October 6, 2011 [Stolt-Nielsen Ltd.] - Stolthaven Terminals reported an operating profit of $15.8 million, up from $15.7million, with continued strength in demand and throughput.
Commenting on the Company’s results, Mr. Niels G. Stolt-Nielsen, Chief Executive Officerof Stolt-Nielsen Limited (“SNL”), said:
“Stolt-Nielsen Limited’s third-quarter operating results were similar to those in the previous quarter…Results at Stolthaven Terminals remained on track, with another consistent performance.”
Stolthaven Terminals reported Q3 operating revenue of $35.6 million, up from$34.8 million in the second quarter. Demand remained strong at the Company’s whollyowned terminals, with utilisation climbing to 98.3% from 96.8% in the prior quarter, as tanks that had been withdrawn for inspections and maintenance re-entered service. Revenue for the quarter also reflected an increase in both average monthly leased capacity and average monthly rental revenue per leased cubic metre (cbm). The total average capacity for Stolthaven’s wholly owned terminals was unchanged in the quarter at 889,500 cbm, though total product handled rose to 2.1 million cbm, after holding steady at 1.9 million cbm in the preceding two quarters.
Stolthaven’s Q3 operating profit was $15.8 million, up slightly from $15.7 million in the second quarter of 2011. Growth in operating income was held down by increased operating costs related primarily to higher rail freight activity, increased labor costs in Houston, and construction expense related to the new terminal in Singapore, which is scheduled for commissioning in October. Equity income from the Company’s non consolidated joint-venture terminals slipped to $5.3 million from $5.4 million, largely because of a one-time contract cancellation payment in the prior quarter to the Company’s joint venture terminal in Antwerp. During the quarter, Stolthaven noted an increase in customers in Europe seeking product storage capacity, an indication that product inventories may be building. On October 4, the Company completed the acquisition of 70% of the shares in Marstel Terminals, a privately held network of nine terminals in Australia and New Zealand. Marstel will be renamed Stolthaven Australasia Pty. Limited.
