Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2018 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, Aug 30, 2018
Slide 1: Q2 2018
Q2 2018 Jon Skule Storheill Øyvind Ryssdal 30/08/18 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 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 30/08 2018
Agenda 30/08 2018 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 2nd quarter highlights
2nd quarter highlights 2nd quarter 2018 • Awilco LNG reported: − Net freight income MUSD 4.6 MUSD 12.5 in Q1 2018 − EBITDA MUSD 1.9 MUSD 9.5 in Q1 2018 − Net profit/(loss) MUSD (6.5) MUSD 1.0 in Q1 2018 • Vessel utilisation of 71 % compared to 97 % previous quarter • TCE* of USD ~27,900 pd (USD ~69,
Slide 6: Agenda 30/08 2018
Agenda 30/08 2018 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q2 2018 income statement
Q2 2018 income statement USD million Q2’18 Q1’18 2017 Freight income 6.4 13.8 20.4 Voyage related expenses (1.8) (1.4) (6.9) Net freight income 4.6 12.5 13.6 Operating expenses (2.0) (1.9) (7.9) Administration expenses (0.7) (1.0) (3.9) EBITDA 1.9 9.5 1.7 Depreciation (3.3) (3.2) (12.3) Net finance
Slide 8: Q2 2018 financial position
Q2 2018 financial position USD million 30.06.18 31.03.18 31.12.17 Vessels 360.6 361.8 363.9 Total non-current assets 360.6 361.8 363.9 Trade receivables - 0.4 1.6 Other short term assets 5.1 6.0 5.1 Cash 26.5 30.1 29.0 Total current assets 31.6 36.5 35.7 Total assets 392.2 398.3 399.6 Total equity 1
Slide 9: Q2 2018 cash flow
Q2 2018 cash flow USD million Q2’18 Q1’18 2017 Cash Flows from Operating Activities: Profit/(loss) before taxes (6.5) 1.0 (31.8) Income taxes paid - - - Interest and borrowing costs expensed 5.4 5.4 22.2 Depreciation, amortisation and impairment 3.3 3.2 12.3 Trade receivables, inventory and other sh
Slide 10: Agenda 30/08 2018
Agenda 30/08 2018 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: LNGC rates
LNGC 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 TFDE Historic ave. spot rate 138-145k ST Historic ave. spot rate 155-165k TFDE • Utilisation and rates softening into shoulder season, troughed in May and showe
Slide 12: Monthly global LNG trade
Monthly global LNG trade MT LNG 30 28 26 24 22 20 18 16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012-2016 Range 2012-2016 Average 2017 2018 (est) • Global LNG trade up by 6 % in H1 2018, equating to 8.2 MT • Trade growth due to ramp up of production capacity added second half 2017 and new li
Slide 13: Gas price
Gas price USD/BBL USD/MMBTU 120 25 100 20 80 15 60 10 40 5 20 0 0 Brent (USD/BBL) HH NBP Spot DES Japan • Far east prices softening into shoulder season, but due to warmer weather earlier than expected Asian buying interest surged in June, opening the West – East arbitrage • Arbitrage wide open this
Slide 14: LNG trade change
LNG trade change LNG EXPORT CHANGE YOY JUNE 2018 LNG IMPORT CHANGE YOY JUNE 2018 MT LNG MT LNG 10,0 10,0 8,0 8,0 6,0 6,0 4,0 4,0 2,0 2,0 0,0 0,0 -2,0 -2,0 • LNG exports increased by 6 % • Continued fuel switching in China and South Korea resulting in • Three production plants commenced operations in
Slide 15: LNG production
LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 10 100 9 90 8 80 7 70 6 60 5 50 4 40 3 30 2 20 1 10 0 0 Started 2018 2018 2019 2020 2021 Total (RHS) • 30 MTPA new liquefaction capacity expected to start up in 2018, and a further 61 MTPA in 2019 – 2021 • Beyond 2020 over 700 MTPA new LNG produ
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook LNG FLEET AND ORDERBOOK MID-AUGUST 2018 NO. VESSELS TOTAL FLEET 60 600 50 500 40 400 30 300 20 200 10 100 0 0 1976 2017 1977 1978 1979 1980 1981 1983 1984 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 17: Agenda 30/08 2018
Agenda 30/08 2018 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Increasing gas demand in the Far East coupled with new LNG supply has absorbed tonnage and improved ton- mile ➢ Charterers have, and are continuing to, position for a firm winter market, arbitrage is wide open and Owner’s expectations are correspondingly high ➢ Mid- and long-term demand fo
Slide 19: Q&A: A Fully Integrated Pure Play LNG Transportation Provider
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 - 19 -
Slide 20: 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 - 20 -