Stolt-Nielsen S.A. Reports Second Quarter and Half Year Results (with link)


OSLO, Norway, June 28, 2001 (PRIMEZONE) -- Stolt-Nielsen S.A. (Nasdaq:SNSA); (Oslo Stock Exchange: SNI) today reported results for the second quarter and the six-month period ended May 31, 2001. Net profit for the latest quarter was $4.8 million, or $0.09 per share, on net operating revenue of $639.7 million, compared with a net loss of $3.7 million, or $0.07 per share, on net operating revenue of $530.2 million for the second quarter in 2000. The weighted basic average number of shares outstanding for the second quarter of 2001 was 54.9 million compared to 54.6 million for the same period of 2000.

The net loss for the six-month period ended May 31, 2001 was $3.4 million, or $0.06 per share, on net operating revenue of $1,177.3 million, compared with net income of $26.3 million, or $0.48 per share, on net operating revenue of $1,029.6 million for the same period of 2000. Before one-time gains resulting from dilution on Stolt-Nielsen S.A.'s (SNSA) interest in Stolt Offshore S.A. and the sale of assets, the net loss for the six-month period ended May 31, 2000 was $7.8 million or $0.14 per share. For the six-month period of 2001, the weighted basic average number of shares outstanding was 54.9 million, compared with 54.6 million for the same period of 2000.

Commenting on the results, Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA said, "While we are pleased with the continuing improvement in earnings for the Stolt-Nielsen Transportation Group, overall earnings were slightly below earlier guidance due to weaker results in our other businesses.

"Stolt-Nielsen Transportation Group (SNTG) income from operations during the second quarter improved significantly to $35.8 million up from $20.3 million in the comparable quarter of 2000. For the six-month period in 2001, income from operations improved to $65.0 million from $39.7 million last year.

"The Stolt Tanker Joint Service Index rose another 5% from the first quarter of 2001 and is up 12% on a year-to-date basis compared to 2000. SNTG's parcel tanker division's income from operations more than doubled to $24.9 million in the second quarter of 2001 from $10.6 million in the comparable quarter of last year. Improved rates were achieved in almost all markets and deep-sea volumes increased by 5% compared to the first quarter. Contracts of affreightment are being renewed with increases up to 20%.

"While SNTG's tank container division's income from operations improved to $3.9 million in the second quarter of 2001 from $2.7 million in the first quarter, the result was below the comparable quarter of 2000. We expect shipments for the second half of 2001 to increase slightly from second half 2000 results. While pricing in many regions is under pressure, this is being offset by reductions in operating expenses.

"Income from operations in SNTG's terminal division improved to $6.9 million from $6.2 million in the first quarter. Utilization is high at all terminals and throughput has also been strong. In Houston and Ulsan capacity expansions contributed to the improved results. On May 31st, the M/T Stolt Stream was the first ship to call our newly built terminal facility in Braithwaite, Louisiana. With additional capacity coming on line at this facility, during the second half of the year we expect to see further improvements in income from operations. During the quarter we increased our stake in Dovechem Terminal Holdings from 34% to 37%.

"Before minority interests, Stolt Offshore (SOSA) reported a net loss of $6.3 million for the second quarter. Although the utilization of heavy construction ships remained high, the loss for the quarter reflects low levels of utilization for some of the barges and shallow water fleet and higher than expected costs on fabrication for the Girassol project in our yard at Lobito in Angola. SOSA's backlog now stands at $1.54 billion of which $620 million is for the remainder of 2001. This compares with a backlog of $1.1 billion for this time last year, of which $489 million was for 2000. The level of bids outstanding now stands at $2.35 billion compared to $2.5 billion at this time last year. SOSA's market continues to grow and the outlook remains encouraging. We expect to see a number of major contracts, particularly in West Africa, awarded before year-end with other large contracts coming into the bid stage in the next several months. For the remainder of this year there is still a significant spot market in the Gulf of Mexico and the UK Sector of the North Sea, and the potential of increased revenue from variation orders.

"Stolt Sea Farm's (SSF) income from operations in the second quarter of 2001 fell to $2.7 million from $9.7 million in the comparable quarter in 2000. While salmon harvest volumes were higher in all regions in the second quarter of 2001 as a result of recent acquisitions and internal expansion, in the U.S. salmon prices have fallen 40% to 45% from the comparable quarter of last year due to sharply higher supplies from Chile. Prices in Europe were also lower than in the comparable quarter of last year. SSF's turbot operations in Iberia showed improved results over the comparable quarter of 2000 as prices have strengthened appreciably and our production costs continue to decrease. Operations in Asia Pacific are developing positively. The newly acquired bluefin tuna operation is performing according to plan and the major positive financial impact of this acquisition will be seen in the remaining quarters of the year. We now see overall top line growth just below 30% this year. Although we expect salmon prices to remain depressed in the North American market for some time, we are quite bullish that our margins and earnings will improve due to our investments in the production of eight different species.

"During the quarter, progress continued for SNSA's two new ventures - Optimum Logistics Ltd. (OLL) and Prime Supplier Ltd. (PSL). SNSA recently announced the merger of PSL and OneSea to form SeaSupplier Ltd. with SNSA holding a majority stake. This merger combines PSL's proven working software solution with OneSea's significant shipowner backing. We anticipate SNSA's cash expenditures this year in OLL to be about $13 million and in PSL/SeaSupplier to be in the range of $6 to $8 million.

"The syndication of a $225 million revolving credit facility led by Citibank, Den norske Bank ASA, Deutsche Bank AG, HSBC, and Nordea, was completed and oversubscribed. The Company anticipates closing this transaction in early July.

"While we anticipate that SNTG will continue to post improved results for the remainder of the year, we are lowering our guidance for the full year to $0.60 to $0.80 per share as a result of weaker results expected in SOSA and SSF. For the third quarter, we forecast earnings of $0.30 to $0.35 per share," 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); (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 sub-sea 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 Company's U.S. SEC filings, including but not limited to the Company's report on Form 20-F 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: June 28, 2001 10AM EDT (3PM BST)
 Phone: 1 212 896 6120
 PostView Facility Available directly after the conference call until
  5:00pm EDT on Friday, June 29, 2001
 +1 800 633 8284 (in U.S.)
 +1 858 587 5842 (outside U.S.)
 Reservation Number 19142843

Live Webcast of the conference call is available via the company's Internet site www.stolt-nielsen.com commencing on Thursday, June 28th, 2001 at 10:00am EDT (3:00pm BST). A playback of the conference call commences on Thursday, June 28th, 2001 after 12:00 noon EDT (5:00pm BST).

Please click on below link for financial results: http://reports.huginonline.com/826150/91223.pdf



            

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