Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2017 Earnings Presentation
18 slides from Awilco Lng Asa's earnings presentation, May 5, 2017
Slide 1: Q1 2017
Q1 2017 Jon Skule Storheill Snorre Krogstad 05/05/17 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 pure play LNG transportation provider, owning and operating LNG vessels. The Company owns two 2013 built 156,000 cbm TFDE membrane LNG vessels, WilForce and WilPride. Awilco LNG is listed on Oslo Axess under the ticker code ALNG. www.awilcolng.no -3-
Slide 4: Agenda 05/05 2017
Agenda 05/05 2017 1. Financials Q1 2. Market update 3. Summary www.awilcolng.no -4-
Slide 5: Q1 2017 Income statement
Q1 2017 Income statement USD million Q1’17 Q4’16 2016 Freight income 2.5 9.1 34.8 Voyage related expenses (1.6) (0.3) (2.8) Net freight income 0.8 8.8 32.0 Operating expenses (1.9) (1.8) (8.7) Administration expenses (0.9) (0.9) (3.5) EBITDA (2.0) 6.1 19.8 Depreciation (2.9) (2.9) (12.9) Impairment
Slide 6: Q1 2017 Balance sheet
Q1 2017 Balance sheet USD million 31.03.17 31.12.16 Vessels 369.2 371.8 Other non-current assets 0.1 0.1 Total non-current assets 369.3 371.9 Trade receivables - 0.6 Other short term assets 5.2 5.8 Cash 19.4 30.0 Total current assets 24.6 36.4 Total assets 393.9 408.4 Total equity 122.4 132.8 Long-t
Slide 7: Q1 2017 Cash flow
Q1 2017 Cash flow USD million Q1’17 Q4’16 2016 Cash Flows from Operating Activities: Profit/(loss) before taxes (10.4) (2.5) (22.8) Income taxes paid - - - Interest and borrowing costs expensed 5.5 5.7 23.2 Depreciation, amortisation and impairment 2.9 2.9 19.5 Trade receivables, inventory and other
Slide 8: Agenda 05/05 2017
Agenda 05/05 2017 1. Financials Q1 2. Market update 3. Summary www.awilcolng.no -8-
Slide 9: LNG rates
LNG rates USD / day 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 DFDE Historic Ave. spot rate 138-145 K st Historic Ave. spot rate 155-165 K DFDE • After a promising end 2016, activity and rates weakened considerably during
Slide 10: Monthly global LNG trade
Monthly global LNG trade MT LNG 26 25 24 23 22 21 20 19 18 17 2011 2012 2013 2014 2015 2016 2017 (est) • Global LNG trade up by 12 % in Q1 2017 compared to same period last year • New LNG production capacity added in 2016 was 41 MT – full production expected to be reached during 2017 • Seasonality i
Slide 11: Gas price
Gas price USD/MMBTU 24 22 20 18 16 14 12 10 8 6 4 2 0 HH NBP Spot DES Japan • Both Far East and Europe gas prices declined during the quarter • Europe – Far East arbitrage closed leading to fewer re-loads • Cheap US LNG prices - cargoes exported to a various destinations, including Far East • 2016 a
Slide 12: LNG trade
LNG trade LNG exports yoy 2017 LNG imports yoy 2017 MT MT 3,0 3,0 2,5 2,5 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 • Australian and US ramp up is materialising • China and India continue increasing import trend • LNG exports increased by 12 % YoY • The Japanese and Korean declinin
Slide 13: LNG production
LNG production MTPA LNG PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 10 120 9 100 8 7 80 6 5 60 4 40 3 2 20 1 0 0 2017 2018 2019 2020 Total • Ramp-up takes about 6 months - full effect of 2016 capacity increase through 2017 • Gorgon T3 and Sabine Pass T3 on time - completed by the end of Q1 • Austral
Slide 14: LNG fleet and orderbook
LNG fleet and orderbook No. vsls Total fleet 50 600 45 500 40 35 400 30 25 300 20 200 15 10 100 5 0 0 Open order (LHS) Comitted Order (LHS) Delivered (LHS) Total fleet (RHS) • Total orderbook coming down – now 104 vessels – of which max 10 are available • 9 vessels delivered in Q1 - further 35 sched
Slide 15: Agenda 05/05 2017
Agenda 05/05 2017 1. Financials Q1 2. Market update 3. Summary www.awilcolng.no - 15 -
Slide 16: Summary
Summary Market still volatile and seasonal ─ Q1 very weak both in terms of rates and activity ─ Improvement in Q2 – but still below Q4 2016 level Mid- and long-term demand for LNG transportation remains strong ─ We are at the start of the biggest increase of LNG volumes in history ─ Full effect
Slide 17: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 17 -
Slide 18: 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 - 18 -