Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q1 2012 Earnings Presentation
33 slides from Stolt-Nielsen's earnings presentation, Apr 12, 2012
Slide 1: Stolt-Nielsen Limited First-Quarter 2012 Results Presentation
Stolt-Nielsen Limited First-Quarter 2012 Results Presentation April 12, 2012
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 • Stolt-Nielsen Limited 1Q12 Highlights – Stolt Tankers – M/T Stolt Valor Update – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Balance Sheet, Cash Flow and Financial Results Page 4
Slide 5: SNL: First-Quarter 2012 Highlights
SNL: First-Quarter 2012 Highlights • Stolt Tankers reported an operating loss of $8.6M, down from an operating profit of $7.0M in previous quarter due to lower utilisation (tons/day) of the deep sea fleet, ships taken out of service for unscheduled dry-dock repairs, weaker results in the regional fl
Slide 6: SNL: 4Q11 to 1Q12 Net Profit Variance
SNL: 4Q11 to 1Q12 Net Profit Variance Figures in USD Millions $25 $22.2 $20 $15 $5.3 ($0.5) $10 ($0.8) $8.0 ($1.4) ($1.2) ($15.6) $5 $0 4Q11 Net Profit * Low er Tankers Higher Terminals Low er Tank Low er Sea Farm Higher Interest FX, corporate and 1Q12 Net Profit * operating profit operating profit
Slide 7: Stolt Tankers
Stolt Tankers $US Millions $US Millions REVENUE GROSS PROFIT 30 300 20 200 321.0 327.1 315.5 310.1 26.8 26.1 275.6 10 100 17.2 16.2 13.3 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 $US Millions Days OPERATING PROFIT STJS - OPERATING DAYS 7,000 6,000 8 5,000 4,000 4 7.0 6.6 3,000 5,923 5,87
Slide 8: Stolt Tankers: 4Q11 to 1Q12 Operating Profit Variance
Stolt Tankers: 4Q11 to 1Q12 Operating Profit Variance Figures in USD Millions $8 $7.0 $6 $4 ($3.2) $2 $0 $0.3 -$2 ($6.0) -$4 -$6 ($4.6) -$8 ($1.0) ($1.1) ($8.6) -$10 4Q11 Operating Lower trading Higher bunker Higher bunker Higher owning Lower share of Higher A&G and 1Q12 Operating Profit results bef
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Net bunker cost increased $5.7M from previous quarter; average bunker price increased to $688 per ton in 1Q12 from $665 in 4Q11 • No paper hedges in place going forward; COA bunker surcharge clauses cover on average approximately 66% of bunker price risk Figures in USD
Slide 10: Stolt Tankers Market Situation
Stolt Tankers Market Situation • Sentiment is cautious; while contract rates are firming, volumes are soft affecting average rates • Recovery of freight rates remains uneven with stronger markets quickly attracting surplus tonnage • Bunker prices remain high relative to general economic conditions •
Slide 11: Stolt Tankers Joint Service Sailed-in T/C Index
Stolt Tankers Joint Service Sailed-in T/C Index Index (1st Quarter 1990 = 1.0) 1.6 3Q95 = 1.48 1Q12 = 1.05 Asia Pacific economic crisis and large 1.4 newbuilding programmes Global Recession Sept.11 1.2 Global economic 1 downturn starts First Gulf war Strong Asia growth Strong CPP inventory build and
Slide 12: Freight Rate History
20 30 40 50 60 70 80 90 100 110 120 130 140 20 30 40 50 60 70 80 90 100 Jan'93 Jan'93 Jul Jul Jan'94 Jan'94 July Rate ($/MT) Rate ($/MT) July Page 12 Jan'95 Jan'95 Jul Jul Jan'96 Jan'96 Jul Jul Jan'97 Jan'97 Jul Jul Jan'98 Jan'98 July July Jan.99 Jan'99 Jul Jul Jan'00 Jan'00 July July Quincannon 1,0
Slide 13: Chemical Tanker Fleet and Orderbook – 1Q12
