Stolt-Nielsen Limited Reports Unaudited Results For The Second Quarter And First Half Of 2019

TIDMSNI

LONDON, July 3, 2019 -- Stolt-Nielsen Limited (Oslo Børs: SNI)
today reported unaudited results for the second quarter ended May 31,
2019. Net profit attributable to shareholders in the second quarter was
$3.6 million, with revenue of $518.9 million, compared with a net profit
of $7.9 million, with revenue of $501.9 million, in the first quarter of
2019. Net profit attributable to shareholders for the first six months
was $11.5 million, with revenue of $1,020.9 million, compared with $48.3
million(1) , with revenue of $1,056.3 million in the first half of 2018.

Highlights for the second quarter of 2019, compared with the first
quarter of 2019, were:

-- Stolt Tankers reported an operating profit of $12.8 million, down from
$14.3 million, mainly reflecting an estimated negative impact of $5.0
million from the ITC terminal fire in Houston in mid-March.

-- The Stolt Tankers Joint Service Sailed-in Time-Charter Index held steady
at 0.53 for the third consecutive quarter.

-- Stolthaven Terminals reported an operating profit of $19.7 million, up
from $18.0 million, due in part to a $0.7 million gain on the sale of the
rail transportation business.

-- Stolt Tank Containers reported an operating profit of $12.6 million, down
from $15.7 million, as shipment-related operating expenses increased and
margins narrowed.

-- Stolt Sea Farm's operating profit before the fair-value adjustment of
inventories was $2.0 million, up from $1.0 million in the seasonally
strong first quarter that included a $1.7 million one-time write-off of
inventory.

-- Corporate and Other reported an operating loss of $2.1 million, compared
with a loss of $3.6 million in the previous quarter, reflecting lower
profit-sharing accruals.

-- Subsequent to the end of the second quarter, the Company obtained
refinancing commitments totalling $620.0 million.

Commenting on the Company's results, Niels G. Stolt-Nielsen, Chief
Executive Officer of Stolt-Nielsen Limited, said: "Stolt-Nielsen
Limited's second-quarter results were essentially unchanged from the
first quarter as the chemical tanker market appears to have bottomed
out. Results at Stolt Tankers were held down by an estimated $5.0
million negative impact resulting from the fire at the ITC terminal.
Stolthaven continued to perform in line with expectations, driven by
terminal expansions and ongoing operational and commercial improvements.
In contrast, results at Stolt Tank Containers were below expectations,
as the positive impact of a double-digit increase in shipments was
offset by rising shipment-related costs. Stolt Sea Farm's results were
down from the seasonally strong first quarter, excluding a first-quarter
inventory write-off."

"As far as the outlook is concerned, evidence of a definitive upturn in
the chemical tanker market has yet to materialize, but deliveries of new
tonnage into the market are slowing. With no further ships being ordered,
the market is expected to turn. At Stolthaven, we expect continued
gradual improvements in performance, as a result of a strong U.S. market,
combined with terminal expansions and enhanced operational efficiencies.
At STC, while ocean and inland freight costs are rising, we expect to be
able to pass these costs along in subsequent quarters. The second half
of 2019 will be telling, as we continue to monitor the potential impact
of trade disputes on both STC and Stolt Tankers. At SSF, we continue to
expand into new markets for our sole and turbot, and expect our new sole
farms now under construction in Tocha, Portugal and Cervo, Spain to
support additional growth once these facilities fully ramp up production
towards the end of 2020.

"The implementation of the IMO 2020 regulations aimed at reducing
sulphur oxide emissions is now less than six months away. As we have
said repeatedly, it is economically unfeasible for the shipping industry
to absorb these costs. While these regulations mainly impact Stolt
Tankers, they also have implications for Stolt Tank Containers. We
continue to maintain that customers and, ultimately, consumers must bear
the costs imposed by these new regulations aimed at protecting the
environment."

"Subsequent to the end of the second quarter, the Company obtained
refinancing commitments, subject to documentation, for Stolt Tankers
totalling $420.0 million in debt secured by 21 chemical tankers. In
addition, the Company has obtained commitments on a new $200.0 million
US private placement secured by the New Orleans terminal. With these two
facilities, SNL will have sufficient funds to repay the Nordic bond debt
coming due in September 2019 and April 2020, while maintaining a minimum
of $200.0 million in available liquidity throughout that period."

This information is subject of the disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.

Attachments

-- SNL 2Q19 Earnings Press Release
https://ml-eu.globenewswire.com/Resource/Download/cf2ecd85-8753-46c1-9a53-2add6b19064c

-- SNL 2Q19 Interim Financial Statements
https://ml-eu.globenewswire.com/Resource/Download/02e57680-c83c-4104-9d9a-6c57dddb9e7d

(END) Dow Jones Newswires

July 03, 2019 02:20 ET (06:20 GMT)

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