Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2019 Earnings Presentation
22 slides from Awilco Lng Asa's earnings presentation, Nov 15, 2019
Slide 1: Q3 2019
Q3 2019 15 November 2019 CEO Jon Skule Storheill CFO Øyvind Ryssdal 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 currently 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.awilco
Slide 4: Agenda 15/11 2019
Agenda 15/11 2019 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 3rd quarter 2019 highlights
3rd quarter 2019 highlights Net freight income MUSD 6.3 2.7 in Q2 2019 EBITDA MUSD 7.4 (0.2) in Q2 2019 Net profit/(loss) MUSD (1.1) (8.6) in Q1 2019 • TCE* USD 60,400 pd (USD 31,100 pd in Q2 2019), current CBE** of USD ~58,000 pd • Refinancing secured, expected to enable a full take out of current
Slide 6: Refinancing secured
Refinancing secured ✓ Sale/leaseback facility with CCB Financial Leasing Co. Ltd, a major Chinese leasing house wholly owned by China Construction Bank, the world’s 2nd largest bank by market capitalisation ✓ Term sheet credit approved 18 October 2019 ✓ Expected to refinance current lease facilities
Slide 7: Agenda 15/11 2019
Agenda 15/11 2019 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q3 2019 income statement
Q3 2019 income statement USD million Q3’19 Q2’19 2018 Freight income 6.7 3.9 40.0 Voyage related expenses (0.4) (1.1) (5.1) Net freight income 6.3 2.7 34.8 Other income 4.8 6.1 4.0 Operating expenses (2.9) (8.3) (12.5) Administration expenses (0.8) (0.7) (3.9) EBITDA 7.4 (0.2) 22.4 Depreciation (3.3
Slide 9: Q3 2019 financial position
Q3 2019 financial position USD million 30.09.19 30.06.19 31.12.18 Vessels 353.3 356.5 362.1 Total non-current assets 353.3 356.5 362.1 Trade receivables - 0.8 2.7 Other short term assets 9.7 12.8 6.1 Cash 14.0 16.4 22.5 Total current assets 23.8 30.1 31.4 Total assets 377.1 386.6 393.6 Total equity
Slide 10: Q3 2019 cash flow
Q3 2019 cash flow USD million Q3’19 Q2’19 2018 Cash Flows from Operating Activities: Profit/(loss) before taxes (1.1) (8.6) (11.4) Income taxes paid - - - Interest and borrowing costs expensed 5.2 5.2 21.5 Depreciation, amortisation and impairment 3.3 3.3 13.0 Trade receivables, inventory and other
Slide 11: Agenda 15/11 2019
Agenda 15/11 2019 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: Spot rates
Spot rates USD/DAY 200 000 180 000 160 000 140 000 120 000 100 000 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 • Seasonality a driver in LNG market and winter season has set in, curren
Slide 13: Supply and demand
Supply and demand GLOBAL LNG TRADE ASIAN NET LNG IMPORTS MT LNG MT LNG 34 13 32 12 30 11 28 10 26 9 24 8 22 20 7 18 6 2017 2018 2019 Average 2010-2017 2018 2019 • LNG trade up 13 % (26 MT) y-o-y 30.9 • China up 21 % y-o-y 30.9 • Ramp up of 15 MTPA new production capacity • Japan and South Korea down
Slide 14: Trading dynamics
Trading dynamics NO. VESSELS AVAILABLE VESSELS NO. VESSELS FLOATING STORAGE VESSELS 40 40 35 35 All-time high spot rates 30 30 ~USD 200,000 in Q4 2018 25 25 20 20 15 15 10 10 5 5 0 0 All basins Pacific Ocean Indian Ocean Atlantic Ocean 2016 2017 2018 2019 • Ton-time increased by 12 % 30.9 YTD as flo
Slide 15: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 50 700 45 600 40 35 500 30 400 25 20 300 15 200 10 100 5 0 0 Available (LHS) Fixed (LHS) Delivered (LHS) Total fleet (RHS) • Total fleet 512 vessels > 125’ cbm • 34 vessels delivered year to date, 5 further vessels scheduled – 20 % less than in 2018 •
Slide 16: Trainspotting
Trainspotting MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 140 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2019 2019 2020 2021 2022 2023 2024 2026 Total (RHS) FID in 2019 • 131 MTPA new capacity starting up 2019 – 2026 of which 69 MTPA in the US (~50 %) • ~40 % of total trade in 2018 at 325 MT • All ti
Slide 17: Vessel demand
Vessel demand TRADEWAR (WHAT IS IT GOOD FOR)?? REPLACEMENT OF STEAM VESSELS VESSELS VESSELS VESSELS 3 20 80 18 1 70 16 2 60 14 5 2 12 1 50 10 3 40 18 2,41 8 30 1 2,14 14 6 11 12 9 20 1,09 4 0,87 10 2 - 0 0 Australia - China US - Europe US - India US - China Vessels needed to transport 1 MTPA of LNG
Slide 18: LNG as a fuel
LNG as a fuel LNG HEAVY DUTY TRUCKS IN CHINA LNG AS MARINE FUEL HD TRUCKS END OF YEAR MT LNG CONSUMPTION P.A. 400 000 40 350 000 300 000 30 250 000 200 000 20 150 000 100 000 10 50 000 - 0 • 13 % of China’s LNG imports in 2018 used by HD trucks and buses • Doubling of global fleet of LNG fueled vess
Slide 19: Agenda 15/11 2019
Agenda 15/11 2019 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 19 -
Slide 20: Summary
Summary ➢ Despite weak start to 2019 due to mild winter and trade war, fundamentals are improving ─ 30 % growth in LNG production ─ 20 % fleet growth ─ Ongoing wave of new LNG production with full storage tanks and contango leading to increased ton-time ➢ Mid- and long-term demand for LNG transporta
Slide 21: Q&A A Fully Integrated Pure Play LNG Transportation Provider
Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Attractive debt financing Tier 1 customers Solid owners Experienced Opportunistic strategy management team www.awilcolng.no - 21 -
Slide 22: 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 - 22 -