Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q2 2024 Earnings Presentation
25 slides from Stolt-Nielsen's earnings presentation, Jul 11, 2024
Slide 1: Second-Quarter 2024 Results
SECOND-QUARTER 2024 RESULTS JULY 11, 2024 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: Presenters
Presenters Udo Lange Jens F. Grüner-Hegge Alex Ng Chief Executive Officer Chief Financial Officer Vice President, Corporate Development and Strategy Second-Quarter 2024 Results 3
Slide 4: Agenda: 2Q24 Results
Agenda: 2Q24 Results 1. Group Highlights 2. Financial Highlights 3. Segment Highlights 4. Market Outlook and Summary Second-Quarter 2024 Results
Slide 5: 2Q24 Key Messages
2Q24 Key Messages ▪ Continued strong earnings momentum in 2Q24 • Record high TCE earnings of $32,862/operating day • Outstanding quarter at SSF due to firming prices and stable volumes ▪ Aspiring to be Simply the Best for… • Shareholders: Capital Markets Day held on 12 June, >NOK160 share price grow
Slide 6: 2Q24 SNL Highlights: Continued Momentum in Q2
2Q24 SNL Highlights: Continued Momentum in Q2 Adjusted 2Q24 vs. Adjusted 2Q23 vs 1Q24 OPERATING REVENUE EBITDA OPERATING PROFIT $ 741.1m $ 208.9m $ 136.8m $ 721.9m (+2.7%) $ 224.6m1 (-7.0%) $ 155.1m1 (-11.8%) $ 707.3m (+4.8%) $ 210.3m (-0.7%) $ 132.1m (+3.5%) 2 3 NET PROFIT FREE CASH FLOW NET
Slide 7: Diversified Operating Profit Offsetting Return to STC Pre-Covid Margins
Diversified Operating Profit Offsetting Return to STC Pre-Covid Margins QUARTERLY OPERATING PROFIT (US $m)1 OPERATING PROFIT (US $m) $180 $160 TANKERS, TERMINALS AND SEA $39.7 $14.2 $12.5 FARM $140 $13.3 $39.3 $23.9 $120 $44.9 $43.1 $100 $44.7 143.9 $80 $60 126.2 $40 $20 $0 2Q22 3Q22 4Q22 1Q23 2Q23
Slide 8: SNL Performance Drivers: Our Performance Remains Strong
SNL Performance Drivers: Our Performance Remains Strong 1 2 TCE / OPERATING DAY (US$) UTILISATION (%) +6.4% -7.2% 97.0% 90.0% 32,862 30,880 2Q23 2Q24 2Q23 2Q24 3 SHIPMENTS (#) VOLUMES SOLD (MT) +17.1% -2.3% 2,207 2,157 41,781 35,667 2Q23 2Q24 2Q23 2Q24 1. TCE/Operating day refers to deepsea
Slide 9: Financial Highlights
Financial Highlights Stolt-Nielsen S|
Slide 10: Financials: Summary Income Statement
Financials: Summary Income Statement Quarter Figures in USD millions 2Q24 2Q23 1Q24 HIGHLIGHTS (2Q24 vs 2Q23) ▪ Higher revenue driven by consolidation of SNAPS regional Operating Revenue $741.1 $721.9 $707.3 pool revenue, partly offset by lower deepsea revenues and Operating Expenses (473.8) (445.8)
Slide 11: Financials: Cash Flow and Liquidity Position
Financials: Cash Flow and Liquidity Position Quarter Figures in USD millions 2Q24 2Q23 1Q24 HIGHLIGHTS (2Q24 vs 2Q23) ▪ Cash from operating activities decreased due to $290m Cash generated from/(used in) operations ($64.1) $207.7 $173.1 payment in April 2024 to settle the MSC Flaminia legal claim In
Slide 12: Debt Profile: Extending Debt Maturities
Debt Profile: Extending Debt Maturities MATURITY PROFILE (NEXT TWO YEARS) Loan Balloon Payments USPP Notes Loan Amortisation & Lease Payments RCF 291.7 300 Refinanced in 55.5 July 2024 USD millions 200 163.4 100 100.0 68.5 236.3 75.3 58.2 50.5 48.7 39.1 54.6 59.6 58.2 75.3 50.5 48.7 39.1 0 3Q 4Q 1Q
Slide 13: Financials: Capital Expenditures
Financials: Capital Expenditures Actuals Actuals Remaining Approved Figures in USD millions 1Q24 2Q24 FY2024 FY2025 Stolt Tankers 45 5 28 28 Stolthaven Terminals 16 20 85 163 Stolt Tank Containers 10 2 11 3 Stolt Sea Farm 1 4 24 41 - SNL Corporate & Other 1 4 24 Total $73 $35 $172 $235 Stolt Tankers
