Stolt-Nielsen S.A.: Stolt-Nielsen S.A. Reports First-Quarter 2009 Results

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^{Published in Stocks and Investing on Thursday, April 2nd 2009 at 5:38 GMT, Last Modified on 2009-04-02 05:39:35 by Market Wire}

LONDON--(Marketwire - April 2, 2009) -

Stolt-Nielsen S.A. (OSLO: SNI) today reported unaudited results for the first quarter ended February 28, 2009.

Results for the first quarter of 2009 versus the fourth quarter of 2008 reflected the impact of the global economic downturn:

 * Net profit attributable to shareholders decreased to $14.5 million from $52.6 million. * Revenue decreased to $392.3 million from $489.5 million. * Stolt Tankers reported an operating loss of $2.5 million versus an operating profit of $27.5 million, reflecting lower volumes and a decline in spot-market rates, partially offset by lower operating costs. * Bunker costs decreased by $39.2 million in the first quarter, though the positive impact of the decline was partially offset by a $20.4 million decrease in bunker surcharges and an $8.8 million increase in bunker-hedging losses. * The Stolt Tankers Joint Service Sailed-in Time-Charter Index[1] decreased by 23.9% to 0.99 from 1.30. * Stolthaven Terminals reported an increase in operating profit to $9.6 million from $6.9 million, driven mainly by lower operating expenses at its wholly owned terminals and increased capacity. * Stolt Tank Containers reported a decrease in operating profit to $12.9 million from $16.1 million, due primarily to a 23.8% decline in shipments and a drop in utilisation rates to 67.8% from 77.4%. * Stolt Sea Farm reported an operating profit of $1.2 million, up from breakeven results in the prior quarter.

Commenting on the Company's results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA, said:

"SNSA's first-quarter results reflect the panic in the global credit markets that we saw late last year. As producers, traders and consumers stopped ordering products, global industrial production plunged. Destocking of inventories followed and parcel-tanker cargo volumes dropped more than 30% on some trade routes. Though conditions stabilised somewhat in the latter half of February, we attributed the change to a modest restocking of inventories following two months of near paralysis in the market."

"We continue to expect 2009 and 2010 to be very challenging years for our industry and the world economy at large."

"In response to lower demand we are redelivering ships on time charter and bringing forward the recycling of ships. In Stolt Tank Containers, we are returning leased-in tank containers. In all businesses we are deferring or cancelling non-committed or non-essential capital expenditures, including newbuildings, and a full hiring freeze has been imposed."

"SNSA remains in full compliance with all of its debt covenants and none of the Company's assets have been impaired."

"All our committed capital expenditures are fully financed."

[1] The Stolt Tankers Joint Service Sailed-in Time-Charter Index is an indexed measurement of the sailed-in rate for the Joint Service and was set at 1.00 in the first quarter of 1990 based on the average sailed-in time-charter result for the fleet at the time. The sailed-in rate is a measure frequently used by shipping companies, which subtracts from the ships' operating revenue the variable costs associated with a voyage, primarily commissions, sublets, transshipments, port costs, and bunker fuel.

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