Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q2 2018 Earnings Presentation
33 slides from Stolt-nielsen's earnings presentation, Jul 5, 2018
Slide 1: Second-Quarter 2018 Results Presentation
Second-Quarter 2018 Results Presentation July 5, 2018
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 • Jens F. Grüner-Hegge Chief Financial Officer Page 3
Slide 4: Agenda
Agenda • SNL 2Q18 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: Second-Quarter 2018 Highlights
Second-Quarter 2018 Highlights • Net profit of $9.5m after impairment of $11.8m on two bitumen ships, compared with $38.7m in the prior quarter, which included tax related gains of $33.1m • Stolt Tankers reported an operating profit of $26.5m, up from $10.9m last quarter, mainly reflecting a $9.2m g
Slide 6: SNL: 1Q18 to 2Q18 Net Profit Variance
SNL: 1Q18 to 2Q18 Net Profit Variance Figures in $US 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 350 60 280 45 210 30 54.1 292.6 299.7 295.1 308.6 48.5 48.9 140 282.8 40.7 15 34.4 70 0 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 $US Millions Days OPERATING PROFIT STJS - OPERATING DAYS 40 7,000 30 20 3,500 6,412 6,116 6,302 6,3
Slide 8: Tankers: 1Q18 to 2Q18 Operating Profit Variance
Tankers: 1Q18 to 2Q18 Operating Profit Variance Figures in $US Millions Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs Figures in $US Million Realised Unrealised Total Hedge $70.0 $450 Period G/(L) G/(L) G/(L) $60.0 $400 1Q17 2.0 0.0 2.0 $350 2Q17 1.4 (3.2) (1.8) Bunker cost ($US m) $50.0 3Q17 1.4 3.4 4.8 IFO (USD/Tonne) $300 $40.0 $250 4Q17 2.6 5.9 8.5 $63.0 $63.3 $200 FY17 7.4 6.1 13.5
Slide 10: STJS Bunker Cost Sensitivity
STJS Bunker Cost Sensitivity Expected Bunker recovery Net Impact Expected Cost IFO + Cost through on P&L per hedging STJS Bunker Price Sensitivity MGO Increase surcharge quarter result a IFO volume 112,985 tonnes IFO average price 2Q18 $382 per tonne $58.0 Base price + 5% $401 per tonne $60.9 $2.9 $
Slide 11: Spot Rate vs. Bunker and TC Index Sensitivity
Spot Rate vs. Bunker and TC Index Sensitivity STJS average quarterly Spot rates / bunker purchase prices ‐ 2011‐2018 Q2 in $US 100.0 800 90.0 700 Bunker IFO $/tonne 80.0 600 70.0 Spot $/tonne 60.0 500 50.0 400 40.0 300 30.0 200 20.0 10.0 100 ‐ ‐ IFO Purchase Price Average Per Quarter Spot rate Stolt
Slide 12: Chemical Tanker Fleet and Orderbook – 2Q18
Chemical Tanker Fleet and Orderbook – 2Q18 Source: Stolt-Nielsen and Drewry, as of June 1, 2018 Competitor criteria: i) ship size between 15,000 and 50,000 dwt ii) average segregation size 3,000 dwt Page 12
Slide 13: Market Development
Market Development • Most markets remain subdued as tonnage SPECIALTY 1,000 MT deliveries continue to outstrip demand 180 growth 140 • Strong COA competition continues, driven by owners seeking to secure cargo in 100 advance of newbuildings being delivered in 60 2018 • Outlook remains stable for fun
Slide 14: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT • Revenue increased by $1.4m 70 24 from last quarter 18 60 • Utilisation for wholly owned terminals increased to 90.2% 12 21.9 21.3 22.0 22.2 62.5 63.9 18.8 50 60.7 61.0 61.4 from 88.5% due to additional 6 40 2Q17 3Q17 4Q17 1Q18 2Q1
Slide 15: Terminals: 1Q18 to 2Q18 Operating Profit Variance
Terminals: 1Q18 to 2Q18 Operating Profit Variance Figures in $US Millions Page 15
Slide 16: Stolthaven Terminals: Market Update & Key Initiatives
Stolthaven Terminals: Market Update & Key Initiatives • Houston is performing well, with increased revenues driven by higher utilisation rates, excess throughput and railcar activities; exports remain strong, but concerns growing over US/China tariff dispute • Singapore market remains challenging, b
Slide 17: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 150 35 28 100 21 132.6 143.2 33.1 33.4 34.9 129.6 136.9 132.5 29.7 29.8 14 50 7 0 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION 35,000 100% 18 31,712 34,125 28,000 32,378
Slide 18: STC: 1Q18 to 2Q18 Operating Profit Variance
STC: 1Q18 to 2Q18 Operating Profit Variance Figures in $US Millions $18.8 ` Page 18
Slide 19: Stolt Tank Containers: Market Update and Key Initiatives
