Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2017 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, Nov 17, 2017
Slide 1: Q3 2017
Q3 2017 Jon Skule Storheill Øyvind Ryssdal 17/11/17 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 17/11 2017
Agenda 17/11 2017 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 3rd quarter highlights
3rd quarter highlights 3rd quarter 2017 • Awilco LNG reported: − Net freight income of MUSD 4.4 MUSD 1.0 in Q2 2017 − EBITDA of MUSD 1.2 MUSD (1.8) in Q2 2017 − Net profit/(loss) of MUSD (6.8) MUSD (10.1) in Q2 2017 • Vessel utilisation of 88 %, compared to 83 % in Q2 2017 • Reduced bareboat payment
Slide 6: Agenda 17/11 2017
Agenda 17/11 2017 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q3 2017 income statement
Q3 2017 income statement USD million Q3’17 Q2’17 2016 Freight income 5.7 2.6 34.8 Voyage related expenses (1.3) (1.6) (2.8) Net freight income 4.4 1.0 32.0 Operating expenses (2.2) (1.9) (8.7) Administration expenses (0.9) (0.9) (3.5) EBITDA 1.2 (1.8) 19.8 Depreciation (3.2) (2.9) (12.9) Impairment
Slide 8: Q3 2017 balance sheet
Q3 2017 balance sheet USD million 30.09.17 30.06.17 31.12.16 Vessels 366.3 368.6 371.8 Other non-current assets - 0.1 0.1 Total non-current assets 366.3 368.7 371.9 Trade receivables 1.4 0.8 0.6 Other short term assets 4.2 4.3 5.8 Cash 30.4 34.7 30.0 Total current assets 36.0 39.8 36.4 Total assets
Slide 9: Q3 2017 cash flow
Q3 2017 cash flow USD million Q3’17 Q2’17 2016 Cash Flows from Operating Activities: Profit/(loss) before taxes (6.8) (10.1) (22.8) Income taxes paid - - - Interest and borrowing costs expensed 5.5 5.5 23.2 Depreciation, amortisation and impairment 3.2 2.9 19.5 Trade receivables, inventory and other
Slide 10: Agenda 17/11 2017
Agenda 17/11 2017 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: LNG rates
LNG 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 • Utilisation and rates have improved throughout the year, and the strong momentum
Slide 12: Monthly global LNG trade
Monthly global LNG trade MT LNG 27 25 23 21 19 17 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2013 2014 2015 2016 2017 (est) • Global LNG trade up by 13 % Oct YTD • Increased volumes from ramp-up of plants started in 2016, in addition to new capacity coming on line in 2017 • Seasonality
Slide 13: Gas price
Gas price USD/BBL USD/MMBTU 140 20 18 120 16 100 14 12 80 10 60 8 40 6 4 20 2 0 0 Brent (USD/BBL) HH NBP Spot DES Japan • Despite huge increase in LNG volumes, prices increasing – except US… • Europe – Far East arbitrage open • Spread Henry Hub vs ROW drives exports from US to Far East, in October a
Slide 14: LNG trade change
LNG trade change LNG EXPORT CHANGE LNG IMPORT CHANGE September 2017 YTD September 2017 YTD MT LNG MT LNG 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 • LNG exports increased by 12 % Sept YTD • Imports to China and Korea up 43 % and 20 % YTD respectively • New capacity in Australia and US materialising on t
Slide 15: LNG production
LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 10 140 9 120 8 7 100 6 80 5 60 4 3 40 2 20 1 0 0 Started 2017 2017 2018 2019 2020 2021 Total (RHS) • 109 MTPA of new capacity starting 2017-2020, a 42 % increase from 2016 production at 263 MT • 2016: 36 MTPA new capacity • 2011 – 2015: on avera
Slide 16: LNG fleet and orderbook
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 1976 2017 1977 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 20
Slide 17: Agenda 17/11 2017
Agenda 17/11 2017 1. Highlights 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Market is improving ─ Improvement in rates, utilisation and ballast bonuses - expected to continue firming going forward ─ Vessels fixed in the USD 70’s pd, levels not seen since 2014 ➢ Mid- and long-term demand for LNG transportation remains strong ─ LNG is environmentally friendly, avail
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 -