Stolt-Nielsen ends Q1 with $1.5 billion debt, $316 million liquidity

By Lisa Kerner

Charlotte, N.C., April 12 - Stolt-Nielsen Ltd. ended its fiscal first quarter with about $1.5 billion of debt, net of cash and cash equivalents, at Feb. 29, compared with $1.4 billion at Nov. 30.

The company had total liquidity of $316 million including cash at quarter's end, chief financial officer Jan Chr. Engelhardsten said during an earnings call on Thursday.

Stolt-Nielsen's equity was $1.5 billion, and the company was "well within" its bank covenants at Feb. 29, Engelhardsten said.

Subsequent to the end of the quarter, Stolt-Nielsen placed a NOK 400 million three-year senior bond issue and a NOK 600 million six-year senior bond issue in the Norwegian market. Proceeds will be used to repay debt and for general corporate purposes.

Cash flow from operations was $41 million, down by about $25 million from the previous quarter due to cash receipts and lower revenue, according to Engelhardsten.

For the fiscal first quarter, Stolt-Nielsen used net cash of $92 million for investing activities and $81 million from drawdowns for operating expenses and dividends.

Net interest expense in the fiscal first quarter was $18.1 million, compared with $16.7 million in the fourth quarter of fiscal 2011.

Engelhardsten said the company expects interest expense in the fiscal second quarter to be $20 million due to its higher debt level.

Stolt-Nielsen reported net profit attributable to shareholders in the fiscal first quarter of $8.0 million on revenue of $505.7 million, compared with $22.2 million and $512.9 million, respectively, in the fourth quarter of fiscal 2011.

London-based Stolt-Nielsen provides integrated transportation solutions for bulk liquid chemicals, edible oils, acids and other specialty liquids.

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