Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q3 2020 Earnings Presentation
32 slides from Stolt-Nielsen's earnings presentation, Oct 8, 2020
Slide 1: Stolt-Nielsen Limited Third-Quarter 2020 Results
Stolt-Nielsen Limited Third-Quarter 2020 Results London Niels G. Stolt-Nielsen - Chief Executive Officer Jens F. Grüner-Hegge - Chief Financial Officer October 8, 2020 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 – 3Q20 Results
Agenda – 3Q20 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Stolt-Nielsen Gas – Avenir LNG 7. Financials Highlights 8. Q&A Third-Quarter 2020 Results 3
Slide 4: Highlights – Best Quarter Since 2Q18
Highlights – Best Quarter Since 2Q18 3Q20 Financial Highlights (vs 2Q20) ▪ Net Profit from continuing operations of $31m Operating Revenue EBITDA* ▪ Strong improvement in EBITDA and operating profit across all operating divisions $474m $139m ▪ Volumes were steady with cost reductions across all - $2
Slide 5: Profitability Improvement Quarter on Quarter
Profitability Improvement Quarter on Quarter Operating Profit Variance Increase of operating profit $24.8m * Includes Stolt-Nielsen Gas Third-Quarter 2020 Results 5
Slide 6: How 2020 Has Developed…
How 2020 Has Developed… Feb.05 Apr.16 Jun.16 Aug.31 SNI08 issued Repayment of SNI09 issued Dec.2019 Stolt Tankers announced $141m SNI06 $132m First outbreaks agreement to acquire five Mar.10 of Covid-19 in Europe lockdown chemical tankers from CTG Asia. starts with Italy December January February Ma
Slide 7: SNL – Safety and ESG
SNL – Safety and ESG INVESTMENTS Stolt-Nielsen has signed the UNGC and adopted GRI Sustainability Reporting Standards Stolt-Nielsen believes GRI reporting will provide insight into the work we do to improve our environmental footprint Following GRI principles to: and improve transparency of our sust
Slide 8: Stolt Tankers
Stolt Tankers
Slide 9: Stolt Tankers – Market is Improving
Stolt Tankers – Market is Improving Operating Days Operating Revenue EBITDA Operating Profit Deep Sea 3Q20 $266.3m $71.4m $28.1m 6,118 2Q20 $293.9m $65.6m $20.0m 6,329 Operating HighlightsProfit 2020Variance ▪ Revenue decreased due to fewer operating days resulting in less volume carried, and lower
Slide 10: Bunker Costs Are Expected To Remain Low
Bunker Costs Are Expected To Remain Low Bunkers Cost SIR index – SIR in 3Q was the highest since March 2017 $80 $600 2Q16 = 0.81 $70 $500 0.8 $60 $7.3 Bunker cost (USD millions) $400 IFO (USD / Tonne) $50 0.7 $10.0 $40 $300 $72.3 2Q12 = 0.61 0.61 $65.6 $63.8 $30 $59.2 $56.8 0.6 $200 $20 $38.5 $100 $
Slide 11: Stolt Tankers – Market Highlights
Stolt Tankers – Market Highlights Volumes and utilisation stable, and operating costs going down. Deep sea – Stolt Tankers Joint Service Stot-Nielsen Inland Tanker Service ▪ Solid COA volumes in most regions; COA coverage at 69% in 3Q ▪ COA coverage at 87%, but weak spot market ▪ Spot market weakene
Slide 12: Demand, Chemical Tanker Fleet & Orderbook 3Q20
Demand, Chemical Tanker Fleet & Orderbook 3Q20 Demand Supply ▪ Orderbook of 7.2%, or 1.4m DWT from 2020 to 2024, up from 5.4% in 2Q. New orders include six smaller stainless steel ships in Japan and 10 large, simple ▪ Cautiously optimistic that the momentum of a strengthening chemical tanker coated
Slide 13: Stolthaven Terminals
Stolthaven Terminals S|
Slide 14: Stolthaven Terminals
Stolthaven Terminals Operating Revenue EBITDA Operating Profit Utilisation Wholly owned terminals 3Q20 $59.8m $36.4m $22.7m 93.7% 2Q20 $59.7m $35.2m $19.2m 95.2% Operating Profit Variance ▪ Operating performance excluding one-offs, improved as results of the cost saving initiatives ▪ JV Equity incom
Slide 15: Stable Operational Performance
Stable Operational Performance ▪ US terminals remained stable with utilisation above 95%, but lower excess ▪ Asia Pacific remained stable throughput volumes Priorities ▪ Brazil terminal lower throughput offset by lower operational expense as SHVN - Joint Ventures 3Q20 2Q20 1Q20 cost- cutting initiat
Slide 16: Market Outlook
