Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q1 2021 Earnings Presentation
32 slides from Stolt-nielsen's earnings presentation, Apr 8, 2021
Slide 1: First-Quarter 2021 Results
Stolt-Nielsen Limited First-Quarter 2021 Results Niels G. Stolt-Nielsen - Chief Executive Officer Jens F. Grüner-Hegge - Chief Financial Officer April 8, 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 – 1Q21 Results
Agenda – 1Q21 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 First-Quarter 2021 Results 3
Slide 4: 1Q Highlights – Seasonal Weakness, but EBITDA Up $20m From 1Q20
1Q Highlights – Seasonal Weakness, but EBITDA Up $20m From 1Q20 ▪ Net Profit from continuing operations of $2.5m 1Q21 Financial Highlights (change from 4Q20) ▪ Decrease of EBITDA mainly driven by: Operating Revenue EBITDA ▪ Stolt Tankers lower volumes ▪ Lower utilisation in Stolthaven Terminals $480
Slide 5: Operational Highlights
Operational Highlights Consolidation of the fleet Expanding where and when an opportunity arises ▪ Five CTG ships joined the STJS fleet, ▪ Terminals added 16,000cbm of increasing capacity by 130,000 dwt. storage capacity at Stolthaven ▪ The ships were fully financed New Orleans, US between February
Slide 6: Lower Operating Profit in Tankers Impacted Group’s Performance
Lower Operating Profit in Tankers Impacted Group’s Performance Net Profit Variance Decrease in operating profit of $22.0m First-Quarter 2021 Results 6
Slide 7: ESG | Sustainability Lies At The Heart Of Our Operations
ESG | Sustainability Lies At The Heart Of Our Operations INVESTMENTS At Stolt-Nielsen, our goal of zero harm for people and the environment is our number-one priority Transparent on what we do…. Four businesses, multiple targets by 2030 On March 16, 2021, the Company published its annual report for
Slide 8: Stolt Tankers | Environmental Performance
Stolt Tankers | Environmental Performance From cutting emission and conserving water to managing energy consumption and reducing waste GHG* Emissions Scope 1 GHG Emissions Intensity Sulphur Oxide Emissions 2,500 1,917 6.2% 25.0 19.97 6.0% 40,000 34,269 1,799 18.77 35,000 2,000 20.0 77.1% Thousand Kg
Slide 9: Stolt Tankers
Stolt Tankers
Slide 10: Stolt Tankers | Lower volumes
Stolt Tankers | Lower volumes Operating Days Operating Revenue EBITDA Operating Profit Deep Sea 1Q21 $260.8m $56.0m $12.9m 6,026 4Q20 $272.2m $76.2m $31.9m 5,975 Operating Profit Variance ▪ Lower deep-sea trading results driven mainly by 4.2% lower COA volume and decrease in freight rates by 0.4% ▪
Slide 11: Bunker Costs Up Following Higher Oil Prices
Bunker Costs Up Following Higher Oil Prices Bunker Cost SIR index – Impacted by higher bunker costs $80 $600 2Q16 = 0.81 $70 0.8 $500 $60 $7.3 Bunker cost (USD $ M) $400 IFO (USD / Tonne) 0.7 $50 $2.4 $7.4 $10.0 2Q12 = 0.61 0.60 $40 $300 $72.3 0.6 $30 $59.2 $56.8 $200 0.52 $48.2 $20 $43.8 0.5 $38.5
Slide 12: Stolt Tankers | Market Highlights
Stolt Tankers | Market Highlights Deepsea – Stolt Tankers Joint Service Stolt-Nielsen Inland Tanker Service ▪ COA coverage at 71% in Q1, down from 72% in 4Q20 ▪ COA coverage stable around 85%. CPP and Chemical spot market continuously weak, but signs of improvement. ▪ Contract rates were up 0.7% (ex
Slide 13: Outlook | Challenging First Half, Improving Second Half
Outlook | Challenging First Half, Improving Second Half Developments in 1Q… Supply… ▪ Added 5 ships to the fleet: ▪ Orderbook of 3.9%, from 2021 to 2023, down from 4.3% in 4Q20. 0.6m DWT expected to be recycled from 2021 to 2025 CTG Argon ▪ 24 fully segregated tanks CTG Bismuth ▪ Stainless Steel ▪ C
Slide 14: Stolthaven Terminals
Stolthaven Terminals S|
Slide 15: Stolthaven Terminals | Stable Performance
Stolthaven Terminals | Stable Performance Operating Revenue EBITDA Operating Profit Utilisation Wholly owned terminals 1Q21 $58.0m $31.1m $15.7m 88.4% 4Q20 $57.3m $31.8m $8.0m 90.5% Operating Profit Variance ▪ Operating performance was stable compared with prior quarter. ▪ Prior quarter had net $8.8
Slide 16: Market Highlights | Stable Demand
