Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q4 2023 Earnings Presentation
26 slides from Stolt-nielsen's earnings presentation, Feb 1, 2024
Slide 1: Fourth-Quarter 2023 Results
FOURTH-QUARTER 2023 RESULTS FEBRUARY 01, 2024 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: Presenters
Presenters Udo Lange Jens F. Grüner-Hegge Alex Ng Chief Executive Officer Chief Financial Officer Vice President, Corporate Development and Strategy Fourth-Quarter 2023 Results 3
Slide 4: Agenda | 4Q23 Results
Agenda | 4Q23 Results 1. Group Highlights 2. Financial Highlights 3. Segment Highlights 4. Market Outlook and Summary Fourth-Quarter 2023 Results
Slide 5: 4Q23 Key Messages
4Q23 Key Messages Strongest 4Q and excellent full year results Investing for growth • Newbuild order - six 38,000 DWT stainless steel tankers • Regional Asian pool (SNAPS) added new partner ENEOS Ocean • Start of sole hatchery expansion Balance sheet strength 2.48x Net Debt / EBITDA(1) • $60
Slide 6: 4Q23 SNL Highlights | Strong Consolidated Results
4Q23 SNL Highlights | Strong Consolidated Results 4Q23 vs. 4Q22 vs 3Q23 OPERATING REVENUE EBITDA OPERATING PROFIT $ 695.2m $ 216.7m $ 140.0m $ 732.5m (-5.1%) $ 196.0m (+10.6%) $ 132.0m (+6.1%) $ 694.4m (+0.1%) $ 201.2m (+7.7%) $ 127.5m (+9.8%) (1,2) (2) NET PROFIT FREE CASH FLOW NET DEBT TO EB
Slide 7: Full-Year 2023 Highlights | Company-wide Growth and Success
Full-Year 2023 Highlights | Company-wide Growth and Success FY23 Adjusted(1) vs. FY22 OPERATING REVENUE EBITDA PERFORMANCE DRIVERS $ 2,820.2m $ 865.8m TCE / OP. DAY(4) (US$) UTILISATION(5) (%) $ 2,771.8m (+1.7%) $ 715.3m (+21.0%) +29.9% -0.7% 29,621 97.4% 96.7% 22,804 OPERATING PROFIT NET PR
Slide 8: Significant Progress on our Environmental Ambitions
Significant Progress on our Environmental Ambitions STOLT TANKERS CARBON INTENSITY (AER)(1) SUSTAINABILITY HIGHLIGHTS A further Newbuilding order for six stainless-steel ships, We are designed to maximise efficiency and include shore 31.6% 18.4% power and methanol readiness improvement is needed m
Slide 9: Full-Year 2024 Summary Outlook
Full-Year 2024 Summary Outlook POSITIVE DEMAND OUTLOOK ONGOING FAVOURABLE SUPPLY STRONG STOLT PERFORMANCE Expected modest growth in global Historically low orderbook of 6.3% ST: Volatility to continue but at a chemical production of 2.9%(1) historically high-rate level Tight yard capacity li
Slide 10: Financial Highlights
Financial Highlights Stolt-Nielsen
Slide 11: Financials | Summary Income Statement
Financials | Summary Income Statement Quarter Full-Year Figures in USD millions 4Q23 3Q23 4Q22 FY23 FY22 HIGHLIGHTS (4Q23 vs 4Q22) Revenue declined mainly due to lower transport and Operating Revenue $695.2 $694.4 $732.5 $2,820.2 $2,771.8 demurrage revenue in STC, partly offset by improved Operati
Slide 12: Financials | Cash Flow and Liquidity Position
Financials | Cash Flow and Liquidity Position Quarter Full-Year Figures in USD millions 4Q23 3Q23 4Q22 FY23 FY22 HIGHLIGHTS (4Q23 vs 4Q22) Cash generated from operations $340.0 $249.9 $202.0 $974.3 $761.5 Cash from operating activities increased due to improved Interest paid (26.8) (30.3) (33.2) (
Slide 13: Debt Profile | Stable Debt and Decreasing Interest Rates
Debt Profile | Stable Debt and Decreasing Interest Rates MATURITY PROFILE 2024 – 2025 DEBT FLAT AND INTEREST RATES DECREASING HIGHLIGHTS 4,000 8.0% 3,500 7.0% Issuance of new senior unsecured bond SNI10: NOK 1.20 billion, 3 3,000 5.38% 5.73% 5.57% 6.0% months NIBOR + 315 bps with maturity date Sep
Slide 14: Financials | Capital Expenditures
