Stolt-Nielsen Limited announces unaudited results for the

LONDON, June 30, 2022 – Stolt-Nielsen Limited (Oslo Børs: SNI) today announced unaudited results for the second quarter and first half of 2022. The company reported net profit attributable to shareholders of $58.6 million in the second quarter, with revenue of $689.1 million, versus net profit of $52.3 million, with revenue of $606.2 million, in the first quarter. Net profit attributable to shareholders for the first half of 2022 was $110.9 million, with revenue of $1,295.3 million, compared to net profit attributable to shareholders of $10.3 million, with revenues of $1,007.1 million, in the first half of 2021.

The highlights of the second quarter, compared to the first quarter of 2022, were:

  • Stolt Tankers reported operating profit of $40.8 million, down from $25.0 million, driven by improved volumes, higher utilization and higher spot rates, partially offset by higher net bunker costs.
  • The Stolt Tankers Joint Service (STJS) Sailed-in Time-Charter Index rose from 0.52 to 0.56. Sailed STJS revenue for the quarter was $20,772 per operating day based on an average vessel size of 31,550 deadweight tons (DWT), compared to $18,786.
  • Stolthaven Terminals reported operating profit of $25.7 million, down from $22.0 million previously. The improvement in results is explained by an increase in throughput and storage revenues following an increase in usage as well as a gain on the sale of a terminal in Australia.
  • Stolt Tank Containers (STC) recorded an operating profit of $44.7 million, compared to $40.0 million, reflecting increased shipments and higher demurrage revenues.
  • Stolt Sea Farm recorded an operating profit, before biomass fair value adjustment, of $4.7 million versus $6.5 million, reflecting lower volumes of turbot sold after the seasonal first quarter, while the selling prices of turbot and sole remained firm.
  • Stolt-Nielsen Gas posted an operating loss of $1.8 million, compared to an operating profit of $3.6 million. The prior quarter included a gain of $4.7 million from our share of the sale of a 20,000 m3 new build by Avenir LNG.
  • Corporate and Other reported an operating loss of $5.9 million, compared to a loss of $4.7 million. The increase in the loss is due to higher profit sharing and other benefit expenses.

Niels G. Stolt-Nielsen, Chairman and Chief Executive Officer of Stolt-Nielsen Limited, said, “The company’s second quarter net profit was the highest since 2007, which is encouraging given that we recorded a write-off of $11.1 million of debt issuance costs and hedging losses. related to the refinancing of the revolving credit line, our main liquidity tool. The second quarter continued where the first ended with growing demand and a declining order book for new vessels, as positive momentum continued to build in the chemical tanker market. Our tanker trading team remains firm on contract renewals and spot originations to take advantage of the tighter market, and we are moving in the right direction. However, given the historically low freight levels and poor returns that the chemical tanker industry has been experiencing for many years now, we still have a long way to go until our returns through the cycle are sufficient to attract long-term capital for new investment in new construction. . At Stolt Tank Containers the team has been very successful in securing space on vessels in a very tight market, ensuring that our customers’ products can reach their customers and in doing so have been able to produce another quarter with record results. At Stolthaven Terminals, increased utilization has allowed us to increase margins in a tighter storage market. And at Stolt Sea Farm, steady pricing in a tough market helped continue strong underlying operating results.

“I expect our positive momentum to continue throughout the year. Stolt Tankers should continue to see rising freight rates that will outpace rising fuel costs. STC may see demand decline slightly in due to high transport costs due to supply chain bottlenecks, but should still enjoy good margins throughout this year At Stolthaven Terminals, high utilization will have a positive impact on margins for the rest of the year.And at Stolt Sea Farm, the summer months usually bring an increased demand for quality seafood.

“Although we are beginning to enjoy improved returns on our investments, we cannot ignore the many external challenges ahead. The war in Ukraine is increasingly impacting the energy supply, especially in Europe. Excess liquidity in the private sector after many years of quantitative easing, along with post-pandemic demand, has driven up inflation, which is now amplified by rapidly rising oil and gas prices. To curb inflation, central banks raise interest rates, which, if taken too far, will inevitably lead to a global recession. We are monitoring the potential impact these factors could have on our business. We remain cautious on new investments, ensuring that performance barriers take into account rising inflation and funding costs going forward, and we continue to focus on debt reduction to strengthen balance sheet and continue to favor fixed rate loans to protect our cash flow. against rising interest rates.

This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.

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