Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q1 2022 Earnings Presentation
28 slides from Stolt-Nielsen's earnings presentation, Mar 31, 2022
Slide 1: Stolt-Nielsen Limited First-Quarter 2022 Results
Stolt-Nielsen Limited | First-Quarter 2022 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer March 31, 2022 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 1Q22 Results
Agenda | 1Q22 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 8. Q&A First-Quarter 2022 Results
Slide 4: 1Q22 Highlights | Strong Performance Overall
1Q22 Highlights | Strong Performance Overall 1Q22 vs. 4Q21 ▪ Net Profit from continuing operations of $52.3m, up from $35.0m in 4Q21 OPERATING REVENUE EBITDA ▪ EBITDA of $158.5m, down from $162.9m mainly driven by: $ 606.2m p $ 158.5m p • Stolt Tankers one-off $12.5m DNK distribution in 4Q21 $ 593.1
Slide 5: Net Profit | Strong Operating Performance; Highest Net Profit since 2008
Net Profit | Strong Operating Performance; Highest Net Profit since 2008 First-Quarter 2022 Results 5
Slide 6: Stolt Tankers
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Slide 7: Stolt Tankers | Higher Freight Rates, Lower Volumes
Stolt Tankers | Higher Freight Rates, Lower Volumes OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 1Q22 $ 314.5m p $ 62.5m $ 25.0m p 6,848 p p 4Q21 $ 307.8m $ 71.6m $ 19.2m 6,919 Operating Profit Variance ▪ Freight rates up 6.4% driven by a 14.3% increase in spot rates ▪ Volume
Slide 8: Higher Bunker Prices Mitigated by Rising Freight Rates
Higher Bunker Prices Mitigated by Rising Freight Rates Bunker Cost* STJS - SIR index 2Q16 = 0.81 $80 12,405 13,000 11,486 0.8 $7.3 $70 12,000 0.7 $60 11,000 0.60 Bunker cost (USD $ M) $7.4 0.6 Operating Days $50 $10.0 $2.4 10,000 0.52 0.5 0.50 $40 9,000 $68.7 0.4 $65.1 $63.6 1Q10 3Q10 1Q11 3Q11 1Q12
Slide 9: Market Highlights – Swing Tonnage Moving Out of Chemicals
Market Highlights – Swing Tonnage Moving Out of Chemicals Deepsea – Stolt Tankers Joint Service Stolt-Nielsen Inter-Europe Service – E&S Tankers ▪ Strong US imports continued, slow down from USG to South America and ▪ Activity in Europe remains stable despite the Ukraine/Russia war. Continue India,
Slide 10: Market Outlook | Fundamentals remain positive but uncertainties remain
Market Outlook ¦ Fundamentals remain positive but uncertainties remain at elevated WTI Crude Oil Price Last 5-Yrs and Forecast 1 ▪ Ukraine/Russia conflict has heightened energy security and the role of fossil ($/bbl) Historical Price Forecast fuels 120 • 2022 Average – $101/bbl 100 • 2023 Average –
Slide 11: Stolthaven Terminals
Stolthaven Terminals S|
Slide 12: Stolthaven Terminals | Higher Rates and Higher Utilisation
Stolthaven Terminals | Higher Rates and Higher Utilisation OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly owned terminals) 1Q22 $ 66.1m p $ 37.1m p $ 22.0m p 96.3% p 4Q21 $ 62.1m $ 34.6m $ 8.4m 92.8% Operating Profit Variance ▪ Higher revenue as a result higher utilisation, rate incre
Slide 13: Market Highlights | Strong Demand in the US, Slowdown in China
Market Highlights | Strong Demand in the US, Slowdown in China ▪ US terminals: higher utilisation and throughput with increased demand in Equity Income/Utilisation (Joint Ventures) Priorities the US Gulf 12.0 100% 97.7% ▪ Utilisation at the European terminals was stable as demand for chemicals 98% 1
Slide 14: Stolt Tank Containers
Stolt Tank Containers
Slide 15: Stolt Tank Containers | Higher Rates but Lower Shipments
