Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q3 2024 Earnings Presentation
24 slides from Stolt-nielsen's earnings presentation, Oct 2, 2024
Slide 1: Third-Quarter 2024 Results
THIRD-QUARTER 2024 RESULTS OCTOBER 2, 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 Third-Quarter 2024 Results 3
Slide 4: Agenda: 3Q24 Results
Agenda: 3Q24 Results 1. Group Highlights 2. Financial Highlights 3. Segment Highlights 4. Market Outlook and Summary Third-Quarter 2024 Results
Slide 5: 3Q24 Key Messages
3Q24 Key Messages ▪ EBITDA over $200 million and at near-record levels for a second consecutive quarter • Robust results across our liquid logistics operations • Record high TCE earnings of $33,355/operating day • Record quarter at SSF1 due to steady demand and pricing ▪ Investing for growth • Addit
Slide 6: 3Q24 SNL Highlights: Continued Momentum in Q3
3Q24 SNL Highlights: Continued Momentum in Q3 3Q24 vs. 3Q23 vs 2Q24 OPERATING REVENUE EBITDA OPERATING PROFIT $ 732.8m $ 209.4m $ 139.3m $ 694.4m (+5.5%) $ 201.2m (+4.1%) $ 127.5m (+9.2%) $ 741.1m (-1.1%) $ 208.9m (+0.2%) $ 136.8m (+1.8%) 1 NET PROFIT FREE CASH FLOW NET DEBT TO EBITDA $ 99.2m
Slide 7: SNL Performance Drivers: Our Performance Remains Strong
SNL Performance Drivers: Our Performance Remains Strong 1 2 TCE / OPERATING DAY (US$) UTILISATION (%) +17.3% -7.0% 33,355 96.8% 90.0% 28,429 3Q23 3Q24 3Q23 3Q24 3 SHIPMENTS (#) VOLUMES SOLD (MT) +2.0% -3.6% 36,641 37,365 2,346 2,262 3Q23 3Q24 3Q23 3Q24 1. TCE/Operating day refers to deepsea
Slide 8: Financial Highlights
Financial Highlights Stolt-Nielsen S|
Slide 9: Financials: Summary Income Statement
Financials: Summary Income Statement Quarter Figures in USD millions 3Q24 3Q23 2Q24 HIGHLIGHTS (3Q24 vs 3Q23) ▪ Like-for-like the revenue and operating expense were Operating Revenue $732.8 $694.4 $741.1 mostly flat. $32.6m of the increase in both revenue and Operating Expenses (472.2) (438.4) (473.
Slide 10: Financials: Cash Flow and Liquidity Position
Financials: Cash Flow and Liquidity Position Quarter Figures in USD millions 3Q24 3Q23 2Q24 HIGHLIGHTS (3Q24 vs 3Q23) ▪ Cash from operations decreased by $15.9m mainly due to an Cash generated from/(used in) operations $234.0 $249.9 ($64.1) increase in working capital. Interest paid (30.1) (30.3) (3
Slide 11: Debt Profile: Well-balanced Maturity Profile
Debt Profile: Well-balanced Maturity Profile MATURITY PROFILE (NEXT FIVE YEARS) Loan Balloon Payments NOK Bonds USPP Notes Loan Amortisation & Lease Payments 500 386.4 400 USD millions 296.3 300.1 86.7 283.8 300 262.3 15.0 110.4 61.0 200 163.2 143.9 15.0 206.7 155.0 70.5 15.0 100 15.0 174.7 118.1 14
Slide 12: Financials: Capital Expenditures
Financials: Capital Expenditures Actuals Actuals Actuals Remaining Approved Figures in USD millions 1Q24 2Q24 3Q24 FY2024 FY2025 Stolt Tankers 45 5 7 35 28 Stolthaven Terminals 16 19 23 30 158 Stolt Tank Containers 10 1 13 29 21 Stolt Sea Farm 1 4 5 8 42 SNL Corporate & Other 1 4 2 - - Total $73 $33
Slide 13: 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 6.81 LTM EBITDA-to-Interest Expense 1.01 1.00 7.0 0.95 0.98 5.91 3,000 0.93 1.0 1,000 5.73 5.81 $845 6.0 $837 Debt-to-TNW (x) 2,500 2,241