Market Highlights | Stable Demand ▪ US Terminals: Lower utilisation and throughput at Houston terminal Joint Ventures (Equity Income) Priorities impacted by the cold weather in February. New Orleans utilisation stable 94.6% 96.6% 95.9% 98.0% 97% 8 100% above 95% 90% 7 80% 6 ▪ Santos terminal: Lower
Slide 17: Stolt Tank Containers
Stolt Tank Containers S|
Slide 18: Stolt Tank Containers | Active Market - Higher Freight Cost
Stolt Tank Containers | Active Market - Higher Freight Cost Operating Profit Variance ▪ Shipments in 1Q were 34,096 highest since 2018, and up from 33,028 in the previous quarter ▪ Transportation revenue was up $8.1m, driven by more shipments and higher average rates ▪ Ocean freight cost increased w
Slide 19: Market Highlights and Outlook | Very Active
Market Highlights and Outlook | Very Active Unusually high volumes during seasonally weak Q1 ▪ Market remains very active, as tank supplies are tightening along with 40 135 capacity constraints on ships and port congestion Quarterly Shipments(Thousands) LTM Shipments (Thousands) 131 35 130 ▪ Transpo
Slide 20: Stolt Sea Farm
Stolt Sea Farm iS
Slide 21: Stolt Sea Farm
Stolt Sea Farm Operating Revenue EBITDA Operating Profit Volumes (metric tonnes) ** 1Q21 $22.5m $3.0m $1.0m 2,188mt 4Q20 $19.7m $3.1m $1.2m 1,903mt **Includes own turbot, traded turbot and sole Operating Profit Variance ▪ Higher turbot revenue due to higher volumes sold during Christmas season ▪ Sol
Slide 22: RAS Update and Market Outlook
RAS Update and Market Outlook Continued closure of hospitality sector is slowing recovery but signals suggest lockdown easing in 2H21 will be supportive of turbot and sole Cervo & Tocha RAS modules - Performing ahead of expectations prices ▪ New RAS farms increase our sole capacity from 790 to 1,570
Slide 23: Stolt-Nielsen Gas
Stolt-Nielsen Gas S|
Slide 24: Stolt-Nielsen Gas
Stolt-Nielsen Gas Avenir LNG - an asset-led small scale LNG supplier Avenir’s Mission is to provide assets and expertise to unlock stranded LNG demand, bringing clean, affordable and reliable energy to new markets by shipping and storing LNG. Asset Development and Financing ▪ 1st ship Avenir Advanta
Slide 25: Financials
Financials First-Quarter 2021 Results 25
Slide 26: SNL Net Profit
SNL Net Profit Quarter Highlights Figures in USD million 1Q21 4Q20 1Q20 Operating profit variance 1Q21 – 4Q20 Operating Profit (before one-offs) $35.9 $58.2 $17.5 SHVN asset impairment - (12.4) - Reversal of impairment ofJV Loan - 3.6 - Gain/(loss) on sale of assets 0.1 (0.3) 0.1 Operating Profit (a
Slide 27: Covenant Coverage
Covenant Coverage Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA* to Interest Expense (LTM*) (minimum 2.00:1.00) x1.62:1 x1.58:1 x1.53:1 x1.58:1 600 x3.17:1 x3.41:1 x3.55:1 x3.69:1 3.80 3,000 1.70 495 504 2,568 2,540 2,503 2,584 486 3.70 1.60 500 446 2,500 3.60 USD millions 1.50 USD millions
Slide 28: Capital Expenditures
Capital Expenditures Actuals Remaining Highlights Figures in USD $ Million 1Q21 2021 2022 Total ▪ Stolt Tankers CAPEX in Q1 includes the acquisition of three ships from CTG Stolt Tankers $84 $18 $5 $107 ▪ Stolt Tankers CAPEX excludes drydocking, which was $3.5m YTD. ▪ Stolthaven Terminals invested $
Slide 29: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 1Q21 4Q20 FY20 Cash generated by operating activities $94.4 $120.9 $493.3 Highlights Interest Paid (24.6) (41.1) (130.5) Debt issuance cost (1.5) - (3.2) ▪ Cash generated by operating activities decreased from Interest received 0.9 - 2.0 $1
Slide 30: Debt Maturity | Funding requirements are covered
Debt Maturity | Funding requirements are covered 450 Millions SNI05 400 140 Repayment on 350 205 March 18, 2021 300 250 154 175 132 277 200 142 150 100 163 152 149 50 115 87 - 2021 2022 2023 2024 2025 Sum of Principal Payment Sum of Bond Sum of Balloon Payment Recent Financings Closed 5x26,000 DWT v
Slide 31: Key Messages
Key Messages ▪ The SNL Board has pledged its commitment to sustainability, supporting enhanced ESG reporting with improved focus on tracking and reporting of KPIs. ▪ Businesses are well positioned for upturn: ▪ Stolt Tankers has taken delivery of five modern stainless steel tankers, ▪ Stolthaven ter
Slide 32: Q&A
Q&A 32