Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2020 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, Nov 20, 2020
Slide 1: Q3 2020
Q3 2020 20 November 2020 www.awilcolng.no -1-
Slide 2: Disclaimer
Disclaimer This presentation may include certain forward-looking statements, forecasts, estimates, predictions, influences and projections regarding the intent, opinion, belief, various assumptions or current expectations of Awilco LNG (the “Company”) and it’s management with respect to, among other
Slide 3: Company overview
Company overview Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG carriers. The Company owns and operates two 2013-built 156,000 cbm TFDE LNG carriers, WilPride and WilForce, trading in the short term/spot market achieving about 80 % utilisation since
Slide 4: Agenda
Agenda 20/11 2020 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 3rd quarter highlights
3rd quarter highlights Q3 2020 Q2 2020 Net freight income MUSD 2.4 MUSD 4.1 EBITDA MUSD (0.5) MUSD 1.4 Net profit MUSD (6.5) MUSD (5.3) • TCE* adjusted USD 23,000 pd (incl Q3 positioning fee MUSD 1.9 recognised in Q4 2020) • Net actual TCE* USD 13,000 pd (USD 22,800 pd in Q2 2020) • Utilisation of 9
Slide 6: Agenda
Agenda 20/11 2020 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q3 2020 income statement
Q3 2020 income statement USD million Q3’20 Q2’20 2019 Freight income 3.7 5.1 37.1 Voyage related expenses (1.3) (0.9) (3.4) Net freight income 2.4 4.1 33.7 Other income - - 11.6 Operating expenses (2.2) (2.1) (16.4) Administration expenses (0.7) (0.6) (3.7) EBITDA (0.5) 1.4 25.2 Depreciation (3.1) (
Slide 8: Q3 2020 financial position
Q3 2020 financial position USD million 30.09.20 30.06.20 31.12.19 Vessels (right-of-use assets) 341.1 344.2 350.0 Other fixed assets 0.3 0.4 - Total non-current assets 341.4 344.5 350.0 Trade receivables 2.1 0.4 0.1 Other short term assets 3.2 3.2 3.7 Cash and cash equivalents 8.0 14.8 23.5 Total cu
Slide 9: Q3 2020 cash flow
Q3 2020 cash flow USD million Q3’20 Q2’20 2019 Cash Flows from Operating Activities: Profit/(loss) before taxes (6.5) (5.3) (8.3) Income taxes paid - - - Interest and borrowing costs expensed 2.8 3.6 20.7 Depreciation, amortisation and impairment 3.1 3.1 13.0 Trade receivables, inventory and other s
Slide 10: Agenda
Agenda 20/11 2020 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: Spot rates
Spot rates USD/DAY 200 000 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 - Avg. spot rate 138-145k ST Avg. spot rate 155-165k TFDE Historic ave. spot rate 138-145k ST Historic ave. spot rate 155-165k TFDE • Rates bottomed out in June following gas demand destruction by Covid-19
Slide 12: LNG demand growing – storage too
LNG demand growing – storage too DENTED BY COVID-19, BUT STILL UP Y-O-Y FLOATING STORAGE MT LNG FLOATING CARGOES AT SEA 60 Covid-19 110 Storage Winter Winter 105 50 Storage Storage 100 40 95 30 90 85 20 80 10 75 0 70 2018 2019 2020 • Trade YTD Q3 2020 up 1.7 % y-o-y (~5 MT) • Very limited LNG storag
Slide 13: Gas price increases signals recovery
Gas price increases signals recovery USD/MMBTU 14 12 10 8 6 4 2 0 07.2018 09.2018 11.2018 01.2019 03.2019 05.2019 07.2019 09.2019 11.2019 01.2020 03.2020 05.2020 07.2020 09.2020 11.2020 01.2021 03.2021 05.2021 US (HH) Asia (JKM) Europe (TTF) LNG Contract 12% brent Japan LNG import price US (HH) fwd
Slide 14: The BIG picture by DNV GL
The BIG picture by DNV GL PEAK OIL AND COAL NATURAL GAS GROWING Exajoules/yr Exajoules/yr 700 200 600 Wind 150 Natural gas w/CCS 500 Solar PV Natural gas Hydro 400 Biomass Nuclear 100 300 Natural gas Oil 200 Coal 50 100 0 0 1980 1990 2000 2010 2020 2030 2040 2050 1980 1990 2000 2010 2020 2030 2040 2
Slide 15: Trainspotting
Trainspotting MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 140 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2020 2020 2021 2022 2023 2024 2025 2026 Total (RHS) • 107 MTPA new capacity currently under construction • 34 % in the US (35 MTPA) • Further FIDs needed to meet demand from 2025 • More than 800 M
Slide 16: Tonnage demand
Tonnage demand ASIAN DEMAND / US SUPPLY REPLACEMENT OF STEAM VESSELS VESSELS VESSELS VESSELS 3 25 120 100 20 2 80 15 60 2,41 10 1 2,14 40 1,09 5 0,87 20 - 0 0 Australia - China US - Europe US - India US - China Vessels needed to transport 1 MTPA of LNG Steam LNGC redeliveries (LHS) Accumulated (RHS)
Slide 17: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 50 700 45 600 40 35 500 30 400 25 300 20 15 200 10 100 5 0 0 Fixed (LHS) Fixed Arc7s (LHS) Available (LHS) Delivered (LHS) Total fleet (RHS) • Total LNGC fleet 536 vessels > 125’ cbm • Current orderbook 103 LNGC or 19 % of existing fleet - 32 assumed a
Slide 18: Agenda
Agenda 20/11 2020 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary ➢ Covid-19 killed the expected strong 2020 ➢ Seasonality in LNG shipping persists - 20/21 winter expected colder than previous two years ─ Gas prices doubled since August ─ Spot shipping rates more than tripled since summer lows ➢ Mid- and long-term demand for LNG transportation remains stro
Slide 20: Q&A
Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced Opportunistic strategy management team www.awilcolng.no - 20 -
Slide 21: Jon Skule Storheill, CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Øyvind Ryssdal CFO Mobile: +47-920 14 029 E-mail: or@awilcolng.no www.awilcolng.no - 21 -