Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q4 2020 Earnings Presentation
37 slides from Stolt-nielsen's earnings presentation, Jan 28, 2021
Slide 1: Stolt-Nielsen Limited Fourth-Quarter 2020 Results
Stolt-Nielsen Limited Fourth-Quarter 2020 Results Niels G. Stolt-Nielsen - Chief Executive Officer Jens F. Grüner-Hegge - Chief Financial Officer Jordi Trias - President of Stolt Sea Farm January 28, 2021 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 – 4Q20 Results
Agenda – 4Q20 Results 1. Stolt-Nielsen Limited 2. ESG 3. Stolt Tankers 4. Stolthaven Terminals 5. Stolt Tank Containers 6. Stolt Sea Farm 7. Stolt-Nielsen Gas – Avenir LNG 8. Financials Highlights 9. Q&A Fourth-Quarter 2020 Results 3
Slide 4: 4Q Highlights – Stable Quarter
4Q Highlights – Stable Quarter 4Q20 Financial Highlights (vs. 3Q20) ▪ Net Profit from continuing operations of $16m Operating Revenue EBITDA* ▪ Decrease of EBITDA mainly driven by: $481m $128m ▪ Stolt Tankers saw an increase of activity in the regional + $7m - $14m fleets, but lower volumes in Deeps
Slide 5: Lower Margins and One-Offs Impacted Net Profit
Lower Margins and One-Offs Impacted Net Profit Net Profit Variance Decrease of operating profit $24.7m ▪ Lower Operating Profit (6.0) ▪ $12.4m Impairment of Australia Terminals (8.8) ▪ $3.6m Reversal of impairment of JV Loan ▪ Higher Losses of $2.8m in SN Gas ▪ Higher Losses of $4.6m in Corporate &
Slide 6: ESG - Our Commitment To Sustainability Lies At The Heart Of Our operations
ESG - Our Commitment To Sustainability Lies At The Heart Of Our operations INVESTMENTS At Stolt-Nielsen, our goal of zero harm for people and the environment is our number-one priority Formalizing our commitment… Four businesses, multiple targets by 2030 Reduction of at least 50% Carbon intensity re
Slide 7: Safety – Our Priority
Safety – Our Priority Our safety processes are robust, integrating incident management and measurement with training, and underpinned by sound governance. With our continued commitment, we believe we will meet our long-term ambition of zero harm. Total Recordable Case Frequency (TRCF) Lost Time Inju
Slide 8: Stolt Tankers
Stolt Tankers
Slide 9: Stolt Tankers – Market conditions slowly improving
Stolt Tankers – Market conditions slowly improving Operating Days Operating Revenue EBITDA Operating Profit Deep Sea 4Q20 $272.2m $76.2m $31.9m 5,975 3Q20 $266.3m $71.4m $28.1m 6,118 Operating Profit Variance ▪ Steady improvement of trading results driven by improvements in the Regional Fleets, and
Slide 10: Bunker Costs Up Following Higher Oil Prices
Bunker Costs Up Following Higher Oil Prices Bunker Cost SIR index – Impacted by higher bunker costs $80 $600 2Q16 = 0.81 $70 0.8 $500 $60 Bunker cost (USD $ M) $400 0.7 IFO (USD / Tonne) $50 $40 $300 2Q12 = 0.61 0.60 $72.3 0.6 $30 $63.8 $59.2 $56.8 $200 $20 $43.8 $38.5 0.5 $100 0.50 $10 $0 $0 0.4 3Q
Slide 11: Stolt Tankers – Market Highlights
Stolt Tankers – Market Highlights Deepsea – Stolt Tankers Joint Service Stot-Nielsen Inland Tanker Service ▪ COA coverage at 72 % in Q4, up from 70% in Q3 ▪ COA coverage stable around 85%, but weak spot market ▪ Contract rates were up 6.1% (excluding bunker surcharges) while spot freight Stolt-Niels
Slide 12: Outlook: Challenging First Half, Improving Second Half
Outlook: Challenging First Half, Improving Second Half Demand* Supply ▪ Expecting challenging market conditions during the first half of the year, with a ▪ Orderbook of 4.3%, or 0.8m DWT from 2020 to 2022, down from 5.3% in 3Q. recovery in Q3 onwards as deliveries slow down and vaccines take hold. 0
