Slide 1: Second-Quarter 2017 Results Presentation
Stolt-Nielsen Limited Second-Quarter 2017 Results Presentation July 06, 2017
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: Stolt-Nielsen Limited Representatives
Stolt-Nielsen Limited Representatives • Niels G. Stolt-Nielsen Chief Executive Officer • Jan Chr. Engelhardtsen Chief Financial Officer Page 3
Slide 4: Agenda
Agenda • SNL 2Q17 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: Second-Quarter 2017 Highlights
Second-Quarter 2017 Highlights • Stolt Tankers operating profit of $27.6M, down from $28.5M, reflecting continued softness in the chemical tanker market, as rates overall edged lower and bunker prices continued to rise • Stolthaven Terminals operating profit of $16.1M, down from $16.7M, mainly refle
Slide 6: SNL: 1Q17 to 2Q17 Net Profit Variance
SNL: 1Q17 to 2Q17 Net Profit Variance Figures in USD Millions Note: Net Profit attributable to equity holders of SNL Page 6
Slide 7: Stolt Tankers
Stolt Tankers $US Millions $US Millions REVENUE GROSS PROFIT $US Millions Days OPERATING PROFIT/(LOSS) STJS - OPERATING DAYS Stolt Pride • Operating revenue increased by 3.2% from previous quarter, mainly due to increased cargo volume in line with increased operating days and higher utilisation • In
Slide 8: Tankers: 1Q17 to 2Q17 Operating Profit Variance
Tankers: 1Q17 to 2Q17 Operating Profit Variance Figures in USD Millions Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs Figures in USD Million • Bunker cost net of bunker surcharge, but excluding bunker hedges, increased by $4.3M from 1Q17 • Average price of IFO consumed increased to $316/ton from $306/ton in 1Q17 • Average price of IFO purchased decreased to $311/ton from $328/ton in 1Q17
Slide 10: Chemical Tanker Fleet and Orderbook – 2Q17
Chemical Tanker Fleet and Orderbook – 2Q17 SNL New Building Delivery in 2Q17 and Scheduled delivery: Name Delivery Hudong-Zhonghua Stolt Tenacity Delivered – May 26, 2017 Hull 1711A 3Q17 C38 Hull 1712A 4Q17 Stolt Lind Delivered – Mar 15, 2017 New Times Shipbuilding Stolt Calluna Delivered – June 15,
Slide 11: Stolt Tankers Joint Service – COA and Spot
Stolt Tankers Joint Service – COA and Spot • COA cargoes increased to 74%, Stolt Tankers Joint Service Sailed-in T/C Index from 71% in 1Q17, due to more acid liftings after the resolution of the congestion in India • Compared to previous quarter COA rates invoiced were down 3.8% whilst spot rates in
Slide 12: Deep Sea Spot-Rate Development
Deep Sea Spot-Rate Development • The 1Q17 spot rate recovery, seen mostly in commodity rates, has stalled; some markets show positive trends; in recent weeks rates have firmed on the US Gulf to Asia lane • The MR market earnings dropped below $10,000/day, before recovering somewhat in recent weeks;
Slide 13: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT $US Millions Thousand cubic metres - (owned terminals) OPERATING PROFIT AVERAGE CAPACITY - UTILISATION JSTT berth • Revenue increase of 1.6% in 2Q17 was mostly due to cleaning revenues in Houston and Singapore, offset by lower utili
Slide 14: Terminals: 1Q17 to 2Q17 Operating Profit Variance
Terminals: 1Q17 to 2Q17 Operating Profit Variance Figures in USD Millions Page 14
Slide 15: Stolthaven Terminals Market Update and Key Initiatives
Stolthaven Terminals Market Update and Key Initiatives • Brazil has strong demand driven by diesel imbalance; new tanks expansion has been approved to take advantage of the strong market • USA remains stable; construction of a new Jetty in Houston has started and we are implementing a new terminal m
Slide 16: Stolthaven Houston – 3rd Deep-sea Jetty Begun
Stolthaven Houston – 3rd Deep-sea Jetty Begun • 50+ acres land available for expansion opportunities for over 2M barrels of storage capacity, railcar and truck racks Page 16
Slide 17: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION • Revenue up 14.1% in second quarter, due to increased shipments, improved demurrage billing and higher additional charges • Shipments increased 7.7% on the back of strong deman
Slide 18: STC: 1Q17 to 2Q17 Operating Profit Variance
STC: 1Q17 to 2Q17 Operating Profit Variance Figures in USD Millions ` Page 18
Slide 19: Stolt Tank Containers Market Update and Key Initiatives
