Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2019 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, May 10, 2019
Slide 1: Q1 2019
Q1 2019 Jon Skule Storheill Øyvind Ryssdal 10 May 2019 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 10/05 2019
Agenda 10/05 2019 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 1st quarter 2019 highlights
1st quarter 2019 highlights Net freight income MUSD 8.4 MUSD 10.4 in Q4 2018 EBITDA MUSD 5.0 MUSD 7.1 in Q4 2018 Net profit/(loss) MUSD (3.4) MUSD (1.2) in Q4 2018 • Utilisation 90 % compared to 84 % previous quarter (excluding DD off-hire) • TCE* USD 46,200 pd (USD 62,900 pd in Q4 2018), current CB
Slide 6: Agenda 10/05 2019
Agenda 10/05 2019 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q1 2019 income statement
Q1 2019 income statement USD million Q1’19 Q4’18 2018 Freight income 9.4 11.1 40.0 Voyage related expenses (1.0) (0.7) (5.1) Net freight income 8.4 10.4 34.8 Other income 0.9 - 4.0 Operating expenses (3.3) (1.9) (12.5) Administration expenses (1.0) (1.4) (3.9) EBITDA 5.0 7.1 22.4 Depreciation (3.3)
Slide 8: Q1 2019 financial position
Q1 2019 financial position USD million 31.03.19 31.12.18 Vessels 358.9 362.1 Total non-current assets 358.9 362.1 Trade receivables 1.6 2.7 Other short term assets 6.8 6.1 Cash 18.7 22.5 Total current assets 27.1 31.4 Total assets 386.0 393.6 Total equity 112.2 115.6 Long-term interest bearing debt
Slide 9: Q1 2019 cash flow
Q1 2019 cash flow USD million Q1’19 Q4’18 2018 Cash Flows from Operating Activities: Profit/(loss) before taxes (3.4) (1.2) (11.4) Income taxes paid - - - Interest and borrowing costs expensed 5.2 5.4 21.5 Depreciation, amortisation and impairment 3.3 3.2 13.0 Trade receivables, inventory and other
Slide 10: Agenda 10/05 2019
Agenda 10/05 2019 1. Highlights 2. Financials Q1 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 • Assessed rates bottomed in mid-April around USD 36,500 pd • Normal seas
Slide 12: LNG trade
LNG trade LNG EXPORT CHANGE Q1 Y-O-Y LNG IMPORT CHANGE Q1 Y-O-Y MT LNG MT LNG 4 12 10 3 8 6 2 4 1 2 0 0 -2 -1 -4 • 27 MTPA of new production capacity started in Q4 2018 and • Mild winter in Far East reducing demand – although still ramping up in Q1 healthy growth in China at 21 % y-o-y • Europe the
Slide 13: US LNG
US LNG NO. OF CARGOES US LNG EXPORTS USD/MMBTU LNG PRICE SPREAD 120 70% 14 100 60% 12 50% 10 80 40% 8 60 30% 6 40 20% 4 20 10% 2 0 0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 US to FE cargoes US to non-FE cargoes US to FE cargoes % Spread JKM Sabine Pass Spot • In sp
Slide 14: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 60 700 50 600 500 40 400 30 300 20 200 10 100 0 0 1977 2018 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 2014 2015 2016 2017 2019 2020 2021 20
Slide 15: Gas is clean and flexible
Gas is clean and flexible ENERGY CONSUMPTION ENERGY CONSUMPTION • Gas provides flexibility in an energy mix with intermittent renewables • Gas demand grows at double the rate of total global energy demand • Natural gas overtakes coal in 2030 and at par with oil in 2040 Source: Energy outlooks from B
Slide 16: LNG supply and demand 2040
LNG supply and demand 2040 LNG EXPORTS LNG IMPORTS • Global LNG supplies expand rapidly, led by US • Demand growth centres around China and Asia in general • LNG trade more than doubles towards 2040 Source: Energy outlooks from BP and IEA www.awilcolng.no - 16 -
Slide 17: Agenda 10/05 2019
Agenda 10/05 2019 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Despite weak start to 2019 fundamentals are expected to improve ─ 9 % annual growth in LNG production ─ 7 % annual fleet growth (excluding phase out) ─ US supply and Asian demand to improve ton-miles ➢ Mid- and long-term demand for LNG transportation remains strong ─ Gas is cheap, abundant
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 -