Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q1 2023 Earnings Presentation
29 slides from Stolt-nielsen's earnings presentation, Mar 30, 2023
Slide 1: Stolt-Nielsen Limited | First-Quarter 2023 Results
Stolt-Nielsen Limited | First-Quarter 2023 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer March 30, 2023 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 | 1Q23 Results
Agenda | 1Q23 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Financials 7. Q&A First-Quarter 2023 Results
Slide 4: 1Q23 Highlights | Strong Results From All Businesses
1Q23 Highlights | Strong Results From All Businesses 1Q23 vs. 4Q22 Net Profit of $99.8m, up from $95.3m in 4Q22 driven by improved tanker trading results OPERATING REVENUE EBITDA EBITDA of $213.2m, up from $196.0m due to $ 708.7m $ 213.2m • Stolt Tankers: Strong results due to higher spot vo
Slide 5: Net Profit | Solid Results
Net Profit | Solid Results First-Quarter 2023 Results 5
Slide 6: Stolt Tankers
Stolt Tankers S|
Slide 7: Stolt Tankers | Higher COA Rates Driving Earnings
Stolt Tankers | Higher COA Rates Driving Earnings OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deepsea) 1Q23 $ 415.5m $ 125.0m $ 87.1m 7,185 4Q22 $ 412.4m $ 115.3m $ 78.2m 7,153 Operating Profit Variance Increased trading results as COA rates improved 16.3%, while Spot rates f
Slide 8: Bunker Cost Analysis | Lower Net Bunker Cost
Bunker Cost Analysis | Lower Net Bunker Cost Bunker Cost (deepsea and regional fleets) 12,835 100 11,486 14,000 ~99% of COA volume has a bunker clause 80 $71.6 $70.5 12,000 $68.7 $64.1 $63.7 $63.6 60 $65.1 $51.1 $50.6 $54.2 The total volume covered by bunker $46.8 $108.8 10,000 clauses was 56.5%
Slide 9: Improving SIR per Operating Day Reflecting Higher COA Rates
Improving SIR per Operating Day Reflecting Higher COA Rates STJS – SIR per Operating Day1 Strong SIR / Day development expected to continue in 2Q23 $35 40 $35.000 Thousands Thousands $29,066 39 $30 Indicative $32.500 flat to 2% 38 Increase $25 37 $30.000 +54.7% CAGR SIR per operating days Average DW
Slide 10: Market Highlights | Strong Fundamentals Driving Earnings
Market Highlights | Strong Fundamentals Driving Earnings First quarter saw a dip in spot freight rates, partly driven by a fall in MR Homebound Return Transatlantic Eastbound 300.00 earnings, which has now reversed in most regions. 115.00 250.00 105.00 Increased exposure to spot markets to acces
Slide 11: ST SIR/Day | New Investments Require Sustainable Rates
ST SIR/Day | New Investments Require Sustainable Rates STJS – SIR per Operating Day1 As an industrial shipping operator we Stolt Tankers 2022 ST invest in vessels which service our Average ROCE ROCE 11.0% customers for ~25 years $35,000 10yr Historical 4.9% Historical returns for chemical shippi
Slide 12: Stolthaven Terminals
Stolthaven Terminals S|
Slide 13: Stolthaven Terminals | Improved Results Driven By Higher Rates
Stolthaven Terminals | Improved Results Driven By Higher Rates OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly-owned terminals) 1Q23 $ 74.0m $ 40.6m $ 25.1m 97.3% 4Q22 $ 70.1m $ 36.5m $ 20.8m 98.0% Operating Profit Variance Higher revenue from US and Brazil terminals Lower
Slide 14: Market Highlights | Stable Demand but Lower Throughput Volumes
Market Highlights | Stable Demand but Lower Throughput Volumes Equity Income/Utilisation (Joint Ventures) Priorities US terminals: Strong demand, utilisation stable with higher rates, but a 12.0 100% small seasonal dip in throughput volumes. Double-digit increases achieved 95.4% 98% 10.0 94.8% 95.
