STOLT-NIELSEN REPORTS NET LOSSES
Stolt-Nielsen S.A., the provider of transport services for liquid bulk products, reported net losses for its third quarter and nine-month financial period ended Aug. 31.
The company reported a net third-quarter loss of $1.1 million, compared to net income of $29.7 million in the third quarter of 2001. Including $1.7 million in restructuring charges for the Stolt-Nielsen Transportation Group, and a one-off $8.0-million gain for the sale of Big Inch Marine Systems, and third quarter 2002 net income would be $1.8 million. Operating revenue for the quarter was $753.2 million, compared to $739.5 million in the second quarter of 2001.
'Results for the quarter were much lower than originally anticipated due to the previously announced earnings shortfall in Stolt Offshore,' said Niels G. Stolt-Nielsen, chief executive officer of Stolt-Nielsen S.A.
For the nine-month period, Stolt-Nielsen reported a net loss of $1.7 million on net operating revenue of $2.0 billion, compared with net income of $26.3 million on net operating revenue of $1.9 billion for the same period in 2001. Excluding $8.1 million of restructuring charges and the $8.0 million gain from the sale of Big Inch Marine Systems, the net income for the nine month period was $1.8 million.
Stolt-Nielsen said the Stolt-Nielsen Transportation Group 'posted a solid quarter.' Before restructuring charges, the group reported income from operations of $38.1 million, compared to $40.3 million in the third quarter of 2001. for the nine-month period, income from operations was $97.9 million compared to $104.7 million last year. The declines were attributed to higher bunker costs and loss of income following the redelivery of nine simpler time-chartered tanker ships, which operate in commodity chemical and clean petroleum markets that are considerably weaker than in 2001.