Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q4 2022 Earnings Presentation
31 slides from Stolt-Nielsen's earnings presentation, Feb 2, 2023
Slide 1: Stolt-Nielsen Limited | Fourth-Quarter 2022 Results
Stolt-Nielsen Limited | Fourth-Quarter 2022 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer February 2, 2023 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: Agenda | 4Q22 Results
Agenda | 4Q22 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Financials 7. Q&A Fourth-Quarter 2022 Results
Slide 4: 4Q22 Highlights | Strong Quarter to Finish a Record Year
4Q22 Highlights | Strong Quarter to Finish a Record Year 4Q22 vs. 3Q22 ▪ Net Profit of $95.3m, up from $74.7m in 3Q22 driven by improved tanker trading results OPERATING REVENUE EBITDA ▪ EBITDA of $196.0m, up from $184.4m due to $ 732.5m p $ 196.0m p • Stolt Tankers: Strong results due to higher spo
Slide 5: Net Profit | Solid Performance Across All Businesses
Net Profit | Solid Performance Across All Businesses Fourth-Quarter 2022 Results 5
Slide 6: Full Year 2022 Highlights
Full Year 2022 Highlights Highest SNL Net Profit since 2005 ▪ Firming of tanker market fundamentals Tankers ▪ Operating profit increased to $205m, up from 300 281 $69m in 2021: 250 • Strong spot markets and higher volumes • Opportunistic transactions increased ST’s fleet 200 USD millions 150 Termina
Slide 7: Stolt Tankers
Stolt Tankers
Slide 8: Stolt Tankers | Strong Spot Market Driving Earnings
Stolt Tankers | Strong Spot Market Driving Earnings OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 4Q22 $ 412.4m p $ 115.3m p $ 78.2m p 7,153 p 3Q22 $ 404.7m $ 101.2m $ 61.1m 7,018 Operating Profit Variance ▪ Increased trading results driven by higher spot rates (6.7%) and spot
Slide 9: Bunker Cost Analysis
Bunker Cost Analysis Bunker Cost (deep sea and regional fleets) 100 12,962 14,000 ▪ ~99% of COAs had a bunker clause YTD22 ▪ The total volume covered by a bunker clause 11,486 80 $71.6 12,000 was 63% YTD22 $64.1 ▪ $63.6 $63.7 $59.5 $57.4 Bunker surcharge revenue was down by 60 $54.2 $65.1 $68.7 $46.
Slide 10: Market Highlights | Strong Fundamentals Driving Earnings
Market Highlights | Strong Fundamentals Driving Earnings ▪ Chemical tanker market at elevated levels after a long period of soft Homebound Return Transatlantic Eastbound tanker markets 300 95 ▪ Strong freight levels on spot fixtures across multiple trade lanes; 250 85 chemical tanker spot rates surp
Slide 11: Improving SIR per Operating Day, Positive Outlook into 2023
Improving SIR per Operating Day, Positive Outlook into 2023 STJS – SIR per Operating Day1 Strong SIR / Day development, expected to continue in 1Q23 $27,162 35,000 SIR / Operating Day Indicative Average DWT SIR / Operating Day 5-7% Increase 34,500 $31,000 $25,000 34,000 $29,000 +47.3% CAGR $20,000 3
Slide 12: ESG | Stolt Tankers – Our Decarbonisation Ambition
ESG | Stolt Tankers – Our Decarbonisation Ambition Industry standard Indicative 12 months ➢ 50% emissions reference year (IMO) rolling average1 intensity reduction 2008 2022 2030 15.68 10.91 7.84 𝒈 𝑪𝑶𝟐 𝒈 𝑪𝑶𝟐 𝒈 𝑪𝑶𝟐 𝑴𝑻 × 𝑵. 𝑴𝒊𝒍𝒆 𝑴𝑻 × 𝑵. 𝑴𝒊𝒍𝒆 𝑴𝑻 × 𝑵. 𝑴𝒊𝒍𝒆 We are A…
Slide 13: Stolthaven
Stolthaven Santos Stolthaven Terminals Celebrates}
Slide 14: Stolthaven Terminals | Steady Results
Stolthaven Terminals | Steady Results OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly-owned terminals) 4Q22 $ 70.1m $ 36.5m $ 20.8m p 98.0% p p 3Q22 $ 70.8m $ 37.4m $ 20.7m 98.1% Operating Profit Variance ▪ 4Q22 Operating Profit of $20.8m compared with 3Q22 Normalized Operating Profit
Slide 15: Market Highlights | Stable Storage Demand with Softer Throughput
Market Highlights | Stable Storage Demand with Softer Throughput Equity Income/Utilisation (Joint Ventures) Priorities ▪ US terminals: Higher utilisation but lower throughput 10 98% 95% 95% 9 96% ▪ European terminals: Utilisation was stable during the quarter, but 94% 94% 94% 8 94% lower throughput
Slide 16: Stolthaven Terminals | Diversified Portfolio with Attractive Growth