Chemical Tanker Fleet and Orderbook – 1Q12 DWT (in ‘000 MT) 1,300 Orderbook = 3.8% 1,100 of existing fleet Tonnage delivered 900 Orderbook Expected 700 recycling = 0.3% Expected recycling of existing fleet 500 Existing fleet 300 Historic orderbook 100 DWT (in ‘000 MT) 18,000 -100 2000 2001 2002 2003
Slide 14: M/T Stolt Valor
M/T Stolt Valor • On March 15, an explosion occurred in the mid-ship cargo section of the MT Stolt Valor while she was transiting the Arabian Gulf; following the explosion a fire ensued and burned for seven days • One crewmember perished; the remaining 24 officers and crew were rescued from the ship
Slide 15: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT 45 20 36 15 27 46.2 10 19.3 43.0 17.9 18 35.0 34.8 35.6 16.4 15.7 15.5 5 9 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 $US Millions Thousand cubic metres - (owned terminals) OPERATING PROFIT CAPACITY - UTILISATION 1200 100
Slide 16: Terminals: 4Q11 to 1Q12 Operating Profit Variance
Terminals: 4Q11 to 1Q12 Operating Profit Variance Figures in USD Millions $25 $5.8 $23.3 ($1.6) $20 $1.4 $18.0 ($0.3) $15 $10 $5 $0 4Q11 Operating Profit Higher gross profit own Higher depreciation Negative goodwill Higher A&G and other 1Q12 Operating Profit terminals acquisition Moerdijk terminal P
Slide 17: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 150 35 28 100 21 144.5 139.5 32.1 32.7 32.7 127.5 133.3 129.9 30.8 31.0 14 50 7 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 $US Millions OPERATING PROFIT 30,000 SHIPMENTS - UTILISATION 100% 20 27,930 29,451 26,431 27,128
Slide 18: STC: 4Q11 to 1Q12 Operating Profit Variance
STC: 4Q11 to 1Q12 Operating Profit Variance Figures in USD Millions $24 $0.4 $19.7 $19.2 ($0.3) ($0.6) $18 $12 ` $6 $0 4Q11 Operating Profit Higher Operating Profit Higher depreciation Higher A&G and other 1Q12 Operating Profit Page 18
Slide 19: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before IFRS adjustment) 16 6 12 4 17.4 16.5 8 16.2 14.0 14.1 5.3 5.4 4.7 2 3.8 4 2.7 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 $US Millions % OPERATING PROFIT * GROSS OPERATING MARGIN (before IFRS adj) 9.9 40% 10 8 30% 5.9 6
Slide 20: SSF: 4Q11 to 1Q12 Operating Profit Variance
SSF: 4Q11 to 1Q12 Operating Profit Variance Figures in USD Millions $0.0 -$0.5 -$1.0 -$1.5 -$2.0 ($1.9) $0.4 -$2.5 $0.8 $0.3 ($2.7) -$3.0 ($0.8) -$3.5 ($1.5) -$4.0 4Q11 Operating Profit Lower flatfish gross Flatfish IFRS fair Higher caviar gross Caviar IFRS fair value Other income 1Q12 Operating Pro
Slide 21: Stolt-Nielsen Gas
Stolt-Nielsen Gas • Stolt-Nielsen Gas reported an equity loss of $1.2M on its investment in Avance Gas, compared with equity income of $2.5M in 4Q11, as conditions softened in the VLGC market • Spot rates declined in December 2011 after seeing good improvement in the autumn; the market remained weak
Slide 22: Financials
Financials Page 22
Slide 23: Net Profit
Net Profit Figures in USD Millions Quarter Full Year 1Q12 4Q11 1Q11 2011 Operating Profit $30.7 $43.7 $32.8 $159.9 Net Interest Expense (18.1) (16.7) (10.3) (53.0) FX (Loss) / Gain, net (0.0) (0.9) 0.6 2.7 Income Tax (Provision) (4.8) (3.5) (7.2) (16.6) Other 0.0 (0.2) 0.2 0.4 (Loss) / Profit From D
Slide 24: Balance Sheet
Balance Sheet Figures in USD Millions Figures in USD Millions (Except ratios) At the end of: Period ended Feb-12 Feb.29.12 Nov.30.11 Cash and cash equivalents $93 $60 Debt $1,591 Receivables 190 190 Tangible Net Worth (TNW) $1,475 Other current assets 135 119 Total current assets 418 369 Debt:TNW 1.
