Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q2 2022 Earnings Presentation
29 slides from Stolt-Nielsen's earnings presentation, Jun 30, 2022
Slide 1: Stolt-Nielsen Limited | Second-Quarter 2022 Results
Stolt-Nielsen Limited | Second-Quarter 2022 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer June 30, 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 | 2Q22 Results
Agenda | 2Q22 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 Second-Quarter 2022 Results
Slide 4: 2Q22 Highlights | Highest Quarterly Net Profit Since 2007
2Q22 Highlights | Highest Quarterly Net Profit Since 2007 2Q22 vs. 1Q22 Net Profit of $58.6m, up from $52.3m in 1Q22 OPERATING REVENUE EBITDA EBITDA of $176.4m, up from $158.5m mainly driven by: $ 689.1m $ 176.4m Stolt Tankers higher spot volumes and freight rates $ 606.2m $ 158.5m Stolt
Slide 5: Net Profit | Solid Results Across All Businesses
Net Profit | Solid Results Across All Businesses Second-Quarter 2022 Results 5
Slide 6: Stolt Tankers
Stolt Tankers
Slide 7: Stolt Tankers | Higher Volumes and Rates
Stolt Tankers | Higher Volumes and Rates OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deep sea) 2Q22 $ 365.4m $ 79.9m $ 40.8m 7,104 1Q22 $ 314.5m $ 62.5m $ 25.0m 6,848 Operating Profit Variance Increase of trading results driven by Volumes up 7.5% as spot volume increased 18
Slide 8: Rising Freight Rates, Bunker Clauses Offset Rising Costs
Rising Freight Rates, Bunker Clauses Offset Rising Costs Bunker Cost (deep sea and regional fleets) STJS – SIR1 per Operating Day 12,874 $30 35 Thousands Thousands 100 14,000 11,486 $26.841 35 $25 80 12,000 $20.772 34 $68.7 34 $64.1 $20 $63.6 33 Average DWT $54.2 Bunker cost (USD $ M) SIR per operat
Slide 9: Market Highlights | Strong Spot Market Driving Future Earnings
Market Highlights | Strong Spot Market Driving Future Earnings Changing product flows and limited supply have resulted in MR spot rates increasing significantly since March 2022 – Swing tonnage is moving out of Expanding the fleet with… Post transaction ST Fleet… chemicals On May 6, 2022 Positiv
Slide 10: Stolthaven Terminals
Stolthaven Terminals S|
Slide 11: Stolthaven Terminals | Highest Quarterly EBITDA and Utilisation
Stolthaven Terminals | Highest Quarterly EBITDA and Utilisation OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly owned terminals) 2Q22 $ 69.2m $ 39.9m $ 25.7m 97.2% 1Q22 $ 66.1m $ 37.1m $ 22.0m 96.3% Operating Profit Variance Higher revenue due to higher utilisation, rate incr
Slide 12: Market Highlights | Strong Demand in the US, Slowdown in China
Market Highlights | Strong Demand in the US, Slowdown in China US terminals: higher utilisation and throughput with increased demand in the Equity Income/Utilisation (Joint Ventures) Priorities US Gulf 12.0 100% 98% US chemical output in 2022, expected to be the strongest in a decade 10.0 94.7%
Slide 13: Stolt Tank Containers
Cs Stolt Tank Containers S|
Slide 14: Stolt Tank Containers | Higher Ocean Freight Rates Passed to Customers
Stolt Tank Containers | Higher Ocean Freight Rates Passed to Customers OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION 2Q22 $ 228.0m $ 56.0m $ 44.7m 70.3% 1Q22 $ 195.3m $ 50.3m $ 40.0m 70.3% Operating Profit Variance Transportation revenue increased by 21.4% driven by 5.4% higher shi
Slide 15: Market Outlook | Demand and Margins Holding
Market Outlook | Demand and Margins Holding Demand outlook Shipments impacted by supply chain bottlenecks Demand continues to outpace tank supply. 50 160 141 140 Margins expected to continue 45 127 128 130 130 131 131 129 129 131 135 137 131 140 123 LTM Shipments (Thousands) 121 121 40 Shipments