Slide 13: Stolthaven Terminals
Stolthaven Terminals S|
Slide 14: Stolthaven Terminals- Cleaned Up The Balance Sheet
Stolthaven Terminals- Cleaned Up The Balance Sheet Operating Revenue EBITDA Operating Profit Utilisation Wholly owned terminals 4Q20 $57.3m $31.8m $8.0m 90.5% 3Q20 $59.8m $36.4m $22.7m 93.7% Operating Profit Variance ▪ Operating performance, excluding one-offs, worsened due to lower activity and low
Slide 15: Stable Operational Performance
Stable Operational Performance ▪ US terminals remained stable with utilisation above 95%, and higher ▪ Asia Pacific. Stable Priorities throughput volumes Joint Ventures (Equity Income) ▪ Santos terminal. Lower throughput, but utilisation stable around 95% 10 97% 96% 100% 95% 95% 8 94% 95% Utilizatio
Slide 16: Market Outlook
Market Outlook Most recent outlook of the major chemical companies and from leading chemical associations continue to support an ongoing improvement in the chemical industry. Global production of base chemicals is forecast to grow by 4.2% in 2021 according to IHS Markit. United States Europe ▪ Chemi
Slide 17: Stolt Tank Containers
Stolt Tank Containers S|
Slide 18: Stolt Tank Containers
Stolt Tank Containers Operating Revenue EBITDA Operating Profit Utilisation 4Q20 $130.6m $23.7m $13.9 67.7% 3Q20 $125.4m $26.7m $17.5m 65.4% Operating Profit Variance ▪ Shipments were 33,028, up from 30,461 in the previous quarter ▪ Transportation revenue was up $7.8m, driven by higher shipments and
Slide 19: Market Outlook
Market Outlook ▪ High shipment volume expected in Q1-Q2, but continued risk of outbreaks creates uncertainty. ▪ Activity in the market is high, and extremely competitive with margins under pressure with rising ocean freight cost and tight market conditions in all major global regions. ▪ High demand
Slide 20: Stolt Sea Farm
Stolt Sea Farm iS
Slide 21: Stolt Sea Farm
Stolt Sea Farm Operating Revenue EBITDA Operating Profit Volumes (metric tonnes) ** 4Q20 $19.7m $3.1m $1.2m 1,903mt 3Q20 $22.4m $5.2m $3.9m 2,425mt **Includes own turbot, Traded turbot and sole Operating Profit Variance ▪ Lower turbot revenue due both to seasonality and the second wave of Covid19 in
Slide 22: Stolt Sea Farm - A leading Producer Of Turbot and Sole
Stolt Sea Farm - A leading Producer Of Turbot and Sole Identity We are the global pioneers and innovators in land-based aquaculture of flatfish Purpose To ensure that future generations continue to enjoy wonderful seafood Turbot Sole (Psetta Maxima) (Solea Senegalensis) Prodemar Turbot™ & Prodemar S
Slide 23: SSF is positioned for sustainable and attractive value creation
SSF is positioned for sustainable and attractive value creation A pioneer in land-based aquaculture… …with significant growth potential Proven aquaculture & financial track-record 30+ years of land-based operational excellence delivering solid biological and financial performance Extensive growth vi
Slide 24: Operational Overview | 30+ Years Of Land-Based Aquaculture
Operational Overview | 30+ Years Of Land-Based Aquaculture Production capacity by country and species1 Operations in Norway Portugal 5% 5 countries 7% France 18% Spain 27% Turbot Sole 5,700tn 1,570tn 14 farms 2 hatcheries Spain 88% Iceland 30% Portugal 25% Sold in Sales by country2, tonnes (WFE) Hea
Slide 25: SSF Is Strongly Positioned Within Highly Regarded Species
