Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q4 2009 Earnings Presentation
33 slides from Stolt-Nielsen's earnings presentation, Jan 28, 2010
Slide 1: Fourth-Quarter and Full-Year 2009 Results Presentation
Stolt-Nielsen S.A. Fourth-Quarter and Full-Year 2009 Results Presentation Oslo January 28, 2010
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: Company Representatives
Company Representatives • Niels G. Stolt-Nielsen – CEO Stolt-Nielsen S.A. • Jan Chr. Engelhardtsen – CFO Stolt-Nielsen S.A. Page 3
Slide 4: Agenda
Agenda • Stolt-Nielsen S.A. 4Q09 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt Bitumen and Stolt-Nielsen Gas • Financial Results, Capital Expenditures and Liquidity Situation • Q&A Page 4
Slide 5: SNSA: Fourth-Quarter 2009 Highlights
SNSA: Fourth-Quarter 2009 Highlights • Stolt Tanker operating profit decreased from $14.2M in 3Q09 to $11.3M reflecting lower trading results; sailed-in index went down to 1.15 from 1.20 in previous quarter • Stolthaven reported operating results of $14.5M, up from $14.0M mainly due to Operating imp
Slide 6: SNSA: 3Q09 to 4Q09 Net Profit Variance
SNSA: 3Q09 to 4Q09 Net Profit Variance Figures in USD Millions $35 $30.9 $30 $0.5 ($2.9) $25 ($3.5) ($0.9) $22.3 ($1.5) ($0.3) $20 $15 $10 $5 $0 3Q09 Net Profit * Low er Tankers Higher Terminals Low er Tank Low er Sea Farm Change in IFRS fair Change in FX, Tax 4Q09 Net Profit * operating profit oper
Slide 7: Stolt Tankers
Stolt Tankers $US Millions $US Millions REVENUE GROSS PROFIT 400 50 40 300 30 200 46.2 322.5 20 246.8 270.2 273.7 33.8 31.6 244.4 100 22.2 10 18.6 0 0 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 $US Millions Days OPERATING PROFIT STJS - OPERATING DAYS 7,000 30 6,000 5,000 20 4,000 3,000 6,120
Slide 8: Stolt Tankers: 3Q09 to 4Q09 Operating Profit Variance
Stolt Tankers: 3Q09 to 4Q09 Operating Profit Variance Figures in USD Millions $16 $14.2 $14 $12 $6.9 $0.6 $11.3 $1.7 $10 ($5.0) ($2.0) $8 $6 $4.0 $4 $2 ($9.1) $0 3Q09 Operating Lower trading Higher bunker Higher bunker Lower loss on Higher Reversal of A&G and other 4Q09 Operating Profit results cost
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Bunker costs increased $2.3M from previous quarter • Bunker hedge loss for the quarter of $4.2M • By the end of November 2009 we had hedged 17,000 tons for January 2010 at an average contract price of $293/ton; at the quarter-end price of $475/ton the total mark-to-mark
Slide 10: Stolt Tankers Dynamics
Stolt Tankers Dynamics… • Exports out of the US to Asia increased due to low natural gas prices and increased demand in Asian markets driven by the economic stimulus programme • Return volumes from Asia into the US and Europe weakened throughout the year; rates decreased by quarter end • Ethanol exp
Slide 11: Stolt Tankers Joint Service Sailed-in T/C Index
Stolt Tankers Joint Service Sailed-in T/C Index Index (1st Quarter 1990 = 1.0) 1.6 3Q95 = 1.48 4Q09 = 1.15 Asia Pacific economic Global Recession crisis and large 1.4 newbuilding programmes Sept.11 1.2 Global economic downturn starts 1 First Gulf war Strong Asia growth Strong CPP inventory build and
Slide 12: Freight Rate History
Freight Rate History Houston - Far East Rotterdam - Far East Rate ($/MT) Rate ($/MT) 130 130 120 120 110 110 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 July July July Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jan Jan Jan'93 Jan'94 Jan'95 Jan'96 Jan'97 Jan'98 Jan'99 Jan'00
Slide 13: Orderbook for the Major Parcel Tanker Operators
