Slide 1: Stolt-Nielsen Limited Fourth-Quarter 2016 Results Presentation
Stolt-Nielsen Limited Fourth-Quarter 2016 Results Presentation January 31, 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: Company Representatives
Company Representatives • Niels G. Stolt-Nielsen CEO Stolt-Nielsen Limited • Jan Chr. Engelhardtsen CFO Stolt-Nielsen Limited Page 3
Slide 4: Agenda
Agenda • SNL 4Q16 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: Fourth-Quarter 2016 Highlights
Fourth-Quarter 2016 Highlights • Stolt Tankers operating profit of $30.4M, down from $31.4M, as the chemical tanker market continued to soften; the Jo Tankers acquisition closed on Nov.23.16 • Stolthaven Terminals operating profit of $14.0M, down from $14.8M; results declined mainly due to lower equ
Slide 6: SNL: 3Q16 to 4Q16 Net Profit Variance
SNL: 3Q16 to 4Q16 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 Sincerity after launching • Operating revenue decreased by 2.5% from previous quarter, mainly due to reduction in deep- sea volume and freight rates as the market contin
Slide 8: Stolt Tankers: 3Q16 to 4Q16 Operating Profit Variance
Stolt Tankers: 3Q16 to 4Q16 Operating Profit Variance Figures in USD Millions $30.4 Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Bunker cost net of bunker surcharge, but excluding bunker hedges, decreased by $1.9M from 3Q16 • Average price of IFO consumed increased to $260/ton from $232/ton in 3Q16 • Average price of IFO purchased increased to $273/ton from $245/ton in 3Q16 • COA bunker surcharge
Slide 10: Stolt Tankers Joint Service Sailed-in T/C Index
Stolt Tankers Joint Service Sailed-in T/C Index 1.10 Asia Pacific economic crisis and large NB programmes 0.90 Sept.11 4Q16=0.72 Global economic downturn starts Strong CPP 0.70 market 0.50 1Q96 1Q05 3Q13 3Q96 1Q97 3Q97 1Q98 3Q98 1Q99 3Q99 1Q00 3Q00 1Q01 3Q01 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 3Q05 1Q06 3
Slide 11: Deep Sea Market Spot Rate Development
Deep Sea Market Spot Rate Development • Since the late 2015/early 2016 peak, spot specialty freight rates dropped about 19% while commodity rates decreased about 32% • The weak MR market induced CPP swing tonnage to shift to the commodity chemical segment; the supply increase first impacted commodit
Slide 12: STJS Spot Rate and the Impact on our Earnings
STJS Spot Rate and the Impact on our Earnings 15% reduction in spot rate since 3Q15 • Our 76% COA coverage protects us from the impact of short term swings in spot rates • Low spot ratio allows us to be more selective on spot cargoes; 4Q16 was impacted by short-haul repositioning fixtures at low spo
Slide 13: Chemical Tanker Fleet and Orderbook – 4Q16
Chemical Tanker Fleet and Orderbook – 4Q16 Source: Stolt-Nielsen and Drewry, as of January 1, 2017 Page 13
Slide 14: New Building Delivery Schedule
New Building Delivery Schedule Stolt Integrity (Third in a series of six newbuilds from China) Name Expected (JV Ships) Delivery Name Expected Delivery Apal Delivered June 30, 2016 Stolt Pride Delivered July 22, 2016 Alm Delivered Oct 24, 2016 Stolt Sincerity Delivered Dec 02, 2016 Hull 303 1Q17 Sto
Slide 15: Jo Tankers Update on Integration
Jo Tankers Update on Integration • Closing of the transaction took place on November 23rd, 2016 • The transaction encompasses most of the JOT organisation, including four offices, 13 chemical tankers (Stolt Tankers already had six of JOT’s large ships on time charter), 50% of a joint venture that wi
Slide 16: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT $US Millions Thousand cubic metres - (owned terminals) a) OPERATING PROFIT AVERAGE CAPACITY - UTILISATION Stolthaven Singapore Gas sphere and Bulk chemical tanks • Revenue remained stable in 4Q16 compared to the previous quarter des
Slide 17: Terminals: 3Q16 to 4Q16 Operating Profit Variance
Terminals: 3Q16 to 4Q16 Operating Profit Variance Figures in USD Millions Page 17
Slide 18: Stolthaven Owned Terminals
Stolthaven Owned Terminals • Average leased capacity for the consolidated terminals has increased, with the biggest improvement at New Orleans • Stolthaven Houston continues its business optimisation programme; pursuing long term contracts to lock in revenue • Focus on the ship-to-shore interface to
Slide 19: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION • Revenue down 2.8% due to fewer shipments and lower utilization, offset by higher demurrage revenue • Gross profit increased by 11.0% from previous quarter, mainly due to impro
