Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q3 2021 Earnings Presentation
33 slides from Stolt-Nielsen's earnings presentation, Oct 6, 2021
Slide 1: Stolt-Nielsen Limited | Third-Quarter 2021 Results
Stolt-Nielsen Limited | Third-Quarter 2021 Results Niels G. Stolt-Nielsen — Chief Executive Officer Lucas Vos — President of Stolt Tankers Jens F. Grüner-Hegge — Chief Financial Officer October 6, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Included in this presentation are various “forward-looking statements”, including statements regarding the intent, opinion, belief or current expectations of the Company or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new dev
Slide 3: Agenda | 3Q21 Results
Agenda | 3Q21 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Stolt-Nielsen Gas – Avenir LNG 7. Financials 8. Q&A Third-Quarter 2021 Results
Slide 4: 3Q21 Highlights
3Q21 Highlights | Solids Results for STC and SSF Financials 3Q21 vs. 2Q21 Net Profit from continuing operations of $33.5m, up from $7.8m in 2Q21 OPERATING REVENUE EBITDA Higher EBITDA mainly driven by: $ 580.9m $ 147.8m Stolt Tank Containers saw higher transportation $ 526.9m $ 116.7m rate
Slide 5: Net Profit | Positive Trends In All Businesses
Net Profit | Positive Trends In All Businesses Third-Quarter 2021 Results 5
Slide 6: ESG — Sustainability Lies At The Heart Of Our Operations
ESG — Sustainability Lies At The Heart Of Our Operations Our goal of zero harm for people and the environment is our number-one priority. We require our businesses to operate responsibly with a relentless focus on safety, efficiency and excellence. This focus shapes everything we do, from systems an
Slide 7: Stolt Tankers
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Slide 8: Stolt Tankers | Recovery in COA Volumes, Depressed Spot Market
Stolt Tankers | Recovery in COA Volumes , Depressed Spot Market OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 3Q21 $ 310.0m $ 65.8m $ 24.1m 6,978 2Q21 $ 287.0m $ 56.9m $ 12.6m 6,442 Operating Profit Variance Higher trading results driven mainly by 4.8% higher freight
Slide 9: Bunker Prices up, but offset by consumption improvements
Bunker Prices up, but offset by consumption improvements Bunker Cost SIR1 index – Impacted by higher bunker costs 2Q16 = 0.81 $80 12,476 13,000 0.8 $70 12,000 $7.3 0.7 $60 11,000 2Q12 = 0.61 0.60 0.6 Bunker cost (USD $ M) Operating Days 0.53 $50 $2.4 10,000 $7.4 0.5 $10.0 0.50 $40 9,000 $72.0 0.4 4Q
Slide 10: Stolt Tankers | Market Highlights
Stolt Tankers | Market Highlights Deepsea – Stolt Tankers Joint Service Stolt-Nielsen Inter-Europe Service – E&S Tankers Strong US internal demand causes a soft export market and impacts spot rates Earnings supported by improved COA coverage, while spot market remains flat USG to Asia and Europe
Slide 11: Chemical Tanker Market Outlook
Chemical Tanker Market Outlook Highly attractive market backdrop — robust demand Chemical tanker orderbook at record low levels… outlook combined with favourable supply drivers Chemical Tanker Orderbook (3Q21) 1,900 DWT (IN ‘000 MT) Strong economic recovery from Covid-19 continues to 1,700 1,500 O
Slide 12: Stolt Tankers Decarbonization Ambition
Stolt Tankers Decarbonization Ambition Reduction of at least 50% Carbon intensity relative to 2008 levels Estimated 2008 AER: A further Estimated 2008 AER: 15.68 g / MT * N. Mile We are Stolt fleet average 2020: 11.37 g / MT * N. Mile ~27% ~23% Fleet AER goal for 2030: 7.84 g / MT * N. Mile efficien
Slide 13: Stolthaven Terminals
Stolthaven Terminals S|
Slide 14: Stolthaven Terminals | Stable Performance
Stolthaven Terminals | Stable Perfomance OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly owned terminals) 3Q21 $ 62.9m $ 35.4m $ 19.8m 92.3% 2Q21 $ 60.6m $ 34.2m $ 18.3m 90.3% Operating Profit Variance Improved utilisation and throughput volume resulted in an increase of oper
Slide 15: Market Highlights | Stable Demand and Higher Utilisation
Market Highlights | Stable Demand and Higher Utilisation Equity Income/Utilisation (Joint Ventures) Priorities US terminals: Lower utilisation and throughput. Impacted by Hurricane Ida 12.0 97.7% 100% 95.9% 98% Santos terminal: Higher throughput and utilisation as a result of more 10.0 95.0% 94.
