Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q1 2017 Earnings Presentation
36 slides from Stolt-nielsen's earnings presentation, Apr 6, 2017
Slide 1: First-Quarter 2017 Results Presentation
Stolt-Nielsen Limited First-Quarter 2017 Results Presentation April 06, 2017
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 Limited • Jan Chr. Engelhardtsen CFO Stolt-Nielsen Limited Page 3
Slide 4: Agenda
Agenda • SNL 1Q17 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: First-Quarter 2017 Highlights
First-Quarter 2017 Highlights • Stolt Tankers operating profit of $28.5M, down from $30.4M, reflecting continued softness in the chemical tanker market, higher bunker fuel costs and a loss on the recycling of a ship brought forward, partly offset by the positive impact of the JOT acquisition • Stolt
Slide 6: SNL: 4Q16 to 1Q17 Net Profit Variance
SNL: 4Q16 to 1Q17 Net Profit Variance Figures in USD Millions Note: Net Profit attributable to equity holders of SNL Page 6
Slide 7: Stolt Tankers
Stolt Tankers $US Millions $US Millions REVENUE GROSS PROFIT $US Millions Days OPERATING PROFIT/(LOSS) STJS - OPERATING DAYS JOT ships contributed 804 days Stolt Pride • Operating revenue increased by 9.2% from previous quarter, mainly due to the addition of the JOT ships, which helped push operatin
Slide 8: Tankers: 4Q16 to 1Q17 Operating Profit Variance
Tankers: 4Q16 to 1Q17 Operating Profit Variance Figures in USD Millions Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Bunker cost net of bunker surcharge, but excluding bunker hedges, increased by $7.9M from 4Q16 • Average price of IFO consumed increased to $306/ton from $261/ton in 4Q16 • Average price of IFO purchased increased to $328/ton from $273/ton in 4Q16 • COA bunker surcharge
Slide 10: Stolt Tankers Joint Service Sailed-in T/C Index
Stolt Tankers Joint Service Sailed-in T/C Index Index as published through 2013, based on SIR STJS member-ships + net result outside T/C ships, base is 1Q96 + adjusting for inflation based on U.S. Consumer Price Index (CPI) Source: Stolt-Nielsen and the Bureau of Labor Statistics (U.S. CPI) Page 10
Slide 11: Deep Sea Market Spot Rate Development
Deep Sea Market Spot Rate Development Specialty (1,000 mt) Specialty (1,000 mt) vs Commodity (5,000 mt) *Inge Steensland AS Shipbrokers has from 1st of January become Steem1960 Steensland Shipbrokers AS • Commodity rates recovered by 12% in 1Q17 following a 32% drop in 2016 • Specialty rates remaine
Slide 12: STJS Spot Rate and the Impact on Earnings
STJS Spot Rate and the Impact on Earnings 15% reduction in spot rate since 3Q15 • Our 71% COA coverage protects us from the impact of short term swings in spot rates; low spot ratio allows us to be more selective on spot cargoes • COA coverage decreased to 71%, from 77% in 4Q16, due to the addition
Slide 13: Chemical Tanker Fleet and Orderbook – 1Q17
Chemical Tanker Fleet and Orderbook – 1Q17 Source: Stolt-Nielsen and Drewry, as of March 1, 2017 Page 13 Strictly Private and Confidential and Not for Distribution
Slide 14: New Building Delivery Schedule
New Building Delivery Schedule Stolt Integrity (Third in a series of six newbuilds from China) Stolt Lerk and Stolt Lind (Third and fourth in a series of eight JV newbuilds from China) Name Expected Name Expected Delivery (JV Ships) Delivery Stolt Pride Delivered - Jul 22, 2016 Stolt Apal Delivered
Slide 15: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT $US Millions Thousand cubic metres - (owned terminals) OPERATING PROFIT AVERAGE CAPACITY - UTILISATION • Revenue decreased slightly in the first quarter, with slightly lower throughput revenue offset by higher utility revenue • Leas
Slide 16: Terminals: 4Q16 to 1Q17 Operating Profit Variance
Terminals: 4Q16 to 1Q17 Operating Profit Variance Figures in USD Millions Page 16
Slide 17: Stolthaven Owned Terminals Key Initiatives
Stolthaven Owned Terminals Key Initiatives • Modernise the terminals with the latest technology in order to optimise operational performance, whilst improving safety and efficiency • Seek organic growth at current facilities in order to leverage the existing infrastructure and fully utilise the land
Slide 18: Stolthaven Houston – East Property Expansion
Stolthaven Houston – East Property Expansion • 50+ acres available land for expansion opportunities for over 2M barrels of storage capacity, additional jetties and railcar and truck racks Page 18
Slide 19: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION • Revenue down 2.3% in the first quarter, consistent with seasonal patterns; transportation revenue was up 2.2% due to increase in shipments, which was offset by lower prices an
Slide 20: STC: 4Q16 to 1Q17 Operating Profit Variance
STC: 4Q16 to 1Q17 Operating Profit Variance Figures in USD Millions ` Page 20
Slide 21: Stolt Tank Containers Key Initiatives
Stolt Tank Containers Key Initiatives 1Q17: 30,228 1Q17: 34,688 FY2016: 120,210 • Strong demand for shipments but competition is driving the margin down • Continue to remain aggressive on pricing to improve utilisation and increase turns per tank • Focus on systems development and implementation of
Slide 22: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before IFRS adjustment) $US Millions % a) GROSS OPERATING PROFIT MARGIN OPERATING PROFIT/LOSS (before IFRS adj) a) Excludes the accounting for inventories at fair value • Volume of turbot was up 12% but prices were down 5% due to signifi
Slide 23: SSF: 4Q16 to 1Q17 Operating Profit Variance
SSF: 4Q16 to 1Q17 Operating Profit Variance Figures in USD Millions Page 23
Slide 24: Stolt-Nielsen Gas
Stolt-Nielsen Gas Share holding: 2.3% Stolt-Nielsen Gas (SNG) Golar LNG 8.6% 100% 50% AGHL Stolt-Nielsen LNG Holdings Ltd. Golar Stolt JV Co 100% 10% Avenir LNG Ltd HIGAS S.r.L LNG Strategy: Page 24
Slide 25: Financials
Financials Stolt Pride sea trial Page 25
Slide 26: Net Profit
Net Profit Figures in USD Millions Quarter Full Year 1Q17 4Q16 1Q16 2016 Operating Profit (before one offs) $51.8 $55.0 $63.5 $248.3 Tanker accelerated depreciation - (1.9) (6.9) (15.6) Terminals accelerated depreciation, claims (0.6) (1.5) - (1.5) (Loss) / gain on sale of assets (2.0) (0.2) 2.5 (0.
