Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2015 Earnings Presentation
22 slides from Awilco Lng Asa's earnings presentation, Feb 12, 2016
Slide 1: Q4 2015
Q4 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
Agenda 12/02 2016 1. Company Overview and Highlights Q4 2. Financials Q4 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 two 125,000 cbm steam Moss type LNG vessels; WilGas and WilEnergy. Awilco LNG is liste
Slide 5: 4th Quarter Highlights
4th Quarter Highlights 4th quarter 2015 • Awilco LNG reported: − Net freight income of MUSD 8.9 MUSD 7.2 in Q3 2015 − EBITDA of MUSD 5.8 MUSD 2.8 in Q3 2015 − Net profit/(loss) of MUSD (12.6) MUSD (7.3) in Q3 2015 • Vessel utilisation of 81 %, compared to 68 % in Q3 2015 (trading vessels) • One-off
Slide 6: Contract Overview
Contract Overview 2015 2016 WilPride Available WilForce On charter On charter WilGas Available Lay-up - Marketed for project work WilEnergy Lay-up - Marketed for project work Lay-up - Marketed for project work WilPride: On subs for single voyage WilForce: Employed until January 2017 WilGas: Lay-up W
Slide 7: Agenda
Agenda 12/02 2016 1. Company Overview and Highlights Q4 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q4 2015 Income statement
Q4 2015 Income statement USD million Q4’15 Q3’15 2015 2014 Freight income 9.6 8.3 37.4 78.5 Net freight income MUSD 8.9 • Improved rates and utilisation of WilPride, up from 56% in Voyage related expenses (0.7) (1.1) (4.9) (11.2) Q3 to 62% in Q4 Net freight income 8.9 7.2 32.5 67.2 Operating expense
Slide 9: Q4 2015 Balance sheet
Q4 2015 Balance sheet USD million 31.12.15 30.09.15 31.12.14 Vessels 422.5 434.6 467.1 Vessels MUSD 422.5 • Impairment year end MUSD 8.4 Other non-current assets 0.1 0.1 0.3 Total non-current assets 422.6 434.7 467.4 Current assets MUSD 22.8 Trade receivables 2.5 2.6 2.5 • Cash MUSD 17.3 Other short
Slide 10: Q4 2015 Cash flow
Q4 2015 Cash flow USD million Q4’15 2015 2014 Cash Flows from Operating Activities: Operating activities MUSD 5.3 Profit/(loss) before taxes (12.6) (36.3) (2.6) Income taxes paid - - - Investing activities MUSD (0.3) Interest and borrowing costs expensed 6.0 24.1 25.1 • Purchase of multi-period spar
Slide 11: Agenda
Agenda 12/2 2016 1. Company Overview and Highlights Q4 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: LNG Rates
LNG Rates LNG CHARTER RATES 138 – 165K MODERN VESSELS • Continued weak market with low rates and low utilisation • Pockets of high fixing activity and periods with lower vessel availability has so far not been able to improve sentiment Source: Fearnley LNG www.awilcolng.no - 12 -
Slide 13: Position list – shorter
Position list – shorter OCTOBER 2015 FEBRUARY 2016 AFFINITY LNG AFFINITY LNG Changes noted in red. Grey indicates possibility only, light blue indicates vessel awaiting maiden voyage and all vessels are subject to reconfirmation Changes noted in red. Grey indicates possibility only, light blue indic
Slide 14: Inter-Basin Trade
Inter-Basin Trade INTER-BASIN TRADE (Atlantic to Asia) 6 4 600 4 400 5 4 200 4 4 000 3 3 800 3 600 2 3 400 1 3 200 0 3 000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Mill MT (LHS) Avg. Distance (RHS) • Volume shipped from Atlantic to Asia was down 27 % in 2015 • Average sailing distance down
Slide 15: LNG Production and Import
LNG Production and Import EXPORTS PER COUNTRY 2015 VS 2014 IMPORTS PER COUNTRY 2015 VS 2014 MT MT 6 6 4 4 2 2 0 0 -2 -2 -4 -4 -6 -6 Korea Mexico Italy India Malaysia Dubai Turkey Netherlands China France Egypt Poland Indonesia Chile Pakistan Spain Belgium Thailand Brazil Greece Portugal Lithuania Ku
Slide 16: LNG Production
LNG Production MTPA ADDITIONAL LNG PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 9 140 8 7 120 46 MT 6 100 5 80 4 60 3 40 2 1 20 0 0 2016 2017 2018 2019 2020 Total • 2015: Gladstone LNG T1 and Queensland Curtis LNG T2 started production - total full capacity of about 8 MTPA in 2016 • 2016: 11 new prod
Slide 17: LNG Fleet orderbook
LNG Fleet orderbook NEWBUILDINGS DELIVERY BY QUARTER 18 140 16 120 14 3 1 100 12 10 80 1 8 2 1 2 60 6 13 12 13 12 2 10 40 4 9 8 8 6 7 7 5 20 2 4 2 1 0 0 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Open (LHS) Committe
Slide 18: Agenda
Agenda 12/02 2016 1. Company Overview and Highlights Q4 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary Disappointing market development in 2nd half 2015 with low rates and low utilisation due to: ─ Production problems in Yemen + Algeria ─ Only 2 % increase in traded LNG in 2015 while 27 LNGC were delivered ─ Reduced ton-mile due to lack of arbitrage ─ New LNG production capacity has had lit
Slide 20: Awilco LNG – summary
Awilco LNG – summary 2015 very disappointing earnings but improving utilisation on WilPride Market recovery has been slower than expected Preserving cash with layups and cost reductions High activity on project side - Small scale / bunkering vessel - Various infrastructure projects including
Slide 21: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of Two 2013 built TFDEs two LNG carriers Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 21 -
Slide 22: 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 - 22 -