Slide 14: Robust Financial KPIs with Significant Headroom
Robust Financial KPIs with Significant Headroom DEBT TO TANGIBLE NET WORTH (MAXIMUM 2.25:1.00) EBITDA TO INTEREST EXPENSE (MINIMUM 2.00:1.00) 3,500 1.2 1,200 6.88 LTM EBITDA-to-Interest Expense 1.07 1.01 1.00 7.0 3,000 0.93 0.95 5.73 5.91 5.81 1.0 1,000 5.54 6.0 Debt-to-TNW (x) $837 2,500 US$ millio
Slide 15: Segment Highlights
Segment Highlights Stolt-Nielsen
Slide 16: Stolt Tankers: New Record Quarter
Stolt Tankers: New Record Quarter 2Q24 vs. 2Q23 vs. 1Q24 OPERATING REVENUE EBITDA HIGHLIGHTS (2Q24 vs 2Q23) ▪ Higher revenues due to the consolidation of SNAPS $ 465.3m $ 145.4m regional pool ▪ Deepsea revenue slightly impacted by fewer deepsea $ 430.8m (+8.0%) $ 136.5m (+6.5%) operating days, o
Slide 17: Stolt Tankers: Record TCE Achieved in Q2
Stolt Tankers: Record TCE Achieved in Q2 DEEPSEA CHEMICAL INDEX TCE / OPERATING DAY1 3Q24 Indicative $36,000 250.0 2-4% Increase $34,000 $32,862 250 $32,000 Lag Effect 200.0 $30,000 200 150.0 $28,000 $26,000 150 100.0 $24,000 100 $22,000 50.0 $20,000 50 $18,000 0.0 $16,000 0 Jun-21 Dec-21 Jun-22 Dec
Slide 18: Stolthaven Terminals: Improved Operating Performance
Stolthaven Terminals: Improved Operating Performance 2Q24 vs. 2Q23 vs. 1Q24 OPERATING REVENUE EBITDA UTILISATION1 $ 76.4m $ 44.3m -2.5% -6.2% 97.1% $ 74.3m (+2.9%) $ 43.7m (+1.4%) 92.3% 90.0% 91.2% $ 76.8m (-0.5%) $ 44.1m (+0.4%) 1Q24 2Q24 YTD 2Q23 YTD 2Q24 OPERATING PROFIT HIGHLIGHTS (2Q24 vs 2
Slide 19: Stolt Tank Containers: Highest Ever Shipment Volume
Stolt Tank Containers: Highest Ever Shipment Volume 2Q24 vs. Adjusted 2Q231 vs. 1Q24 OPERATING REVENUE EBITDA ADJUSTED GROSS PROFIT PER SHIPMENT1/3 (US$) -54.8% $ 167.1m $ 25.9m -4.7% 1,712 $ 189.3m (-11.7%) $ 48.9m (-47.0%) 5-Yr Avg.2 ($987) $ 156.1m (+7.0%) $ 26.9m (-3.9%) 792 755 773 1Q24 2Q2
Slide 20: Stolt Sea Farm: Firming Volumes and Prices
Stolt Sea Farm: Firming Volumes and Prices 2Q24 vs. 2Q23 vs. 1Q24 1 OPERATING REVENUE EBITDA (Excl. FV Adj.) VOLUMES SOLD (MT) $ 31.6m $ 10.6m +0.7% +2.3% 2,142 2,157 4,201 4,298 $ 27.6m (+14.5%) $ 6.8m (+56.5%) $ 30.6m (+3.2%) $ 9.1m (+16.5%) 1Q24 2Q24 YTD 2Q23 YTD 2Q24 OPERATING PROFIT TURBOT
Slide 21: Market Outlook
Market Outlook Stolt-Nielsen
Slide 22: Market Outlook: Favourable Market Fundamentals
Market Outlook: Favourable Market Fundamentals SEABORNE TRADE EXPECTED TO INCREASE RATES REMAIN FIRM LIMITING SWING TONNAGE 10% 50 24 Seaborne Trade (million tonnes) 398 375 386 1Y TC Rates 19,999 dwt ($/Day) 400 Average MR Earnings ($/Day) 8% 20 350 40 6% YoY Growth 300 16 4% 30 250 12 2% 200 20 0%
Slide 23: Concluding Remarks
Concluding Remarks CONTINUED STRONG EARNINGS CASH FLOWS FOR GROWTH EXPECTED IN 2H24 AND RETURNS ▪ TCE expected to increase 2-4% next ▪ Balance sheet strength – new BBB-rated quarter above recent historic high USPP ▪ Contract optimisation ramp up in 2H24; ▪ Investing for long-term growth – targeted f
Slide 24: Q&A
Q&A Stolt-Nielsen S|
Slide 25: Appendix: Bunker Cost Analysis
Appendix: Bunker Cost Analysis BUNKER COST – DEEPSEA AND REGIONAL (US $m) $120 14.0 14 $100 82.4 81.7 71.6 70.5 71.1 70.8 74.0 12 $80 Bunker Cost (US $ m) Operating Days (‘000) 59.5 63.6 64.1 63.7 54.2 57.4 $60 10 97.4 108.8 96.5 86.2 88.2 92.6 93.7 $40 76.6 81.5 78.8 8 59.1 67.4 68.8 $20 6 $0 -4.9