Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2020 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, Feb 19, 2021
Slide 1: Q4 2020
Q4 2020 19 February 2021 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 carriers. The Company owns and operates two 2013-built 156,000 cbm TFDE LNG carriers, WilPride and WilForce, trading in the short term/spot market achieving about 80 % utilisation since
Slide 4: Agenda
Agenda 19/02 2021 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 4th quarter highlights
4th quarter highlights Q4 2020 Q3 2020 Net freight income MUSD 11.2 MUSD 2.4 EBITDA MUSD 7.3 MUSD (0.5) Net profit MUSD 1.2 MUSD (6.5) • TCE 1) USD 60,500 pd in Q4 2020 (USD 13,000 pd in Q3 2020 and USD 88,200 pd in Q4 2019) • Utilisation of 100 % in Q4 2020 vs 99 % in Q3 2020 • Both vessels have be
Slide 6: Agenda
Agenda 19/02 2021 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q4 2020 income statement
Q4 2020 income statement USD million Q4’20 Q3’20 2020 2019 Freight income 12.8 3.7 35.6 37.1 Voyage related expenses (1.6) (1.3) (5.0) (3.4) Net freight income 11.2 2.4 30.7 33.7 Other income (0.6) - (0.6) 11.6 Operating expenses (2.4) (2.2) (8.9) (16.4) Administration expenses (0.9) (0.7) (3.0) (3.
Slide 8: Q4 2020 financial position
Q4 2020 financial position USD million 31.12.20 30.09.20 31.12.19 Vessels (right-of-use assets) 338.3 341.1 350.0 Other fixed assets 0.7 0.3 0.0 Total non-current assets 339.0 341.4 350.0 Trade receivables 0.1 2.1 0.1 Other short term assets 0.9 3.2 3.7 Cash and cash equivalents 12.6 8.0 23.5 Total
Slide 9: Q4 2020 cash flow
Q4 2020 cash flow USD million Q4’20 Q3’20 2020 2019 Cash Flows from Operating Activities: Profit/(loss) before taxes 1.2 (6.5) (7.9) (8.3) Income taxes paid - - - - Interest and borrowing costs expensed 2.7 2.8 13.2 20.7 Depreciation, amortisation and impairment 3.1 3.1 12.5 13.0 Trade receivables,
Slide 10: Agenda
Agenda 19/02 2021 1. Highlights 2. Financials Q4 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 • Sharp increase in LNGC spot rates throughout Q4 2020 into Q1 2021 large
Slide 12: LNG demand growing
LNG demand growing DENTED BY COVID-19, BUT STILL UP Y-O-Y MT LNG 110 105 100 95 90 85 80 75 70 2018 2019 2020 • LNG trade in 2020 up by 0.6 % y-o-y (~2 MT) • Depending recovery from pandemic, large catchup in under utilised production expected for 2021 Source: Fearnley LNG, S&P Platts www.awilcolng.
Slide 13: Gas prices with historical lows and highs
Gas prices with historical lows and highs USD/MMBTU >30 20 18 16 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 05.2021 07.2021 US (HH) Asia (JKM) Europe (TTF) LNG Contract 12% brent Japan LNG
Slide 14: The BIG picture by DNV GL
The BIG picture by DNV GL PEAK OIL AND COAL NATURAL GAS GROWING Exajoules/yr Exajoules/yr 700 200 600 Wind 150 Natural gas w/CCS 500 Solar PV Natural gas Hydro 400 Biomass Nuclear 100 300 Natural gas Oil 200 Coal 50 100 0 0 1980 1990 2000 2010 2020 2030 2040 2050 1980 1990 2000 2010 2020 2030 2040 2
Slide 15: Trainspotting
Trainspotting MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 35 160 30 140 25 120 20 100 80 15 60 10 40 5 20 0 0 Started 2020 2021 2022 2023 2024 2025 2026 2027 Total (RHS) • > 150 MTPA new capacity currently under construction • Further FIDs needed to meet expected demand from 2025 • More than 800 MTPA of
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 800 50 700 40 600 500 30 400 20 300 200 10 100 0 0 Fixed (LHS) Fixed Arc7s (LHS) Available (LHS) Delivered (LHS) Total fleet (RHS) • Fleet growth of 5.7% during 2020, bringing total LNGC fleet to 539 vessels > 125’ cbm at year-end 2020 • 33 newbuilding
Slide 17: Agenda
Agenda 19/02 2021 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Covid-19 pandemic severely impacted global economic activity and resulted in challenging conditions in the LNGC market in Q2 and Q3 2020. Sharp increase in LNGC spot rates throughout Q4 2020 largely driven by higher Asian LNG prices as buyers underestimated demand during cold winter. ➢ LNG
Slide 19: A Fully Integrated Pure Play LNG Transportation Provider
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 www.awilcolng.no - 20 -