LONDON, May 21, 2003 (PRIMEZONE) -- The Stolt-Nielsen Transportation Group (SNTG), a wholly-owned subsidiary of Stolt-Nielsen S.A. (Nasdaq:SNSA) (Oslo:SNI), today commented on recent press reports regarding investigations in the U.S. regarding business dealings with Sudan and Iran.
Stolt-Nielsen S.A. (SNSA) has disclosed previously its cooperation with the U.S. Department of Treasury's Office of Foreign Asset Control (OFAC) regarding two investigations. On March 20, 2003, SNSA's subsidiary, SNTG, agreed with OFAC to pay a civil penalty of $95,000 relating to the payment of incidental port expenses to entities in Sudan without any finding by OFAC of a violation. SNSA has also previously disclosed an ongoing investigation by OFAC related to certain transactions in Iran and is cooperating fully with OFAC's review of those transactions.
SNSA is aware that an article in the May 20, 2003 edition of The Wall Street Journal reported a probe of SNTG by the U.S. Attorney's Office in Connecticut. SNTG has contacted the U.S. Attorney's Office and is committed to cooperating fully in any probe.
SNTG has adopted policies and procedures designed to ensure compliance with OFAC regulations and has communicated those policies and procedures to OFAC. We have also informed OFAC that last year SNTG adopted a policy that bars parcel tanker trade with all OFAC restricted countries, regardless of whether such trade would otherwise be permissible under applicable regulations. SNTG has its principal place of business in Rotterdam, Netherlands. As far as we know, we are the only major parcel tanker owner in the world to forego this trade. SNTG does not have a joint venture or an ongoing business relationship with any sanctioned country.
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: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.
Certain statements made in this press release and other reports and oral statements made by our representatives from time to time may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to our expectations, beliefs, intentions or strategies regarding the future. These statements may be identified by the use of words like "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "will," "should," "seek," and similar expressions.
The forward-looking statements that we make reflect our current views and assumptions with respect to future events and are subject to risks and uncertainties. The following factors, and others which are discussed in our public filings and submissions with the U.S. Securities and Exchange Commission, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: (i) the level of our indebtedness, operating restrictions contained in our financing arrangements, our ability to comply with financial and other covenants in our financing agreements, our ability to refinance our indebtedness on acceptable terms as it comes due and the impact of floating interest rates on our debt service costs; (ii) our ability to deliver fixed-price projects in accordance with customer expectations and the parameters of our bids and avoid cost overruns; (iii) the outcome of pending and future legal proceedings involving governmental authorities and third parties, including antitrust proceedings, securities lawsuits, investigations regarding trading with embargoed countries and pending patent litigation; (iv) the impact of negative publicity; (v) environmental challenges facing our aquaculture business; (vi) changes in, or our failure to comply with, applicable laws and regulations, including our ability to receive or renew applicable permits or licenses; (vii) prevailing prices for our products and services; (viii) cost and availability of raw materials, including ship fuel and feed costs for fish; (ix) uncertainties inherent in operating internationally, including economic and political instability, boycotts or embargoes, labor unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) competition in the industries and markets in which we operate; (xi) the loss of, or deterioration of our relationship with, any significant customers; (xii) our ability to keep pace with technological changes; (xiii) operating hazards, including marine disasters, oil spills or leaks, environmental damage, death or property damage and business interruptions caused by weather, mechanical failures, war or other hostilities, piracy or hijackings, explosions, fires or human error; (xiv) adverse weather conditions and other natural conditions such as pollution and disease in the marine environment that may impact our aquaculture business; (xv) capital expenditures by oil and gas companies; (xvi) delays or cancellations of projects in our backlog; (xvii) oil and gas prices; (xviii) the effect of changes in accounting policies; and (xix) other factors which are described from time to time in our public filings with the U.S. Securities and Exchange Commission, including our latest Form 20-F.
Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Richard M. Lemanski USA 1 203 625 3604 rlemanski@stolt.com
Valerie Lyon UK 44 20 7611 8904 vlyon@stolt.com