LONDON, Jan. 31, 2002 (PRIMEZONE) -- Stolt-Nielsen S.A. (Nasdaq:SNSA) (OSE:SNI), today reported results for the fourth quarter and the year ended November 30, 2001. Net loss for the latest quarter was $2.6 million, or $0.05 per Common share, on net operating revenue of $752.7 million, compared with a net loss of $5.9 million, or $0.11 per share, on net operating revenue of $635.5 million for the fourth quarter in 2000. Adjusted for non-recurring items, the net loss was $6.9 million or $0.13 per Common share for the quarter ended November 30, 2001 compared with a net loss of $13.1 million or $0.24 per Common share, for the same period of 2000. The weighted basic average number of shares outstanding for the fourth quarter of 2001 was 54.9 million compared to 54.8 million for the same period of 2000.
Net income for the year ended November 30, 2001 was $23.7 million, or $0.43 per Common share, on net operating revenue of $2,678.4 million, compared with a net loss of $12.4 million, or $0.23 per share, on net operating revenue of $2,284.2 million for the same period in 2000. Adjusted for non-recurring items, net income was $18.5 million or $0.34 per Common share for the year ended November 30, 2001 compared with net loss of $13.9 million or $0.25 per Common share, for the same period of 2000. The weighted basic average number of shares outstanding for fiscal 2001 was 54.9 million, compared with 54.7 million in fiscal 2000.
Commenting on the results, Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen S.A. said, "In 2001, results significantly improved in the core Stolt-Nielsen Transportation Group (SNTG), improved marginally in Stolt Offshore (SOSA), and took a turn for the worse in Stolt Sea Farm (SSF).
Stolt-Nielsen Transportation Group (SNTG)
"For the full year, SNTG showed an improvement with income from operations rising to $137.8 million from $79.1 million in 2000. This was driven by improvement in the parcel tanker freight market as well as increased organic growth and utilization in the terminal division. SNTG's results in the fourth quarter were off from the third quarter primarily due to a slight downturn in the parcel tanker market.
"SNTG's parcel tanker division's income from operations improved to $96.6 million for the full year compared to $39.9 million for 2000 as volumes were up and the Stolt Tankers Joint Service Sailed-in Time Charter Index rose 16%. We did see a slight decline in volumes and results in the fourth quarter of 2001 reflecting the overall slowdown in the global economies. As we continue to renew contracts at rollover rates to slight increases and with volumes again increasing in recent weeks, we believe the decline in the fourth quarter to only be temporary. With the orderbook holding at about 8-9% of the existing fleet, we believe the outlook continues to be favorable, barring an extended worldwide recession.
"In early December 2001, we took delivery of the M/T Stolt Perseverance, the last ship of our 24 ship, $1.3 billion newbuilding program.
"Income from operations for SNTG's tank container division for the full year of 2001 was down slightly to $17.3 million from $19.9 million in 2000, but improved steadily throughout the year. While pricing remained competitive in most markets throughout the year, our off-hire and repositioning program, combined with an increase in shipments, improved utilization and results in the latter part of the year. Shipments in 2001 were up 2% from 2000 and are expected to grow 5% in 2002 while pricing is expected to remain tight.
"For the year, SNTG's terminal division reported improved results with income from operations rising to $23.9 million from $19.3 million in 2000. Utilization was high at all terminals throughout the year and our joint venture terminals in Asia Pacific made a strong contribution. With the sale of our Chicago and Perth Amboy terminals late in 2001 partially offset by the first full year of operation of our Braithwaite terminal as well as continued expansion and improvements at our other facilities, we anticipate 2002 revenue will be about $15 million lower than in 2001, but income from operations and EBITDA should be only slightly off from 2001's results.
"In early 2001, SNTG embarked upon a major strategic initiative to improve the utilization of our assets, divest non-core assets, and reduce our cost base. Aspects of this initiative include combined service agreements with other parcel tanker operators to reduce operating costs and improve utilization (the most recent of which is with Jo Tankers and was announced earlier this month); an overhead reduction effort (announced earlier in January), which will save SNTG approximately $10 million per year; the sale of non-strategic assets; and the construction of a new storage terminal in Braithwaite, LA (which officially opened in November 2001) and expansion of terminals in other key ports to increase the synergy between our ships and storage terminals.