Orderbook for the Major Parcel Tanker Operators DWT (in ‘000 MT) Cumulative DWT (in ‘000 MT) 2,100 15,000 1,900 Orderbook = 21.2% of 1,700 13,000 existing fleet 1,500 11,000 1,300 9,000 1,100 7,000 900 700 5,000 500 3,000 300 1,000 100 -1,000 -100 Expected recycling = 2.5% of -3,000 -300 existing fl
Slide 14: STJS Pool Development During 2009
STJS Pool Development During 2009 Service Number of Ships DWT • Deep sea 69 2,055,851 • Ships delivered (newbuildings) 2 87,043 • Ships recycled (5) (170,328) 6.4% • Ships redelivered (T/C’s) (7) (139,744) decrease • SNICS ship removed from STJS (1) (8,080) • New T/C’s 4 99,163 62 1,923,905 Informat
Slide 15: Newbuildings to Be Delivered Through 2013
Newbuildings to Be Delivered Through 2013 SNSA Operator Yard DWT 2010 2011 2012 2013 Total K-43 SNSA SLS Shipbuilding 43,000 1 3 3 1 8 N-43 SNSA STX Norway Florø AS 43,000 1 0 0 0 1 K-6 SNSA Xinshun 5,900 2 0 0 0 2 4 3 3 1 11 JV Companies Owner Operator Yard DWT 2010 2011 2012 2013 Total Gulf Stolt
Slide 16: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT 35 18 30 15 25 12 20 9 15 31.7 30.0 15.0 28.8 28.1 29.1 13.7 14.6 6 12.5 10 10.4 3 5 0 0 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 $US Millions Million of Barrels - (owned terminals) OPERATING PROFIT BARREL CAPACITY - UTILIS
Slide 17: Terminals: 3Q09 to 4Q09 Operating Profit Variance
Terminals: 3Q09 to 4Q09 Operating Profit Variance Figures in USD Millions $16 $0.7 $14.5 $14.0 $1.8 $14 ($0.3) $12 ($1.7) $10 $8 $6 $4 $2 $0 3Q09 Operating Profit Lower operating revenue Lower operating Higher profit contribution Other 4Q09 Operating Profit expenses from JVs Page 17
Slide 18: Stolthaven Ningbo Now Operational
Stolthaven Ningbo Now Operational Page 18
Slide 19: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 140 30 120 24 100 80 18 29.3 29.7 60 124.6 26.2 25.2 102.9 105.6 109.9 111.4 12 21.5 40 6 20 0 0 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 $US Millions OPERATING PROFIT 28,000 SHIPMENTS - UTILISATION 100% 21 18 21,000 80% 1
Slide 20: STC: 3Q09 to 4Q09 Operating Profit Variance
STC: 3Q09 to 4Q09 Operating Profit Variance Figures in USD Millions $16 $1.5 $14 $13.2 $12 ($2.7) $10 $1.6 $9.7 ($2.3) ($0.8) $8 ($0.8) $6 $4 $2 $0 3Q09 Operating Higher operating Higher ocean Higher tank rent Higher inland Higher Lower owning 4Q09 Operating Profit revenue freight costs cost freight
Slide 21: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT 12 8 6 8 12.6 11.7 12.2 11.9 12.2 4 4 5.9 2 2.1 0.9 4Q09 0 0.6 0 (0.5) 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 (2) $US Millions % OPERATING PROFIT * GROSS OPERATING MARGIN 50% 8 40% 6 4.9 4 30% 4.0 48.0% 2 1.8 1.7 20% 1.1 (0.6) 0.8 0
Slide 22: SSF: 3Q09 to 4Q09 Operating Profit Variance
SSF: 3Q09 to 4Q09 Operating Profit Variance Figures in USD Millions $1.5 $0.6 $1.0 $0.5 $0.5 $0.0 $0.6 -$0.5 $0.2 -$1.0 ($2.1) ($0.8) -$1.5 -$2.0 ($1.0) ($2.0) -$2.5 3Q09 Operating Higher turbot Turbot IFRS fair Higher caviar Caviar IFRS fair 3Q09 reflected a Higher A&G and 4Q09 Operating Profit gro
Slide 23: Stolt Bitumen Services and Stolt-Nielsen Gas
Stolt Bitumen Services and Stolt-Nielsen Gas • Stolt Bitumen Services (SBS) – Two ships (5,900 DWT) on order; first ship expected delivery in 3Q10; employment secured on delivery for five years – Exploring further opportunities in the time-charter and second-hand market – Focus on logistical service
Slide 24: Industrial Production: Have We Turned The Corner?
