Stolt-Nielsen Limited Reports Unaudited Results For the Fourth Quarter and Full Year of 2014
29 January 2015 - 6:39PM
Stolt-Nielsen Limited (Oslo Børs: SNI) today reported unaudited
results for the fourth quarter ended November 30, 2014. Net profit
attributable to shareholders in the fourth quarter was $13.1
million, with revenue of $532.3 million, compared with a net profit
of $14.6 million, with revenue of $545.4 million, in the third
quarter. Net profit attributable to shareholders for 2014 was $77.1
million, with revenue of $2,137.9 million, compared with a net
profit of $82.0 million, with revenue of $2,099.5 million, in 2013.
Highlights for the fourth quarter of 2014, compared with the
third quarter of 2014, were:
- Stolt Tankers reported an operating profit of $8.6 million
versus $8.4 million. Excluding the impact of one-time items in the
fourth and third quarters, Stolt Tankers had its strongest
quarterly performance of the year.
- The Stolt Tankers Joint Service Sailed-in Time-Charter
Index1 was 0.65, consistent with the prior quarter.
- Stolthaven Terminals reported an operating profit of $17.8
million, up from $16.2 million. Results for the quarter reflected
$3.8 million related to the termination of a customer contract at
Stolthaven New Zealand, and the positive impact of new capacity
coming into operation in Singapore .
- Stolt Tank Containers reported an operating profit of
$19.5 million, up from $17.6 million, as momentum was maintained
despite a decrease in shipments.
- Stolt Sea Farm reported an operating loss of $0.4 million,
compared with operating profit of $2.8 million, as t he
accounting for inventories at fair value had a negative impact of
$0.4 million in the fourth quarter, compared with a positive impact
of $1.8 million in the third quarter.
- Corporate and Other reported an operating loss of $6.8
million, down from $0.3 million operating profit, mostly as a
result of the expected severance related to the Norwalk,
Connecticut office relocation.
Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen,
Chief Executive Officer of Stolt-Nielsen Limited, said:
"Overall 2014 was a disappointing year for Stolt-Nielsen
Limited. The expected turnaround at Stolt Tankers did not
materialise due to lower volumes and a soft freight market,
reflecting a sluggish global economy."
"In the fourth quarter, while operating results improved at
Stolt Tankers, we have yet to see the full impact of the drop in
bunker fuel prices, as our ships continued to consume the fuel
purchased at higher cost before the significant drop began. At
Stolthaven Terminals, the results for the quarter were up. We
believe the lag in earnings from the recent investments we made in
the division will catch up as the new capacity comes on line and
utilisation increases at all of our terminals. Stolt Tank
Containers delivered solid results in the fourth quarter, even
though the market experienced seasonal weakness. Stolt Sea Farm's
fourth-quarter results were weak because of continued historically
low turbot prices. We look forward to seeing the sale of the first
sole from our farm in Iceland towards the end of our first quarter,
which should have a positive impact on our Stolt Sea Farm earnings
going forward."
"Looking ahead we expect the lower bunker fuel prices to
gradually have a positive effect on Stolt Tankers in the quarters
to come, though a significant portion of the savings will be passed
on to our contract customers as a result of the bunker fuel clauses
in most of our contracts. We remain concerned about the market
outlook for Stolt Tankers, as the order book now stands at over 30%
in the parcel-tanker segment and the global economic outlook is
uncertain. With the prolonged challenging chemical tanker market,
we have and will continue to challenge our cost structure. Some of
the implemented saving initiatives are starting to show results and
are expected to be reflected in our bottom line going forward."
1 Effective with the second quarter 2014, the Sailed-in Time
Charter index has been revised. The Stolt Tankers Joint Service
Sailed-in Time-Charter index is an indexed measurement of the
performance of the market in which the Joint Service operates. The
sailed-in rate per operating day is a measure frequently used by
shipping companies, which subtracts from a ship's operating revenue
the variable costs associated with a voyage, primarily commissions,
sublets, transshipments, port costs, and bunker fuel. The previous
index was set at 1.00 in the first quarter 1990, based on the
average sailed-in time-charter result for the fleet at the time.
The new index has been set at 1.00 in the first quarter of 1996. In
addition, the sailed-in time charter result has been adjusted to
exclude the impact of bunker hedge results and changes to the
average ship size in the fleet. Finally, the sailed-in time charter
result has been adjusted for the average inflation rate from 1996
onwards. The inflation rate applied is the Consumer Price Index for
All Urban Consumers (CPI-U): U.S. city average, by expenditure
category and commodity and service group, all items (1982-84=100)
as published by the Bureau of Labor Statistics as part of the
Consumer Price Index Detailed Reports.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
SNL 4Q14 and FY 2014 Earnings Results
http://hugin.info/154/R/1890241/669216.pdf
HUG#1890241
CONTACT: Jan Chr. Engelhardtsen
Chief Financial Officer
U.K. +44 (0) 20 7611 8972
j.engelhardtsen@stolt.com
Jens F. Gruner-Hegge
V.P. Corporate Finance
U.K. +44 (0) 20 7611 8985
j.gruner-hegge@stolt.com
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