Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2012 Earnings Presentation
24 slides from Awilco Lng Asa's earnings presentation, Nov 21, 2012
Slide 1: Q3 2012
Q3 2012 Jon Skule Storheill Snorre Krogstad www.awilcolng.no -1-
Slide 2: Disclaimer
Disclaimer This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. Th
Slide 3: Agenda
Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summary www.awilcolng.no -3-
Slide 4: Company overview
Company overview Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels. The company owns three 125,000 cbm LNG vessels: WilGas, WilPower and WilEnergy. In addition, the company has entered into newbuilding contracts with Daewoo Shipbuilding & Marine Engineering Co L
Slide 5: 3rd Quarter Highlights
3rd Quarter Highlights • Awilco LNG reported: − Net freight income of MUSD 12.3 MUSD 10.1 in Q2 2012 − EBITDA of MUSD 6.4 MUSD 3.0 in Q2 2012 − Net profit of MUSD 5.8 MUSD -2.2 in Q2 2012 • WilPower idle entire quarter • In-house technical management established and building of organization in proce
Slide 6: Contract overview
Contract overview 2012 2013 2014 WilPower Available WilEnergy Available WilGas Newbuilding no 1 Construction Available Newbuilding no 2 Construction Available WilPower: Available WilEnergy: Available from February 2013 Newbuilding No.1: Available from August 2013 Newbuilding No.2: Available from Nov
Slide 7: Agenda
Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q3 2012 Income statement
Q3 2012 Income statement Total freight revenue MUSD 12.6 USD million Q3'12 Q2'12 Q1'12 2011 • 67% utilization (68% Q2) Freight income 12.6 12.4 17.7 30.7 Voyage related expenses MUSD (0.4) Voyage related expenses (0.4) (2.4) (1.2) (10.0) • No position expenses during the quarter Net freight income 1
Slide 9: Q3 2012 Balance sheet
Q3 2012 Balance sheet Vessels MUSD 196.1 USD million 30.09.12 30.06.12 31.12.11 • Book value existing vessels MUSD 75.1 Vessels 75.1 76.8 69.9 • Supervision cost newbuildings MUSD 1.0 during the quarter Vessels under construction 121.0 119.9 79.2 Other non-current assets 0.3 0.1 0.1 Current assets M
Slide 10: Q3 2012 Cash flow
Q3 2012 Cash flow USD million Q3'12 Q2'12 2011 Operating activities MUSD 2.1 • Reduced accounts payable due to payment of docking Cash Flows from Operating Activities: Investing activities MUSD (1.4) Profit/(loss) before taxes 4.2 - (0.6) • MUSD 1.0 supervision cost newbuildings Depreciation and amo
Slide 11: Agenda
Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: Rate development
Rate development • Continued low activity and softening rates in Q3 • Short term market followed same pattern as spot • Weaker market due to: market, declining rates and low activity − Low gas price spread between Europe and Asia • Rates still at historically high level − Angola start up delayed • L
Slide 13: Gas price spread
Gas price spread Gas spread vs. Spot rate Cargo movements from Atlantic to Pacific USD/MMBTU USD/day vs. Spot rate 11 160 000 No. Cargoes USD/day Spread LNG Spot Asia - 40 160 000 NBP (Left) Number of cargoes 140 000 9 LNG spot rate freight 35 140 000 rate (Right) LNG spot rate freight 120 000 30 12
Slide 14: LNG volumes
LNG volumes Change in LNG exports y-o-y (mmtpa) Change in LNG imports y-o-y (mmtpa) -2 -1 0 1 2 3 4 -8 -6 -4 -2 0 2 4 6 8 10 Qatar Japan Norway India China Nigeria South Korea Russian Federation Taiwan Peru Brazil UAE Puerto Rico Netherlands Libya Dubai Oman Thailand USA Greece Dominican Republic Br
Slide 15: Liquefaction growth 2012-2017
Liquefaction growth 2012-2017 Expected increase in LNG production mtpa (FID taken - not including ramp-up) 120 100 9 80 21 60 32 40 21 20 10 0 5 2012 2013 2014 2015 2016 2017 • 90 mtpa FID taken • 100 – 110 additional vessels required by year end 2016 to handle new capacity under construction • Anot
Slide 16: World LNG Fleet by Year Built
World LNG Fleet by Year Built LNG Fleet development and orderbook (> 100 000 cbm) Fleet Newbuildings 450 60 400 50 350 300 40 250 30 200 150 14 20 8 8 100 1 10 50 12 14 15 5 2 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 No contract Committed Total fl
Slide 17: Agenda
Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary Market
Summary Market • Short term - increased activity − Activity is picking up due to seasonal stronger winter market − Angola should start production − Continued volatile spot market impacted by gas price spread development − Limited number of newbuildings until Q4 2013 • Long term - fundamentals remain
Slide 19: Summary Awilco LNG
Summary Awilco LNG • WilPower available for contract in a firming spot market • Awilco LNG has two of the first newbuildings to be delivered which are not committed to a contract • No need for financing of newbuildings prior to delivery Awilco LNG is well positioned going forward www.awilcolng.no
Slide 20: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of 2 newbuildings 3 LNG carriers world class yard Strong balance sheet Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 20 -
Slide 21: Appendix
Appendix www.awilcolng.no - 21 -
Slide 22: Our fleet of 2nd generation vessels
Our fleet of 2nd generation vessels WilGas WilPower WilEnergy Built: 1984 Built: 1983 Built: 1983 Yard: Nagasaki Yard: Kawasaki Yard: Nagasaki Capacity: 125,631 Capacity: 125,660 Capacity: 125,556 Manager: V.Ships LNG Manager: V.Ships LNG Manager: V.Ships LNG Flag: NIS Flag: MI Flag: MI Main Engine:
Slide 23: Awilco LNG newbuildings
Awilco LNG newbuildings Yard: Daewoo Shipbuilding Cost approximately MUSD 200, depending on final specification Soft payment terms Delivery August and November 2013 ICE classed www.awilcolng.no - 23 -
Slide 24: Jon Skule Storheill CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Snorre Schie Krogstad CFO Mobile: +47-9085 8393 E-mail: ssk@awilcolng.no www.awilcolng.no - 24 -