Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2018 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, Nov 15, 2018
Slide 1: Q3 2018
Q3 2018 Jon Skule Storheill Øyvind Ryssdal 15/11/18 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 15/11 2018
Agenda 15/11 2018 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 3rd quarter 2018 highlights
3rd quarter 2018 highlights Awilco LNG reported: − Net freight income MUSD 7.4 MUSD 4.6 in Q2 2018 − EBITDA MUSD 3.8 MUSD 1.9 in Q2 2018 − Net profit/(loss) MUSD (4.8) MUSD (6.5) in Q2 2018 • Vessel utilisation of 70 % compared to 71 % previous quarter (excluding DD off-hire) • TCE* of USD 45,000 pd
Slide 6: Agenda 15/11 2018
Agenda 15/11 2018 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q3 2018 income statement
Q3 2018 income statement USD million Q3’18 Q2’18 2017 Freight income 8.6 6.4 20.4 Voyage related expenses (1.3) (1.8) (6.9) Net freight income 7.4 4.6 13.6 Other income 4.0 - - Operating expenses (6.7) (2.0) (7.9) Administration expenses (0.8) (0.7) (3.9) EBITDA 3.8 1.9 1.7 Depreciation (3.3) (3.3)
Slide 8: Q3 2018 financial position
Q3 2018 financial position USD million 30.09.18 30.06.18 31.12.17 Vessels 360.9 360.6 363.9 Total non-current assets 360.9 360.6 363.9 Trade receivables 4.8 - 1.6 Other short term assets 8.4 5.1 5.1 Cash 24.3 26.5 29.0 Total current assets 37.4 31.6 35.7 Total assets 398.3 392.2 399.6 Total equity 1
Slide 9: Q3 2018 cash flow
Q3 2018 cash flow USD million Q3’18 Q2’18 2017 Cash Flows from Operating Activities: Profit/(loss) before taxes (4.8) (6.5) (31.8) Income taxes paid - - - Interest and borrowing costs expensed 5.4 5.4 22.2 Depreciation, amortisation and impairment 3.3 3.3 12.3 Trade receivables, inventory and other
Slide 10: Agenda 15/11 2018
Agenda 15/11 2018 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: Elevator pitch
Elevator pitch Rates at all-time high USD 185,000 per day spot In spite of ➢ Newbuild deliveries at all-time high in 2018 42 delivered, 9 to come ➢ Atlantic-Far East arbitrage closed Winter season approaching New liquefaction capacity may lift rates further ➢ 30 MTPA liquefaction starting Q4 2018 ➢
Slide 12: LNG demand growth in Asia
LNG demand growth in Asia AIR QUALITY INDEX 2017 ENERGY DEMAND GROWTH VS COAL SHARE Change in energy demand (2017-2035), KTOE 800,000 600,000 400,000 200,000 0 0% 25 % 50 % 75 % 100 % Coal share in the electricity mix (2017) • China’s “Blue Sky” plan is working – no 1 gas importer, ~50 % increase in
Slide 13: LNGC rates
LNGC 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 • USD 195,000 pd East and USD 175,000 pd West - rates at all-time high •
Slide 14: LNG trade change
LNG trade change LNG EXPORT CHANGE Q3 2018 YTD LNG IMPORT CHANGE Q3 2018 YTD MT LNG MT LNG 13 13 11 11 9 9 7 7 5 5 3 3 1 1 -1 -1 -3 -3 • Five liquefaction plants commenced operations this year in USA, • Continued fuel switching in China and South Korea resulting in Russia, Australia and Cameroon wit
Slide 15: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 60 600 50 500 40 400 30 300 20 200 10 100 0 0 1996 2015 1977 1978 1979 1980 1981 1983 1984 1989 1990 1991 1992 1993 1994 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 Availa
Slide 16: LNG production and ton-mile
LNG production and ton-mile LNG PRODUCTION 2011 - 2021 TON-MILE 2011 - 2021 Total ton-mile MT LNG demand (bn) 450 4 500 9 % CAGR 13 % CAGR 400 4 000 350 3 500 3 % CAGR 2 % CAGR 300 3 000 250 2 500 200 2 000 150 1 500 100 1 000 50 500 0 0 • 47 MTPA new liquefaction capacity expected to start up in 20
Slide 17: Agenda 15/11 2018
Agenda 15/11 2018 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Owner’s expectations for the coming years are high ─ Rates at all-time high despite all-time high newbuilding deliveries in 2018 ─ 10 % growth in LNG production in 2018, 14 % exp in 2019 (or 40 % higher growth..) ─ 12.9 % growth in ton-miles in 2018 year to date, 18.4 % exp in 2019 (or 42
Slide 19: Q&A
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 -