Stolt Tank Containers | Higher Rates but Lower Shipments OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 1Q22 $ 195.3m p $ 50.3m p $ 40.0m p 70.3% p 4Q21 $ 191.5m $ 46.0m $ 36.4m 72.2% Operating Profit Variance ▪ Transportation revenue was down 1.4% as shipments were down by 6.0% ▪ Demurrage r
Slide 16: Market Outlook | Demand Softening, Freight Costs Remain Elevated
Market Outlook | Demand Softening, Freight Costs Remain Elevated Demand outlook Signs of a slowdown in shipments ▪ Decline in bookings indicates lower demand 40 150 137 Quarterly Shipments(Thousands) expected in 2Q 35 140 LTM Shipments (Thousands) 130 ▪ Signs of customers delaying shipments of low 3
Slide 17: Stolt Sea Farm
Stolt Sea Farm S|
Slide 18: Stolt Sea Farm | Lower Volume but Prices Remain Strong
Stolt Sea Farm | Lower Volume but Prices Remain Strong OPERATING REVENUE EBITDA OPERATING PROFIT VOLUMES (metric tonnes)** 1Q22 $ 30.0m $ 8.2m $5.9m 2,259mt p p p p 4Q21 $ 31.1m $ 12.7m $ 11.3m 2,667mt Operating Profit Variance ▪ Turbot prices improved by 1.0% on top of significant increases in rece
Slide 19: Stolt-Nielsen Gas
Stolt-Nielsen Gas S|
Slide 20: Avenir LNG | A Transformational Year - Focus on Operations and Earnings
Avenir LNG | A Transformational Year - Focus on Operations and Earnings ▪ Unmatched in the small-scale segment in terms of 1 size, flexibility, and operational efficiency Avenir Fleet ▪ BB / TCs with high quality counterparties ▪ Highly attractive asset portfolio of 5 vessels Diversified Earnings to
Slide 21: Financials
Financials Stolt-Nielsen S|
Slide 22: SNL Net Profit | Financials
SNL Net Profit | Financials Quarter Highlights Figures in USD million 1Q22 4Q21 1Q21 Operating Revenue $606.2 $593.1 $480.2 Operating Expenses (403.0) (379.1) (327.6) Depreciation and amortisation (68.3) (73.1) (72.0) Impairment of assets 0.0 (10.0) 0.0 Share of profit of joint ventures and associat
Slide 23: Capital Expenditures
Capital Expenditures Actuals Remaining Budget Forecast Figures in USD millions 1Q22 2022 2022 2023 Stolt Tankers 2 37 39 9 Stolthaven Terminals 11 96 107 86 Stolt Tank Containers 5 38 43 0 Stolt Sea Farm 1 7 8 10 Stolt-Nielsen Gas* - - - - SNL Corporate & Other 2 24 26 - Total $21 $202 $223 $105 *In
Slide 24: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 1Q22 4Q21 1Q21 Highlights Cash generated by operating activities $199.5 $113.0 $94.4 ▪ Strong improvement of free cash-flow due to higher operating Interest Paid (26.0) (36.0) (24.6) cashflow from all businesses and a reduction in net worki
Slide 25: Financial KPIs | Steady and Healthy Improvement
Financial KPIs | Steady and Healthy Improvement 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 1.70 $2,605 700 5.00 $2,584 $2,522 $2,436 $2,352 1.60 $587 4.68x 2,500 600 1.59x $537 4.23x 1.58x 1.50x $506 $500 $504 4.50 1
Slide 26: Debt Maturity 2022-2026 and Financings
Debt Maturity 2022-2026 and Financings Please add legend ☺ Please don’t use capital “M” 2022 Financing Highlights ▪ $415m Sustainability-Linked Secured Loan signed in 1Q ▪ $128m Sustainability-Linked JOLCO signed during 2Q ▪ SNL has enough liquidity to repay SNI07 in September ▪ Average cost of debt
Slide 27: Key Messages
Key Messages ▪ Highest quarterly net profit since 2008 ▪ Improved profitability driven by STC, SSF and Stolthaven ▪ Chemical tanker market remains soft, but fundamentals point to firming market during 2022 ▪ High inflation, rising energy costs and higher interest rates could hurt demand growth for b
Slide 28: Q&A
Q&A Stolt-Nielsen S|