Slide 15: Stolt Tank Containers
Stolt Tank Containers S|
Slide 16: Stolt Tank Containers | Margins Normalizing Offset by Increasing Volumes
Stolt Tank Containers | Margins Normalizing Offset by Increasing Volumes OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 1Q23 $ 193.9m $ 50.8m $ 39.3m 64.7% 4Q22 $ 228.5m $ 56.1m $ 44.9m 67.0% Operating Profit Variance Transportation revenue decreased by 14.8% driven by lower transpo
Slide 17: Market Outlook | Reverting Back to Historic Earnings
Market Outlook | Reverting Back to Historic Earnings Demand outlook Shipments increased due to good demand and available liner capacity 50 160 Tale of three markets: 45 131 131 129 129 131 135 141 140 137 131 130 130 132 127 125 125 127 140 East of Suez: Strong volumes/margins 40 Quarterly Shipm
Slide 18: Stolt Sea Farm
Stolt Sea Farm S|
Slide 19: Stolt Sea Farm | Robust Performance In A Seasonally Strong Market
Stolt Sea Farm | Robust Performance In A Seasonally Strong Market OPERATING REVENUE EBITDA (Excl. FV Adj.) OPERATING PROFIT(Excl. FV Adj.) VOLUMES (metric tonnes)** 1Q23 $ 25.2m $ 7.2m $ 5.6m 1,995mt 4Q22 $ 21.3m $ 4.3m $ 3.3m 1,786mt **Includes turbot and sole Operating Profit Variance Sa
Slide 20: Stolt-Nielsen Investments | Leveraging Our Industrial Knowledge and Expertise
Stolt-Nielsen Investments | Leveraging Our Industrial Knowledge and Expertise 1Q23 Asset Allocation Current Investments Recent Exits LNG Bulk-liquid logistics Aquaculture 47.2% Fully integrated global energy Avenir company dedicated to small-scale 5% LNG LNG Stake Participated in the CoolCo IPO in
Slide 21: Financials
Financials Stolt-Nielsen
Slide 22: Financials | SNL Net Profit
Financials | SNL Net Profit Quarter Highlights Figures in USD million 1Q23 4Q22 1Q22 Decrease in operating revenue due to lower freight rates in Tank Operating Revenue $708.7 $732.5 $606.2 Containers partially offset by slightly higher revenue in Stolt Tankers, Stolthaven Terminals and Stolt Sea F
Slide 23: Financials | Capital Expenditures
Financials | Capital Expenditures Actuals Remaining Forecast Figures in USD millions 1Q23 2023 2024 Stolt Tankers 7 71 3 Stolthaven Terminals 17 101 134 Stolt Tank Containers 16 43 - Stolt Sea Farm 7 12 8 SNL Corporate & Other - 22 - Total $47 $249 $145 Stolt Tankers: Capex excludes drydocking 1Q23
Slide 24: Financials | SNL Cash Flow and Liquidity Position
Financials | SNL Cash Flow and Liquidity Position Figures in USD million 1Q23 4Q22 1Q22 Highlights Cash generated by operating activities $176.8 $202.0 $199.5 Cash from operating activities decreased due to an increase Interest Paid (28.3) (33.2) (26.0) in working capital due to the payment of pro
Slide 25: Debt Profile | Steady Debt Reduction and Stable Interest Costs
Debt Profile | Steady Debt Reduction and Stable Interest Costs Debt Average cost of debt 3000 2,436 2,352 45 6.0% 2500 2,340 2,346 2,190 5.01% 5.13% 2,135 40 4.81% 4.44% 4.41% 4.45% 5.0% 2000 35 USD Millions 30 4.0% USD millions 1500 25 3.0% 20 1000 15 31 31 29 30 29 29 2.0% 10 500 1.0% 5 0 - 0.0% 4
Slide 26: Financial KPIs | Steady Improvement
Financial KPIs | Steady Improvement Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) 3,500 1.60 *Last twelve months 900 6.50 1.35 1.32 $770 1.40 800 6.00 3,000 $715 5.85 $682 1.27 700 $646 $2,352 $2,340 $2,346 1.07 1.20 5.50 2,500 1.16 $587 5.35 $2
Slide 27: ESG | Decarbonisation Ambition
ESG | Decarbonisation Ambition GHG Emission Intensity Stolt Tankers Tankers (AER) Reduce carbon intensity by 50% Industry standard Indicative 12 months 50% emissions reference year (IMO) rolling average intensity reduction relative to 2008 levels by 2030 Run a carbon-neutral business by 2050 200
Slide 28: Key Messages
Key Messages Continued strength across all businesses through the typically weak first quarter: At Stolt Tankers the improved COA terms are now starting to show in the financial results Stolthaven Terminals’ continued high utilisation has allowed for rate improvements Stolt Tank Containers r
Slide 29: Q&A
Q&A 29