Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q2 2021 Earnings Presentation
34 slides from Stolt-nielsen's earnings presentation, Jul 1, 2021
Slide 1: Stolt-Nielsen Limited Second-Quarter 2021 Results
Stolt-Nielsen Limited Second-Quarter 2021 Results Niels G. Stolt-Nielsen - Chief Executive Officer Jens F. Grüner-Hegge - Chief Financial Officer Lucas Vos - President, Stolt Tankers July 1, 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 – 2Q21 Results
Agenda – 2Q21 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 Second-Quarter 2021 Results 3
Slide 4: 2Q Highlights – Utilisation Up, but Profits Lagging
2Q Highlights – Utilisation Up, but Profits Lagging 2Q21 Financial Highlights (vs.1Q21) ▪ Net Profit from continuing operations of $7.8m Operating Revenue EBITDA ▪ Increased EBITDA mainly driven by: $526.9m $116.7m ▪ Record number of shipments in Stolt Tank Containers ▪ Increased activity and higher
Slide 5: Quarterly Improvement Driven by Strong Tank Container Market
Quarterly Improvement Driven by Strong Tank Container Market Net Profit Variance Increase in operating profit of $5.4m Second-Quarter 2021 Results 5
Slide 6: ESG | Sustainability Lies At The Heart Of Our Operations
ESG | Sustainability Lies At The Heart Of Our Operations At Stolt-Nielsen, our goal of zero harm for people and the environment is our number-one priority Latest sustainability updates…. Four businesses, multiple targets ▪ Stolt Tankers biofuel trial between Rotterdam and Houston showed a reduction
Slide 7: Stolt Tankers
Stolt Tankers
Slide 8: Stolt Tankers | Higher Volumes and Lower Spot Rates
Stolt Tankers | Higher Volumes and Lower Spot Rates Operating Days Operating Revenue EBITDA Operating Profit Deep Sea 2Q21 $287.0m $56.9m $12.6m 6,442 1Q21 $260.8m $56.0m $12.9m 6,026 Operating Profit Variance ▪ Higher deep-sea trading results driven mainly by 8.6% higher volumes and the addition of
Slide 9: Bunker Costs Up 7% as Bunker Prices Rising
Bunker Costs Up 7% as Bunker Prices Rising Bunker Cost SIR1 index – Impacted by higher bunker costs $80 $600 $70 $7.3 $500 $60 Bunker cost (USD $ M) $400 IFO (USD / Tonne) $50 $2.4 $7.4 $40 $10.0 $300 $72.0 $30 $61.3 $54.2 $200 $48.2 $20 $43.8 $36.8 Index based on SIR STJS ships; net results outside
Slide 10: Stolt Tankers | Market Highlights
Stolt Tankers | Market Highlights Deepsea – Stolt Tankers Joint Service Stolt-Nielsen Inland Tanker Service ▪ COA volumes at 61.8% in Q2, down from 71.4% in 1Q21 ▪ COA volumes stable around 85.0%. CPP and Chemical spot market weak ▪ Contract rates were up 1.0% (excluding bunker surcharges) while spo
Slide 11: Chemical Tanker Market Outlook
Chemical Tanker Market Outlook Highly attractive market backdrop – robust demand outlook combined with favourable supply drivers Global GDP recovery expected on the back of a reopening economy… Chemical tanker orderbook at record low levels… Global Real GDP Growth Chemical Tanker Orderbook (2Q21) 8%
Slide 12: Optimising our Asset Base
Optimising our Asset Base Successfully executed a number strategic initiatives to optimise our asset base and position for the upcycle Joint Venture - E&S Tankers Acquisition - CTG Pooling - Tufton Extracting synergies Attractive “on-the-water” acquisitions Asset-lite expansion ▪ JV with John T. Ess
Slide 13: COA Delivers Stability and Outperforms Through the Cycle
COA Delivers Stability and Outperforms Through the Cycle Superior stability COA Portfolio Mix – Delivering stability 100% KEY DRIVERS 80% 35% 26% 29% 28% 32% 29% 30% 28% 29% 38% 1 60% ▪ Stable contract coverage averaging above 70% over Best-in- the last decade 40% 65% 74% 71% 72% 68% 71% 70% 72% 71%
Slide 14: Well Positioned to Capitalise on the Market Upcycle
Well Positioned to Capitalise on the Market Upcycle Impact to EBITDA in an improving market1 Chemical •Robust underlying chemical demand drivers tanker market •Limited supply growth over the next 2-3 years •Favourable outlook points towards an upcycle outlook •Leveraging our leading platform for val
Slide 15: Stolthaven Terminals
Stolthaven Terminals S|
Slide 16: Stolthaven Terminals | Activity is Picking Up
Stolthaven Terminals | Activity is Picking Up Operating Revenue EBITDA Operating Profit Utilisation Wholly owned terminals 2Q21 $60.6m $34.2m $18.3m 90.3% 1Q21 $58.0m $31.1m $15.7m 88.4% Operating Profit Variance ▪ Improved utilisation and throughput volumes ▪ Operating performance improved compared
Slide 17: Market Highlights | Stable Demand and Higher Utilisation
