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million, with revenue of $503.5 million, compared with a net loss attributable
to shareholders of $20.0 million, with revenue of $497.1 million, in the first
quarter of 2020. The net loss attributable to shareholders for the first six
months was $16.3 million, with revenue of $1,000.5 million, compared with a net
profit attributable to shareholders of $11.5 million, with revenue of $1,018.4
million, in the first half of 2019.
Highlights for the second quarter of 2020, compared with the first quarter of
2020, were:
- Net profit from continuing operations amounted to $12.3 million in the
second quarter, up from a loss of $19.3 million in the first quarter of
2020.
- Stolt Tankers reported an operating profit of $20.0 million, up from $4.7
million, mainly reflecting a $12.2 million increase in deep-sea revenue
driven by improved export volumes from the US Gulf, combined with an
increase in operating days.
- The Stolt Tankers Joint Service Sailed-in Time-Charter Index rose to 0.56
from 0.50.
- Stolthaven Terminals reported an operating profit of $19.2 million, up from
$18.9 million, as markets remained stable overall.
- Stolt Tank Containers reported an operating profit of $13.0 million, up from
$6.7 million, reflecting higher demurrage revenue and lower repositioning
costs.
- Stolt Sea Farm reported an operating loss of $4.7 million, which included
impairments of $1.8 million. This compared with an operating loss of $8.8
million in the first quarter, which included a $12.0 million write-down of
biomass value.
- Stolt Sea Farm’s caviar business has been reclassified as held for sale and
SSF has recognised an impairment of $8.1 million.
- Corporate and Other reported an operating profit of $2.7 million, compared
with an operating loss of $2.6 million in the first quarter, mainly
reflecting a lower profit-sharing accrual.
- Cost saving and capex reduction initiatives will reduce cash burn by $83
million in 2020.
Commenting on the Company’s results and outlook, Niels G. Stolt-Nielsen, Chief
Executive Officer of Stolt-Nielsen Limited, said: "The net financial impact of
the COVID-19 pandemic on our businesses, excluding Stolt Sea Farm, has so far
been relatively modest. That said, we are seeing indications that the third
quarter will be more challenging.
"At Stolt Tankers, overall volume improved in the second quarter, driven mainly
by strength in deep-sea shipments, reflecting less MR tonnage operating in the
chemical trade. Results were also positively impacted by lower fuel costs and
more operating days. At Stolt Tank Containers, after a record number of
shipments in March and continued strength in April, shipments slowed in May.
Operating income for the quarter overall was on target, which also reflected the
positive impact of actions taken to reduce operating expenses. Results at
Stolthaven Terminals were stable. Demand for chemicals used in packaging and
healthcare has remained strong, offset by weak demand for products bound for the
automotive and construction sectors. Stolt Sea Farm had another very difficult
quarter, due to the impact of the pandemic on restaurants and hotels, especially
in SSF’s key European markets.
"The outlook is difficult to predict and highly uncertain. We are seeing signs
of a slowdown in certain regions at Stolt Tank Containers, which we suspect may
be a result of consumption declining, but also the beginning of a seasonal
summer slowdown typically observed at STC. While we enjoyed a stronger chemical
tanker market in the second quarter, we expect the third quarter to be more
challenging due to the combination of a weaker MR market and a slowing economy.
To counter the impact of a possible slowdown, we have taken steps to protect our
revenue base by increasing our contract coverage at improved rates. At
Stolthaven, we continue to see healthy demand in most regions and expect
continued improved performance from our terminals. Finally, at Stolt Sea Farm,
we believe the worst is behind us. As restrictions in Europe are lifted, we
expect a steady improvement in demand for our products, as restaurants and
hotels reopen in our main markets.
"As noted last quarter, we have taken extensive actions to reduce costs and
shore up our liquidity position. We have thus far improved our cash position by
$83 million through cancellations or delays of capital expenditures, as well as
reductions in operating and administrative & general expenses. In addition, the
Board of Directors temporarily cut board fees by 50%, and our senior management
team took a voluntary salary cut of 20%, both effective April 1. We are also
diligently working to protect our revenue base, which includes working closely
with customers to create solutions to help them adapt in this constantly
changing environment.
“On a positive note, following the recent bond placement, the Company currently
has just under half a billion dollars in available liquidity.”
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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