Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2016 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, Nov 18, 2016
Slide 1: Q3 2016
Q3 2016 Jon Skule Storheill Snorre Krogstad 18/11/16 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 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 18/11 2016
Agenda 18/11 2016 1. Highlights and financials Q3 2. Market update 3. Summary www.awilcolng.no -4-
Slide 5: 3rd Quarter Highlights
3rd Quarter Highlights 3rd quarter 2016 • Awilco LNG reported: − Net freight income of MUSD 7.8 MUSD 7.2 in Q2 2016 − EBITDA of MUSD 4.6 MUSD 4.2 in Q2 2016 − Net profit/(loss) of MUSD (4.2) MUSD (11.5) in Q2 2016 • WilEnergy and WilGas were sold and delivered to new owner on 18 August 2016, contrib
Slide 6: Q3 2016 Income statement
Q3 2016 Income statement USD million Q3’16 Q2’16 2015 Freight income 8.4 8.3 37.4 Voyage related expenses (0.7) (1.1) (4.9) Net freight income 7.8 7.2 32.5 Operating expenses (2.2) (2.3) (12.7) Administration expenses (0.9) (0.7) (4.0) EBITDA 4.6 4.2 15.8 Depreciation (2.9) (3.4) (16.6) Impairment -
Slide 7: Q3 2016 Balance sheet
Q3 2016 Balance sheet USD million 30.09.16 30.06.16 31.12.15 Vessels 374.7 377.6 422.5 Other non-current assets 0.1 0.1 0.1 Total non-current assets 374.8 377.7 422.6 Trade receivables 2.6 3.0 2.5 Other short term assets 4.0 4.6 3.1 Cash 34.5 5.7 17.3 Total current assets 41.1 13.2 22.8 Vessels held
Slide 8: Q3 2016 Cash flow
Q3 2016 Cash flow USD million Q3’16 Q2’16 2015 Cash Flows from Operating Activities: Profit/(loss) before taxes (4.2) (11.5) (36.3) Income taxes paid - - - Interest and borrowing costs expensed 5.8 5.8 24.1 Depreciation, amortisation and impairment 2.9 10.0 28.1 Trade receivables, inventory and othe
Slide 9: Agenda 18/11 2016
Agenda 18/11 2016 1. Highlights and financials Q3 2. Market update 3. Summary www.awilcolng.no -9-
Slide 10: LNG rates
LNG rates USD /day 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 - Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 May-10 May-11 May-12 May-13 May-14 May-15 May-16 Jan-10 Mar-10 Jan-11 M
Slide 11: Gas price
Gas price $/mmbtu 24 22 20 18 16 14 12 10 8 6 4 2 0 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 HH NBP Spot DES Japan • Gas price in Far East and Europe continued to rise in Q3
Slide 12: Monthly global LNG trade
Monthly global LNG trade MT LNG 23 23 22 22 21 21 20 20 19 19 18 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 2015 2016 • As of end October global LNG trade is up abt 7.5% yoy or about 15 MT • Seasonality is still valid in LNG trading, but new production capacity starting up is lifting
Slide 13: LNG trade
LNG trade LNG export yoy end October LNG import yoy end October MT MT 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 -4 -4 UAE Oman PNG USA Russia Angola Eq. Guinea Norway Peru Qatar T&T Malaysia Brunei Egypt Yemen Nigeria Indonesia Algeria Australia India Japan USA Thailand Pakistan Korea Singapore Chile Ta
Slide 14: LNG spot market
LNG spot market # of fixtures Spot fixtures per quarter 80 1 70 15 4 11 60 1 50 2 1 16 7 1 40 3 8 19 9 3 63 30 15 58 10 19 20 1 42 40 35 13 28 30 10 22 21 14 8 0 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 160M3 TFDE 138-150M3 ST 1st Generation • Increased production, new buyer
Slide 15: LNG production
LNG production MTPA LNG capacity under construction MTPA 9 140 8 7 32 MT 120 6 100 5 80 4 60 3 40 2 1 20 0 0 Est. Produced Started 2016 2016 2017 2018 2019 2020 Total • About 32 MTPA of new production capacity has been added first 9 months 2016 and another 10MTPA due • Ramp up operations take time -
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook No. vsls LNG Fleet and orderbook Total fleet 50 600 45 500 40 35 400 30 25 300 20 200 15 10 100 5 0 0 Open order (LHS) Comitted Order (LHS) Delivered (LHS) Total fleet (RHS) • Orderbook for 2016 was 41 vessels • 23 vessels delivered YTD, 13 vessels scheduled for delivery 2016
Slide 17: Agenda 18/11 2016
Agenda 18/11 2016 1. Highlights and financials Q3 2. Market update 3. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary The market has turned ─ Activity and rates came off shortly in October but on the rise again ─ Flurry of activity for short TC, Charterers taking advantage of depressed rates ─ Only a handful of independent owners left with spot trading ships Mid- and long-term demand for LNG transportat
Slide 19: Awilco LNG – summary
Awilco LNG – summary Sale of 2nd gen vessels secures solid cash position Soft earnings and utilisation on WilPride in 2016, expect improving with firmer market going forward WilForce redelivering from TC into improving market With two modern TFDE vessels available from 2017 ALNG is perfectly
Slide 20: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 20 -
Slide 21: 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 - 21 -