Market Highlights | Stable Demand and Higher Utilisation Equity Income/Utilisation (Joint Ventures) Priorities ▪ US Terminals: Higher utilisation and throughput volumes. Increase in leased 12.0 97.7% 100% capacity as well as higher wharfage, cleaning and railcar activities 96.6% 95.9% 98% 10.0 95.0%
Slide 18: Stolt Tank Containers
Stolt Tank Containers S|
Slide 19: Stolt Tank Containers | Active Market - Higher Freight Cost
Stolt Tank Containers | Active Market - Higher Freight Cost Operating Revenue EBITDA Operating Profit Utilisation 2Q21 $157.7m $23.1m $12.5m 72.2% 1Q21 $138.9m $18.5m $8.0m 69.7% Operating Profit Variance ▪ 37,878 shipments in 2Q – a new record! ▪ Transportation revenue was up $18.3m, driven by more
Slide 20: Market Highlights | New Highs
Market Highlights | New Highs High demand in all markets and sectors… ▪ Demand continues to grow across all markets and sectors as 135 40 140 economies begin to rebound from Covid Quarterly Shipments(Thousands) LTM Shipments (Thousands) 35 135 ▪ In order to meet the demand, STC has placed an order t
Slide 21: Market Outlook | Challenges and Opportunities
Market Outlook | Challenges and Opportunities Global seaborne container trade is expected to grow 6.6% in 2021, while the Opportunities... containership fleet growth is expected to grow 4.5%*. High demand for capacity allocation and the disruption and congestion in ports since 2H20 are causing an in
Slide 22: Stolt Sea Farm
Stolt Sea Farm iS
Slide 23: Stolt Sea Farm
Stolt Sea Farm Operating Revenue EBITDA Operating Profit Volumes (metric tonnes) ** 2Q21 $21.4m $1.5m ($0.6m) 1,975mt 1Q21 $22.5m $3.0m $1.0m 2,188mt **Includes own turbot, traded turbot and sole Operating Profit Variance ▪ Turbot sales decreased $1.9m due to lower sales volumes compared to the seas
Slide 24: Market Outlook
Market Outlook Reopening of hospitality sector and continued easing of lockdown restrictions are expected to be supportive of turbot and sole prices ▪ Strong recovery in demand is expected to continue during the peak summer period ▪ Prices close to pre-pandemic levels having seen rapid rises during
Slide 25: Stolt-Nielsen Gas
Stolt-Nielsen Gas S|
Slide 26: Stolt-Nielsen Gas | Avenir LNG delivering on strategy
Stolt-Nielsen Gas ¦ Avenir LNG delivering on strategy Avenir LNG - an asset-led small scale LNG supplier… … with attractive earnings potential ▪ Mission to provide assets and expertise to unlock stranded LNG demand, bringing clean, affordable and reliable energy to new markets by shipping and storin
Slide 27: Financials
Financials Second-Quarter 2021 Results 27
Slide 28: SNL Net Profit
SNL Net Profit Quarter Half-Year Highlights Figures in USD million 2Q21 1Q21 2Q20 HY21 HY20 Operating profit variance 1Q21 – 2Q21 Operating Profit (before one-offs) $41.4 $35.9 $51.2 $77.3 $80.7 SSF Impairment 0.0 0.0 (1.8) 0.0 (13.8) Gain/(loss) on sale of assets 0.0 0.1 0.0 0.1 0.1 Operating Profi
Slide 29: Covenant Coverage
Covenant Coverage Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) *Last twelve months 3,000 x1.58:1 x1.53:1 x1.58:1 x1.59:1 1.70 600 x3.41:1 x3.55:1 x3.69:1 x3.70:1 3.90 $2,540 $2,503 $2,584 $2,605 $495 $504 $499 $486 3.70 2,500 1.60 500 1.50 3.50
Slide 30: Capital Expenditures
Capital Expenditures Highlights Actuals Remaining Figures in USD millions 1Q21 2Q21 2021 2022 Total ▪ Stolt Tankers CAPEX in Q1 includes the acquisition of three ships from CTG Stolt Tankers 84 8 14 17 123 ▪ Stolt Tankers CAPEX excludes drydocking, which was $9.4m YTD and $5.9m 2Q Stolthaven Termina
Slide 31: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 2Q21 1Q21 HY21 HY20 Highlights Cash generated by operating activities $90.9 $94.4 $185.3 $241.9 Interest Paid (36.8) (24.6) (61.4) (68.2) ▪ Cash generated by operating activities decreased from Debt issuance cost (1.1) (1.5) (2.7) (1.7) $94
Slide 32: Debt Maturity | Average Interest Cost Down
Debt Maturity | Average Interest Cost Down Financing Highlights Average Cost of Debt* 50 5.5% ▪ Closed $77.0m Sale and Leaseback of three ships 5.1% 5.0% Interest Expenses USD millions %Average cost of debt 4.7% 4.6% 5.0% 40 4.6% ▪ Average interest rate reduced. Annualised cost savings achieved 4.3%
Slide 33: Key Messages
Key Messages ▪ Increasing activity seen across the board during the quarter ▪ Positive market outlook across all our businesses, though yet to be reflected in earnings ▪ Well positioned to capitalise on an improving market ▪ Strong asset base supports positive free cash flow ▪ Robust balance sheet a
Slide 34: Stolt-Nielsen
Stolt-Nielsen S|