GuruFocus -
- 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 (NYSE:SE) 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.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 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.
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.