Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q3 2022 Earnings Presentation
29 slides from Stolt-Nielsen's earnings presentation, Oct 6, 2022
Slide 1: Stolt-Nielsen Limited | Third-Quarter 2022 Results
Stolt-Nielsen Limited | Third-Quarter 2022 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer October 6, 2022 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 | 3Q22 Results
Agenda | 3Q22 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Stolt-Nielsen Investments 7. Financials 8. Q&A Third-Quarter 2022 Results
Slide 4: 3Q22 Highlights | Net Profit Improved Further
3Q22 Highlights | Net Profit Improved Further 3Q22 vs. 2Q22 ▪ Net Profit of $74.7m, up from $58.6m in 2Q22 OPERATING REVENUE EBITDA ▪ EBITDA of $184.4m, up from $176.4m mainly driven by: ▪ Improved results at Stolt Tankers due to higher spot rates; $ 744.0m p $ 184.4m p $ 689.1m $ 176.4m ▪ Lower res
Slide 5: Net Profit | Solid Performance Across All Businesses
Net Profit | Solid Performance Across All Businesses Third-Quarter 2022 Results 5
Slide 6: Stolt Tankers
Stolt Tankers S|
Slide 7: Stolt Tankers | Higher Spot Rates
Stolt Tankers | Higher Spot Rates OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 3Q22 $ 404.7m p $ 101.2m p $ 61.1m p 7,018 p 2Q22 $ 365.4m $ 79.9m $ 40.8m 7,104 Operating Profit Variance ▪ Increased trading results driven by an increase in Spot rates by 38.2% ▪ COA volumes impr
Slide 8: ESG | Stolt Tankers – Our Decarbonisation Ambition
ESG | Stolt Tankers – Our Decarbonisation Ambition Decarbonisation timeline Industry standard Recent 12 months ➢50% emissions intensity reduction reference year (IMO) rolling average 2008 Aug 2022 2030 15.68 10.89 7.84 𝒈 𝑪𝑶𝟐 𝒈 𝑪𝑶𝟐 𝒈 𝑪𝑶𝟐 𝑴𝑻 × 𝑵. 𝑴𝒊𝒍𝒆 𝑴𝑻 × 𝑵. 𝑴𝒊𝒍𝒆 𝑴𝑻 × 𝑵…
Slide 9: STJS SIR Supported by Higher Spot Rates and COA Bunker Surcharge Clauses
STJS SIR Supported by Higher Spot Rates and COA Bunker Surcharge Clauses Bunker Cost (deep sea and regional fleets) Orderbook is 7.2%,out of which StSt tonnage accounts for 6%... 100 12,903 14,000 1,700 11,486 Tonnage Delivered 1,500 DWT (in ‘000 MT) NB orderbook- StSt 80 12,000 1,300 NB orderbook -
Slide 10: Market Highlights | Strong Spot Market and COA Renewals Into Q4
Market Highlights | Strong Spot Market and COA Renewals Into Q4 ▪ Chemical Tanker market recovering after a long period of soft tanker markets ▪ Record freight levels on spot fixtures across multiple trade lanes Stolt Tankers biggest Deep- sea fleet in Group’s history ▪ Upturn in the market coincide
Slide 11: Strengthening Market Outlook and Impact to Earnings
Strengthening Market Outlook and Impact to Earnings Outlook Remains Favourable COA Portfolio Mix – Balancing stability and upcycle participation 100.0% KEY DRIVERS 80.0% 26% 29% 28% 32% 29% 30% 28% 29% 38% 33% 34% 35% 38% 32% 60.0% ▪ Conflict in Ukraine has rebalanced global crude and 40.0% product
Slide 12: Stolthaven Terminals
Stolthaven Santos Stolthaven Terminals elebrates
Slide 13: Stolthaven Terminals | Results Flat when Excluding One-offs
Stolthaven Terminals | Results Flat when Excluding One-offs OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly owned terminals) 3Q22 $ 70.8m p $ 37.4m $ 20.7m 98.1% p p p Q22 $ 69.2m $ 39.9m $ 25.7m 97.2% Operating Profit Variance ▪ 2Q22 One-offs included insurance no- claims bonus and in
Slide 14: Market Highlights | Demand for Chemicals Holding Steady
Market Highlights | Demand for Chemicals Holding Steady ▪ Priorities US terminals: higher utilisation and throughput with increased demand in Equity Income/Utilisation (Joint Ventures) the US Gulf 12.0 100% 98% ▪ European terminals: Utilisation was stable during the quarter 10.0 94.8% 95.4% 96% 94.0
Slide 15: Stolt Tank Containers
Stolt Tank Containers S|
Slide 16: Stolt Tank Containers | Higher Transportation and Repositioning Costs
