Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q1 2018 Earnings Presentation
34 slides from Stolt-nielsen's earnings presentation, Apr 12, 2018
Slide 1: First-Quarter 2018 Results Presentation
First-Quarter 2018 Results Presentation April 12, 2018
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: Stolt-Nielsen Limited Representatives
Stolt-Nielsen Limited Representatives • Niels G. Stolt-Nielsen Chief Executive Officer • Jens F. Grüner-Hegge Chief Financial Officer Page 3
Slide 4: Agenda
Agenda • SNL 1Q18 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: First-Quarter 2018 Highlights
First-Quarter 2018 Highlights • First-quarter results included a one-time gain of $24.9m, reflecting the reduction in SNL’s net deferred tax liability following the lowering of the US federal corporate income tax rate, effective January 1, 2018 • Stolt Tankers reported an operating profit of $10.9m,
Slide 6: SNL: 4Q17 to 1Q18 Net Profit Variance
SNL: 4Q17 to 1Q18 Net Profit Variance Figures in $US Millions Note: Net Profit attributable to equity holders of SNL Page 6
Slide 7: Stolt Tankers
Stolt Tankers $US Millions $US Millions Stolt Tankers Joint Service Sailed-in T/C Index REVENUE GROSS PROFIT 350 60 280 45 210 30 51.3 48.5 54.1 140 283.4 292.6 299.7 282.8 295.1 40.7 15 34.4 70 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 $US Millions Days OPERATING PROFIT STJS - OPERATING
Slide 8: Tankers: 4Q17 to 1Q18 Operating Profit Variance
Tankers: 4Q17 to 1Q18 Operating Profit Variance Figures in $US Millions Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs Figures in $US Million Realised Unrealised Total Hedge Period G/(L) G/(L) G/(L) 1Q17 2.0 0.0 2.0 2Q17 1.4 -3.2 -1.8 3Q17 1.4 3.4 4.8 4Q17 2.6 5.9 8.5 FY17 7.4 6.1 13.5 1Q18 2.8 -3.1 -0.3 Future Swaps Volume (MT) Weighted av. price 2018 80,000 263.0 2019 48,000 260.8 Optio
Slide 10: STJS Spot Rate and the Impact on Earnings
STJS Spot Rate and the Impact on Earnings STJS average quarterly Spot rates / bunker purchase prices ‐ 2011‐2018 Q1 in $US 100.0 800 90.0 700 80.0 Bunker IFO $/tonne 600 70.0 Spot $/tonne 60.0 500 50.0 400 40.0 300 30.0 200 20.0 10.0 100 ‐ ‐ IFO Purchase Price Average Per Quarter Spot rate Bunker Cl
Slide 11: Stolt Tankers: STJS Sensitivities
Stolt Tankers: STJS Sensitivities Figures in $US Millions, except volume Expected Bunker recovery Net Impact Expected Cost IFO Cost through on P&L per hedging STJS Bunker Price Sensitivity + MGO Increase surcharge quarter result a IFO volume 112,492 tonnes IFO average price 1Q18 $369 per tonne $55.9
Slide 12: Market Development
Market Development • Spot rates strengthened in late 2017/early 2018, but the improvement was short lived and most markets have returned to earlier weaker levels • Intense COA competition continues, driven by owners seeking to secure cargo in advance of newbuildings yet to be delivered in 2018 • Out
Slide 13: Market Development Continued
Market Development Continued *12m rolling average of spot earnings for crude and product tanker. Average freight indexes from chemical tanker majors Odfjell and Solt-Nielsen, quarterly observations smoothed Source: Nordea • The VLCC, MR and Chemicals markets are frequently correlated; all three segm
Slide 14: Chemical Tanker Fleet and Orderbook – 1Q18
Chemical Tanker Fleet and Orderbook – 1Q18 Source: Stolt-Nielsen and Drewry, as of April 1, 2018 Competitor criteria: i) ship size between 15,000 and 50,000 dwt ii) average segregation size 3,000 dwt Page 14
Slide 15: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT • Revenue increased $1.2m from 70 24 last quarter 60 18 50 40 • Global utilisation for SNL owned terminals increased to 12 22.2 21.9 59.7 60.7 61.0 61.4 62.5 21.3 22.0 30 18.8 20 88.5% from 87.6% due to 6 10 0 1Q17 2Q17 3Q17 4Q17 1Q
Slide 16: Terminals: 4Q17 to 1Q18 Operating Profit Variance
Terminals: 4Q17 to 1Q18 Operating Profit Variance Figures in $US Millions Page 16
Slide 17: Stolthaven Terminals: Market Update & Key Initiatives
Stolthaven Terminals: Market Update & Key Initiatives • Continue to pursue the development of long-term contracts with potential pipeline-connected industrial customers • Focus on ship-to-shore efficiency, including construction of a new ship dock in Houston, expected to be completed by 1Q19; aim is
Slide 18: Infrastructure Improvements Underway
