31-01-2025
Stolt-Nielsen Ltd (SOIEF) Q4 2024 Earnings Call Highlights: Strong EBITDA and Strategic ...
EBITDA: Over $200 million for the sixth consecutive quarter.
Operating Revenue: Increased by 2% year-over-year.
Operating Profit: Decreased by $9.6 million, impacted by a $6 million impairment.
Free Cash Flow: Lower due to higher capital investments.
Net Debt to EBITDA Ratio: Improved to 2.2.
Net Profit (Q4): $91.4 million.
Net Profit (Full Year): $394.8 million.
Full Year EBITDA: $842.3 million.
Capital Expenditures (Q4): $97.7 million.
Cash and Cash Equivalents: $334.7 million at year-end.
Stolt Tankers TCE Rate: Over $30,000 per day.
Stolt Sea Farm Revenue: Up 15% year-over-year.
Stolt Sea Farm Operating Profit: Up 45% year-over-year.
Stolthaven Terminals Utilization: 90.9% for the quarter.
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Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Stolt-Nielsen Ltd (SOIEF) achieved EBITDA over $200 million for a sixth consecutive quarter, indicating strong financial performance.
The company has made strategic investments, including expanding its fleet and terminals, which are expected to drive future growth.
Stolt-Nielsen Ltd (SOIEF) received gold ratings from EcoVadis for sustainability efforts, highlighting its commitment to environmental responsibility.
The company's net debt to EBITDA ratio improved to 2.2, providing significant financial flexibility and a strong liquidity position.
Stolt Sea Farm delivered strong results with a 15% increase in operating revenue and a 45% increase in operating profit year-over-year.
Operating profit for the quarter was down by $9.6 million, impacted by a $6 million impairment on a high gas investment.
Free cash flow was lower this quarter due to higher capital investments across the company's four businesses.
The tanker division experienced a reduction in operating profit due to increased operating expenses and lower deep sea freight revenue.
Equity income from joint ventures was down due to impairments and losses in Avenir and high gas operations.
The company faces uncertainties from geopolitical factors and potential trade flow disruptions, which could impact future performance.
Q: The shipments in Stolt tank containers declined for the second consecutive quarter. Is there anything more to be said about that? A: Udo Lange, CEO: We are optimizing margin and volume, which is improving our earnings. Our strategy focuses on driving overall earnings rather than just increasing volume.
Q: How do you argue for dividends versus other uses of cash given the strong cash generation? A: Udo Lange, CEO: We balance capital allocation between investing in business growth and providing dividends to shareholders. Our priority is to ensure long-term business success while maintaining attractive dividends.
Q: Can you talk about the contribution to 2025 earnings from HS 4 and Avenir? A: Jens Gruener-Hegge, CFO: With 100% ownership of Avenir and Hassel Shipping, we will consolidate them into our earnings, contributing approximately $50 million to $55 million combined in 2025.
Q: How does the transaction impact LNG's growth plans going forward? A: Udo Lange, CEO: We aim to grow and consolidate in the LNG segment, leveraging our market-leading platform and new builds. This aligns with our strategy to enhance our liquid logistics and gas storage capabilities.
Q: What is the reason for the significant increase in Tankers' CapEx compared to the Q3 presentation? A: Jens Gruener-Hegge, CFO: The increase is due to acquiring 100% of Hassel Shipping 4, progress payments on new builds, and equity injections into a joint venture with NYK.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