Stolthaven Terminals | Diversified Portfolio with Attractive Growth Current capacity MOERDIJK 5.0m cbm 48,347 m3 DAGENHAM 163,258 m3 ANTWERP NEW ORLEANS Exp. planned 1,330,600 m3 382,565 m3 LINGANG ULSAN Exp. planned 118,500 m3 HOUSTON 1,655,700 m3 571,926 m3 TURKEY Exp. planned Growth Pipeline: TAI
Slide 17: Stolt Tank Containers
Stolt Tank Containers S|
Slide 18: Stolt Tank Containers | Margins Holding but Lower Shipments
Stolt Tank Containers | Margins Holding but Lower Shipments OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 4Q22 $ 228.5m $ 56.1m p $ 44.9m p 67.0% p p 3Q22 $ 242.9m $ 53.8m $ 43.1m 68.4% Operating Profit Variance ▪ Transportation revenue decreased by 14.8% driven by lower transportation rates
Slide 19: Market Outlook | Margins Expected To Soften
Market Outlook | Margins Expected To Soften Demand outlook Shipments impacted by supply chain bottlenecks 50 160 ▪ Demand remains steady, signs of margin 135 141 140 137 45 128 130 130 129 131 131 129 129 131 131 130 130 140 pressure 123 127 127 125 125 127 40 Quarterly Shipments (Thousands) 120 LTM
Slide 20: Stolt Sea Farm
yi) Stolt Sea Farm S|
Slide 21: Stolt Sea Farm | A Seasonally Weaker Fourth Quarter
Stolt Sea Farm | A Seasonally Weaker Fourth Quarter OPERATING REVENUE EBITDA (Excl. FV Adj.) OPERATING PROFIT(Excl. FV Adj.) VOLUMES (metric tonnes)** 4Q22 $ 21.3m $ 4.3m $ 3.3m 1,786mt p p p p 3Q22 $ 25.3m $ 7.8m $ 6.1m 2,010mt **Includes own turbot, traded turbot and sole Operating Profit Variance
Slide 22: Stolt Sea Farm | Outlook Uncertain, Focus on Expanding Markets
Stolt Sea Farm | Outlook Uncertain, Focus on Expanding Markets Outlook A Strong year in Stolt Sea Farm Production ▪ Successful Christmas promotion period, however, the remaining winter months tend to be slow 7,000 6,397 ▪ With the prospect of recessionary pressures impacting the 6,000 5,668 hospital
Slide 23: Financials
Financials Stolt-Nielsen S|
Slide 24: SNL Net Profit | Financials
SNL Net Profit | Financials Quarter Full Year Highlights Figures in USD million 4Q22 3Q22 4Q21 2022 2021 ▪ Decrease in operating revenue due to lower shipments in Operating Revenue $732.5 $744.0 $593.1 $2,771.8 $2,181.1 Tank Containers partially offset by higher freight revenue in Operating Expenses
Slide 25: Capital Expenditures | Financials
Capital Expenditures | Financials Actuals Forecast Figures in USD millions 1Q22 2Q22 3Q22 4Q22 2023 2024 Stolt Tankers 2 10 25 39 42 3 Stolthaven Terminals 11 18 22 18 114 57 Stolt Tank Containers 5 13 8 2 97 50 Stolt Sea Farm 1 - 2 3 10 9 SNL Corporate & Other 2 3 - - 4 - Total $21 $44 $57 $62 $267
Slide 26: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 4Q22 3Q22 FY22 FY21 Highlights Cash generated by operating activities $201.7 $205.4 $761.4 $448.4 ▪ Cash from operating activities remained stable Interest Paid (33.2) (24.8) (120.5) (120.8) ▪ Interest paid increased due to semi-annual inte
Slide 27: Debt Profile | Steady Debt Reduction and Stable Interest Costs
Debt Profile | Steady Debt Reduction and Stable Interest Costs Debt Average cost of debt 3,000 - $246m 45 6.0% 2,436 2,352 2,340 2,346 5.01% 2,500 40 4.81% 2,190 4.44% 4.41% 4.45% 5.0% USD millions 35 2,000 30 4.0% USD millions 1,500 25 3.0% 20 1,000 15 31 31 29 30 29 2.0% 10 500 1.0% 5 - - 0.0% 4Q2
Slide 28: Financial KPIs | Steady Improvement
Financial KPIs | Steady Improvement Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) *Last twelve months 3,500 1.44 x 1.60 1.35 x 1000 5.34x 6.00 1.32 x 5.11 x 3,000 1.27 x 1.40 900 4.66 x 4.81 x 1.16 x 5.00 $2,436 $2,352 $2,340 $2,346 1.20 800 4.2
Slide 29: Underlying Drivers Point Towards Robust Chemical Tanker Earnings
Underlying Drivers Point Towards Robust Chemical Tanker Earnings, Offset by Recessionary Uncertainty 2022: Favourable market and focus on delivering strategy 2023: Volatility to remain; tanker fundamentals are firming EBITDA ($m) Tankers $359m +16.9% Expectation of a firm tanker $263m $250m CAGR ‘20
Slide 30: Key Messages
Key Messages ▪ Performance across our businesses is robust • Strong fourth quarter capped a stellar 2022 • Improving market and a focus on delivering our strategy resulted in all business performing • EBITDA up 33% Y-o-Y at $715m • Net Debt / EBITDA below 3.0x ▪ Stolt Tankers contract renewal season
Slide 31: Q&A
Q&A 31