Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2011 Earnings Presentation
25 slides from Awilco Lng Asa's earnings presentation, Feb 28, 2012
Slide 1: Q4 2011
Q4 2011 Jon Skule Storheill Snorre Krogstad www.awilcolng.no -1-
Slide 2: Agenda
Agenda 28/02 1. Highlights Q4 2. Company overview 3. Q4 Financials 4. Market update 5. Summary www.awilcolng.no -2-
Slide 3: 4th Quarter Highlights
4th Quarter Highlights • Awilco LNG ASA reported freight income of MUSD 16.8 (MUSD 12.3 in Q3) and an EBITDA of MUSD 10.9 (MUSD -0.5 in Q3) • WilEnergy fixed on 200 day contract with option to extend up to max 400 days, commencing in mid-February 2012 • The charters declared the option to extend the
Slide 4: Agenda
Agenda 28/02 1. Highlights Q4 2. Company overview 3.Q4 Financials 4.Market update 5. Summary www.awilcolng.no -4-
Slide 5: Company overview
Company overview Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels in international trade. The company owns three 125,000 cbm LNG vessels: WilGas, WilPower and WilEnergy. In addition, the company has entered into a newbuilding contract with Daewoo Shipbuilding &
Slide 6: Our fleet of 2nd generation vessels
Our fleet of 2nd generation vessels WilGas WilPower WilEnergy Built: 1984 Built: 1983 Built: 1983 Yard: Nagasaki Yard: Kawasaki Yard: Nagasaki Capacity: 125,631 Capacity: 125,660 Capacity: 125,556 Manager: V.Ships LNG Manager: V.Ships LNG Manager: V.Ships LNG Flag: NIS Flag: MI Flag: MI Main Engine:
Slide 7: Order of two newbuildings
Order of two newbuildings Yard: Daewoo Shipbuilding Cost approximately MUSD 200, depending on final specification Soft payment terms Delivery August and November 2013 ICE classed In total 19 new buildings delivering in 2012 and 2013, only 7 vessels are available for charter Awilco LNG has on paper t
Slide 8: Contract overview
Contract overview 2012 2013 DD Available WilPower WilGas Available WilEnegy DD Available Newbuilding Available Construction no1 Newbuilding Construction no 2 WilPower: open August 2012 WilGas: open October 2012 WilEnergy: open February 2013 www.awilcolng.no -8-
Slide 9: Agenda
Agenda 28/02 1. Highlights Q4 2. Company overview 3. Q4 Financials 4. Market update 5. Summary www.awilcolng.no -9-
Slide 10: Q4 2011 Income statement
Q4 2011 Income statement Total freight revenue MUSD 16.8 YTD • Mobilization fee MUSD 2.0 (MUSD 3.5 Q3) USD million Q4'11 Q3'11 2011 Freight income 16,8 12,3 30,7 Voyage related costs MUSD – 0.7 • Less idle time and repositioning during the quarter Voyage related costs -0,7 -7,5 -10,0 Net freight inc
Slide 11: Q4 2011 Balance sheet
Q4 2011 Balance sheet USD million 31.12.11 30.09.11 Vessels 69,9 69,7 Vessels MUSD 149 Vessels under construcction 79,2 39,7 • Book value of existing vessels MUSD 69.9 • Paid in installment on newbuildings of MUSD 39.5 Total non-current assets 149,2 109,4 during the quarter Trade receivables 3,8 7,7
Slide 12: Q4 2011 Cash flow
Q4 2011 Cash flow USD million Q4'11 Q3'11 2011 Cash flow from operating activities: Increase in cash from Profit/(loss) before taxes 9,0 (3,4) (0,6) operations due to: Depreciation and amortization 1,7 1,7 3,9 • Increased profits before taxes Trade receivables, inventory and other short term assets
Slide 13: Rate development
Rate development • Spot rates somewhat down from peak in Q4 due to seasonal influx of vessel availability • Mid-term charter rates unchanged at reg. USD 140 – 150’ www.awilcolng.no - 13 -
Slide 14: Agenda
Agenda 28/02 1. Highlights Q4 2. Company overview 3. Q4 Financials 4. Market update 5. Summary www.awilcolng.no - 14 -
Slide 15: Market update
Market update Gas is clean Gas is abundantly available Gas is cheap LNG shipping fundamentals are appealing www.awilcolng.no - 15 -
Slide 16: LNG demand to grow strongly
LNG demand to grow strongly • Gas is expected to be the strongest growing source of energy going forward • According to BP, gas supplied from LNG is expected to grow more than twice as fast as global gas production in percentage terms, and faster than inter-regional pipeline trade • LNG is expected
Slide 17: Japanese import at all time high
Japanese import at all time high • January imports up 28% Y-O-Y to 8.15 million tonnes, new all time high • 3 out of 54 Japanese nuclear reactors are running, and will likely be closed during 1st half 2012 • To restart, final approval is needed from the government and local communities based on inpu
Slide 18: China LNG imports increases
China LNG imports increases • January imports up 60% y-o-y, to 1.3m tonnes • The Chinese government aims to increase the share of gas in total energy demand from 4% in 2010 to 8% in 2015 and 10% in 2020 Source: Fearnley www.awilcolng.no - 18 -
Slide 19: LNG Projects growth 2011-2017
LNG Projects growth 2011-2017 Country Project name Main Partners FID Startup MPTA Max Vessels Req. Angola Angola LNG Chevron,BP, Eni, Total, Sonangol Taken 2012 5,2 9 Australia Pluto LNG Woodside, Tokyo Gas, Kanseai Electric Taken 2012 4,8 4 Algeria Gassi Touil Sonatrach Taken 2013 4,7 5 Papua New G
Slide 20: Shale gas
Shale gas U.S production • U.S producers have started to reduce production du to low gas price • Cheniere has signed off-take contracts totaling 16 Mtpa • Construction is scheduled to start in 2012, pending FERC approval Europe • BP do not expect major unconventional production in Europe before 2020
Slide 21: World LNG Fleet by Year of Built
World LNG Fleet by Year of Built • Total orderbook LNG vessels ex FSRU – 69 vessels (including last Golar vessels), of which 30 are assumed committed and 39 open. • Limited yard capacity until end 2014, options will most likely be utilized • Orderbook expected to grow at the tail end of the period (
Slide 22: Agenda
Agenda 28/02 1. Highlights Q4 2. Company overview 3. Q4 Financials 4. Market update 5. Summary www.awilcolng.no - 22 -
Slide 23: Summary
Summary Market • LNG demand: Expected to grow steadily • Liquefaction capacity: Capacity is set to grow - 60 – 70 Mtpa under construction - 90 – 140 Mtpa additional FID in period 2012 to 2013 • Shipping: - Shortage of vessels expected next two years - Limited orderbook until end 2014 - Trading dista
Slide 24: A Pure Play LNG Transportation Provider
A Pure Play LNG Transportation Provider 2nd gen. fleet of 2 newbuildings 3 LNG carriers world class yard Strong balance sheet Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 24 -
Slide 25: Jon Skule Storheill CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Snorre Schie Krogstad Chief Financial Officer Mobile: +47-9085 8393 E-mail: ssk@awilcolng.no www.awilcolng.no - 25 -