Stolt Offshore announces results for fourth quarter and last financial yearNews // February 20, 2004
The US$416 million loss is within guidance on earnings published on November 28th, 2003 and is dominated by legacy project losses of US$191 million and fixed asset and joint venture impairments of US$183 million.
The company has appointed a new CEO and CFO to lead Group commercial and financial recovery.
Tom Ehret, Chief Executive, Stolt Offshore, said, "While the financial performance for the year, as previously announced, is very poor it should be noted that the progress on the reconstruction of our business provides a solid platform for future growth.Stolt Offshore's market orientation and business discipline are transformed and the benefits are beginning to come through. The company is on the way to completing the targeted reduction in fixed and operating costs and the reconfiguration of its assetbase."
"We are grateful that our efforts and accomplishments are being recognised by our shareholders in the form of a capital injection to a total value of up to US$150 million by way of a private placement and subsequent issue. We also recognise the continuedlong-term support of our largest shareholder, Stolt-Nielsen SA, who will be making a US$50 million debt for equity swap. Concurrently, our lenders have provided a new US$100 million bonding facility. All of these developments, post year end, are the real measure of the achievements in 2003."