Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2020 Earnings Presentation
19 slides from Awilco Lng Asa's earnings presentation, Aug 28, 2020
Slide 1: Q2 2020
Q2 2020 28 August 2020 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
Agenda 28/08 2020 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 2nd quarter highlights
2nd quarter highlights Q2 2020 Q1 2020 Net freight income MUSD 4.1 MUSD 12.9 EBITDA MUSD 1.4 MUSD 9.9 Net profit MUSD (5.3) MUSD 2.7 • TCE* USD 22,800 pd (USD 70,800 pd in Q1 2020, USD 31,100 pd in Q2 2019) • Utilisation of 99 % vs 100 % in Q1 2020 • MUSD 10.0 minimum cash financial covenant in sale
Slide 6: Agenda
Agenda 28/08 2020 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q2 2020 income statement
Q2 2020 income statement USD million Q2’20 Q1’20 2019 Freight income 5.1 14.0 37.1 Voyage related expenses (0.9) (1.1) (3.4) Net freight income 4.1 12.9 33.7 Other income - - 11.6 Operating expenses (2.1) (2.2) (16.4) Administration expenses (0.6) (0.8) (3.7) EBITDA 1.4 9.9 25.2 Depreciation (3.1) (
Slide 8: Q2 2020 financial position
Q2 2020 financial position USD million 30.06.20 31.03.20 31.12.19 Vessels (right-of-use assets) 344.2 347.3 350.0 Other fixed assets 0.4 - - Total non-current assets 344.5 347.3 350.0 Trade receivables 0.4 1.7 0.1 Other short term assets 3.2 4.8 3.7 Cash and cash equivalents 14.8 21.9 23.5 Total cur
Slide 9: Q2 2020 cash flow
Q2 2020 cash flow USD million Q2’20 Q1’20 2019 Cash Flows from Operating Activities: Profit/(loss) before taxes (5.3) 2.7 (8.3) Income taxes paid - - - Interest and borrowing costs expensed 3.6 4.1 20.7 Depreciation, amortisation and impairment 3.1 3.1 13.0 Trade receivables, inventory and other sho
Slide 10: Agenda
Agenda 28/08 2020 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: 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 • Rates bottomed out in June as gas demand was impacted by Covid-19 • ~20
Slide 12: Volumes and storage
Volumes and storage GLOBAL LNG TRADE FLOATING STORAGE MT LNG FLOATING CARGOES AT SEA 70 Covid-19 110 Storage Winter 105 60 Storage 100 50 Winter 95 Storage 40 90 30 85 20 80 75 10 70 0 2018 2019 2020 • Trade in H1 2020 up 6.5 % y-o-y (~12 MT) • In spite of cargo cancellations demand unable to keep u
Slide 13: Winter Contango
Winter Contango USD/MMBTU 14 12 10 8 6 4 2 0 07.2018 09.2018 11.2018 01.2019 03.2019 05.2019 07.2019 09.2019 11.2019 01.2020 03.2020 05.2020 07.2020 09.2020 11.2020 01.2021 03.2021 US (HH) Asia (JKM) Europe (TTF) LNG Contract 12% brent Japan LNG import price US (HH) fwd Asia (JKM) fwd Europe (TTF) f
Slide 14: 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 529 vessels > 125’ cbm • 17 vessels delivered so far in 2020 – slippage expected going forward with four 2020 vesse
Slide 15: Supply growth continues
Supply growth continues MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 140 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2020 2020 2021 2022 2023 2024 2026 Total (RHS) • 121 MTPA new capacity starting up 2020 – 2026 of which 53 MTPA in the US (44 %) • ~33 % of total trade in 2019 at 361 MT • So far limited
Slide 16: Agenda
Agenda 28/08 2020 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 16 -
Slide 17: Summary
Summary ➢ Early signs of recovery ─ Gas prices up ~40 % in August ─ Markets in contango and charterers preparing for winter ─ Uptick in multi-month enquiries and spot shipping rates ➢ Mid- and long-term demand for LNG transportation (still!) remains strong ─ Natural gas is cheap, abundantly availabl
Slide 18: Q&A
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 - 18 -
Slide 19: Contact details
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 - 19 -