Stolt-Nielsen 2Q Net Pft $32.4M Vs $27.5M, Maintains Outlook

Norwegian shipping and seafood company Stolt-Nielsen Ltd. (SNI.OS) Thursday announced a second quarter net profit of $32.4 million, from $27.5 million, boosted by exceptional items including a tanker sale, value adjustment of inventories, tax credits and a positive tax adjustment, and kept its outlook unchanged.

   MAIN FACTS:

-Revenue $528 million, from $457.7 million.

-Operating profit $43.3 million, from $43.7 million.

-Niels G. Stolt-Nielsen, CEO, says: “Our outlook for Stolt-Nielsen Limited remains unchanged.”

-“For tankers, market conditions for the rest of 2011 and 2012 are expected to remain soft, and we do not expect a significant recovery in earnings before 2013, however, we expect our terminal and tank container businesses to perform well driven by solid fundamentals.”

-“We expect the growth of our new businesses, Stolt-Nielsen Gas and Stolt Bitumen Services to contribute positively to the bottom line. With the additional sites in Stolt Sea Farm, we expect the division’s contribution to become more significant.”

-“The chemical tanker market continues to slide sideways, and the increases we see in the freight rates are not sufficient to offset the increasing operating costs and higher bunker fuel costs.”

-2Q net profit included an impairment loss of $8.5 million related to a ship and an inland barge held for sale, a $5.2 million gain on the sale of a bitumen tanker upon delivery from the yard, a $5.9 million positive fair value adjustment of inventories at Stolt Sea Farm, and $2.9 million in deferred tax credits and a further $2.7 million in positive tax adjustments relating to prior years. Adjusted for these items, SNL’s net profit would have been $24.5 million in the quarter.

-At 0729 GMT shares traded 0.8% higher at NOK128.

-By Dominic Chopping; Dow Jones Newswires