Slide 20: STC: 3Q16 to 4Q16 Operating Profit Variance
STC: 3Q16 to 4Q16 Operating Profit Variance Figures in USD Millions ` Page 20
Slide 21: Stolt Tank Containers Market Situation
Stolt Tank Containers Market Situation • Seasonally weak demand drove shipments down; market was reasonably balanced during the quarter with food grade shipments remaining strong 2016: 120,210 • We continue to remain aggressive on pricing to improve utilisation and increase turns per tank • Focus is
Slide 22: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before IFRS adjustment) $US Millions % a) GROSS OPERATING PROFIT MARGIN OPERATING PROFIT/LOSS (before IFRS adj) Stolt Sea Farm, Hafnir, Iceland a) Excludes the accounting for inventories at fair value • Prices for Turbot continued to imp
Slide 23: SSF: 3Q16 to 4Q16 Operating Profit Variance
SSF: 3Q16 to 4Q16 Operating Profit Variance Figures in USD Millions Page 23
Slide 24: Stolt-Nielsen Gas
Stolt-Nielsen Gas Share holding: 2.3% Stolt-Nielsen Gas (SNG) Golar LNG 8.1% 100% 50% AGHL Stolt-Nielsen LNG Holdings Ltd. Golar Stolt JV Co 50% 10% Stolt LNGaz HIGAS S.r.L LNG Strategy: Page 24
Slide 25: Financials
Financials Gong Xi Fa Cai Page 25
Slide 26: Net Profit
Net Profit Quarter Full Year Figures in USD Millions 4Q16 3Q16 4Q15 2016 2015 Operating Profit (before one offs) $55.0 $57.7 $56.2 $248.3 $246.7 Tanker accelerated depreciation (1.9) (3.1) (4.1) (15.6) (4.1) Terminals accelerated depreciation, claims (1.5) - (3.7) (1.5) (9.1) Loss on sale of assets
Slide 27: Balance Sheet
Balance Sheet Figures in USD Millions Period ended Nov.30.16 Figures in USD Millions (Except ratios) At the end of: Cash and cash equivalents $93 November 2016 Marketable securities $11 Receivables 202 Debt $2,353 Other current assets 161 Tangible Net Worth (TNW) $1,582 Total current assets 467 Debt
Slide 28: JOT Purchase Price Allocation
JOT Purchase Price Allocation Equity price calculation $ Million Consolidated Balance Sheet $ Million Gross purchase price 575 Cash & marketable securities 45 Closing debt (190) Vessel in service 380 Investment in JV 48 SNL's share of JV debt (33) Net working capital & Other 7 Cash & marketable secu
Slide 29: Cash Flow
Cash Flow Figures in USD Millions Quarter Twelve months 4Q16 3Q16 2016 Net income $23 $22 $113 Depreciation, amortisation and non-cash items 44 55 187 Changes in working capital 4 6 (3) Other receipts, net 0 7 22 Net cash generated by operating activities $71 $90 $319 Capital expenditures and intang
Slide 30: 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 Page 30
Slide 31: Administrative and General Expenses
Administrative and General Expenses Figures in USD Millions Updated Quarterly Quarter Full Year Guidance 4Q16 3Q16 4Q15 2016 2015 Stolt Tankers $18.5 $19.3 $20.6 $77.2 $82.8 $24.0 Stolthaven Terminals 9.9 11.1 10.8 42.8 42.7 11.0 Stolt Tank Containers 14.2 16.0 15.7 61.0 59.8 16.5 Stolt Sea Farm 1.2
Slide 32: Depreciation and Amortisation
Depreciation and Amortisation Updated Figures in USD Millions Quarterly Quarter Full Year Guidance 4Q16 3Q16 4Q15 2016 2015 Stolt Tankers $33.4 $34.7 $36.6 $141.4 $131.1 $44.0 a) Stolthaven Terminals 15.7 14.4 16.0 57.6 58.0 14.5 Stolt Tank Containers 6.2 6.0 6.0 24.0 22.4 7.1 Stolt Sea Farm 1.4 1.5
Slide 33: 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 Full Year Guidance 4Q16 3Q16 4Q15 2016 2015 Stolt Tankers $2.5 $3.5 2.9 $13.4 13.3 $3.0 Stolthaven Terminals 3.6 5.5 4.5 18.9 24.5 5.0 Tank Containers 0.3 0.5 0.1 1.5 0.7 0.3 Corporate and Other
Slide 34: Capital Expenditures Programme
Capital Expenditures Programme Figures in USD Millions Figures in USD Millions Projected Actual Projections Total 4Q16 2017 2018 2019 2020 Stolt Tankers $68 $245 $16 $16 $11 $288 Jo Tankers 275 21 - - - 21 Stolthaven Terminals 22 112 46 32 28 218 Stolt Tank Containers 4 20 3 - - 23 Stolt Sea Farm 1
Slide 35: Debt Maturity Profile
Debt Maturity Profile Figures in USD Millions Notes: 1. $390M drawdown under revolver as at December 5th, 2016 2. Includes the financing arranged in relation with Jo Tankers acquisition Page 35
Slide 36: Key Takeaways
Key Takeaways • 2016 net profit of $113.2M • Major acquisition of Jo Tankers completed; focus on realising synergies and improving operations for the benefit of our stakeholders • Solid performance in tankers; fundamentals in terminals remain solid; weaker tank container results in a highly competit
Slide 37: For more information please visit our website
For more information please visit our website: www.stolt-nielsen.com Page 37