Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2017 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, Feb 13, 2018
Slide 1: Q4 2017
Q4 2017 Jon Skule Storheill Øyvind Ryssdal 13/02/18 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 13/02 2018
Agenda 13/02 2018 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 4th quarter highlights
4th quarter highlights 4th quarter 2017 • Awilco LNG reported: − Net freight income MUSD 7.3 MUSD 4.4 in Q3 2017 − EBITDA MUSD 4.2 MUSD 1.2 in Q3 2017 − Net profit/(loss) MUSD (4.5) MUSD (6.8) in Q3 2017 • Vessel utilisation of 83 % compared to 88 % in Q3 2017 Full year 2017 • Awilco LNG reported: −
Slide 6: Agenda 13/02 2018
Agenda 13/02 2018 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q4 2017 income statement
Q4 2017 income statement USD million Q4’17 Q3’17 2017 2016 Freight income 9.6 5.7 20.4 34.8 Voyage related expenses (2.3) (1.3) (6.9) (2.8) Net freight income 7.3 4.4 13.6 32.0 Operating expenses (1.9) (2.2) (7.9) (8.7) Administration expenses (1.2) (0.9) (3.9) (3.5) EBITDA 4.2 1.2 1.7 19.8 Deprecia
Slide 8: Q4 2017 balance sheet
Q4 2017 balance sheet USD million 31.12.17 30.09.17 31.12.16 Vessels 363.9 366.3 371.8 Other non-current assets - - 0.1 Total non-current assets 363.9 366.3 371.9 Trade receivables 1.6 1.4 0.6 Other short term assets 5.1 4.2 5.8 Cash 29.0 30.4 30.0 Total current assets 35.7 36.0 36.4 Total assets 39
Slide 9: Q4 2017 cash flow
Q4 2017 cash flow USD million Q4’17 Q3’17 2017 2016 Cash Flows from Operating Activities: Profit/(loss) before taxes (4.5) (6.8) (31.8) (22.8) Income taxes paid - - - - Interest and borrowing costs expensed 5.5 5.5 22.2 23.2 Depreciation, amortisation and impairment 3.2 3.2 12.3 19.5 Trade receivabl
Slide 10: Agenda 13/02 2018
Agenda 13/02 2018 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: 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 TFDE Historic ave. spot rate 138-145k ST Historic ave. spot rate 155-165k TFDE • Utilisation and rates improved throughout 2017, rates in Q4 moved beyond USD 80,
Slide 12: Monthly global LNG trade
Monthly global LNG trade MT LNG 29 27 25 23 21 19 17 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2013 2014 2015 2016 2017 (est) • Global LNG trade up by 12 % in 2017, equating to 31 MT • 24 MTPA of new LNG production capacity added in 2017, 36 MTPA in 2016 • Seasonality should be expecte
Slide 13: Gas price
Gas price USD/BBL USD/MMBTU 140 20 18 120 16 100 14 12 80 10 60 8 40 6 4 20 2 0 0 Brent (USD/BBL) HH NBP Spot DES Japan • Cold weather, China substituting coal with gas and the oil price increase pushed Far East prices to highest level since Q4 2014 • Heading into spring prices are (as always) comin
Slide 14: LNG trade change
LNG trade change LNG EXPORT CHANGE 2017 LNG IMPORT CHANGE 2017 MT LNG MT LNG 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 • LNG exports increased by 12 % • China up 46 % on coal to gas switch, surpassing South Korea • New capacity in Australia and US materialising as 2nd largest importer • South Kore
Slide 15: LNG production
LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 10 140 9 120 8 7 100 6 80 5 60 4 3 40 2 20 1 0 0 Started 2017 2018 2019 2020 2021 Total (RHS) • 24 MTPA of new capacity started up in 2017 • 38 MTPA of liquefaction capacity expected to start up in 2018, and a further 50 MTPA in 2019 – 2021 • 49
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook LNG FLEET AND ORDERBOOK END 2017 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 2013 201
Slide 17: Agenda 13/02 2018
Agenda 13/02 2018 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Market recovery firmly established in Q4 2017 ─ Improvement in rates, utilisation and ballast bonuses ─ Current market rates in the USD 70s pd, levels not seen since 2014 ➢ Mid- and long-term demand for LNG transportation remains strong ─ LNG is environmentally friendly, available and affo
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 -