Stolt Tank Containers | Higher Transportation and Repositioning Costs OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 3Q22 $ 242.9m p $ 53.8m $ 43.1m 68.4% p p p 2Q22 $ 228.0m $ 56.0m $ 44.7m 69.8% Operating Profit Variance ▪ Transportation revenue increased by 6.9% driven by 4.8% higher shipm
Slide 17: Market Outlook | Shipments Increasing but Margins Under Pressure
Market Outlook | Shipments Increasing but Margins Under Pressure Demand outlook Shipments impacted by supply chain bottlenecks ▪ Demand is holding steady overall 50 160 141 140 ▪ Margins under pressure in regions where liner 45 127 128 130 130 129 127 125 125 127 131 131 129 129 131 135 137 131 130
Slide 18: Stolt Sea Farm
Stolt Sea Farm S|
Slide 19: Stolt Sea Farm | Turbot Steady; Sole Volumes and Prices Up
Stolt Sea Farm | Turbot Steady; Sole Volumes and Prices Up OPERATING REVENUE EBITDA (Excl. FV Adj.) OPERATING PROFIT(Excl. FV Adj.) VOLUMES (metric tonnes)** 3Q22 $ 25.3m $ 7.8m p $ 6.1m p 2,010mt p p 2Q22 $ 26.1m $ 7.2m $ 4.7m 2,086mt **Includes own turbot, traded turbot and sole Operating Profit V
Slide 20: Stolt Sea Farm | Outlook and Investing in New Opportunities
Stolt Sea Farm | Outlook and Investing in New Opportunities Stolt Sea Farm a Leading Producer Of Turbot and Sole Outlook ▪ 4Q22 Turbot sales expected to be lower due to seasonality Turbot Sole ▪ Sole sales expected to remain strong in 4Q22. At the same time SSF will increase production output. New F
Slide 21: Stolt-Nielsen Investments – Leveraging Our Industrial Knowledge and Expertise
Stolt-Nielsen Investments – Leveraging Our Industrial Knowledge and Expertise SNL Investments Current Investments Ganesh Kingfish Avenir LNG Golar LNG CoolCo Odfjell SE Benzoplast Company ▪ Creating value for our stakeholders in industries where Stolt-Nielsen can leverage its knowledge and ▪ A fully
Slide 22: Financials
Financials Stolt-Nielsen
Slide 23: SNL Net Profit | Financials
SNL Net Profit | Financials Quarter Year-to-date Highlights Figures in USD million 3Q22 2Q22 3Q21 2022 2021 ▪ Increase in operating revenue due to strong spot market in Operating Revenue $744.0 $689.1 $580.9 $2,039.3 $1,588.0 Tankers, higher freight revenue and increased shipments in STC. Operating
Slide 24: Capital Expenditures
Capital Expenditures Actuals Remaining Forecast Figures in USD millions 1Q22 2Q22 3Q22 2022 2023 Stolt Tankers 2 10 25 55 11 Stolthaven Terminals 11 18 22 36 94 Stolt Tank Containers 5 13 8 16 43 Stolt Sea Farm 1 - 2 6 10 SNL Corporate & Other 2 3 0 22 - Total $21 $44 $57 $135 $124 ▪ Stolt Tankers i
Slide 25: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 3Q22 2Q22 3Q21 YTD22 YTD 21 Highlights Cash generated by operating activities $205.4 $154.6 $149.8 $559.5 $335.2 ▪ Increase in cash from operating activities due to higher results from Interest Paid (24.8) (36.4) (23.4) (87.3) (84.9) Stolt
Slide 26: Debt Profile
Debt Profile Highlights Steady cost of debt… …and 82% of the debt is fixed Figures in USD millions 33 6.0% ▪ Average interest cost increased during the 4.81% $372.6M 32 4.65% 5.0% 4.41% 4.40% 4.44% 4.41% 4.45% 17.4% quarter as result of higher variable interest rates 31 4.0% USD millions ▪ On Septem
Slide 27: Financial KPIs | Steady Improvement
Financial KPIs | Steady Improvement Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) *Last twelve months 3,500 1.50x 1.60 5.14x 1.44x 800 4.80x 5.50 1.35x 1.32x 4.66x 3,000 1.27x 1.40 683 700 4.22x 646 2,522 2,436 3.91x 587 5.00 2,352 2,340 2,346 1
Slide 28: Key Messages
Key Messages ▪ Performance across our businesses is robust: ▪ Improved quarterly net profit driven by solid tank container results and improved tanker results ▪ LTM EBITDA 35% higher Y-o-Y at $683m ▪ Net Debt / LTM EBITDA at 3.1x ▪ Favourable chemical tanker market fundamentals – further upside pote
Slide 29: Q&A
Q&A 29