Slide 1: Third-Quarter 2017 Results Presentation
Stolt-Nielsen Limited Third-Quarter 2017 Results Presentation October 9, 2017
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 3Q17 Highlights – Stolt Tankers – Stolthaven Terminals – Stolt Tank Containers – Stolt Sea Farm – Stolt-Nielsen Gas • Financials • Q&A Page 4
Slide 5: Third-Quarter 2017 Highlights
Third-Quarter 2017 Highlights • Stolt Tankers reported an operating profit of $34.4M, up from $27.6M, mainly reflecting the impact of gains related to the bunker hedging programme • Stolthaven Terminals reported an operating profit of $16.0M in the third quarter, essentially unchanged from the previ
Slide 6: SNL: 2Q17 to 3Q17 Net Profit Variance
SNL: 2Q17 to 3Q17 Net Profit Variance Figures in USD Millions Note: Net Profit attributable to equity holders of SNL Page 6
Slide 7: Stolt Tankers
Stolt Tankers Stolt Tankers Joint Service Sailed-in T/C Index Source: Stolt-Nielsen and the Bureau of Labor Statistics (U.S. CPI) Index as published through 2013, based on SIR STJS member-ships + net result outside T/C ships, base is 1Q96 + adjusting for inflation based on U.S. Consumer Price Index
Slide 8: Tankers: 2Q17 to 3Q17 Operating Profit Variance
Tankers: 2Q17 to 3Q17 Operating Profit Variance Figures in USD Millions Page 8
Slide 9: Stolt Tankers: Bunker Costs
Stolt Tankers: Bunker Costs • Bunker cost net of bunker surcharge, but excluding bunker hedges, decreased by $1.2M • Average price of IFO consumed decreased to $307/ton from $317/ton in 2Q17 • Average price of IFO purchased decreased to $306/ton from $311/ton in 2Q17 • COA bunker surcharge clauses c
Slide 10: Chemical Tanker Fleet and Orderbook – 3Q17
Chemical Tanker Fleet and Orderbook – 3Q17 Stolt Tankers Delivery Stolt Tenacity May 26, 2017 Hull 1711A 4Q17 Hull 1712A 1Q18 HS4 (JV) Delivery Stolt Calluna June 15, 2017 Stolt Ebony July 11, 2017 Hull 307 4Q17 Hull 308 1Q18 Source: Stolt-Nielsen and Drewry, as of September 1, 2017 Page 10
Slide 11: Deep-Sea Spot-Rate Development
Deep-Sea Spot-Rate Development • Overall, freight rates decreased by 1.8% in the quarter, mainly driven by the spot market (-7% quarter-on-quarter from positioning voyages for Asian newbuildings); COA rates were unchanged • Although demand is holding up, the supply of new tonnage is keeping rates un
Slide 12: Stolthaven Terminals
Stolthaven Terminals $US Millions $US Millions REVENUE GROSS PROFIT • Revenue remained 70 24 60 18 unchanged from last 50 40 12 quarter; lower utilisation 60.2 60.4 20.3 20.6 22.2 21.9 21.3 61.0 30 20 59.7 60.7 6 was offset by higher 10 0 0 throughput 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q1
Slide 13: Terminals: 2Q17 to 3Q17 Operating Profit Variance
Terminals: 2Q17 to 3Q17 Operating Profit Variance Figures in USD Millions Page 13
Slide 14: 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; negative impact to the P&L in the third quarter was around $450,000 due to suspension of operations during and after the Hurricane • Asian mar
Slide 15: Stolthaven Houston – Jetty Construction Started
Stolthaven Houston – Jetty Construction Started Construction started in the third quarter and expected to be completed by mid-2019 Page 15
Slide 16: Stolt Tank Containers
Stolt Tank Containers $US Millions $US Millions REVENUE GROSS PROFIT 150 35 28 100 21 119.7 129.6 132.6 29.1 29.7 29.8 116.3 113.6 14 26.2 50 24.1 7 0 0 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 $US Millions OPERATING PROFIT 35,000 SHIPMENTS - UTILISATION 100% 28,000 32,561 32,378 30,560 28,
Slide 17: STC: 2Q17 to 3Q17 Operating Profit Variance
STC: 2Q17 to 3Q17 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 all regions; focus on increasing both utilisation and turns per tank • Margin deterioration has bottomed out; price competition continues to limit revenue and margin growth • Controlling operating expenses • Focus on systems
Slide 19: Stolt Sea Farm
Stolt Sea Farm $US Millions $US Millions REVENUE GROSS PROFIT (before |IFRS adjustment) 20 4 15 3 10 2 17.0 18.5 15.9 15.6 3.3 3.3 3.5 15.3 5 2.1 2.1 1 0 0 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 $US Millions $US Millions OPERATING PROFIT/LOSS a) IFRS SEASONALITY 2.5 2 1.5 2.1 2.2 1 1.9 0.
