Stolt-Nielsen (SNI) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 performance with EBITDA of $192 million, despite significant market volatility and a 17% decline in Stolt Tankers EBITDA.

• Non-shipping businesses contributed around 40% of EBITDA and rose 6% year-over-year, providing resilience against shipping sector shocks.

• Major acquisitions of Avenir LNG and Hassel Shipping 4 JV consolidated, strengthening LNG and chemical tanker positions and adding ~$50 million annualized EBITDA.

• Relaunched share buyback program and invested $400 million to strengthen US operations.

• Final dividend of $1.25 per share proposed, totaling $2.50 for 2024, subject to AGM approval.

Financial highlights

• Operating revenue for Q1 2025 was $675.6 million, down 4.5% year-over-year, mainly due to lower volumes in Stolt Tankers.

• EBITDA of $192 million, down 8.7% year-over-year; operating profit at $107.9 million, down $24 million.

• Net profit at $151.4 million, but excluding one-off gains, net profit was $76.2 million.

• Free cash flow was negative at -$41.7 million, impacted by significant investments and acquisitions.

• Net debt to EBITDA increased to 2.82x from 2.54x in 1Q24.

Outlook and guidance

• Tanker market softness expected to persist into Q2 2025, with TCE rates projected to decline 2%-5% and potential leveling off if market conditions stabilize.

• Stolthaven Terminals utilization and margins expected to continue improving, supporting earnings growth.

• Tank container business anticipates stronger spot rates and volumes; Stolt Sea Farm expects sustained high pricing through Easter and summer.

• Annualized EBITDA guidance for Avenir and Hassel Shipping IV combined is $50 million, with Avenir contributing about one third.

• Tariff and port fee disruptions being managed in close collaboration with customers.