Industrial Production: Have We Turned The Corner? US Industrial Production (Dec.09) UK Industrial Production (Nov.09) Germany Industrial Production (Nov.09) China Ind. Production (% change)(Nov.09) Source: Bloomberg Page 24
Slide 25: Financials
Financials Page 25
Slide 26: Net Profit
Net Profit Figures in USD Millions Quarter Full Year 4Q09 3Q09 4Q08 2009 2008 Stolt Tankers $11.3 $14.2 $27.5 $24.8 $134.0 Stolthaven Terminals 14.5 14.0 6.9 50.0 35.3 Stolt Tank Containers 9.7 13.2 16.1 54.2 50.2 Stolt Sea Farm (2.0) 0.5 (0.1) 4.5 7.7 SNSA Corporate and Other (5.9) (2.6) (2.4) (11.
Slide 27: Balance Sheet and Key Financial Metrics
Balance Sheet and Key Financial Metrics Figures in USD Millions (Except ratios) At the end of: Nov-09 Financial debt covenants Debt (Including Guarantees) $1,338 Tangible Net Worth (TNW) $1,434 Minimum TNW of $600M Debt:TNW 0.93:1 Maximum Debt : TNW of 2:1 EBITDA / Interest expense 7.5:1 Minimum EBI
Slide 28: Administrative and General Expenses
Administrative and General Expenses Figures in USD Millions Revised Quarterly Quarter Full Year Guidance 4Q09 3Q09 4Q08 2009 2008 Stolt Tankers $22.1 $20.5 $22.5 $85.7 $93.5 $24.0 Stolthaven Terminals 3.8 4.0 4.6 15.6 18.5 4.0 Stolt Tank Containers 12.0 12.2 13.5 49.1 47.9 13.0 Stolt Sea Farm 1.6 0.
Slide 29: Depreciation and Amortisation
Depreciation and Amortisation Figures in USD Millions Revised Quarterly Quarter Full Year Guidance 4Q09 3Q09 4Q08 2009 2008 Stolt Tankers $22.8 $25.6 $23.7 $96.7 $88.9 $26.3 Stolthaven Terminals 4.1 3.6 3.5 14.4 13.3 4.1 Stolt Tank Containers 4.5 3.7 4.1 18.6 13.6 4.9 Stolt Sea Farm 1.3 0.7 0.8 3.5
Slide 30: Taxes and Share of Profit of JVs
Taxes and Share of Profit of JVs Figures in USD Millions Taxes Revised Quarterly Quarter Full Year Guidance 4Q09 3Q09 4Q08 2009 2008 Tankers, Terminals and T. Containers $2.9 $3.4 ($6.3) $12.1 $0.6 $3.5 Stolt Sea Farm (1.2) (0.3) (0.5) 0.0 5.0 0.5 SNSA Corporate (4.8) $1.4 (0.5) (2.6) 0.4 0.5 Total
Slide 31: Capital Expenditures Programme: $0.7 Bn Remaining
Capital Expenditures Programme: $0.7 Bn Remaining Figures in USD Millions Actuals Projected Capital Outlays Total Remaining 4Q09 Full Year 2010 2011 2012 2013 Stolt Tankers $35 $211 $77 $156 $173 $52 $458 Stolthaven Terminals 6 (19) 20 24 14 15 $73 Stolt Tank Containers 1 5 23 3 3 3 $32 Stolt Sea Fa
Slide 32: Summary
Summary Market • There are signs of a global economic recovery but we expect it to be slow SNSA • Strong market position • Stable revenue base (70% COA’s in Tankers) • Strong balance sheet with financing in place and strong liquidity Page 32
Slide 33: Thank You
Thank You For more information please visit our website: www.stolt-nielsen.com Page 33