Stolt Tank Containers Market Update and Key Initiatives • Strong demand in all regions; working towards increasing both utilisation and turns per tanks • Margin deterioration may have bottomed 2Q17 YTD: 62,789 out; price competition continues to limit FY2016: 120,210 revenue and margin growth; worki
Slide 20: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before IFRS adjustment) $US Millions % OPERATING PROFIT/LOSS a) GROSS OPERATING PROFIT MARGIN a) Turbot, Sole and Sturgeon a) Excludes the accounting for inventories at fair value • Volume of turbot was up 7% but prices were down 10% due
Slide 21: SSF: 1Q17 to 2Q17 Operating Profit Variance
SSF: 1Q17 to 2Q17 Operating Profit Variance Figures in USD Millions Page 21
Slide 22: Stolt-Nielsen Gas – Project Update
Stolt-Nielsen Gas – Project Update • Newbuilding contract in place with Keppel Singmarine for the construction of two 7,500 cbm liquefied natural gas (LNG) carriers to be built in Nantong, China at a delivered cost of $40M each, with option for three more; expected deliveries in late 2019 • SNG has
Slide 23: Financials
Financials Stolthaven Houston Page 23
Slide 24: Net Profit
Net Profit Figures in USD Millions Quarter YTD 2Q17 1Q17 2Q16 2017 2016 Operating Profit (before one offs) $53.7 $51.8 $73.4 $105.4 $136.9 Tanker accelerated depreciation - - (3.7) - (10.6) Terminals accelerated depreciation - (0.3) - (0.3) - Terminals insurance claims (0.3) (0.3) (0.6) (Loss) / gai
Slide 25: Balance Sheet
Balance Sheet Figures in USD Millions Period ended May.31.17 Figures in USD Millions (Except ratios) At the end of: Cash and cash equivalents $122 May 2017 Marketable securities - Receivables 229 Debt $2,530 Other current assets 173 Total current assets 524 Tangible Net Worth (TNW) $1,583 Debt:TNW 1
Slide 26: Cash Flow
Cash Flow Figures in USD Millions Quarter YTD 2Q17 1Q17 2017 Net profit $16 $15 $31 Cashflow priorities: Depreciation, amortisation and non-cash items 64 67 131 Changes in working capital 16 (26) (10) Other receipts, net 8 1 8 Net cash generated by operating activities $104 $57 $160 Reduce debt Capi
Slide 27: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS $US Millions $US Millions TANK CONTAINERS STOLT-NIELSEN LIMITED EBITDA Quarterly EBITDA as a % to NAB EBITDA before fair value of biological assets, insurance reimbursements and other one-time, non-cash items in 2016 & 2017 Page 27
Slide 28: Administrative and General Expenses
Administrative and General Expenses Figures in USD Millions Updated Quarterly Quarter YTD Guidance 2Q17 1Q17 2Q16 2017 2016 Stolt Tankers $22.5 $22.5 $19.8 $45.0 $39.4 $23.0 Stolthaven Terminals 10.9 10.1 11.6 21.0 21.7 11.0 Stolt Tank Containers 15.9 15.7 15.9 31.6 30.8 16.0 Stolt Sea Farm 1.4 1.2
Slide 29: Depreciation and Amortisation
Depreciation and Amortisation Figures in USD Millions Updated Quarterly Quarter YTD Guidance 2Q17 1Q17 2Q16 2017 2016 Stolt Tankers $41.8 $42.0 $35.3 $83.7 $73.3 $43.0 Stolthaven Terminals 13.4 13.1 14.0 26.5 27.4 13.6 Stolt Tank Containers 6.0 7.3 6.0 13.4 11.7 6.0 Stolt Sea Farm 1.5 1.1 1.2 2.6 2.
Slide 30: Share of Profit of JVs and Taxes
Share of Profit of JVs and Taxes Figures in USD Millions Share of Profit of JVs Updated Quarterly Quarter YTD Guidance 2Q17 1Q17 2Q16 2017 2016 Stolt Tankers $2.1 $1.5 4.0 $3.6 7.4 $2.0 Stolthaven Terminals 5.0 4.5 5.3 9.5 9.8 5.0 Tank Containers 0.0 0.5 0.0 0.5 0.7 0.3 Corporate and Other (2.7) (2.
Slide 31: Capital Expenditures Programme
Figures in USD Millions Capital Expenditures Programme Figures in USD Millions Projected Actual Projections Total YTD 2Q17 3Q17 - 4Q17 2018 2019 2020 2021 Stolt Tankers $163 $74 $24 $18 $12 $6 $134 Stolthaven Terminals 41 68 102 38 21 18 246 Stolt Tank Containers 9 24 3 - - - 27 Stolt Sea Farm 1 5 2
Slide 32: Debt Maturity Profile
Debt Maturity Profile Figures in USD Millions Notes: • $367M drawn under revolver as of June 26th, 2017 • During the quarter, Singapore terminal loan was refinanced with $202M by settling $133M of outstanding balloon payment; the increase in senior debt compared to prior quarter estimate is due to t
Slide 33: Key Takeaways
Key Takeaways • 2Q17 net profit of $15.7M; 2Q17 EPS of $0.25 • Integration of JOT progressing as planned; focus on realising synergies and improving operations • Continued soft market in tankers with significant newbuilding deliveries, strong demand in tank containers and fundamentals in terminals r
Slide 34: For more information please visit our website
For more information please visit our website: www.stolt-nielsen.com Page 34