LONDON, Sept. 26, 2001 (PRIMEZONE) -- Stolt-Nielsen S.A. (Nasdaq:SNSA) (Oslo Stock Exchange:SNI) today reported results for the third quarter and the nine-month period ended August 31, 2001. Net income for the latest quarter was $29.7 million, or $0.54 per share, on net operating revenue of $735.4 million, compared with a net loss of $0.3 million, or $0.01 per share, on net operating revenue of $607.8 million for the third quarter in 2000. The weighted basic average number of shares outstanding for the third quarter of 2001 was 54.9 million compared to 54.7 million for the same period of 2000.
Net income for the nine-month period ended August 31, 2001 was $26.3 million, or $0.48 per share, on net operating revenue of $1,912.7 million, compared with net income of $26.0 million, or $0.48 per share, on net operating revenue of $1,637.4 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 nine-month period ended August 31, 2000 was $7.5 million or $0.14 per share. For the nine-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 in 2000.
Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen S.A. said, "I am pleased to report improved results for the third quarter which reflect a continuation of the better market conditions for the Stolt-Nielsen Transportation Group, a higher level of project activity by Stolt Offshore, and improved results from Stolt Sea Farm as a result of our multi-species strategy.
"Stolt-Nielsen Transportation Group's (SNTG) income from operations during the third quarter improved to $41.1 million, almost doubling the $21.2 million in the third quarter of 2000, and was also up from the $35.8 million in the second quarter of 2001. For the nine-month period in 2001, income from operations improved to $106.1 million from $60.9 million last year.
"For SNTG's parcel tanker operations, the Stolt Tanker Joint Service Sailed-in Time-Charter Index rose another 7% from the second quarter of 2001 and is now up 15% on a year-to-date basis compared to 2000. Volumes were again up and contracts of affreightment continue to be renewed with increases up to 25%. Results also benefited from lower bunker fuel prices. Income from operations rose to $29.7 million in the third quarter from $11.6 million in the third quarter of 2000. In early December, we expect to take delivery of the M/T Stolt Perseverance, the last ship of our 24-ship, $1.3 billion newbuilding program. This delivery will complete our newbuilding program for the foreseeable future.
"SNTG's tank container division reported income from operations of $5.5 million for the third quarter of 2001, which was up from $5.0 million from the comparable quarter of 2000. Despite continued weaker utilization, results benefited from lower operating costs, primarily due to lower ocean freight and the return of leased-in third party tanks earlier this year.
"The terminal division again reported improved results with third quarter income from operations increasing to $5.9 million from $4.5 million in the comparable quarter of 2000. Activity continues to be strong at all terminals with both utilization and throughput at high levels. Our new Braithwaite, Louisiana terminal is open for business and we expect to complete the first phase of construction shortly.
"Before minority interests, Stolt Offshore (SOSA) reported a net profit of $17.5 million for the third quarter. This compared to a profit of $0.2 million in 2000. For the nine-month period, before minority interests, SOSA reported a loss of $4.3 million compared to a loss of $32.1 million in 2000. The improved results for the quarter reflect the high level of activity in West Africa, the North Sea, and the Gulf of Mexico. In West Africa, a major milestone was reached on the TotalFinaElf Girassol project in July with the successful installation of the three riser towers. SOSA is now working on the installation of umbilicals and flexible flowlines and the hook up of the FPSO. Backlog now stands at $1.6 billion, of which $378 million is for the remainder of 2001. This compares with a backlog of $1.0 billion for this time last year, of which $274 million was for 2000. The level of bids outstanding now stands at $3.6 billion compared to $2.3 billion at this time last year. Fourth quarter results are dependent on progress made on completing phase one of the Girassol project and spot market opportunities in the North Sea and the Gulf of Mexico in the fourth quarter.
"Stolt Sea Farm's (SSF) income from operations almost doubled to $10.3 million from $5.2 million in the third quarter of 2000 despite continued weak salmon prices in all regions. For the nine-month period of 2001, income from operations was $15.9 million compared to $25.0 million for the same period in 2000. The improvement in income from operations for the latest quarter was due to a strong contribution from our multi-species strategy. This includes a strong result from the newly acquired bluefin tuna business in Australia where harvests peak in the third quarter. There were also good contributions due to higher prices and lower production costs for turbot, and improved VAP margins from our Seafood Centers where we benefit from weak whole salmon input prices.
"Progress continues at our two new e-businesses. Optimum Logistics (OLL) released a major enhancement of its core TransLink(tm) product offering for which a new marketing effort will be launched. SeaSupplier (SSL) completed development of its key software packages during the third quarter and anticipates that a majority of its pilot customers will be converted to revenue paying contracts by early 2002.
"For the full year, we are now narrowing our earnings guidance to $0.70 to $0.80 per share.
"We are optimistic that SNTG's results will further improve as the newbuilding order book continues to dwindle. SOSA enters 2002 with a strong backlog and anticipates high ship utilization for the remainder of this year and much of 2002. While we anticipate there will be continued pressure on salmon prices globally, we expect SSF will continue to benefit from its product diversification and a profitable sales and marketing organization in all major markets. To date, we have not seen any slowdown in our businesses since the tragedies of September 11, but continue to monitor the situation closely. We have limited capital expenditure commitments for 2002 and beyond and significant undrawn long-term credit facilities in place. We are therefore confident that we have a sufficiently strong balance sheet and the necessary financial resources to weather any downturn that might occur in any of our markets," 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 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 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 September 26, 2001 10 a.m. EDT (3 p.m. BST) Phone: (212) 896-6082 PostView Facility Available directly after the conference until 5:00 p.m. EDT on Thursday, September 27, 2001 Phone: (800) 633-8284 (in U.S.) (858) 812- 6440 (outside U.S.) Reservation Number 19732654
Live Webcast conference call is available via the company's Internet site, www.stolt-nielsen.com, commencing on Wednesday, September 26, 2001 at 10:00 a.m. EDT (3:00 p.m. BST). A playback of the conference call commences on Wednesday, September 26th 2001 after 12:00 noon EDT (5:00 p.m. BST).
To view this release in its entirety, including financial tables, please go to http://reports.huginonline.com/835057/94817.pdf