Infrastructure Improvements Underway • SNL has invested over $1bn in terminals since 2010, almost doubling capacity with an increase of more than 800,000 cbm • Multiple infrastructure investments at our terminals include a new jetty in Houston • Actions aimed at improving utilisation, growing the re
Slide 19: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 150 35 28 100 21 129.6 132.6 136.9 132.5 29.7 33.1 33.4 113.6 14 29.8 50 24.1 7 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION 35,000 100% 18 28,000 31,618 31,712 32,561
Slide 20: STC: 4Q17 to 1Q18 Operating Profit Variance
STC: 4Q17 to 1Q18 Operating Profit Variance Figures in $US Millions ` Page 20
Slide 21: Stolt Tank Containers: Market Update & Key Initiatives
Stolt Tank Containers: Market Update & Key Initiatives • Strong demand in most regions; focus on increasing both utilisation 126,848 and turns per tank • Reduction in operating expenses • Focus on systems development and implementation of global platforms to increase efficiency and scale, and improv
Slide 22: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before |IFRS adjustment) 25 4 20 3 15 23.3 23.7 2 3.8 10 3.5 18.5 15.6 15.3 1 2.1 2.1 1.6 5 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 $US Millions $US Millions OPERATING PROFIT/LOSS a) IFRS SEASONALITY 2.5 2 1.5 2.2 2.2 1 0.5
Slide 23: SSF: 4Q17 to 1Q18 Operating Profit Variance
SSF: 4Q17 to 1Q18 Operating Profit Variance Figures in $US Millions Page 23
Slide 24: Financials
Financials Page 24
Slide 25: Net Profit
Net Profit Figures in $US Millions Quarter Full Year 1Q18 4Q17 1Q17 2017 Operating Profit (before one-offs) $46.7 $47.0 $51.8 $204.9 Terminals accelerated depreciation - - (0.6) - Reversal of deferred tax liability at JV 8.2 - - - Gain / (loss) on sale of assets - 0.9 (2.0) (0.5) Jo Tankers integrat
Slide 26: Balance Sheet
Balance Sheet Figures in $US Millions Period ended Figures in $US Millions (Except ratios) At the end of: Feb.28.18 Cash and cash equivalents $70 February 2018 Receivables 265 Other current assets 187 Debt $2,518 Total current assets 523 Tangible Net Worth (TNW) $1,628 Debt:TNW 1.55:1 Property, plan
Slide 27: Cash Flow
Cash Flow Figures in $US Millions Quarter Full Year 1Q18 4Q17 2017 Net profit $39 $1 $50 Depreciation, amortisation and non-cash items 55 65 259 Adjustment to deferred tax (25) 0 0 Changes in working capital (23) (16) (10) Cashflow Priorities: Other receipts, net 11 12 26 Net cash generated by opera
Slide 28: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 80 14% 35 14% 78 73 74 72 30 32 69 69 68 70 11% 30 30 30 11% 60 28 28 29 29 65 63 25 62 27 55 25 8% 20 23 8% 21 40 15 5% 5% 10 20 2% 2% 5 0 -1% 0 -1% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Slide 29: Administrative & General Expenses
Administrative & General Expenses Figures in $US Millions Updated Quarterly Quarter Full Year Guidance 1Q18 4Q17 1Q17 2017 Stolt Tankers $23.8 $23.2 $22.5 $90.3 $23.7 Stolthaven Terminals 11.5 10.4 10.1 42.5 11.5 Stolt Tank Containers 17.4 16.7 15.7 64.0 17.5 Stolt Sea Farm 1.6 1.5 1.2 5.7 2.0 SNL C
Slide 30: Depreciation and Amortisation
Depreciation and Amortisation Figures in $US Millions Updated Quarterly Quarter Full Year Guidance 1Q18 4Q17 1Q17 2017 Stolt Tankers $44.3 $42.8 $42.0 $169.7 $44.8 Stolthaven Terminals 14.1 14.6 13.1 55.2 15.0 Stolt Tank Containers 6.1 7.9 7.3 27.8 6.5 Stolt Sea Farm 1.5 1.8 1.1 6.1 1.5 SNL Corporat
Slide 31: Share of Profit of JVs and Tax
Share of Profit of JVs and Tax Figures in $US Millions Share of Profit of JVs Updated Quarterly Quarter Full Year Guidance 1Q18 4Q17 1Q17 2017 Stolt Tankers $0.4 $2.5 $1.5 $7.4 $1.0 Stolthaven Terminals 14.3 4.5 4.5 19.7 5.7 Tank Containers 0.2 0.3 0.5 1.2 - Corporate and Other (1.0) (2.7) (2.5) (10
Slide 32: Capital Expenditures Programme
Capital Expenditures Programme Figures in $US Millions Projected Actual Projections Total Remaining 1Q 18 2018 2019 2020 2021 2022 Stolt Tankers $10 $19 $23 $13 $5 $2 $61 Stolthaven Terminals 17 106 50 25 17 30 227 Stolt Tank Containers 2 21 2 - - - 23 Stolt Sea Farm 1 15 18 11 4 4 52 Stolt-Nielsen
Slide 33: Debt Maturity Profile
Debt Maturity Profile Figures in $US Millions SNI03 was repaid after quarter end Note: • $230m drawn under the revolver as of February 28, 2018 Page 33
Slide 34: Key Takeaways
Key Takeaways • 1Q18 net profit of $38.8m, reflecting significant one-offs during the quarter • Continued soft market in tankers with significant newbuilding deliveries expected to continue through 2018 • Strong demand in tank containers, solid fundamentals in terminals, and rising prices for sole,