Slide 16: Stolt Tank Containers
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Slide 17: Stolt Tank Containers | Lower Shipments but Higher Rates
Stolt Tank Containers | Lower Shipments but Higher Rates OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 3Q21 $ 174.4m $ 34.3m $ 24.7m 72.1% 2Q21 $ 157.7m $ 23.1m $ 12.5m 72.2% Operating Profit Variance Transportation revenue was up $7.6m, driven by a 12.6% increase in transportation
Slide 18: Market Highlights | New Highs
Market Highlights | New Highs High demand in all markets and sectors… Demand remains strong across all markets 40 150 and sectors 141 35 140 Quarterly Shipments(Thousands) To meet the demand, STC has placed an LTM Shipments (Thousands) 130 order to purchase 1,000 tank containers to be 30 120 del
Slide 19: Market Outlook
Market Outlook Short and Medium-Term Challenges Opportunities Demand: Customers moving away from Port congestion is worsening. The unsustainable flexibags to tank waiting time at the ports has risen and containers, due to global dry box operational costs are increasing. shortage and focus on susta
Slide 20: Stolt Sea Farm
Stolt Sea Farm S|
Slide 21: Stolt Sea Farm | Strong Demand Pushes Prices Up
Stolt Sea Farm | Strong Demand Pushes Prices Up OPERATING REVENUE EBITDA OPERATING PROFIT VOLUMES (metric tonnes)** 3Q21 $ 33.5m $ 13.5m $12.8m 2,667mt 2Q21 $ 21.4m $ 1.5m ($ 0.6m) 1,975mt **Includes own turbot, traded turbot and sole Operating Profit Variance Turbot sales increased by $10
Slide 22: Sole | High Visibility Growth Plan to 2025 Target
Delivering the Growth Plan Sole | High Visibility Growth Plan to 2025 Target Value creation linked to: Illustrative • Ambitious expansion of turbot and sole production to > 23,000 tonnes Sole volume (tonnes WFE/year) • Pricing at long term sustainable levels of ~EUR 10 (turbot) ~EUR 14 (sole) Capa
Slide 23: Stolt-Nielsen Gas
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Slide 24: Stolt-Nielsen Gas | Avenir LNG Positioned to Accelerate Earnings
Stolt-Nielsen Gas | Avenir LNG Positioned to Accelerate Earnings Diversified Risk Profile Diversified Earnings to Drive Cash Flows Avenir Unmatched in the small scale segment in terms of size, flexibility, and operational efficiency 1 Fleet Increasing Exposure to Supply Projects BB / TCs with hi
Slide 25: Financials
Financials Stolt-Nielsen
Slide 26: SNL Net Profit | Downward Trend On Financial Cost Continues
SNL Net Profit | Downward Trend On Financial Cost Continues Quarter Year-to-date Figures in USD million 3Q21 2Q21 3Q20 YTD21 YTD20 Highlights Operating Revenue $580.9 $526.9 $474.0 $1,588.0 $1,474.5 Operating Expenses (385.7) (367.3) (295.3) (1,080.6) (998.5) Strong revenue growth, particularly in
Slide 27: Covenant Coverage | Focus On Debt Reduction and Strengthening Balance Sheet
Covenant Coverage | Focus On Debt Reduction and Strengthening Balance Sheet Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) *Last twelve months 1.53:1 1.58:1 1.59:1 1.50:1 3.55x 3.69x 3.70x 3.93x 600 4.10 3,000 1.70 $504 $506 $2,584 $2,605 $2,522
Slide 28: Capital Expenditures
Capital Expenditures Actuals Remaining Figures in USD millions 1Q21 2Q21 3Q21 2021 2022 2023 Stolt Tankers 84 8 5 9 20 3 Stolthaven Terminals 10 11 11 25 88 61 Stolt Tank Containers 3 2 4 5 31 - Stolt Sea Farm 2 1 4 2 6 7 Stolt-Nielsen Gas* 16 5 - - - - SNL Corporate & Other - 3 1 22 - - Total $115
Slide 29: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 3Q21 2Q21 1Q21 YTD'21 YTD'20 Highlights Cash generated by operating activities 149.8 90.9 94.4 $335.2 $370.3 Interest Paid (23.4) (36.8) (24.6) (84.9) (89.4) Cash generated by operating activities increased from Debt issuance cost (0.5) (
Slide 30: Debt Maturity | Average Interest Cost Down
Debt Maturity | Average Interest Cost Down Financing Highlights Average Cost of Debt* Average interest rate is down to 4.3%, resulting 45.0 6.0% 5.1% 5.0% in approx. $11m annual cash savings 40.0 4.7% 4.6% 4.6% 5.0% 4.3% 4.3% 35.0 84% of the debt is with fixed interest rates Interest Rate % USD
Slide 31: Dividend Policy
Focused on Delivering Cash Returns Strong Cash Returns Stolt-Nielsen’s objective is to deliver competitive cash returns to shareholders Two key variables stipulated in the dividend policy ~$1.0bn 2005 5.6%1 determine the level of dividend: Cumulative Dividends paid to SNL Last 12 months (L
Slide 32: Key Messages
Key Messages Improved profitability in the quarter driven by Stolhaven, STC and SSF Chemical tanker market remains challenging, though good progress has been made in underlying efficiency Building blocks of a tanker market recovery — early signs within the crude and CPP markets However, shor
Slide 33: Q&A
Q&A 33