Stolt-Nielsen Limited · OSL:SNI
Stolt-Nielsen — Q2 2023 Earnings Presentation
28 slides from Stolt-Nielsen's earnings presentation, Jul 6, 2023
Slide 1: Stolt-Nielsen Limited | Second-Quarter 2023 Results
Stolt-Nielsen Limited | Second-Quarter 2023 Results Niels G. Stolt-Nielsen — Chief Executive Officer Jens F. Grüner-Hegge — Chief Financial Officer July 6, 2023 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 | 2Q23 Results
Agenda | 2Q23 Results 1. Stolt-Nielsen Limited 2. Stolt Tankers 3. Stolthaven Terminals 4. Stolt Tank Containers 5. Stolt Sea Farm 6. Stolt Investments 7. Financials 8. Q&A Second-Quarter 2023 Results
Slide 4: 2Q23 Highlights | Loss Provision of $155m
2Q23 Highlights | Loss Provision of $155m 2Q23 vs. 1Q23 Net Profit of $8.3m, down from $99.8m in 1Q23 as a result of recording a $155.0m loss provision ($115.0m net of tax) OPERATING REVENUE EBITDA related to the 2012 incident on board the MSC Flaminia $ 721.9m $ 79.6m Excluding one-offs, EB
Slide 5: 2Q23 Highlights | Excluding Provision - Strong Results for Stolt Tankers
2Q23 Highlights | Excluding Provision - Strong Results for Stolt Tankers 2Q23 vs. 1Q23 Net Profit of $113.3m, up from $99.8m in 1Q23 OPERATING REVENUE EBITDA EBITDA of $224.6m, up from $213.2m due to $ 721.9m $ 224.6m • Stolt Tankers: Higher spot volumes and contract freight rates $ 708.7m $
Slide 6: Net Profit | Strong Operating Results Offset By Loss Provision
Net Profit | Strong Operating Results Offset By Loss Provision Second-Quarter 2023 Results (1) MSC Flaminia net provision of tax and profit sharing 6
Slide 7: Stolt Tankers
Stolt Tankers S|
Slide 8: Stolt Tankers | Higher Spot Volumes and COA Rates Driving Earnings
Stolt Tankers | Higher Spot Volumes and COA Rates Driving Earnings OPERATING REVENUE EBITDA OPERATING PROFIT OPERATING DAYS (deepsea) 2Q23 $ 430.8m $ 136.5m $ 96.8m 7,225 1Q23 $ 415.5m $ 125.0m $ 87.1m 7,185 Operating Profit Variance Increased trading results as spot volumes improved 16.9%
Slide 9: Higher SIR – Strong Spot Volume and COA Rates Development
Higher SIR – Strong Spot Volume and COA Rates Development Strong SIR / Day development, expected to soften in 3Q23 Bunker Cost (deepsea and regional fleets) 100 13.1 14 $35 Indicative 33 +48.7% CAGR $30,880 5~7% decrease 80 $71.6 $71.1 $30 33 $57.4 $70.5 12 $59.5 $64.1 $63.7 $63.6 Thousands $25 60 $
Slide 10: Market Highlights | Near Term Weakness But Solid Fundamentals
Market Highlights | Near Term Weakness But Solid Fundamentals Homebound Return Transatlantic Eastbound Second quarter saw a decrease in spot rates, but they remain 300 105 above COA rates 250 95 85 Chemical tankers rates have softened as a result of lower 200 75 demand 150 65 100 Volatility in
Slide 11: Stolthaven Terminals
Stolthaven Terminals
Slide 12: Stolthaven Terminals | Steady Improvement
Stolthaven Terminals | Steady Improvement OPERATING REVENUE EBITDA OPERATING PROFIT UTILISATION (wholly-owned terminals) 2Q23 $ 74.3m $ 43.7m $ 27.8m 97.0% 1Q23 $ 74.0m $ 40.6m $ 25.1m 97.3% Operating Profit Variance Higher revenue from improved rates in the US and European terminals, part
Slide 13: Market Highlights | Concerns of Slowdown in Chemical Production
Market Highlights | Concerns of Slowdown in Chemical Production Joint Ventures - Equity Income/Utilisation Priorities Robust utilisation and throughput seen across all terminals during 12.0 100% the second quarter 95.4% 95.0% 96.1% 98% 10.0 94.0% 96% 93.8% Uncertainty seen by chemical producers
Slide 14: Stolt Tank Containers
Pouca MRD Stolt Tank Containers
Slide 15: Stolt Tank Containers | More Shipments but at Lower Rates
