Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2015 Earnings Presentation
22 slides from Awilco Lng Asa's earnings presentation, Aug 27, 2015
Slide 1: Q2 2015
Q2 2015 Jon Skule Storheill Snorre Krogstad 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: Agenda 27/08 2015
Agenda 27/08 2015 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -3-
Slide 4: Company Overview
Company Overview Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels. The Company currently owns two 2013 built 156,000 cbm TFDE membrane LNG vessels; WilForce and WilPride, and two 125,000 cbm steam Moss type LNG vessels; WilGas and WilEnergy. Awilco LNG is liste
Slide 5: 2nd Quarter Highlights
2nd Quarter Highlights 2nd quarter 2015 • Awilco LNG reported: − Net freight income of MUSD 6.0 MUSD 10.3 in Q1 2015 − EBITDA of MUSD 1.7 MUSD 5.5 in Q1 2015 − Net profit/(loss) of MUSD (11.7) MUSD (4.7) in Q1 2015 • Vessel utilisation of 34 %, compared to 67 % in Q1 2015 (trading vessels). • The 19
Slide 6: Contract Overview
Contract Overview 2015 2016 WilPride Available WilForce On charter On charter WilGas Available Available WilEnergy Lay-up - Marketed for project work Lay-up - Marketed for project work WilPride: Open Atlantic mid-Sep WilForce: Employed until January 2017 WilGas: Lay-up from beginning September WilEn
Slide 7: Agenda 27/08 2015
Agenda 27/08 2015 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q2 2015 Income statement
Q2 2015 Income statement USD million Q2’15 Q1’15 2014 Freight income 7.3 12.1 78.5 Net freight income MUSD 6.0 • Lower utilisation and rates Voyage related expenses (1.3) (1.8) (11.2) • 34 % utilisation trading vessels (67 % in Q1 2015) Net freight income 6.0 10.3 67.2 Impairment MUSD (3.2) Operatin
Slide 9: Q2 2015 Balance sheet
Q2 2015 Balance sheet USD million 30.06.15 31.03.15 31.12.14 Vessels 438.6 462.8 467.1 Vessels MUSD 438.6 • WilPower presented as held for sale MUSD 17.8 Other non-current assets 0.1 0.1 0.3 Total non-current assets 438.8 463.0 467.4 Current assets MUSD 15.8 Trade receivables 2.5 2.4 2.5 • MUSD 3.0
Slide 10: Q2 2015 Cash flow
Q2 2015 Cash flow USD million Q2’15 Q1’15 2014 Cash Flows from Operating Activities: Operating activities MUSD 2.1 Profit/(loss) before taxes (11.7) (4.7) (2.6) Income taxes paid - - - Investing activities nil Interest and borrowing costs expensed 6.1 6.0 25.1 Depreciation, amortisation and impairme
Slide 11: Agenda 27/08 2015
Agenda 27/08 2015 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: LNG Rates
LNG Rates LNG Charter Rates 138 – 165k Modern Vessels • Improving activity during the quarter, however rates continued to slide • Too many available ships • Spot market activity increased 27% YTD as LNG starting to look like a commodity Source: Fearnley LNG www.awilcolng.no - 12 -
Slide 13: LNG production and import
LNG production and import Production per country 2015 vs 2014 per end June Imports per country 2015 vs 2014 end June Mill mt Mill mt 2,0 2,0 1,5 1,5 1,0 1,0 0,5 0,5 0,0 0,0 -0,5 -0,5 -1,0 -1,0 -1,5 -1,5 -2,0 -2,0 -2,5 -2,5 Dom. Rep. Portugal Israel Italy Turkey Belgium Greece Korea Malaysia Canda Ar
Slide 14: LNG production
LNG production MTPA Additional LNG production capacity under construction MTPA 9 8 140 7 120 6 100 5 80 4 60 3 40 2 1 20 0 0 2015 2016 2017 2018 2019 Total • 140 MTPA of new LNG capacity (including Angola) with planned startup Q3 2015 - Q4 2019 • A total of 30 MTPA expected next 6 months • Despite r
Slide 15: LNG finally supply driven
LNG finally supply driven 400 Estimated LNG trade based on IEA MTGMR 2014 350 49 39 300 29 65 20 59 53 250 19 48 42 9 13 34 42 33 Mill mt 30 37 29 200 15 16 20 150 140 140 136 100 132 132 132 135 50 37 36 44 50 51 29 29 - 2013 2014 2015 2016 2017 2018 2019 OECD Europe OECD Asia OECD Americas ME Lati
Slide 16: LNG fleet orderbook
LNG fleet orderbook Newbuilding deliver by quarter 18 160 16 140 1 14 120 12 3 100 10 1 3 2 80 8 1 15 1 60 6 12 12 1 1 11 1 10 10 40 4 9 9 8 7 6 2 5 5 5 20 3 0 0 Open Committed Total • Six vessels delivered in Q2, 12 vessel delivered 1H 15 • 16 new orders reported during 1H 15 • 142 vessels on order
Slide 17: LNG carrier fleet growth
LNG carrier fleet growth Deliveries and exit of LNG carriers >10,000 cbm (in mill cbm) 12 22% • Deliveries in 2014 – 2017 based on current orderbook 10 19% • Assume exit age 35 years on average 16% 8 • New orders based on need for new tonnage 13% from new LNG projects in 2017-19 6 10% • Vessels “lea
Slide 18: Agenda 27/08 2015
Agenda 27/08 2015 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary Continued low rates but improving activity Spot market volume increased by almost 30% compared to same period last year Recent new LNG startups have been on schedule – or ahead. PNG producing above expected About 30 MTPA of new nameplate capacity (including re-start Angola production) schedu
Slide 20: Awilco LNG – summary
Awilco LNG – summary Earnings are dismal – but a lot of new LNG production expected next 6 months. There is a light in the tunnel! Short-midterm contract WilPride – with improving fundamentals Nno rush Infrastructure projects - Increased interest in FSRU - also for conversions - These projects are l
Slide 21: Q&A – A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of Two 2013 built TFDEs two LNG carriers Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 21 -
Slide 22: Jon Skule Storheill CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Snorre Krogstad CFO Mobile: +47-9085 8393 E-mail: ssk@awilcolng.no www.awilcolng.no - 22 -