Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Pareto Conference 2018
17 slides from Awilco Lng Asa's conference presentation, Sep 12, 2018
Slide 1: Pareto Conference
Pareto Conference CEO Jon Skule Storheill 12 September 2018 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: Agenda 12/09 2018
Agenda 12/09 2018 1. Company overview 2. Market update 3. Summary www.awilcolng.no -3-
Slide 4: Company overview
Company overview Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG carriers. The Company owns two 2013 built 156,000 cbm TFDE LNG carriers, WilPride and WilForce, trading in the short term/spot market achieving over 80 % utilisation since delivery. Awil
Slide 5: Financing
Financing Awilco LNG is fully financed to 2020 with flexible sale/leaseback agreement ➢ Cash break even of USD ~53,000 per day per vessel ➢ Bareboat rate payable of USD 33,500 per day, increasing to USD 38,500 per day in April 2019 ➢ Rolling options for early termination and refinancing of vessels a
Slide 6: Agenda 12/09 2018
Agenda 12/09 2018 1. Company overview 2. Market update 3. Summary www.awilcolng.no -6-
Slide 7: 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 as a commodity Source: BP Energy Outlook 2018 www.awilcolng.no -7-
Slide 8: 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 – 50 % increase in LNG imports in 2018
Slide 9: LNGC rates
LNGC 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 • After 4 years of dismal rates the market turned end 2017 with rates touching on
Slide 10: Gas price
Gas price USD/BBL USD/MMBTU 120 25 100 20 80 15 60 10 40 5 20 0 0 Brent (USD/BBL) Brent futures (USD/BBL) HH NBP Spot DES Japan HH futures NBP futures JKM futures • Far East prices softened in shoulder season, but summer demand created a surge in Asian buying interest in June, opening the West – Eas
Slide 11: LNG trade change
LNG trade change LNG EXPORT CHANGE YOY H1 2018 LNG IMPORT CHANGE YOY H1 2018 MT LNG MT LNG 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 • Ramp up of capacity added in 2017 contributed to export growth, • Continued fuel switching in China and South Korea resulting in partly offset by minor outages and maintenance
Slide 12: 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 • 31 MTPA new liquefaction capacity expected to start up in 20
Slide 13: 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 14: Agenda 12/09 2018
Agenda 12/09 2018 1. Company overview 2. Market update 3. Summary www.awilcolng.no - 14 -
Slide 15: Summary
Summary ➢ Market turned in 2018 after four miserable years – and Owner’s expectations for the coming years are high ─ 40 % growth in LNG production in 2018 – 2021 together with ─ 14 % increase in avg. sailing distances ─ will more than outweigh tonnage growth of 30 % (before scrapping) ➢ Mid- and lo
Slide 16: 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 - 16 -
Slide 17: 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 - 17 -