Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2011 Earnings Presentation
19 slides from Awilco Lng Asa's earnings presentation, 2011
Slide 1: 3rd Quarter 2011
3rd Quarter 2011 Jon Skule Storheill Snorre Krogstad
Slide 2: Agenda
Agenda 1. Highlights Q3 2. Company overview 3. Q3 Financials 4. Market update 5. Summary www.awilcolng.no 2
Slide 3: 3rd Quarter Highlights
3rd Quarter Highlights Highlights 3rd Quarter 2011 • Freight income of MUSD 12.3 (MUSD 1.6 Q2) and EBITDA MUSD -0.6 (MUSD – 4.9 Q2) • Awilco LNG listed on Oslo Stock Exchange as of 6 September 2011 • Vessel utilization of 47% vs. 26% in Q2 • WilGas fixed on 1 year contract • At the end of the quarte
Slide 4: Awilco LNG's existing fleet of 2nd gen. LNG carriers
Awilco LNG’s existing fleet of 2nd gen. LNG carriers www.awilcolng.no 4
Slide 5: Order of two 156'cbm newbuilding LNG carriers
Order of two 156’cbm newbuilding LNG carriers • Yard: Daewoo Shipbuilding • Cost approximately MUSD 200, depending on final specification • Soft payment terms • Delivery August and November 2013 • ICE classed • Options not declared at expiry www.awilcolng.no 5
Slide 6: Contract overview
Contract overview 2011 2012 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 WilPower Employed Idle Employed Fixed on subjects DD Available WilGas Idle Employed Idle Employed Available WilEnergy Idle Employed Employed DD Fixed on subjects Option Newbuilding #1 Construction - Available August 2013 Newbuildi
Slide 7: Q3 Income statement
Q3 Income statement 2/2/11- USD million Q3'11 Q2’ 11 ► Total freight revenue MUSD 12.3 30/9/11 – Positioning fee booked based on discharge to Freight income 12,3 1,6 13,9 discharge Voyage related costs -7,5 -1,8 -9,3 ► Voyage related costs MUSD 7.5 Net freight income 4,8 -0,2 4,6 – About MUSD 5 reim
Slide 8: Q3 Balance sheet
Q3 Balance sheet USD million 30.09.11 30.06.11 02.02.11 Comments Vessels and asset under construction 109,4 110,5 - ► Vessels MUSD 109.4 Total non-current assets 109,4 110,5 - – Book value of existing vessels MUSD 69.6 – Paid in installment on newbuildings MUSD 39.7 Trade receivables 7,7 1,4 Other s
Slide 9: Market update
Market update Gas is clean Gas is abundantly available Gas is cheap LNG shipping fundamentals are appealing www.awilcolng.no 9
Slide 10: Gas is clean
Gas is clean Natural Gas = Fewer Emissions (Pounds per Billion BTU of Energy Input) Natural Gas Coal Carbon Dioxide 117 000 208 000 Carbon Monoxided 40 208 Nitrogen Oxides 92 457 Sulfur Dioxides 1 2591 Particulates 7 2711 Mercury 0 0,016 • Natural Gas Is The Clean Way To Fight Greenhouse Gas Emissio
Slide 11: Gas is abundantly available
Gas is abundantly available Distribution of proved reserves in 1990, 2000 and 2010 • Natural gas reserves are steadily increasing Source: BP www.awilcolng.no 11
Slide 12: Gas is cheap
Gas is cheap Energy prices in USD per barrel of oil equivalent, adjusted for energy efficiency* USD/boe 120 110 100 92 80 70 60 54 49 40 22 20 0 Oil Coal Nuclear Gas, Japan Gas, EU Gas, US *Takes capex (OECD level) and efficiency of coal and gas power plants into account Source:Bloomberg; IEA; Paret
Slide 13: World LNG demand expected to grow strongly
World LNG demand expected to grow strongly World LNG demand (bcm/year) 700 600 500 400 300 200 100 0 1990 1995 2000 2005 2010 2015 2020 2025 • The LNG demand outlook is strong – Wood Mac forecasts 6.5% p.a. through 2025, BP forecasts 5.7% p.a. over 2010-2020. • Further upside potential due to – Nucl
Slide 14: Strong growth in LNG production capacity
Strong growth in LNG production capacity • Total new capacity 80 – 100 Mtpa from 2010 to 2015 • 1.2 vessels are required to carry 1 Mpta on average • In 2015 about 100 additional vessels required for incremental volume, not accounting for: - Increased ton-mile from change in trading pattern - Reduct
Slide 15: Sailing distance is continuing to grow
Sailing distance is continuing to grow 4100 10% Y-o-Y growth 3900 8% 3700 Average weighted 6% distance 3500 4% 3300 2% 3100 0% 2900 -2% 2700 -4% 2500 -6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 • Sailing distance increasing due to LNG arbitrage - Angola production will most likel
Slide 16: World LNG Fleet by Year of Built
World LNG Fleet by Year of Built • No new capacity in 2012, deliveries offset by FSRU conversions • Limited yard capacity until end 2014 • Orderbook expected to grow in the tail end of the period (2014-2015) annual capacity about 45 vessels/year Source: Fearnley LNG www.awilcolng.no 16
Slide 17: Tight market for 2012 and 2013 expected
Tight market for 2012 and 2013 expected • In 2012 and 2013 the market is expected to experience shortage of vessel - Continued increase in sailing distance will create further shortage • Sufficient yard capacity in 2015 – 2016 to fill the expected vessel deficit Source: BP; IEA; Poten; Wood Mackenzi
Slide 18: Rate development
Rate development LNG Charter Rates- 138-155k cbm Modern Vessels # Vessels 000s US$/day # Available Vessels Spot Charter Rate 1 Year+ TC Rate Available 25 120 20 100 80 15 60 10 40 5 20 0 0 • Vessel availability is a challenge in the market and has continued to put pressure on rates • Limited new cap
Slide 19: Summary
Summary Market LNG demand: Expected to grow about 5-7% p.a. Liquefaction capacity: Capacity is set to grow dramatically from 2016 to meet demand Shipping: - Shortage of vessels expected next two years - Limited orderbook until end 2014 - Trading distances is expected to continue to increase - Firm m