Slide 25: Cash Flow
Cash Flow Figures in USD Millions Quarter 1Q12 4Q11 Net income $8 $22 Profit from discontinuing operations - - Depreciation, amortisation and non-cash items 63 74 Changes in working capital (30) (30) Other payments (receipts) - - Net cash generated by operating activities $41 $66 Capital expenditure
Slide 26: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 50 14% 30 14% 25 40 11% 11% 20 30 8% 8% 15 20 42 5% 5% 34 34 36 36 10 20 21 20 20 20 21 32 33 32 18 19 18 17 19 29 10 23 21 2% 2% 5 0 -1% 0 -1% 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Slide 27: Administrative and General Expenses
Administrative and General Expenses Figures in USD Millions Revised Quarterly Quarter Full Year Guidance 1Q12 4Q11 1Q11 2011 Stolt Tankers $22.7 $21.2 $22.1 $88.5 $22.6 Stolthaven Terminals 7.1 5.2 3.8 19.6 6.7 Stolt Tank Containers 13.5 12.6 12.3 51.4 14.8 Stolt Sea Farm 1.1 1.2 1.2 4.7 1.4 SNL Cor
Slide 28: Depreciation and Amortisation
Depreciation and Amortisation Figures in USD Millions Maintained Quarterly Quarter Full Year Guidance 1Q12 4Q11 1Q11 2011 Stolt Tankers $28.4 $29.0 $27.5 $122.0 $29.4 Stolthaven Terminals 7.5 6.9 4.1 19.1 7.1 Stolt Tank Containers 6.1 5.8 4.8 21.0 6.2 Stolt Sea Farm 0.8 0.8 0.9 3.5 0.9 SNL Corporate
Slide 29: Share of Profit of JVs and Taxes
Share of Profit of JVs and Taxes Figures in USD Millions Share of Profit of JVs Maintained Quarterly Quarter Full Year Guidance 1Q12 4Q11 1Q11 2011 Stolt Tankers $0.9 $1.9 $0.5 $6.6 $1.4 Stolthaven Terminals 5.2 5.0 3.8 19.5 4.8 Tank Containers (0.0) (0.6) (0.1) (0.7) 0.1 Corporate and Other (1.6) 2
Slide 30: Capital Expenditures Programme of $0.8Bn
Capital Expenditures Programme of $0.8Bn Figures in USD Millions Actuals Projected Capital Outlays Total Remaining 1Q12 Remaining 2012 2013 2014 2015 2016 Stolt Tankers $11 94 $2 $0 $0 $0 $96 Stolthaven Terminals 47 125 134 62 9 17 347 Stolt Tank Containers 27 41 - - - - 41 Stolt Sea Farm - 18 7 2 7
Slide 31: Stolt Tankers: STJS Sensitivities
Stolt Tankers: STJS Sensitivities Figures in US Millions, except volume Net Net Impact Bunker Cost Expected on P&L per STJS Bunker Price Sensitivity Cost Increase recovery quarter IFO volume 137,000 tons IFO average price 1Q12 $688 per ton $94.3 Base price + 5% $722 per ton $99.0 $4.7 $2.9 ($1.8) Ba
Slide 32: Summary
Summary Market: Slow global economic recovery SNL • Strong market position and stable revenue base • Strong balance sheet with strong liquidity Stolt Tankers • 2012 will be a challenging year; we do not expect a meaningful recovery until 2013 Stolthaven Terminals • Stable market conditions overall S
Slide 33: For more information please visit our website
For more information please visit our website: www.stolt-nielsen.com Page 33