Stolt Pride

Stolt-Nielsen Cancels Dividend for 2019 amid COVID-19 Uncertainties

The Board of Directors of the Oslo-listed shipowner Stolt-Nielsen Limited voted to withdraw its previously announced recommendation of a final dividend for 2019 amid uncertainties created by the ongoing coronavirus pandemic.

Image Courtesy: Stolt Nielsen

The board had proposed a dividend of USD 0.25 per common share, which was to be voted on at the company’s Annual General Meeting of Shareholders scheduled for April 16, 2020 in Bermuda.

 “Our earlier decision to recommend a final dividend for 2019, as announced on February 24, 2020, underscored the fundamentally solid position of the company, which at the end of the first quarter of 2020 had over USD 500 million in available liquidity, and an increasingly promising market outlook for chemical tankers,” Niels G. Stolt-Nielsen, Chief Executive Officer, said commenting on the decision.

“However, while the coronavirus pandemic has had a modest impact on our markets to date, we believe this precautionary measure to cancel the final dividend for 2019 is a financially prudent decision, given current external circumstances.”

Stolt-Nielsen Limited, which comprises three global bulk-liquid and chemicals logistics businesses, reported a net profit of USD 5.5 million in Q4 2019, compared to USD 3.2 million in the corresponding period a year earlier.

Revenues dropped to USD 497.5 million in Q4 2019 from USD 526.1 million in Q4 2018.