Market Outlook The impact of Covid-19 on the overall storage industry has been less dramatic than has been seen in other logistics sectors United States Europe ▪ Chemical activity rose 2.5% on a 3 months ▪ European market remains steady for chemicals, moving average in August* although the broader m
Slide 17: Stolt Tank Containers
Stolt Tank Containers S|
Slide 18: Stolt Tank Containers
Stolt Tank Containers Operating Revenue EBITDA Operating Profit Utilisation 3Q20 $125.4m $26.7m $17.5m 65.4% 2Q20 $135.2m $21.2m $13.0m 69.7% Operating Profit Variance ▪ Operating performance improved as a result of lower move-related expenses and savings Lower Rates actioned during the quarter $2.3
Slide 19: Market Outlook
Market Outlook ▪ Shipment levels expected to gradually return as economies rebound, but continued risk of outbreaks potentially slows recovery (repeated w-shaped or waves) ▪ Major customers report that 2019 production levels not expected to return until sometime in 2021 ▪ Automotive and construction
Slide 20: Stolt Sea Farm
Stolt Sea Farm iS
Slide 21: Stolt Sea Farm
Stolt Sea Farm Operating Revenue EBITDA* Operating Profit (Loss) Volumes (metric tonnes) ** 3Q20 $22.4m $0.7m $3.9m 2,425mt 2Q20 $13.6m ($2.5m) ($4.7m) 1,597mt *Before fair value adjustment **Includes own turbot, Traded turbot and sole Operating Profit Variance ▪ Operating performance improved as re
Slide 22: Uniquely Positioned Multi-site Production Footprint
Uniquely Positioned Multi-site Production Footprint Operations in 5 countries 13 farms 2 hatcheries Sold in Headquarters 30+ countries 8 farms 2 hatcheries 450 2 farms employees Third-Quarter 2020 Results 22
Slide 23: Delivering on Sustainability – Land-based Farming Expertise
Delivering on Sustainability – Land-based Farming Expertise We have been developing land-based aquaculture for c. 35 years and recirculation technology for c. 20 years Project 1 - Cervo, Spain, 375tn Sole RAS Farm Proprietary RAS innovations in our farms ▪ Started production in February 2020. ▪ All
Slide 24: Stolt-Nielsen Gas
Stolt-Nielsen Gas
Slide 25: Avenir LNG - Update
Avenir LNG - Update Avenir is an asset-led small scale LNG supplier Asset Development & Financing ▪ First ship completed sea trials, finalising gas trials. Delivery 12 Oct ’20; BB charter to Petronas for 3 years ▪ Second ship expected delivery Jan ’21; BB charter to Hygo Energy Transition (Golar Pow
Slide 26: Financials
Financials Third-Quarter 2020 Results 26
Slide 27: SNL Net Profit
SNL Net Profit Quarter US $ Million 3Q20 2Q20 3Q19 YTD20 YTD19 Operating Profit (before one-offs) $72.0 $51.2 $41.5 $154.5 $133.4 ▪ Improvement of operating profit as a result of better performance of all SSF Impairment - (1.8) - (13.8) - businesses SHVN One-offs 1.8 - - 0.10 - Gain/(Loss) on sale o
Slide 28: 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 X3.05:1 X3.17:1 X3.41:1 3,000 2,585 2,568 600 2,540 USD millions 486 2,500 500 428 446 USD millions 2,000 1,581 1,580 1,607 400 1,500 3
Slide 29: Capital Expenditures
Capital Expenditures Actuals Projections 2020 Remaining 2021 2022 Total Figures in USD $ Million ▪ Stolt Tankers projected capex in 2021 Stolt Tankers $43 $7 $143 $5 $155 increased as a result of the acquisition of 5 ships from CTG Stolthaven Terminals 44 21 59 33 113 ▪ Stolt Tankers capex excludes
Slide 30: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Good Liquidity Position with ~$500m available Free Cash Flow 3Q $68m 600 Cash Flow from financing activities (Q2 2020 : $64 m) $121m $495m 500 Bond Principal Cash flow from investing activities SNI09 Repayments $411m $41m 400 USD millions 132 (112) 5 311 181 (44)
Slide 31: Maturity Profile and Planned Financing
Maturity Profile and Planned Financing 500 SNI07 SNI08 SNI05 Repayment 400 141 175 Cash on hand: $184m USD MILLIONS SNI05 Availability on the Revolvers: $311m 300 SNI09 154 138 210 200 132 100 159 156 136 111 48 0 2020 2021 2022 2023 2024 Amortisation of Senior Debt* Balloon Payment Bonds Planned Fi
Slide 32: Key Messages
Key Messages ▪ A strong quarter with improved results by all divisions ▪ Cautiously optimistic outlook but prepared for potential impact related to a second Covid-19 lockdown ▪ Strong liquidity position ▪ Covid-19: Action taken within the organisation to cut costs in addition to long-term savings in