Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Q4 2021 Earnings Presentation
32 slides from Stolt-nielsen's earnings presentation, Jan 27, 2022
Slide 1: Stolt-Nielsen Limited | Fourth-Quarter 2021 Results
Stolt-Nielsen Limited | Fourth-Quarter 2021 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer Lucas Vos — President of Stolt Tankers January 27, 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 | 4Q21 Results
Agenda | 4Q21 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Stolt-Nielsen Gas – Avenir LNG 7. Financials 8. Q&A Fourth-Quarter 2021 Results
Slide 4: 4Q21 Highlights | Positive Performance
4Q21 Highlights | Positive Performance Financials 4Q21 vs. 3Q21 ▪ Net Profit from continuing operations of $35.0m, up from $33.5m in 3Q21 OPERATING REVENUE EBITDA ▪ EBITDA of $162.9m, up from $147.8m mainly driven by: $ 593.1m p $ 162.9m p ▪ Increase in transportation revenue and margins at Stolt $
Slide 5: Net Profit | Results Driven by Strong Performance of Stolt Tank Containers
Net Profit | Results Driven by Strong Performance of Stolt Tank Containers Fourth-Quarter 2021 Results 5
Slide 6: Stolt Tankers
if / aTELITATONELESHHEABERE Swe © Stolt Tankers S|
Slide 7: Stolt Tankers | Lower COA Volumes, Weak Spot Market
Stolt Tankers | Lower COA Volumes, Weak Spot Market OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 4Q21 $ 307.8m $ 71.6m p $ 19.2m 6,919 p p p 3Q21 $ 310.0m $ 65.8m $ 24.1m 6,978 Operating Profit Variance ▪ Lower trading results driven by 4% lower volume and 0.5% lower freight r
Slide 8: Bunker Prices Up Offset by Higher Surcharge Revenues
Bunker Prices Up Offset by Higher Surcharge Revenues Bunker Cost* STJS - SIR index $80 13,000 2Q16 = 0.81 11,486 12,362 0.8 $70 12,000 $7.3 0.7 $60 11,000 0.60 Bunker cost ($ millions) 0.6 Operating Days* $50 $2.4 10,000 $7.4 0.5 0.50 0.51 $40 $10.0 9,000 0.4 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13
Slide 9: Stolt Tankers | Market Highlights
Stolt Tankers | Market Highlights Deepsea – Stolt Tankers Joint Service Stolt-Nielsen Inter-Europe Service – E&S Tankers ▪ Strong US imports continued, while export volumes started to improve from ▪ Earnings supported by improved COA coverage and spot market. COA US Gulf to Europe, India, and South
Slide 10: Well Positioned to Capitalise on Underlying Market Drivers
Well Positioned to Capitalise on Underlying Market Drivers Global Chemical Tanker Trade Growth1 Attractive chemical tanker outlook ▪ Firming of the chemical tanker market is expected during 2022 – robust demand +6.6% growth forecast in 2022 8.0% 350 % Change (YoY) Million Tonnes 300 6.0% 250 4.0% ou
Slide 11: Stolt Tankers Decarbonization Ambition
Stolt Tankers Decarbonization Ambition Reduction of at least 50% Carbon intensity relative to 2008 levels Estimated 2008 AER: A further Estimated 2008 AER: 15.68 g / MT * N. Mile We are Stolt fleet average 2020: 11.37 g / MT * N. Mile ~29% ~21% Fleet AER goal for 2030: 7.84 g / MT * N. Mile efficien
Slide 12: Stolthaven Terminals
Stolthaven Terminals S|
Slide 13: Stolthaven Terminals | Stable Earnings and Performance
Stolthaven Terminals | Stable Earnings and Performance OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly owned terminals) 4Q21 $ 62.1m $ 34.6m $ 8.4m 92.8% p p p p 3Q21 $ 62.9m $ 35.4m $ 19.8m 92.3% Operating Profit Variance ▪ Utilisation improved, resulting in an increase in storage rev
Slide 14: Market Highlights | Strong Demand in the US, Slowdown in China
Market Highlights | Strong Demand in the US, Slowdown in China ▪ US terminals had higher utilisation and throughput with improving demand Equity Income/Utilisation (Joint Ventures) Priorities outlook in US Gulf 12.0 100% 97.7% 98% ▪ Softness for chemicals and petroleum in Brazil resulted in lower ut
Slide 15: Stolt Tank Containers
Stolt Tank Containers
Slide 16: Stolt Tank Containers | Higher Margins, Lower Shipments
Stolt Tank Containers | Higher Margins, Lower Shipments OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 4Q21 $ 191.5m p $ 46.0m p $ 36.4m p 72.2% p 3Q21 $ 174.4m $ 34.3m $ 24.7m 72.1% Operating Profit Variance ▪ Transportation revenue was up $10.3m, driven by a 18.4% increase in transportation
Slide 17: Market Outlook | Strong Demand to Continue, Costs to Remain Elevated