Stolt Offshore (SOSA)
"Before minority interests, SOSA reported a loss for the year of $14.2 million, which included a write-off of the Comex trade name of $7.9 million compared to a loss of $34.4 million in 2000. During the year the Girassol and Gulfstream projects suffered from project delays, cost overruns, and delays in settlement of variation orders, which negatively impacted results. The delays also tied up some of SOSA's major construction assets reducing its capacity to participate in the spot market in the fourth quarter. While it was anticipated there would be a better return from the Girassol project, SOSA's technical achievements were quite impressive and provided SOSA valuable experience for deepwater projects in the future.
"The outlook for SOSA's market is quite positive. Forecasts of exploration and production expenditures indicate that our market will grow from $8 billion in 2001 to $11 billion in 2002 with the bulk of the growth in West Africa. The backlog now stands at $1.6 billion of which $937 million is for 2002. This compares with a backlog of $1.2 billion at this time last year of which $877 million was for 2001. The projects in SOSA's current backlog have better margins and less risk than those in 2001. The level of bids outstanding is now $3.1 billion compared to $3.6 billion at this time last year.
"As previously announced, SOSA will buy back the 6.1 million SOSA Common shares issued to Vinci as partial compensation for the ETPM acquisition for a total cash outlay of $113.6 million. SNSA is prepared to purchase up to $65 million of additional Common shares from SOSA to help finance SOSA's share repurchase.
Stolt Sea Farm (SSF)
"After three consecutive years of improved results, SSF reported a loss from operations of $1.0 million in 2001 down from income from operations of $31.1 million in 2000. Salmon prices in 2001 compared to 2000 were down on average some 40% in the U.S. and 30% in Europe. This was primarily a result of sharply higher production from Chile, where volumes in 2001 increased approximately 50% over 2000. Fourth quarter 2001 income from operations was further negatively impact by approximately $5 million of inventory write-downs in Norway, the UK, and North America, as well as a $3.6 million write-off in Maine due to a government mandated cull of fish. SSF continues to achieve good results from its turbot operations and the newly acquired bluefin tuna ranching business made an excellent start.
"While results suffered during the year, SSF did outperform most of the industry as a result of its multi species strategy and "deep-in-the market" sales organization. We are in the process of further focusing our North American sales and marketing organization in an effort to move even closer to the end consumer.
"We now see signs that production in Chile is stabilizing and some analysts are predicting substantially lower growth in global supply in 2002. We are cautiously optimistic that pricing will start improving in the second half of 2002.
Optimum Logistics (OLL) and SeaSupplier (SSL)
"Both OLL and SSL completed the major portion of their software development in 2001. OLL now has several revenue paying customers and SSL signed its first customer contract in late 2001. The slowdown in the economy considerably reduced technology related spending by many potential customers and negatively impacted sales efforts. Cash expenditure or the 'burn rate' for OLL was $16.2 million and for SSL was $5.6 million in 2001.
Outlook
"We firmly believe that the profit improvement measures we have taken in each of our businesses combined with anticipated better markets should result in improved 2002 earnings. For the year, we currently anticipate earnings per share in the range of $0.85 to $1.15 with a first quarter result of around break-even," 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 53 percent of Stolt Offshore S.A. (Nasdaq:SOSA) (OSE:STO), which is among the largest subsea services contractors in the world. Stolt Offshore specializes in providing engineering, flowline and pipeline lay, construction, inspection, and maintenance services to the offshore oil and gas industry. 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 Company's U.S. SEC filings, including but not limited to the Company's report on Form 20-F/A for the year ended November 30, 2000. Copies of these filings may be obtained by contacting the Company or the U.S. SEC.
Conference Call Details:Date & Time January 31,2002 10 a.m. EST (3 p.m. GMT)Phone +1 212 896 6121
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Available directly after the conference until 5:00 p.m. EST on Friday, February 1, 2002+1 800 633 8284 (in U.S.)
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Live Webcast conference call is available via the company's Internet site www.stolt-nielsen.com commencing on Thursday, January 31st, 2002 at 10 a.m. EST (3 p.m. GMT). A playback of the conference call commences on Thursday, January 31st, 2002 after 12:00 noon EST (5 p.m. BST).
The full text report along with financial table can be found at the following URL:http://reports.huginonline.com/846721/98742.pdfhttp://reports.huginonline.com/846750/98744.pdf