ST. EUSTATIUS, NETHERLANDS ANTILLES, February 25, 2000 - Statia Terminals Group N.V. ("Statia" or the "Company") (NASDAQ: STNV) announced today that it is continuing to be affected by the high market price of crude oil and the uncertainty surrounding future crude oil production levels that results from the current accord between the major oil producing countries. This accord has resulted in significantly curtailed production, reduced movement of crude oil and petroleum products, a worldwide reduction of inventory, and market uncertainty regarding future production. The Company cannot predict when these producers or others will increase production so as to bring the supply and demand into balance and result in a more stable market
This market situation has negatively affected the Company's revenues, available cash, and earnings before interest expense, income taxes, depreciation, and amortization ("EBITDA"). If the current trend continues, the Company believes that it is unlikely that a distribution per common share will be paid following the end of the first quarter of 2000. Should this be the case, and as required by the Company's Articles of Incorporation, the difference between the target quarterly distribution of $0.45 and any lesser distribution per share /cn/ll accrue for payment from the Company's future available cash.
As conditions warrant, the Company intends to continue periodic open market purchases of its Class A common stock under the stock purchase program announced December 14, 1999.
Statia provides storage, blending, processing and other terminaling services for crude oil, refined products and other bulk liquids to crude oil producers, integrated oil companies, traders, refiners, petrochemical companies and others at its facilities located on the island of St. Eustatius, Netherlands Antilles, and at Point Tupper, Nova Scotia, Canada. The Company's facilities, with their deep-water ports, can accommodate substantially all of the world's largest oil tankers. In connection with its terminaling activities, Statia also provides value-added services, including delivery of bunker fuels to vessels, other petroleum product sales, emergency and spill response services, and ship services. The Company is headquartered in Curacao, Netherlands Antilles, and maintains an administrative office in Deerfield Beach, Florida.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking statements and projections made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of the Section 27A of the Securities Act of 1933. Such statements and projections are subject to a number of risks and uncertainties. The Company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable and complete. However, actual results in the future could differ materially from those described in the forward-looking statements and projections as a result of fluctuations in the supply of and demand for crude oil and other petroleum products, changes in the terminaling industry, added costs due to changes in government regulations affecting the petroleum industry, the loss of one or more customers, the financial condition of the Company's customers, interruption of operations caused by adverse natural conditions, changes in the United States economy, risks associated with the Year 2000, and other factors detailed in the Company's Securities and Exchange Commission filings. The Company does not undertake any obligation to publicly release the results of any revisions to these forward-looking statements and projections that may be made to reflect any future events or circumstances.