Slide 20: SSF: 2Q17 to 3Q17 Operating Profit Variance
SSF: 2Q17 to 3Q17 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 YTD 3Q17 2Q17 3Q16 2017 2016 Operating Profit (before one offs) $55.8 $53.7 $57.7 $162.4 $194.6 Tanker accelerated depreciation - - (3.1) - (13.7) Terminals accelerated depreciation - - - (0.3) - Terminals insurance claims - (0.3) - (0.6) - (Loss) / gain on
Slide 23: Balance Sheet
Balance Sheet Figures in USD Millions Period ended Aug.31.17 Figures in USD Millions (Except ratios) At the end of: Cash and cash equivalents $86 August 2017 Receivables 237 Other current assets 165 Debt $2,517 Total current assets 487 Tangible Net Worth (TNW) $1,599 Debt:TNW 1.57:1 Property, plant
Slide 24: Cash Flow
Cash Flow Figures in USD Millions Quarter YTD 3Q17 2Q17 2017 Net profit $19 $16 $49 Depreciation, amortisation and non-cash items 63 64 194 Changes in working capital 16 16 7 Other receipts, net 6 8 15 Net cash generated by operating activities $104 $104 $264 Cashflow Priorities: Capital expenditure
Slide 25: EBITDA
EBITDA $US Millions $US Millions TANKERS TERMINALS 80 14% 35 14% 11% 30 60 11% 25 8% 20 8% 40 78 73 74 72 70 69 69 68 65 5% 62 15 28 28 29 30 30 30 5% 26 27 27 25 49 21 23 20 43 10 2% 2% 5 0 -1% 0 -1% 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Slide 26: Administrative & General Expenses
Administrative & General Expenses Updated Figures in USD Millions Quarterly Quarter YTD Guidance 3Q17 2Q17 3Q16 2017 2016 Stolt Tankers $22.1 $22.5 $19.3 $67.1 $58.7 $22.4 Stolthaven Terminals 11.1 10.9 11.1 32.1 32.8 11.0 Stolt Tank Containers 15.8 15.9 16.0 47.4 46.9 16.0 Stolt Sea Farm 1.6 1.4 1.
Slide 27: Depreciation and Amortisation
Depreciation and Amortisation Figures in USD Millions Updated Quarterly Quarter YTD Guidance 3Q17 2Q17 3Q16 2017 2016 Stolt Tankers $43.2 $41.8 $34.7 $126.9 $108.0 $42.4 Stolthaven Terminals 14.0 13.4 14.4 40.6 41.9 15.0 Stolt Tank Containers 6.6 6.0 6.0 19.9 17.8 7.0 Stolt Sea Farm 1.7 1.5 1.5 4.3
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 YTD Guidance 3Q17 2Q17 3Q16 2017 2016 Stolt Tankers $1.4 $2.1 3.5 $5.0 10.9 $3.0 Stolthaven Terminals 5.7 5.0 5.5 15.2 15.3 5.0 Tank Containers 0.4 0.0 0.5 0.9 1.2 0.6 Corporate and Other (2.8) (2
Slide 29: Capital Expenditures Programme
Capital Expenditures Programme Figures in USD Millions Projected Actual Projections Total YTD 3Q17 4Q17 2018 2019 2020 2021 Stolt Tankers $217 $102 $26 $19 $12 $6 $165 Stolthaven Terminals 57 38 118 35 21 18 229 Stolt Tank Containers 8 5 18 - - - 23 Stolt Sea Farm 2 2 20 17 10 4 53 Stolt-Nielsen Gas
Slide 30: Debt Maturity Profile
Debt Maturity Profile Figures in USD Millions After quarter end, SNL raised a 5-year bond to SNI07: $175M bond, settlement refinance SNI03, maturing in 2018 ($164M) on September 21, 2017 Note: • $400M drawn under revolver as of August 31, 2017 Page 30
Slide 31: Key Takeaways
Key Takeaways • 3Q17 net profit of $18.3M; annualised EPS of $1.06 • Integration of JOT progressing as planned; focusing on synergies and operational efficiencies • Outperforming all comparable chemical tanker operators • Continued soft market in tankers with significant newbuilding deliveries, stro
Slide 32: For more information please visit our website
For more information please visit our website: www.stolt-nielsen.com Page 32