Financials | Capital Expenditures Actuals Actuals Actuals Actuals Actuals Forecast Figures in USD millions 1Q23 2Q23 3Q23 4Q23 FY2023 FY2024 Stolt Tankers 7 55 8 2 72 54 Stolthaven Terminals 17 19 16 19 71 178 Stolt Tank Containers 16 4 8 37 65 32 Stolt Sea Farm 7 2 4 5 18 49 SNL Corporate & Other -
Slide 15: Robust Financial KPIs with Significant Headroom
Robust Financial KPIs with Significant Headroom DEBT TO TANGIBLE NET WORTH (MAXIMUM 2.25:1.00) EBITDA TO INTEREST EXPENSE (MINIMUM 2.00:1.00) 3,500 1.4 900 5.85 5.91 1.16 5.54 5.73 5.35 $770 6.0 EBITDA to interest expenses (x) 1.07 800 $715 3,000 1.07 1.2 $690 $711 1.01 1.00 $673 700 5.0 Debt to TNW
Slide 16: Segment Highlights
Segment Highlights Stolt-Nielsen S|
Slide 17: Stolt Tankers | Strong Market Drives Record 4Q
Stolt Tankers | Strong Market Drives Record 4Q 4Q23 vs. 4Q22 vs. 3Q23 OPERATING REVENUE EBITDA HIGHLIGHTS (4Q23 vs 3Q23) $ 441.3m $ 141.3m Higher revenues driven by: • COA rates at historical highs partially offset by a 4.8% volumes decrease $ 412.4m (+7.0%) $ 115.3m (+22.5%) • Higher demurrag
Slide 18: Stolt Tankers | Rates Reach a New Plateau
Stolt Tankers | Rates Reach a New Plateau DEEPSEA CHEMICAL INDEX TCE / OPERATING DAY(1) 250.0 $33,000 1Q24 Indicative $30,144 Flat $31,000 200.0 $29,000 $27,000 150.0 $25,000 +52.1%(2) $23,000 100.0 $21,000 5-Yr Average ($19,817) $19,000 50.0 $17,000 0.0 $15,000 Jan.21 May.21 Sep.21 Jan.22 May.22 Se
Slide 19: Stolthaven Terminals | Optimising Rates to Deliver Earnings
Stolthaven Terminals | Optimising Rates to Deliver Earnings 4Q23 vs. 4Q22 vs. 3Q23 OPERATING REVENUE EBITDA UTILISATION(1) $ 76.8m $ 42.7m -1.3% -0.7% 97.4% 96.7% $ 70.1m (+9.7%) $ 36.5m (+17.1%) 96.8% 95.5% $ 74.7m (+2.8%) $ 42.0m (+1.7%) 3Q23 4Q23 2022 2023 OPERATING PROFIT HIGHLIGHTS (4Q23 vs
Slide 20: Stolt Tank Containers | Increasing Market Share at Lower Rates
Stolt Tank Containers | Increasing Market Share at Lower Rates 4Q23 vs. 4Q22 vs. 3Q23 OPERATING REVENUE EBITDA GROSS PROFIT PER SHIPMENT (US$) $ 150.0m $ 30.0m -20.6% -27.8% 1,881 $ 228.5m (-34.3%) $ 56.1m (-46.4%) $ 166.4m (-9.8%) $ 36.8m (-18.5%) 1,150 5-Yr Avg.(1) ($987) 1,358 913 3Q23 4Q23 2
Slide 21: Stolt Sea Farm | Historic Record Year
Stolt Sea Farm | Historic Record Year 4Q23 vs. 4Q22 vs. 3Q23 (2) OPERATING REVENUE EBITDA (Excl. FV Adj.) VOLUMES SOLD (MT) $ 27.0m $ 5.6m +14.6% +15.3% $ 21.3m (+26.8%) $ 4.3m (+28.2%) 1,744 1,998 8,542 $ 31.0m (-12.9%) $ 9.1m (-38.8%) 7,407 4Q22 4Q23 2022 2023 OPERATING PROFIT TURBOT PRICES(1)
Slide 22: Market Outlook
Market Outlook 22
Slide 23: Market Outlook | Favourable Market Fundamentals
Market Outlook | Favourable Market Fundamentals SEABORNE TRADE EXPECTED TO INCREASE RATES REBOUND – LIMITING SWING TONNAGE 50 +2.7% $19,250 1Y TC Rates 19,999 dwt (k$/Day) 10.0% Average MR Earnings (k$/Day) 20 increase expected in 2024 397 400 40 385 375 15 8.0% 30 350 10 20 $34,956 6.0% 10 5 Seabor
Slide 24: Market Outlook | Assessing Impact of the Panama Canal and Red Sea
Market Outlook | Assessing Impact of the Panama Canal and Red Sea Trade disruptions through the Red Sea and Suez Canal have created near term uncertainties Chemical tankers re-routing, effectively reducing supply by 7-8% Flexibility is key for customers to manage longer transit times on both t
Slide 25: Concluding Remarks
Concluding Remarks POSITIVE 2024 OUTLOOK STRONG PORTFOLIO DISCIPLINED CAPITAL ALLOCATION Favourable chemical Pricing optimisation is a tanker fundamentals cornerstone for our Balance sheet strength success with significant headroom Tank Containers’ shipments up but margins Focus on digital
Slide 26: Stolt-Nielsen
Stolt-Nielsen S|