SSF Is Strongly Positioned Within Highly Regarded Species Turbot & sole are highly valued species1… … with Stolt Sea Farm leading the market Turbot Sole Salmon Seabream 2 Farmed European turbot market volumes EUR/kg Market SSF market share3 13 kTonnes SSF market share of 71% shares 12.3 14 12.8 11.8
Slide 26: SSF’s RAS Module | A Success Story Ready To Be Rolled Out
SSF’s RAS Module | A Success Story Ready To Be Rolled Out Proprietary RAS module design is proven technology for farming of sole and is ready to be rolled out further Proprietary ▪ Designed internally using our 20+ years expertise in recirculation ▪ Robust biological safety, energy optimization Opti
Slide 27: Growth plan | Significant Capacity Expansion Expected
Growth plan | Significant Capacity Expansion Expected Leveraging proven, scalable technology and expertise in turbot and sole production Illustrative 1 KEY DRIVERS GROWTH ASPIRATIONS 2 Turbot ▪ Continue to lead the production of Sold volume (tonnes WFE/year) turbot Illustrative roll-out ▪ Roll-out p
Slide 28: Stolt-Nielsen Gas
Stolt-Nielsen Gas S|
Slide 29: Avenir LNG
Avenir LNG Avenir is an asset-led small scale LNG supplier Asset Development & Financing ▪ First ship was successfully delivered into her TC by Future Horizons to Petronas in Oct 2020; TC to Petronas for 3 years. Future Horizons is a joint venture between Avenir & MISC. She is the first dedicated bu
Slide 30: Financials
Financials Fourth-Quarter 2020 Results 30
Slide 31: SNL Net Profit
SNL Net Profit Quarter Full Year Highlights Figures in USD million 4Q20 3Q20 4Q19 FY20 FY19 ▪ Lower operating profit as a result of lower Operating Profit (before one-offs) $58.2 $72.6 $48.3 $197.7 $185.0 margins in Terminals, Tank Containers, Sea Farm, and Gas. Corporate had an operating SHVN One-o
Slide 32: Covenants Coverage – Steadily Improving
Covenants Coverage – Steadily Improving Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA* to Interest Expense (LTM*) (minimum 2.00:1.00) x1.64:1 x1.62:1 x1.58:1 x1.53:1 x3.05:1 x3.17:1 x3.41:1 x3.55:1 3,000 600 2,585 2,568 2,540 2,503 486 495 2,500 500 428 446 USD millions USD millions 2,000 1,
Slide 33: Capital Expenditures
Capital Expenditures Actuals Highlights Figures in USD $ Million 2020 2021 2022 Total ▪ Stolt Tankers projected capex in 2021 increased as a result of the acquisition Stolt Tankers $47 $96 $5 $101 of 3 ships from CTG ▪ Stolt Tankers capex excludes Stolthaven Terminals 58 59 31 $90 drydocking, which
Slide 34: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD $ Million 4Q20 3Q20 FY20 FY19 Highlights Cash generated by operating activities 120.9 128.4 493.3 431.0 ▪ As a result of lower EBITDA in Tank Containers and Interest Paid (41.1) (21.2) (130.5) (132.0) Terminal, cash generated by operating activates
Slide 35: Debt Maturity
Debt Maturity 500 SNI05 Repayment 450 Cash on hand: $184m 400 138 Availability on the Revolvers: $358m* 350 193 USD millions 300 250 SNI05 SNI07 175 SNI09 SNI08 267 200 154 132 142 150 100 161 154 148 50 126 89 - 2021 2022 2023 2024 2025 Principal Payments Bonds Ballon Payments Subsequent and Planne
Slide 36: Key Messages
Key Messages ▪ ESG – becoming more transparent in what we do. ▪ SSF IPO – visualising underlying values ▪ ST IPO preparations ongoing ▪ Balance sheet strengthening – debt covenants continue to improve ▪ Growing positive free cash flow ▪ Outlook – optimistic for the medium to long term. ▪ Well positi
Slide 37: Q&A
Q&A 37