (OLL) to Elemica, the market leading chemical industry consortium.
"I am comfortable with the outlook for SNTG, even with the global uncertainties we are facing. There are many challenges ahead in SOSA, but I am excited that the new management team led by Tom Ehret is now in place and will make good progress on addressing and solving our problems. We have seen improved salmon pricing in SSF and are hopeful for further improvements in the latter half of the year. SSF is operating in an industry where there is a need for further consolidation," 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 63 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 Stolt-Nielsen S.A. U.S. SEC filings, including but not limited to the Stolt-Nielsen S.A. 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.
Conference Call Details Date & Time: April 3, 2003
10 AM EST (4PM BST)
Phone: +1 800-810-0924 (in U.S.)
+1 913-981-4900 (outside U.S.)
Reservation Number 656469
PostView Facility Date & Time: Available directly after the conference Until 5 PM EST on Friday, April 4, 2003 Phone: +1 888-203-1112 (in U.S.) +1 719-457-0820 (outside U.S.) Reservation Number 656469
Live Webcast conference call is available via the company's Internet site www.stolt-nielsen.com commencing on Thursday, April 3, 2003 at 10:00AM EST (4:00PM BST). A playback of the conference call commences on Thursday, April 3, 2003 after 12:00 noon EST (6:00PM BST).
For the the full text release with financial tables please visit the following link: http://reports.huginonline.com/897995/115535.pdf