Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q4 2017 Earnings Presentation
31 slides from Stolt-Nielsen's earnings presentation, Feb 1, 2018
Slide 1: Fourth-Quarter 2017 Results Presentation
Stolt-Nielsen Limited Fourth-Quarter 2017 Results Presentation February 1, 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 • Jan Chr. Engelhardtsen Chief Financial Officer Page 3
Slide 4: Agenda
Agenda • SNL 4Q17 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: Fourth-Quarter 2017 Highlights
Fourth-Quarter 2017 Highlights • Stolt Tankers reported an operating profit of $20.4M, down from $34.4M, reflecting the impact of lower COA volume and COA freight rates and the negative impact of Hurricane Harvey, estimated to be $7.0M • Stolthaven Terminals reported an operating profit of $5.4M, do
Slide 6: SNL: 3Q17 to 4Q17 Net Profit Variance
SNL: 3Q17 to 4Q17 Net Profit Variance Figures in USD Millions Note: Net Profit attributable to equity holders of SNL Page 6
Slide 7: Hurricane Harvey Impact
Hurricane Harvey Impact • The Houston Ship Channel closed down all activities on August 25 as Hurricane Harvey made landfall, and didn’t open up again until September 1 for limited operations • Stolthaven Houston was one of the first to become 100% operational on September 1; other terminals resumed
Slide 8: Stolt Tankers
Stolt Tankers $US Millions $US Millions Stolt Tankers Joint Service Sailed-in T/C Index REVENUE GROSS PROFIT 350 60 280 45 210 30 51.3 54.1 140 283.4 292.6 299.7 282.8 46.4 48.5 259.6 40.7 15 70 0 0 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 $US Millions Days OPERATING PROFIT/(LOSS) STJS - OP
Slide 9: Tankers: 3Q17 to 4Q17 Operating Profit Variance
Tankers: 3Q17 to 4Q17 Operating Profit Variance Figures in USD Millions Page 9
Slide 10: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Bunker cost net of bunker surcharge, but excluding bunker hedges, decreased by $1.4M • Average price of IFO consumed increased to $327/ton from $307/ton in 3Q17 • Average price of IFO purchased increased to $346/ton from $306/ton in 3Q17 • COA bunker surcharge clauses c
Slide 11: Chemical Tanker Fleet and Orderbook – 4Q17
Chemical Tanker Fleet and Orderbook – 4Q17 1,800 Stolt Tankers Delivery Tonnage Delivered Orderbook is ~15% of existing 1,600 NB orderbook- StSt fleet, all of which is stainless steel Stolt Loyalty November 25, 2017 1,400 NB orderbook - Ctd Expected Scrapping 30yrs NST Stolt 1Q18 1,200 Excellence DW
Slide 12: Market Development
Market Development • Hurricane Harvey and resulting Houston Ship Channel closure severely disrupted USG cargo operations and ship scheduling; COA volume was heavily impacted with many customers declaring force majeure • Spot markets continue to improve; USG/Asia and Asia/USG are up significantly fro
Slide 13: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT • Revenue remained 70 24 60 unchanged from last quarter 18 50 40 60.4 59.7 60.7 61.0 61.4 12 20.6 22.2 21.9 21.3 • Global utilisation for the 30 20 6 10.4 owned terminals increased to 10 0 4Q16 1Q17 2Q17 3Q17 4Q17 0 4Q16 1Q17 2Q17 3
Slide 14: Terminals: 3Q17 to 4Q17 Operating Profit Variance
Terminals: 3Q17 to 4Q17 Operating Profit Variance Figures in USD Millions Page 14
Slide 15: Stolthaven Terminals Market Update and Key Initiatives
Stolthaven Terminals Market Update and Key Initiatives • Hurricane Harvey caused no material damage to our terminal business in the US Gulf; all people safe; the hurricane caused a significant drop in throughput volume, negatively impacting operating results in Houston • Singapore market remains cha
Slide 16: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 150 35 28 100 21 129.6 132.6 136.9 33.1 116.3 113.6 14 29.1 29.7 29.8 50 24.1 7 0 0 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 $US Millions OPERATING PROFIT SHIPMENTS - UTILISATION 35,000 100% 28,000 32,378 31,618 32,561 30,
Slide 17: STC: 3Q17 to 4Q17 Operating Profit Variance
STC: 3Q17 to 4Q17 Operating Profit Variance Figures in USD Millions ` Page 17
Slide 18: Stolt Tank Containers Market Update and Key Initiatives
Stolt Tank Containers Market Update and Key Initiatives • Strong demand in most regions; focus on increasing both utilisation and turns per tank • Margins improving despite strong competition • Controlling operating expenses • Focus on systems development and implementation of global platforms to in
Slide 19: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before |IFRS adjustment) 20 4 15 3 23.3 10 2 18.5 15.9 15.6 3.3 3.5 15.3 5 2.1 1 2.1 1.6 0 0 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 $US Millions $US Millions OPERATING PROFIT/LOSS a) IFRS SEASONALITY 2.5 2 1.5 2.2 1 2.1 0.5 0.
