Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2014 Earnings Presentation
24 slides from Awilco Lng Asa's earnings presentation, Nov 21, 2014
Slide 1: Q3 2014
Q3 2014 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 21/11 2014
Agenda 21/11 2014 1. Company Overview and Highlights Q3 2. Financials Q3 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: 3rd Quarter Highlights
3rd Quarter Highlights 3rd quarter 2014 • Awilco LNG reported: − Net freight income of MUSD 17.3 MUSD 17.2 in Q2 2014 − EBITDA of MUSD 10.9 MUSD 10.9 in Q2 2014 − Net profit/(loss) of MUSD (0.3) MUSD 0.2 in Q2 2014 • Vessel utilisation of 95 % excluding dry-dock, compared to 94 % in Q2 2014 (86 % in
Slide 6: Contract Overview
Contract Overview 2014 2015 WilEnergy On charter DD Available WilGas On charter DD On charter Available WilPride On charter Available WilForce On charter On charter WilPower Lay-up - Marketed for project work Lay-up - Marketed for project work WilEnergy: Available WilGas: Employed until January – Fe
Slide 7: Agenda 21/11 2014
Agenda 21/11 2014 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q3 2014 Income statement
Q3 2014 Income statement USD million Q3’14 Q2’14 2013 Freight income 20.8 19.9 54.7 Net freight income MUSD 17.3 Voyage related expenses (3.5) (2.7) (12.8) • 95 % utilisation trading vessels (94 % in Q2 2014) • Increased voyage expenses mainly due to WilGas Net freight income 17.3 17.2 41.9 repositi
Slide 9: Q3 2014 Balance sheet
Q3 2014 Balance sheet USD million 30.09.14 30.06.14 31.12.13 Vessels 471.8 470.9 478.7 Vessels MUSD 471.8 • WilGas dry-docking total capital expenditure of MUSD 7.0 Other non-current assets 0.3 0.3 0.4 Total non-current assets 472.1 471.2 479.1 Current assets MUSD 32.3 Trade receivables 3.0 3.9 3.7
Slide 10: Q3 2014 Cash flow
Q3 2014 Cash flow USD million Q3’14 Q2’14 2013 Cash Flows from Operating Activities: Operating activities MUSD 12.4 Profit/(loss) before taxes (0.3) 0.2 1.1 • Increase in deferred revenue of MUSD 1.2 from previous quarter Income taxes paid - - (0.1) Interest and borrowing costs expensed 6.3 6.3 5.6
Slide 11: Agenda 21/11 2014
Agenda 21/11 2014 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: Rate development
Rate development LNG SPOT CHARTER RATES • Spot charter rates bottomed out in Q2 and has improved since • Current seasonal low LNG demand – rates still holding • TFDE rate advantage increasing Source: Fearnley LNG www.awilcolng.no - 12 -
Slide 13: Production and ton-mile
Production and ton-mile Ton-mile LNG EXPORT AND TON-MILE Ton 300 69 000 000 250 59 000 000 200 49 000 000 150 39 000 000 100 29 000 000 50 19 000 000 - 9 000 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Global tons Global ton-miles • Both ton-mile and LNG production
Slide 14: LNG production
LNG production MTPA 14 130 MTPA NEW PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 155 12 135 115 10 95 8 75 6 55 4 35 2 15 0 -5 Started 2014 2015 2016 2017 2018 Total • A total of abt 130 MTPA of new LNG capacity is under construction in the period 2014 -2018 • Australia about 60 MTPA and U.S about 40
Slide 15: U.S LNG Export
U.S LNG Export # Vessels U.S POTENTIAL VESSEL REQUIREMENT 160 140 120 100 80 60 40 20 0 2016 2017 2018 2019 2020 2021 Sabine Pass Freeport LNG Corpus Christi Cove Point Cameron LNG Lake Charles Excelerate Liquefacation • 1 MTPA from U.S to Europe requires about 1.1 vessel • 1 MTPA from U.S to Far Ea
Slide 16: LNG fleet orderbook
LNG fleet orderbook NEWBUILDING DELIVERIES BY QUARTER 14 140 12 120 3 3 10 100 8 80 1 1 2 1 1 6 2 60 2 10 2 9 9 4 8 8 40 3 7 7 6 6 6 5 5 2 4 4 20 2 2 2 1 0 0 Open Committed Total • 26 newbuildings delivered YTD in 2014 and 5 vessels scheduled for delivery for the remaining of 2014 • Continued high o
Slide 17: Agenda 21/11 2014
Agenda 21/11 2014 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary Activity and rates turned in July and increased through the quarter Improvement partly seasonal and partly new LNG on water from PNG Further new LNG production is starting to materialise – Arzew expected to ship first cargo soon and Queensland Curtis within December. Gladstone, Austral
Slide 19: Summary Awilco LNG
Summary Awilco LNG WilPride utilisation of 90 % in spot market since delivery Short-midterm contract WilPride – waiting for the “right” deal Not “right time” to go long Increased interest in 2nd generation vessels for various infrastructure projects www.awilcolng.no - 19 -
Slide 20: 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 - 20 -
Slide 21: www.awilcolng.no
www.awilcolng.no - 21 -
Slide 22: www.awilcolng.no
www.awilcolng.no - 22 -
Slide 23: www.awilcolng.no
www.awilcolng.no - 23 -
Slide 24: Contact details
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 - 24 -