Slide 16: Stolt Sea Farm
Uy Stolt Sea Farm S|
Slide 17: Stolt Sea Farm | Lower Volume but Prices Remain Strong
Stolt Sea Farm | Lower Volume but Prices Remain Strong OPERATING REVENUE EBITDA (Excl. FV Adj.) OPERATING PROFIT(Excl. FV Adj.) VOLUMES (metric tonnes)** 2Q22 $ 26.1m $ 7.2m $ 4.7m 2,085mt 1Q22 $ 30.0m $ 8.8m $ 6.5m 2,259mt Operating Profit Variance Turbot prices decreased by 7.1% due to a
Slide 18: Stolt Sea Farm | Record Performance Due to Robust Volumes and Prices
Stolt Sea Farm | Record Performance Due to Robust Volumes and Prices; Expansion in Sole Creating Value Volumes Sold1 | Metric Tonnes Turbot Sole +57% Sole YoY Strong recovery in Turbot volumes sold post-Covid-19 lockdowns Sole volumes growing due to expansion plans Q1-17Q2-17Q3-17Q4-17Q1-18Q2-18
Slide 19: Stolt-Nielsen Gas
Stolt-Nielsen Gas
Slide 20: Avenir LNG | Initial investment plan completed
Avenir LNG | Initial investment plan completed, significant demand for small-scale LNG to drive next growth phase Leader in the small-scale segment in terms of 1 size, flexibility, and operational efficiency Time Charters with high quality Avenir Fleet Attractive asset portfolio of 5 vessels a
Slide 21: Financials
Financials Stolt-Nielsen
Slide 22: SNL Net Profit | Financials
SNL Net Profit | Financials Quarter Year-to-date Highlights Increase in operating revenue due to more operating days and Figures in USD million 2Q22 1Q22 2Q21 HY22 HY21 higher volume in Tankers, higher freight revenue in STC following an increase in ocean liner freight cost Operating Revenue $689.
Slide 23: Capital Expenditures
Capital Expenditures Actuals Remaining Forecast Figures in USD millions 1Q22 2Q22 2022 2023 Stolt Tankers 2 10 76 9 Stolthaven Terminals 11 18 64 97 Stolt Tank Containers 5 13 20 0 Stolt Sea Farm 1 0 9 10 SNL Corporate & Other 2 3 15 - Total $21 $44 $184 $116 Stolt Tankers installments on a Stol
Slide 24: SNL Cash Flow and Liquidity Position
SNL Cash Flow and Liquidity Position Figures in USD million 2Q22 1Q22 HY22 HY21 Highlights Cash generated by operating activities $154.6 $199.5 $354.1 $185.3 Decrease in working capital in 2Q22 due to prior quarter cash Interest Paid (36.4) (26.0) (62.4) (61.4) receipt of insurance pay-out related
Slide 25: Debt Profile
Debt Profile Highlights Steady cost of debt… …and 82% of the debt is fixed Figures in USD millions Average interest cost remained stable 40 4.65% 5% 35 4.41% 4.40% 4.44% 4.41% 4.45% 5% Variable SNI07 will be repaid using liquidity available 30 4% $385.6 m 18% USD Millions 4% 25 4% 20 4% 15 33 31
Slide 26: Financial KPIs | Steady and Healthy Improvement
Financial KPIs | Steady and Healthy Improvement Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) 3,500 1.80 *Last twelve months 1.59x 900 6.00 1.50x 1.60 3,000 1.44x 800 4.66x 4.80x 1.35x 1.32x 5.00 1.40 2,500 700 4.22x 3.91x 1.20 3.70x USD million
Slide 27: Outlook | Macro indicators point to risks towards year end
Outlook | Macro indicators point to risks towards year end but expect a solid 2H22 Strength in performance across all businesses… …However macro drivers point towards downside risks Quarterly performance at multi-year highs across Inflation has risen sharply STC, SHVN and SSF Limited capacity
Slide 28: Key Messages
Key Messages Rising inflation, high energy costs and geopolitical events are impacting consumer confidence, a lead indicator for demand of chemicals However, performance across our businesses is robust Highest quarterly net profit since 2007 LTM EBITDA 29% higher Y-o-Y at $646m Net Debt /
Slide 29: Stolt-Nielsen
Stolt-Nielsen