In This Article:
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EBITDA: Over $200 million for the sixth consecutive quarter.
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Operating Revenue: Increased by 2% year-over-year.
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Operating Profit: Decreased by $9.6 million, impacted by a $6 million impairment.
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Free Cash Flow: Lower due to higher capital investments.
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Net Debt to EBITDA Ratio: Improved to 2.2.
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Net Profit (Q4): $91.4 million.
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Net Profit (Full Year): $394.8 million.
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Full Year EBITDA: $842.3 million.
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Capital Expenditures (Q4): $97.7 million.
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Cash and Cash Equivalents: $334.7 million at year-end.
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Stolt Tankers TCE Rate: Over $30,000 per day.
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Stolt Sea Farm Revenue: Up 15% year-over-year.
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Stolt Sea Farm Operating Profit: Up 45% year-over-year.
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Stolthaven Terminals Utilization: 90.9% for the quarter.
Release Date: January 30, 2025
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 EBITDA over $200 million for a sixth consecutive quarter, indicating strong financial performance.
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The company has made strategic investments, including expanding its fleet and terminals, which are expected to drive future growth.
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Stolt-Nielsen Ltd (SOIEF) received gold ratings from EcoVadis for sustainability efforts, highlighting its commitment to environmental responsibility.
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The company's net debt to EBITDA ratio improved to 2.2, providing significant financial flexibility and a strong liquidity position.
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Stolt Sea Farm delivered strong results with a 15% increase in operating revenue and a 45% increase in operating profit year-over-year.
Negative Points
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Operating profit for the quarter was down by $9.6 million, impacted by a $6 million impairment on a high gas investment.
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Free cash flow was lower this quarter due to higher capital investments across the company's four businesses.
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The tanker division experienced a reduction in operating profit due to increased operating expenses and lower deep sea freight revenue.
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Equity income from joint ventures was down due to impairments and losses in Avenir and high gas operations.
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The company faces uncertainties from geopolitical factors and potential trade flow disruptions, which could impact future performance.
Q & A Highlights
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.