Slide 20: SSF: 3Q17 to 4Q17 Operating Profit Variance
SSF: 3Q17 to 4Q17 Operating Profit Variance Figures in USD Millions Page 20
Slide 21: Financials
Financials Page 21
Slide 22: Net Profit
Net Profit Figures in USD Millions Quarter Full Year 4Q17 3Q17 4Q16 2017 2016 Operating Profit (before one-offs) $47.0 $55.2 $57.7 $204.9 $251.0 Tanker accelerated depreciation - - (1.9) - (15.6) Terminals accelerated depreciation - - (1.5) - (1.5) Gain / (loss) on sale of assets 0.9 1.2 (0.2) (0.5)
Slide 23: Balance Sheet
Balance Sheet Figures in USD Millions Period ended Nov.30.17 Figures in USD Millions (Except ratios) At the end of: Cash and cash equivalents $58 November 2017 Receivables 241 Other current assets 185 Debt $2,470 Total current assets 484 Tangible Net Worth (TNW) $1,594 Debt:TNW 1.55:1 Property, plan
Slide 24: Cash Flow
Cash Flow Figures in USD Millions Quarter YTD 4Q17 3Q17 2017 Net profit $1 $19 $50 Depreciation, amortisation and non-cash items 65 63 259 Changes in working capital (16) 16 (10) Other receipts, net 12 6 26 Net cash generated by operating activities $62 $104 $325 Cashflow Priorities: Capital expendi
Slide 25: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 80 14% 35 14% 30 11% 11% 60 25 8% 8% 20 40 78 73 74 72 70 69 69 68 65 5% 15 28 28 29 30 30 30 29 62 63 27 27 5% 25 23 49 10 21 20 2% 2% 5 0 -1% 0 -1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Slide 26: Administrative & General Expenses
Administrative & General Expenses Updated Figures in USD Millions Quarterly Quarter Full Year Guidance 4Q17 3Q17 4Q16 2017 2016 Stolt Tankers $23.2 $22.1 $18.5 $90.3 $77.2 $23.0 Stolthaven Terminals 10.4 11.1 9.9 42.5 42.8 10.0 Stolt Tank Containers 16.7 15.8 14.2 64.0 61.0 17.0 Stolt Sea Farm 1.5 1
Slide 27: Depreciation and Amortisation
Depreciation and Amortisation Figures in USD Millions Updated Quarterly Quarter Full Year Guidance 4Q17 3Q17 4Q16 2017 2016 Stolt Tankers $42.8 $43.2 $33.4 $169.7 $141.4 $44.0 Stolthaven Terminals 14.6 14.0 15.7 55.2 57.6 15.0 Stolt Tank Containers 7.9 6.6 6.2 27.8 24.0 7.0 Stolt Sea Farm 1.8 1.7 1.
Slide 28: Share of Profit of JVs and Tax
Share of Profit of JVs and Tax Figures in USD Millions Share of Profit of JVs Updated Quarterly Quarter Full Year Guidance 4Q17 3Q17 4Q16 2017 2016 Stolt Tankers $2.5 $1.4 2.5 $7.4 13.4 $3.0 Stolthaven Terminals 4.5 5.7 3.6 19.7 18.9 5.0 Tank Containers 0.3 0.4 0.3 1.2 1.5 - Corporate and Other (2.7
Slide 29: Capital Expenditures Programme
Capital Expenditures Programme Figures in USD Millions Figures in USD Millions Projected Actual Projections Total 2017 2018 2019 2020 2021 2022 Stolt Tankers $289 $28 $21 $12 $5 $2 $68 Stolthaven Terminals 82 142 42 22 17 30 253 Stolt Tank Containers 8 30 - - - - 30 Stolt Sea Farm 4 44 27 8 8 4 91 S
Slide 30: Debt Maturity Profile
Debt Maturity Profile Figures in USD Millions SNL raised a 5-year bond to refinance SNI03, maturing in March, 2018 ($149M); availability SNI07: $175M bond, settlement under the committed credit lines at quarter end on September 21, 2017 was $449M Note: • $221M drawn under revolver as of November 30,
Slide 31: Key Takeaways
Key Takeaways • 2017 net profit of $50.3M following significant one-offs in the fourth quarter • Continued soft market in tankers with significant newbuilding deliveries expected to last through 2018 • Strong demand in tank containers and fundamentals in terminals remain solid; at SSF turbot volume