Brief: Stolt-Nielsen Q1 Net Result Swings To Loss USD 20.2 Mln

Stolt-Nielsen

16/04/2020 08:23

April 16 (Reuters) - Stolt-Nielsen Ltd  SNI.OL :
    * REG-STOLT-NIELSEN LIMITED REPORTS UNAUDITED RESULTS FOR
THE
FIRST QUARTER OF 2020
    * Q1 REVENUE $ 498.8 MILLION VERSUS $ 501.9 MILLION YEAR AGO
    * COMPANY REPORTED A FIRST-QUARTER NET LOSS ATTRIBUTABLE TO
SHAREHOLDERS OF $20.0 MILLION, WITH REVENUE OF $498.8 MILLION
    * Q1 NET LOSS $ 20.2 MILLION VERSUS PROFIT $ 6.6 MILLION
YEAR AGO
    * Q1 OPERATING PROFIT $16.6 MILLION VERSUS $ 42.8 MILLION
YEAR AGO
    * AT END OF Q1 COMPANY HAD $519 MILLION IN AVAILABLE
LIQUIDITY
    * HAS BEEN UNABLE TO QUANTIFY POSSIBLE IMPAIRMENTS OF
LONG-TERM
ASSETS, DUE TO DIFFICULTIES IN DETERMINING HOW COVID-19 PANDEMIC
WILL EVOLVE AND EFFECTS IT MAY HAVE
    * WHILE EFFECTS OF COVID-19 PANDEMIC HAVE SUBSTANTIALLY
ALTERED
OUR OUTLOOK FOR 2020, STOLT-NIELSEN LIMITED'S FIRST-QUARTER
RESULTS WERE ONLY SLIGHTLY IMPACTED
    * UNDERLYING RECOVERY OF CHEMICAL TANKER MARKETS THAT
STARTED IN
2019 CONTINUED IN Q1, WITH BOTH HIGHER SPOT RATES AND CONTRACTS
RENEWED AT AN AVERAGE INCREASE OF 4.74%
    * STOLT TANKERS' FIRST-QUARTER RESULTS WERE NEGATIVELY
IMPACTED BY
HIGHER BUNKER COSTS RESULTING FROM SWITCHOVER TO LOW-SULPHUR
FUEL, AND DELAYS DUE TO SCHEDULING ISSUES ARISING FROM DELAYS IN
DRYDOCKING ASSOCIATED WITH SCRUBBER AND WASTE WATER TREATMENT
INSTALLATIONS
    * STOLT TANK CONTAINERS, HIGHER SHIPMENTS AND IMPROVED
UTILISATION
DROVE AN INCREASE IN TRANSPORTATION REVENUE
    * HOWEVER, THIS WAS MORE THAN OFFSET BY HIGHER MOVE-RELATED
COSTS
DUE TO IMO 2020 LOW-SULPHUR FUEL CHARGES IMPOSED BY CARRIERS AND
INCREASED REPOSITIONING COSTS FROM BUILD-UP OF TANK CONTAINERS
IN CHINA AS A RESULT OF EXTENDED CHINESE NEW YEAR DUE TO
COVID-19
    * ON CORONAVIRUS: STOLTHAVEN TERMINALS' OPERATIONAL RESULTS
WERE
IN LINE WITH EXPECTATIONS, AS MARKETS REMAINED STABLE
    * STOLT SEA FARM, IN CONTRAST, WAS QUICKLY IMPACTED BY
PANDEMIC,
DUE TO WIDESPREAD SHUTDOWNS OF RESTAURANTS AND HOTELS IN SSF'S
MAIN MARKETS IN SPAIN AND ITALY, RESULTING IN A SIGNIFICANT
WRITE-OFF OF BIOMASS INVENTORY VALUE
    * AT STOLT TANKERS, CONTRACT VOLUMES REMAIN RELATIVELY
HEALTHY AND
CONTRACT RENEWALS CONTINUE WITH IMPROVED TERMS, THOUGH WE ARE
EXPERIENCING SOME PORT DELAYS
    * STOLT TANK CONTAINERS CONTINUES TO SEE A ROBUST MARKET,
REPORTING A RECORD NUMBER OF SHIPMENTS IN MARCH AND UTILISATION
OF 71%
    * WE CONTINUE TO HAVE SIGNIFICANT REPOSITIONING COSTS AS A
RESULT
OF RAPIDLY CHANGING TRADE FLOWS

Source text for Eikon:  ID:nGNE26D4lC 
Further company coverage:  SNI.OL 

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