Stolt Tank Containers: Market Update and Key Initiatives • Strong demand driving increased Shipments 140,000 shipments in most regions; focus on 131,000 + improving both utilisation and turns 130,000 per tank – fleet grown by 3.9% in 120,000 the quarter 110,000 • Operating revenues up 8.0% from prio
Slide 20: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT a) 30 4 25 3 20 15 3.8 4.1 2 23.3 23.7 24.4 10 18.5 15.3 2.1 2.1 1 5 1.6 0 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 $US Millions $US Millions OPERATING PROFIT/LOSS a) IFRS SEASONALITY 3 2.5 2 1.5 2.2 2.4 1 0.5 0.7 0.4 0 0.1 2Q1
Slide 21: SSF: 1Q18 to 2Q18 Operating Profit Variance
SSF: 1Q18 to 2Q18 Operating Profit Variance Figures in $US Millions Page 21
Slide 22: Stolt-Nielsen Gas Strategy
Stolt-Nielsen Gas Strategy • Focus on markets of stranded, small scale demand that can be serviced by integrated distribution models using small ships and land based or floating storage terminals • Target a core fleet of small (7,500 m3) and Handy (20,000 m3) ships to cover regional demand • Build a
Slide 23: Financials
Financials Page 23
Slide 24: Net Profit
Net Profit Figures in $US Millions Quarter YTD 2Q18 1Q18 2Q17 2018 2017 Operating Profit (before one-offs) $61.0 $46.7 $53.7 $107.7 $105.4 Terminals accelerated depreciation - - - - (0.3) Terminals insurance claims - - (0.3) - (0.6) Reversal of deferred tax liability at JV - 8.2 - 8.2 - Gain / (loss
Slide 25: Balance Sheet
Balance Sheet Figures in $US Millions Period ended Figures in $US Millions (Except ratios) At the end of: May.31.18 Cash and cash equivalents $80 May 2018 Receivables 262 Other current assets 194 Debt $2,507 Total current assets 535 Tangible Net Worth (TNW) $1,623 Debt:TNW 1.55:1 Property, plant and
Slide 26: Cash Flow
Cash Flow Figures in $US Millions Quarter Full Year 2Q18 1Q18 2017 Net profit $10 $39 $50 Depreciation, amortisation and non-cash items 67 55 259 Adjustment to deferred tax 0 (25) 0 Changes in working capital Other receipts, net 16 (2) (23) 11 (10) 26 Cashflow Priorities: Net cash generated by opera
Slide 27: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 80 14% 40 14% 78 35 73 74 72 73 69 69 68 70 11% 35 11% 60 65 30 32 63 30 29 30 30 29 55 25 28 28 8% 8% 25 40 20 23 21 5% 15 5% 20 10 2% 2% 5 0 -1% 0 -1% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2
Slide 28: Administrative & General Expenses
Administrative & General Expenses Figures in $US Millions Updated Quarterly Quarter YTD Guidance 2Q18 1Q18 2Q17 2018 2017 Stolt Tankers $22.4 $23.8 $22.5 $46.2 $45.0 $23.5 Stolthaven Terminals 10.9 11.5 10.9 22.4 21.0 11.5 Stolt Tank Containers 16.8 17.4 15.9 34.3 31.6 17.5 Stolt Sea Farm 1.7 1.6 1.
Slide 29: Depreciation and Amortisation
Depreciation and Amortisation Figures in $US Millions Updated Quarterly Quarter YTD Guidance 2Q18 1Q18 2Q17 2018 2017 Stolt Tankers $44.8 $44.3 $41.8 $89.1 $83.7 $45.0 Stolthaven Terminals 14.4 14.1 13.4 28.4 26.5 14.7 Stolt Tank Containers 6.2 6.1 6.0 12.3 13.4 6.2 Stolt Sea Farm 1.5 1.5 1.5 3.0 2.
Slide 30: Share of Profit of JVs and Tax
Share of Profit of JVs and Tax Figures in $US Millions Share of Profit of JVs Updated Quarterly Quarter YTD Guidance 2Q18 1Q18 2Q17 2018 2017 Stolt Tankers $1.2 $0.4 $2.1 $1.6 $3.6 $1.5 Stolthaven Terminals 7.3 14.3 5.0 21.6 9.5 7.0 Tank Containers 0.5 0.2 0.0 0.7 0.5 0.5 Corporate and Other (1.9) (
Slide 31: Capital Expenditures Programme
Capital Expenditures Programme Figures in $US Millions Projected Actual Projections Total First-Half Remaining 2018 2018 2019 2020 2021 2022 Stolt Tankers $6 $17 $23 $13 $5 $2 $59 Stolthaven Terminals 34 81 57 25 17 30 210 Stolt Tank Containers 9 15 2 - - - 18 Stolt Sea Farm 2 12 19 11 3 4 49 Stolt-
Slide 32: Debt Maturity Profile
Debt Maturity Profile Figures in $US Millions Note: • $375m drawn under the revolver as of May 31, 2018 Page 32
Slide 33: Key Takeaways
Key Takeaways • 2Q18 net profit of $21.5m, excluding the $11.8m one-off impairment of bitumen ships in the quarter • Slight improvement in Stolt Tankers, but still a very challenging environment with too much supply and rising bunker prices • Strong demand at Stolt Tank Containers, with solid fundam