Market Outlook | Strong Demand to Continue, Costs to Remain Elevated Demand outlook High demand in all markets and sectors ▪ Overall strong demand is expected to continue 40 140 150 35 140 ▪ Strong US imports, with depots at full capacity 130 LTM Shipments (‘000) Quarterly Shipments(‘000) 30 ▪ Europ
Slide 18: Stolt Sea Farm
Stolt Sea Farm S|
Slide 19: Stolt Sea Farm | Seasonality of Lower Volume but Prices Remain Strong
Stolt Sea Farm | Seasonality of Lower Volume but Prices Remain Strong OPERATING REVENUE EBITDA OPERATING PROFIT VOLUMES (metric tonnes)** 4Q21 $ 31.1m $ 12.7m $11.3m 2,301mt p p p p 3Q21 $ 33.5m $ 13.5m $ 12.8m 2,667mt Operating Profit Variance ▪ Turbot sales decreased by $2.2m due to 14.8% lower sa
Slide 20: Growth Plan in Place, Sole Modules Delivering Strong Improvements
Growth Plan in Place, Sole Modules Delivering Strong Improvements Sole | High Visibility Growth Plan to 2025 Target (Capacity in tonnes WFE) Driving Cashflows and Value Creation 1 Turbot ▪ Continue to lead the production of turbot roll-out ▪ Utilise our proven flow through technology ~8,900 ~11,400
Slide 21: Stolt-Nielsen Gas
Stolt-Nielsen Gas S|
Slide 22: Avenir LNG | Investment Programme Concluding, Focus on Earnings Growth
Avenir LNG | Investment Programme Concluding, Focus on Earnings Growth ▪ Unmatched in the small-scale segment in terms 1 of size, flexibility, and operational efficiency Avenir Fleet ▪ BB / TCs with high quality counterparties ▪ Highly attractive asset portfolio of 5 vessels Diversified Earnings to
Slide 23: Financials
Financials Stolt-Nielsen S|
Slide 24: SNL Net Profit | Financials
SNL Net Profit | Financials Quarter Year-to-date Figures in USD million 4Q21 3Q21 4Q20 FY21 FY20 Highlights Operating Revenue $593.1 $580.9 $480.6 $2,181.1 $1,955.1 ▪ Strong revenue growth, particularly in STC, Operating Expenses (379.1) (385.7) (310.4) (1,459.7) (1,308.9) supported improvement in o
Slide 25: SNL Net Profit | Before One-Offs
SNL Net Profit | Before One-Offs Highlights ▪ Strong revenue growth, particularly in STC, supported improvement in operating income 4Q21 3Q21 4Q20 FY21 FY20 ▪ Operating expenses decreased as a result of Net profit excluding one-offs $38.7 $30.6 $24.7 $79.2 $51.3 lower expenses in Tankers, partially
Slide 26: Capital Expenditures
Capital Expenditures Actuals Budget Forecast Figures in USD millions 1Q21 2Q21 3Q21 4Q21 FY21 2022 2023 Stolt Tankers 84 8 5 2 100 33 10 Stolthaven Terminals 10 11 11 11 43 107 72 Stolt Tank Containers 3 2 4 5 14 34 0 Stolt Sea Farm 2 1 4 1 8 7 7 Stolt-Nielsen Gas* 16 5 0 0 21 0 0 SNL Corporate & Ot
Slide 27: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 4Q21 3Q21 FY21 FY20 Highlights Cash generated by operating activities $113.0 $149.8 $448.4 $493.3 ▪ Cash generated by operating activities decreased from $149.8m to Interest Paid (36.0) (23.4) (120.8) (130.5) $113.0m,caused by an increase i
Slide 28: Covenant Coverage | Steady Improvement
Covenant Coverage | Steady Improvement Debt to Tangible Net Worth (maximum 2.25:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) *Last twelve months 1.53x 1.58x 1.59x 1.50x 1.44x 600 $539 4.50 3,000 1.70 $504 $499 $506 4.24x 4.30 $2,584 $2,605 $495 $2,503 $2,522 $2,436 500 3.93x 2,500 1.6
Slide 29: Debt Maturity | Stable Interest Costs
Debt Maturity | Stable Interest Costs $ millions Financing Highlights Average Cost of Debt* ▪ Average interest rate is at 4.4% 45.0 5.1% 5.0% 6.0% 40.0 4.7% 4.6% 4.6% ▪ 84% of the debt is fixed 35.0 4.3% 4.3% 4.4% 5.0% Interest Rate % $ millions 30.0 4.0% ▪ Next maturity is a $77m JOLCO in 25.0 May
Slide 30: When Will Chemical Tankers Provide Sustainable Earnings?
When Will Chemical Tankers Provide Sustainable Earnings? Deepsea Chemical Tankers1 remains a highly fragmented market… ▪ Fundamentals point to a firming chemical tanker market. A strong and sustainable market recovery similar to other segments (e.g. Containerships, 12% Non-traditional owners make up
Slide 31: Key Messages
Key Messages ▪ 2021 FYE operating profit highest since 2015 ▪ Improved profitability driven by STC, SSF and Stolthaven ▪ Chemical tanker market remains soft, fundamentals point to firming market during 2022 ▪ Focus on cashflow generation for debt reduction, shareholder distributions and investments
Slide 32: Q&A
Q&A Stolt-Nielsen S|