Slide 27: Balance Sheet
Balance Sheet Figures in USD Millions Period ended Feb.28.17 Figures in USD Millions (Except ratios) At the end of: Cash and cash equivalents $108 February 2017 Marketable securities - Receivables 237 Debt $2,477 Other current assets 167 Tangible Net Worth (TNW) $1,597 Total current assets 512 Debt:
Slide 28: Cash Flow
Cash Flow Figures in USD Millions Quarter Full Year 1Q17 4Q16 2016 Net income $15 $23 $113 Depreciation, amortisation and non-cash items 67 44 187 Changes in working capital (26) 4 (3) Other receipts, net 1 0 22 Net cash generated by operating activities $57 $71 $319 Capital expenditures and intangi
Slide 29: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 80 14% 30 14% 11% 25 60 11% 8% 20 8% 40 73 74 72 15 28 28 29 30 69 69 68 65 5% 26 27 27 62 24 25 5% 23 21 23 49 10 20 39 43 43 2% 2% 5 0 -1% 0 -1% 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q
Slide 30: Administrative and General Expenses
Administrative and General Expenses Figures in USD Millions Updated Quarterly Quarter Full Year Guidance 1Q17 4Q16 1Q16 2016 Stolt Tankers $22.5 $18.5 $19.7 $77.2 $22.5 Stolthaven Terminals 10.1 9.9 10.1 42.8 10.5 Stolt Tank Containers 15.7 14.2 14.9 61.0 16.0 Stolt Sea Farm 1.2 1.2 1.0 5.0 1.0 SNL
Slide 31: Depreciation and Amortisation
Depreciation and Amortisation Updated Figures in USD Millions Quarterly Quarter Full Year Guidance 1Q17 4Q16 1Q16 2016 Stolt Tankers $42.0 $33.4 $38.1 $141.4 $44.0 Stolthaven Terminals 13.1 15.7 13.5 57.6 13.6 Stolt Tank Containers 7.3 6.2 5.7 24.0 7.1 Stolt Sea Farm 1.1 1.4 1.5 5.6 1.5 SNL Corporat
Slide 32: Share of Profit of JVs and Taxes
Share of Profit of JVs and Taxes Figures in USD Millions Share of Profit of JVs Updated Quarterly Quarter Full Year Guidance 1Q17 4Q16 1Q16 2016 Stolt Tankers $1.5 $2.5 3.4 $13.4 $3.0 Stolthaven Terminals 4.5 3.6 4.5 18.9 5.0 Tank Containers 0.5 0.3 0.7 1.5 0.3 Corporate and Other (2.5) (0.9) 2.1 (0
Slide 33: Capital Expenditures Programme
Capital Expenditures Programme Figures in USD Millions Figures in USD Millions Projected Actual Projections Total 1Q17 2Q17 - 4Q17 2018 2019 2020 2021 Stolt Tankers $109 $133 $24 $18 $12 $6 $192 Stolthaven Terminals 16 112 70 35 21 17 255 Stolt Tank Containers 4 28 3 - - - 31 Stolt Sea Farm 0 5 6 17
Slide 34: Debt Maturity Profile
Debt Maturity Profile Figures in USD Millions Notes: $362M drawn under revolver as of April 3rd, 2017 Page 34 Strictly Private and Confidential and Not for Distribution
Slide 35: Key Takeaways
Key Takeaways • 1Q17 net profit of $15.2M; 1Q17 EPS of $0.25 • Integration of JOT progressing as planned; focus on realising synergies and improving operations for the benefit of our stakeholders • Weaker market in tankers and tank containers, but we believe we are near the bottom in both; fundament
Slide 36: For more information please visit our website
For more information please visit our website: www.stolt-nielsen.com Page 36