Slide 14: Segment Highlights
Segment Highlights 14
Slide 15: Stolt Tankers: Continued Strong Performance
Stolt Tankers: Continued Strong Performance 3Q24 vs. 3Q23 vs. 2Q24 OPERATING REVENUE EBITDA HIGHLIGHTS (3Q24 vs 3Q23) ▪ Higher revenues due to the consolidation of SNAPS regional $ 455.6m $ 144.2m pool and additional re-routing charges ▪ Deepsea revenue slightly impacted by fewer deepsea operati
Slide 16: Stolt Tankers: Record TCE Achieved in Q3
Stolt Tankers: Record TCE Achieved in Q3 Q4 rates expected to remain strong, albeit at lower levels DEEPSEA CHEMICAL INDEX TCE / OPERATING DAY1 4Q24 Indicative 250.0 $36,000 7-11% Decrease $34,000 $33,355 250 200.0 $32,000 Lag Effect $30,000 200 150.0 $28,000 $26,000 150 100.0 $24,000 100 $22,000 50
Slide 17: Stolthaven Terminals: Earnings Ramp up Expected through 2025
Stolthaven Terminals: Earnings Ramp up Expected through 2025 3Q24 vs. 3Q23 vs. 2Q24 OPERATING REVENUE EBITDA UTILISATION1 $ 76.8m $ 43.5m -7.0% -6.5% 96.8% 97.0% $ 74.7m (+2.8%) $ 42.0m (+3.5%) 90.0% 90.8% $ 76.4m (+0.5%) $ 44.3m (-1.9%) 3Q23 3Q24 YTD 3Q23 YTD 3Q24 OPERATING PROFIT HIGHLIGHT
Slide 18: Stolt Tank Containers: Balancing Volumes & Margin Improvement
Stolt Tank Containers: Balancing Volumes & Margin Improvement 3Q24 vs. 3Q23 vs. 2Q24 OPERATING REVENUE EBITDA GROSS PROFIT PER SHIPMENT1/3 (US$) -20.9% -46.2% $ 166.8m $ 28.5m 5-Yr Avg.2 ($987) 1,516 $ 166.4m (+0.3%) $ 36.8m (-22.7%) 1,150 $ 167.1m (-0.1%) $ 25.9m (+10.0%) 910 816 3Q23 3Q24
Slide 19: Stolt Sea Farm: Steady Demand and Prices
Stolt Sea Farm: Steady Demand and Prices 3Q24 vs. 3Q23 vs. 2Q24 1 OPERATING REVENUE EBITDA (Excl. FV Adj.) VOLUMES SOLD (MT) +0.2% $ 33.6m $ 10.7m 2,346 -3.6% 2,262 6,544 6,560 $ 31.0m (+8.4%) $ 9.1m (+17.6%) $ 31.6m (+6.3%) $ 10.6m (+0.9%) 3Q23 3Q24 YTD 3Q23 YTD 3Q24 OPERATING PROFIT TURBOT
Slide 20: Market Outlook
Market Outlook Stolt-Nielsen S|
Slide 21: Market Outlook: Favourable Supply / Demand Fundamentals, Low MR Rates an Area of Focus
Market Outlook: Favourable Supply / Demand Fundamentals, Low MR Rates an Area of Focus SEABORNE TRADE EXPECTED TO INCREASE LIMITED IMPACT FROM LOWER MR RATES 50 24 1Y TC Rates 19k dwt (k$/Day) 10% Seaborne Trade (million tonnes) 389 402 Average MR Earnings (k$/Day) 400 375 45 8% 20 350 40 6% 35 YoY
Slide 22: Concluding Remarks
Concluding Remarks CONTINUED STRONG EARNINGS CASH FLOWS FOR GROWTH EXPECTED TO CLOSE 2024 AND RETURNS ▪ Lower TCE rates QoQ but expected to ▪ Highly attractive portfolio of growth remain strong projects across our businesses ▪ Contract optimisation in full swing; ▪ Active management of our fleet por
Slide 23: Appendix
Stolt-Nielsen S|
Slide 24: Appendix: Bunker Cost Analysis
Appendix: Bunker Cost Analysis BUNKER COST – DEEPSEA AND REGIONAL (US $m) $120 13.8 14 $100 82.4 81.7 74.0 78.3 12 $80 71.6 70.5 71.1 70.8 Bunker Cost (US $ m) Operating Days (‘000) 59.5 63.6 64.1 63.7 57.4 $60 10 97.4 108.8 96.5 86.2 88.2 92.6 93.7 87.6 $40 76.6 81.5 78.8 8 67.4 68.8 $20 6 $0 -7.9