Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2014 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, Aug 27, 2014
Slide 1: Q2 2014
Q2 2014 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 2014
Agenda 27/08 2014 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 three 125,000 cbm steam Moss type LNG vessels; WilGas, WilPower and WilEnergy. Awilco
Slide 5: 2nd Quarter Highlights
2nd Quarter Highlights 2nd quarter 2014 • Awilco LNG reported: − Net freight income of MUSD 17.2 MUSD 17.6 in Q1 2014 − EBITDA of MUSD 10.9 MUSD 10.7 in Q1 2014 − Net profit of MUSD 0.2 MUSD 0.0 in Q1 2014 • Vessel utilisation of 94 % excluding dry-dock, compared to 95 % in Q1 2014 (84 % including d
Slide 6: Contract Overview
Contract Overview 2014 2015 WilEnergy On charter DD Available WilPride On charter Available WilGas On charter DD On charter Available WilForce On charter On charter WilPower Lay-up - Marketed for project work Lay-up - Marketed for project work WilEnergy: Employed until end September 2014 WilGas: Emp
Slide 7: Agenda 27/08 2014
Agenda 27/08 2014 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q2 2014 Income statement
Q2 2014 Income statement USD million Q2’14 Q1’14 2013 Freight income 19.9 20.2 54.7 Net freight income MUSD 17.2 • Off-hire of WilGas due to scheduled dry-docking, partly Voyage related expenses (2.7) (2.5) (12.8) offset by increased earnings on TFDEs Net freight income 17.2 17.6 41.9 • 94 % utilisa
Slide 9: Q2 2014 Balance sheet
Q2 2014 Balance sheet USD million 30.06.14 31.03.14 31.12.13 Vessels 470.9 474.2 478.7 Current assets MUSD 34.7 Other non-current assets 0.3 0.3 0.4 • Other short term assets includes MUSD 3.0 prepaid hire Total non-current assets 471.2 474.5 479.1 • Cash MUSD 23.8 vs. MUSD 22.5 Q1 Trade receivables
Slide 10: Q2 2014 Cash flow
Q2 2014 Cash flow USD million Q2’14 Q1’14 2013 Cash Flows from Operating Activities: Operating activities MUSD 11.3 Profit/(loss) before taxes 0.2 - 1.1 • Reduction in accounts payable of MUSD 3 from previous quarter Taxes paid - - (0.1) Interest and borrowing costs expensed 6.3 6.3 5.6 Depreciation
Slide 11: Agenda 27/08 2014
Agenda 27/08 2014 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: Rate development
Rate development Spot charter rate for 160k TFDE 200 000 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 - mai.12 jul.12 sep.12 nov.12 jan.13 mar.13 mai.13 jul.13 sep.13 nov.13 jan.14 mar.14 mai.14 jul.14 • Seasonal slow Q2 with reduced spot LNG demand in the Far East – gas price
Slide 13: Production and ton-mile
Production and ton-mile LNG export and ton-mile development Ton-mile Ton 300 69 000 000 250 59 000 000 200 49 000 000 150 39 000 000 100 29 000 000 50 19 000 000 - 9 000 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Global tons Global ton-miles • Ton-mile and LNG pro
Slide 14: LNG imports
LNG imports Mill mt Imports per country 2014 vs 2013 • 1st half 2014 in mill mt /YoY 2 - Europe 17.1 -12.8% - N.America 4.0 10.6% - S.America 6.3 -5.5% 1,5 - Japan 44.3 2.0% - Korea 20.3 -5.3% 1 - Taiwan 6.2 -2.2% - China 9.9 19.1% 0,5 - India 7.5 11.5% - Total 119.9 0.5% 0 • In July, Japan imported
Slide 15: LNG production
LNG production MTPA About 130 MTPA of new LNG production capacity 2014 – 2018 Total MTPA 14 2014 2015 2016 2017 2018 140 12 120 10 100 8 80 6 60 4 40 2 20 0 0 Under Construction Started Total • 27% increase in production capacity scheduled to start up 2014 - 2016 • A total of ca 130 MTPA of new LNG
Slide 16: World LNG fleet by year built
World LNG fleet by year built LNG Fleet (> 100 000 cbm) development and orderbook Fleet Newbuildings 600 50 45 500 40 35 400 4 30 5 300 13 25 3 20 200 30 15 26 19 21 10 100 16 11 5 0 2 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 201
Slide 17: Agenda 27/08 2014
Agenda 27/08 2014 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary Rates have weakened consistently since summer of 2012 but the market has been able to absorb 35 newbuildings despite reduced LNG production Spot activity and rates turned in July, when gas prices tumbled and several modern vessels have been taken out for storage plays Still a number of
Slide 19: Summary Awilco LNG
Summary Awilco LNG WilPride utilisation of 85 % in spot market since delivery Short-midterm contract WilPride – waiting for the “right” deal 2nd Generation vessels coming of charter during the 2nd half of 2014 Evaluating infrastructure projects and potential contracts for the 2 nd Generation
Slide 20: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of Two 2013 built TFDEs three LNG carriers Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 20 -
Slide 21: 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 - 21 -