Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2015 Earnings Presentation
23 slides from Awilco Lng Asa's earnings presentation, May 13, 2015
Slide 1: Q1 2015
Q1 2015 Jon Skule Storheill Snorre Krogstad 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 13/05 2015
Agenda 13/05 2015 1. Company Overview and Highlights Q1 2. Financials Q1 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 currently owns two 2013 built 156,000 cbm TFDE membrane LNG vessels; WilForce and WilPride, and three 125,000 cbm steam Moss type LNG vessels; WilGas, WilPower and WilEnergy. Awilco
Slide 5: 1st Quarter Highlights
1st Quarter Highlights 1st quarter 2015 • Awilco LNG reported: − Net freight income of MUSD 10.3 MUSD 15.1 in Q4 2014 − EBITDA of MUSD 5.5 MUSD 8.5 in Q4 2014 − Net profit/(loss) of MUSD (4.7) MUSD (2.6) in Q4 2014 • Vessel utilisation of 67 %, compared to 78 % in Q4 2014 (trading vessels). www.awil
Slide 6: Contract Overview
Contract Overview 2015 2016 WilGas Available Available WilPride Available Available WilForce On charter On charter WilEnergy Lay-up - Marketed for project work Lay-up - Marketed for project work WilPower Lay-up - Marketed for project work Lay-up - Marketed for project work WilGas: Open Far East WilP
Slide 7: Agenda 13/05 2015
Agenda 13/05 2015 1. Company Overview and Highlights Q1 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q1 2015 Income statement
Q1 2015 Income statement USD million Q1’15 Q4’14 2014 Freight income 12.1 17.7 78.5 Net freight income MUSD 10.3 • Reduced utilisation and lower rates on WilPride and WilGas Voyage related expenses (1.8) (2.5) (11.2) • 67 % utilisation trading vessels (78 % in Q4 2014) Net freight income 10.3 15.1 6
Slide 9: Q1 2015 Balance sheet
Q1 2015 Balance sheet USD million 31.03.15 31.12.14 Vessels 462.8 467.1 Vessels MUSD 462.8 Other non-current assets 0.1 0.3 Current assets MUSD 23.7 Total non-current assets 463.0 467.4 • MUSD 3.0 reduction in other short term assets relates to MUSD 3.0 prepaid BB hire 31.12.2014 Trade receivables 2
Slide 10: Q1 2015 Cash flow
Q1 2015 Cash flow USD million Q1’15 Q4’14 2014 Cash Flows from Operating Activities: Operating activities MUSD 2.3 Profit/(loss) before taxes (4.7) (2.5) (2.6) Income taxes paid - 0.1 - Investing activities MUSD 0.1 Interest and borrowing costs expensed 6.0 6.2 25.1 Depreciation and amortisation 4.3
Slide 11: Agenda 13/05 2015
Agenda 13/05 2015 1. Company Overview and Highlights Q1 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: Rate development
Rate development USD per day LNG AVERAGE SPOT LNG SPOTCHARTER CHARTER RATES RATES USD per day 30 000 180 000 160 000 25 000 140 000 20 000 IKKE OPPDATERT 120 000 100 000 15 000 80 000 10 000 60 000 40 000 5 000 20 000 0 0 DFDE/ST Diff. (LHS) Avg. Spot Rate 138-145k ST (RHS) Avg. Spot Rate 155-165k T
Slide 13: Gas price development
Gas price development Natural gas price spread between Asia and the Atlantic basin USD/mmbtu 26 • Lower oil price is negative for the 24 short-term inter-basin trade 22 • Inter-basin spread at 3-year low 20 • Since November the cost of 18 shipping a cargo from the Atlantic 16 basin to Asia has been
Slide 14: LNG import by region
LNG import by region LNG import per month 2011 – 2015 in mill mt 20 2015 Mill mt YoY 18 Europe 10.3 17.2 % 16 Asia 44.1 -10.4 % 14 Americas 6.3 46.7 % 12 Total 60.4 -2.6% 10 8 6 4 2 - Europe Asia Americas Source: RS Platou www.awilcolng.no - 14 -
Slide 15: LNG import – China
LNG import – China LNG IMPORT TO CHINA MT 6 000 5 000 • Low LNG import to China resulting from: • Higher pipeline imports 4 000 • Mild winter • Increased domestic production 3 000 • Long term China is still very promising • China will expand ban on coal burning to include 2 000 suburban areas as wel
Slide 16: LNG import and production
LNG import and production PRODUCTION CAPACITY AND IMPORT MTPA 300 88% 280 86% 260 240 84% 220 200 82% 180 80% 160 140 78% 120 100 76% 2010 2011 2012 2013 2014 Import Capacity % utilization • LNG imports in 2014 was back to same level as in 2011 • Production capacity increased by 20 MTPA during same
Slide 17: LNG production
LNG production MTPA 118 MTPA ADDITIONAL LNG CAPACITY UNDER CONSTRUCTION MTPA 14 155 12 135 115 10 95 8 75 6 55 4 35 2 15 0 -5 2015 2016 2017 2018 Total • A total of abt 118 MTPA of new LNG capacity (including re-start of Angola production) is under construction in the period 2015 -2018 • Australia r
Slide 18: LNG fleet orderbook
LNG fleet orderbook Newbuilding deliveries by quarter 18 160 16 140 14 5 120 12 1 2 100 10 3 3 1 80 2 8 1 1 1 60 6 12 11 11 10 10 40 4 9 9 9 8 2 7 6 6 2 4 20 3 2 2 0 0 Open Committed Total • Six vessels delivered Q1 2015 • 10 newbuilding ordered (reported) in Q1 15 • 31 vessels scheduled for deliver
Slide 19: Agenda 13/05 2015
Agenda 13/05 2015 1. Company Overview and Highlights Q1 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 19 -
Slide 20: Summary
Summary Very weak rates and low activity till now, but finally picking up 24 MTPA of new production capacity scheduled to start in 2015 in addition to restart of Angola 31 newbuildings scheduled for delivery in 2015 of which only 6 are open Expect low rates until meaningful new production st
Slide 21: Awilco LNG – summary
Awilco LNG – summary Market is dismal – a lot of new LNG production expected next 6-7 months. There is a light in the tunnel! Short-midterm contract WilPride – with improving fundamentals … Infrastructure projects - ALNG focus is FSU, but some interest in FSRU conversions remain - Moss tanks “
Slide 22: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of Two 2013 built TFDEs three LNG carriers Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 22 -
Slide 23: Jon Skule Storheill CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Snorre Krogstad CFO Mobile: +47-9085 8393 E-mail: ssk@awilcolng.no www.awilcolng.no - 23 -