Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2015 Earnings Presentation
22 slides from Awilco Lng Asa's earnings presentation, Nov 17, 2015
Slide 1: Q3 2015
Q3 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 17/11 2015
Agenda 17/11 2015 1. Company Overview and Highlights Q3 2. Financials Q3 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: 3rd Quarter Highlights
3rd Quarter Highlights 3rd quarter 2015 • Awilco LNG reported: − Net freight income of MUSD 7.2 MUSD 6.0 in Q2 2015 − EBITDA of MUSD 2.8 MUSD 1.7 in Q2 2015 − Net profit/(loss) of MUSD (7.3) MUSD (11.7) in Q2 2015 • Vessel utilisation of 68 %, compared to 34 % in Q2 2015 (trading vessels). • The 198
Slide 6: Contract Overview
Contract Overview 2015 2016 WilPride Available WilForce On charter On charter WilGas Available Lay-up - Marketed for project work WilEnergy Lay-up - Marketed for project work Lay-up - Marketed for project work WilPride: Open Atlantic early-December WilForce: Employed until January 2017 WilGas: Lay-u
Slide 7: Agenda 17/11 2015
Agenda 17/11 2015 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q3 2015 Income statement
Q3 2015 Income statement USD million Q3’15 Q2’15 2014 Freight income 8.3 7.3 78.5 Net freight income MUSD 7.2 • Improved utilisation of WilPride Up from 3% in Q2 to 56% in Voyage related expenses (1.1) (1.3) (11.2) Q3 Net freight income 7.2 6.0 67.2 Operating expenses MUSD (3.4) Operating expenses (
Slide 9: Q3 2015 Balance sheet
Q3 2015 Balance sheet USD million 30.09.15 30.06.15 31.12.14 Vessels 434.6 438.6 467.1 Current assets MUSD 26.7 Other non-current assets 0.1 0.1 0.3 • WilPower delivered end July - net sales proceeds MUSD 17.8 Total non-current assets 434.7 438.8 467.4 • MUSD 3.0 reduction in other short term assets
Slide 10: Q3 2015 Cash flow
Q3 2015 Cash flow USD million Q3’15 Q2’15 2014 Cash Flows from Operating Activities: Operating activities MUSD 2.0 Profit/(loss) before taxes (7.3) (11.7) (2.6) Income taxes paid - - - Investing activities MUSD 17.8 Interest and borrowing costs expensed 6.1 6.1 25.1 • WilPower delivered end July, ne
Slide 11: Agenda 17/11 2015
Agenda 17/11 2015 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: LNG Rates
LNG Rates LNG CHARTER RATES 138 – 165K MODERN VESSELS • Disappointing market development in Q3 with little activity, low rates and utilisation during most of the quarter • Pockets of high fixing periods but too few and far apart to change sentiment • Atlantic basin looks short tonnage rest of 2015 S
Slide 13: Inter-Basin Trade
Inter-Basin Trade INTER-BASIN TRADE (Atlantic to Asia) 6,0 4 600 4 400 5,0 4 200 4,0 4 000 3,0 3 800 3 600 2,0 3 400 1,0 3 200 - 3 000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Mill MT (left) Avg. distance • Average sailing distance lowest level in 5 years • F.East demand has dropped in anti
Slide 14: LNG Price
LNG Price $/mmbtu 26 LNG PRICE DEVELOPMENT 24 HH Spot DES Japan 22 20 18 16 14 12 10 8 6 4 2 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 • Asian buyers have been absent from spot market in anticipation of wave of Australian LNG assuming prices could go back to 2009
Slide 15: LNG Production and Import
LNG Production and Import EXPORT PER COUNTRY 2015 VS 2014 PER OCTOBER IMPORTS PER COUNTRY 2015 VS 2014 PER OCTOBER Mill MT Mill MT 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 Malaysia Norway Italy Mexico Dominican Republic India France Brazil China Sweden Netherlands Pakistan Spain Turkey Greece Kuwait
Slide 16: 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 • 135 MTPA of new LNG capacity (ex. Angola) with planned startup Q4 2015 - Q4 2019 • A total of 35 MTPA expected next 6 months and almost same f
Slide 17: LNG Fleet orderbook
LNG Fleet orderbook NEWBUILDING DELIVERIES BY QUARTER 18 160 16 140 1 14 120 12 1 3 2 100 10 1 3 2 80 8 15 60 6 12 12 10 10 1 11 11 4 9 9 9 40 7 8 2 5 20 3 0 0 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Open Committed Total • 19 ve
Slide 18: Agenda 17/11 2015
Agenda 17/11 2015 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary Disappointing market development in Q3 with low rates and utilisation due to: Production problems Low LNG demand in Far East leading to: Very limited arbitrage and ton-miles at 5 year low We believe we are through market bottom but there are many vessels available and on order In
Slide 20: Awilco LNG – summary
Awilco LNG – summary Disappointing earnings despite improved utilization Market recovery has been slower than expected Have been and are looking at several projects - Increased tender activity for longer term TC - Small scale / bunkering vessel - Various infrastructure projects including conve
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 -