Stolt Tank Containers | More Shipments but at Lower Rates OPERATING REVENUE EBITDA OPERATING LOSS UTILISATION 2Q23 $ 189.3m $ (106.1)m $ (115.3)m 66.8% 2Q23 (Excluding Loss Provision) $ 48.9m $ 39.7m 1Q23 $ 193.9m $ 50.8m $ 39.3m 64.7% Operating Profit Variance $155m MSC Flaminia loss prov
Slide 16: Market Outlook | More Competitive Markets
Market Outlook | More Competitive Markets Demand outlook Shipments increasing European and North American markets 50 160 141 140 showing signs of weakening demand 45 125 125 127 131 131 129 129 131 135 137 131 130 130 132 135 140 40 Quarterly Shipments (Thousands) South America market remains st
Slide 17: Stolt Sea Farm
Slide 18: Stolt Sea Farm | Strong Increase In Sales
Stolt Sea Farm | Strong Increase In Sales OPERATING REVENUE EBITDA (Excl. FV Adj.) OPERATING PROFIT(Excl. FV Adj.) VOLUMES (metric tonnes)** 2Q23 $ 27.6m $ 6.8m $ 4.4m 2,207mt 1Q23 $ 25.2m $ 7.2m $ 5.6m 1,995mt **Includes turbot and sole Operating Profit Variance Sales volumes of turbot we
Slide 19: Stolt Sea Farm | Demand For Premium Fish Keeps Growing
Stolt Sea Farm | Demand For Premium Fish Keeps Growing Outlook Strong improvements in production at existing sites Demand for both species has picked up after a slow Sole modules continue to show strong performance January/February • Tocha and Cervo modules – originally planned for Strong summ
Slide 20: Stolt-Nielsen Investments | Leveraging Our Industrial Knowledge and Expertise
Stolt-Nielsen Investments | Leveraging Our Industrial Knowledge and Expertise 1 2Q23 Asset Allocation Current Investments Stolt Ventures LNG Bulk-liquid logistics Aquaculture 47.2% Fully integrated global energy Avenir company dedicated to small-scale 4% LNG Established in 2022 with the aim of LNG
Slide 21: Financials
Financials Stolt-Nielsen
Slide 22: Financials | SNL Net Profit
Financials | SNL Net Profit Quarter Half-Year Review Figures in USD million 2Q23 1Q23 2Q22 HY23 HY22 Increase in operating revenue due to Operating Revenue $721.9 $708.7 $689.1 $1,430.6 $1,295.3 higher spot volumes and COA freight rate in Operating Expenses (445.8) (443.1) (460.2) (888.9) (863.2)
Slide 23: Financials | Capital Expenditures
Financials | Capital Expenditures Actuals Actuals Remaining Forecast Figures in USD millions 1Q23 2Q23 2023 2024 Stolt Tankers 7 55 36 8 Stolthaven Terminals 17 19 62 162 Stolt Tank Containers 16 4 73 3 Stolt Sea Farm 7 2 13 8 SNL Corporate & Other - 2 10 - Total $47 $82 $194 $181 Stolt Tankers: Cap
Slide 24: Financials | SNL Cash Flow and Liquidity Position
Financials | SNL Cash Flow and Liquidity Position Figures in USD million 2Q23 1Q23 2Q22 HY23 HY22 Highlights Cash generated by operating activities $207.7 $176.8 $154.6 $384.4 $354.1 Cash from operating activities increased due to Interest Paid (24.2) (28.3) (36.4) (52.5) (62.4) Debt issuance cost
Slide 25: Debt Profile | Focus On Extending Maturities
Debt Profile | Focus On Extending Maturities On June 16, Stolt refinanced the loan secured by the terminal Debt levels in decline but interest rates rising in Singapore (ending in May 2024) with a new seven-year, 3,500 6.0% S$280 million term loan 4.81% 5.01% 5.06% 5.26% 3,000 4.41% 4.45% 5.0% O
Slide 26: Financial KPIs with Significant Headroom
Financial KPIs with Significant Headroom Debt to Tangible Net Worth (maximum 2.00:1.00) EBITDA to Interest Expense (LTM*) (minimum 2.00:1.00) 3,500 1.32 1.40 900 6.50 1.27 $770 5.85 800 6.00 3,000 1.16 1.20 $715 1.07 1.07 $682 5.35 $673 700 $646 5.54 5.50 2,500 $2,340 $2,346 1.00 5.10 $2,190 $2,135
Slide 27: Key Messages
Key Messages Strength in performance across all businesses… Outlook Expectations of a slowdown in demand for goods is expected to Stolt Tankers – Record performance at Stolt create uncertainty into the second half of the year. Indicators point Tankers with sailed-in revenue at $30,880 to: per day
Slide 28: Stolt-Nielsen
Stolt-Nielsen