Stolt-Nielsen Limited Reports Unaudited Results For the Fourth Quarter and Full Year of 2018
January 31 2019 - 2:20AM
LONDON, January 31,
2019 - Stolt-Nielsen Limited (Oslo Børs: SNI) today reported
unaudited results for the fourth quarter ended November 30, 2018.
Net profit attributable to shareholders in the fourth quarter was
$3.6 million, with revenue of $526.1 million, compared with a net
profit of $3.0 million, with revenue of $543.1 million, in the
third quarter of 2018. Net profit attributable to shareholders for
2018 was $54.9 million, with revenue of $2,125.5 million, compared
with $50.3 million, with revenue of $1,997.1 million in 2017.
Highlights for the fourth quarter
of 2018, compared with the third quarter of 2018, were:
-
Stolt Tankers reported an
operating profit of $7.7 million, down from $21.4 million, mainly
reflecting lower freight revenue combined with higher bunker fuel
costs and a $4.1 million loss on bunker hedges, compared with a
$1.3 million bunker-hedge gain in the prior period.
-
The Stolt Tankers Joint Service
Sailed-in Time-Charter Index was 0.53, compared with 0.58 in the
third quarter.
-
Stolthaven Terminals reported
an operating profit of $11.7 million, down from $18.6 million,
reflecting $6.1 million in impairments in the fourth quarter, and a
$1.7 million decrease in equity income from joint
ventures.
-
Stolt Tank Containers reported
an operating profit of $18.1 million, up from $17.7 million.
Operating profit rose, despite lower revenue, mainly due to
improved operational efficiencies.
-
Stolt Sea Farm's operating profit before the fair-value adjustment of
inventories was $0.9 million versus $2.1 million, due to lower
volume sold ahead of the peak Christmas sales season.
-
Corporate and Other included an
operating loss of $11.9 million, compared with a loss of $3.4
million in the prior quarter, mainly reflecting a $5.9 million
write-off of assets at Stolt Bitumen Services.
-
During the quarter, SNL and its
strategic partners, Golar LNG Ltd and Höegh
LNG Holdings Ltd, established Avenir LNG Limited, a joint venture
to pursue small-scale LNG sales and distribution.
Commenting on the Company's
results, Niels G. Stolt-Nielsen, Chief Executive Officer of
Stolt-Nielsen Limited, said: "The challenging chemical tanker
market impacted SNL's fourth-quarter results. At Stolt Tankers,
softness in deep-sea markets driven by deliveries of newbuildings,
combined with a shift in Stolt Tankers' product mix for the
quarter, resulted in a decrease in revenue for the period. While
there was a welcome drop in bunker fuel prices toward the end of
November, the timing of the decrease resulted in a $4.1 million
loss on Tankers' bunker hedges. At Stolthaven, while revenue was
essentially unchanged and utilisation held steady, operating income
was down as a result of impairments. Stolt Tank Containers showed
improved results once again this quarter, but the seasonal autumn
pick-up in shipments failed to materialize, driven in part by
increasing global economic uncertainty as the year wound down. At
Stolt Sea Farm, while the volume of turbot sold was down in the
quarter, average turbot prices climbed to their highest level in
over seven years, and sole prices reached the highest level since
SSF entered the market in 2010."
"Our outlook for 2019 remains
cautiously optimistic. In the chemical tanker market, we expect the
balance between tonnage supply and demand to improve as the year
unfolds. Beyond that, if newbuilding orders remain moderate and
there is an easing of trade tensions, Stolt Tankers may finally see
some healthy market conditions into 2019 and beyond. At Stolthaven
Terminals, ongoing initiatives to enhance utilisation and
operational performance are steadily generating better results,
which we expect to continue in 2019. At STC, we expect to benefit
as the global market for tank containers continues to grow, further
supported by STC's continuous actions to improve operational
efficiency. Finally, at Stolt Sea Farm, we are gaining increased
traction as prices for our products continue to rise, driven by
efforts to expand both our markets and our product offerings."
"With the formation of Avenir LNG
Limited, we successfully registered the company on the Norwegian
OTC market during the quarter. Avenir's strategy is to become a
leading supplier of small-scale LNG ships for the power, bunkering,
trucking and industrial markets. With the support and know-how of
the founding partners, we believe the company is uniquely
positioned to succeed in this new segment."
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
SNL 4Q18 Interim Financial
Statements
SNL 4Q18 Earnings Press Release
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Stolt-Nielsen Limited via Globenewswire
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