In This Article:
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Operating Revenue: Increased by 5.5% year-on-year.
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Operating Profit: Up more than 9% year-on-year, reaching $139.3 million.
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EBITDA: $209.4 million, up 4% from the prior year.
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Free Cash Flow: $212 million for the quarter.
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Net Debt to EBITDA Ratio: 2.25.
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TCE per Day for Stolt Tankers: $33,400, up 17% year-on-year.
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Stolthaven Terminals EBITDA: $43.5 million, up 3.5% year-on-year.
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Stolt Sea Farm Operating Revenue: $33.6 million, up 8% year-on-year.
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Stolt Sea Farm Operating Profit: $8.7 million, up 43% year-on-year.
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Stolt Sea Farm EBITDA: $11 million, up 18% year-on-year.
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Net Profit: $99.2 million for the quarter.
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Capital Expenditures: $58 million for the quarter.
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Cash and Cash Equivalents: $336.7 million at the end of the quarter.
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Available Credit Lines: $431 million.
Release Date: October 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Stolt-Nielsen Ltd (SOIEF) achieved near record levels of EBITDA for the second consecutive quarter, indicating strong operational performance.
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The company reported a 5.5% increase in operating revenue and a more than 9% rise in operating profit, showcasing effective cost management and margin focus.
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Stolt Tankers delivered a record high TCE per day of $33,400, reflecting a 17% growth compared to the same quarter last year.
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Stolthaven Terminals saw EBITDA increase by 3.5% year-on-year, driven by strong storage rates and margin improvements.
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Stolt Sea Farm achieved record quarterly performance in both operating profit and EBITDA, supported by higher prices and good volumes.
Negative Points
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The ongoing situation in the Red Sea has impacted shipping markets, leading to longer voyages and affecting cargo volumes.
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Tank container market conditions remain challenging, with competitive trading environments and reduced demurrage revenues impacting profitability.
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The International Longshoreman's Association Strike poses potential disruptions to the tank container business, with uncertain financial impacts.
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Deep-sea revenue was down 1.2% due to fewer operating days and lower volumes, partly offset by increased freight rates.
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Net interest expense increased due to higher average interest rates and lower interest income, impacting overall financial performance.
Q & A Highlights
Q: Can you update us on your strategy to deepen customer interaction using your terminals, tankers, and tank containers as one offering? A: We are increasingly seen as a strategic supplier by our customers, not just a tactical provider. We've had strategic workshops with customers to understand their supply chains better and identify where we can add the most value. This approach is progressing well.