Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2016 Earnings Presentation
24 slides from Awilco Lng Asa's earnings presentation, May 13, 2016
Slide 1: Q1 2016
Q1 2016 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 2016
Agenda 13/05 2016 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 two 125,000 cbm steam Moss type LNG vessels; WilGas and WilEnergy. Awilco LNG is liste
Slide 5: 1st Quarter Highlights
1st Quarter Highlights 1st quarter 2016 • Awilco LNG reported: − Net freight income of MUSD 8.2 MUSD 8.9 in Q4 2015 − EBITDA of MUSD 4.9 MUSD 5.8 in Q4 2015 − Net profit/(loss) of MUSD (4.6) MUSD (12.6) in Q4 2015 • Vessel utilisation of 78 %, compared to 81 % in Q4 2015 (trading vessels) www.awilco
Slide 6: Contract Overview
Contract Overview 2016 2017 WilPride Available Available WilForce On charter Available WilGas Lay-up - Marketed for project work Lay-up - Marketed for project work WilEnergy Lay-up - Marketed for project work Lay-up - Marketed for project work WilPride: Available NW Europe WilForce: Employed until J
Slide 7: Agenda 13/05 2016
Agenda 13/05 2016 1. Company Overview and Highlights Q1 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q1 2016 Income statement
Q1 2016 Income statement USD million Q1’16 Q4’15 2015 Freight income 8.9 9.6 37.4 Net freight income MUSD 8.2 • Minor reduction in rates and utilisation of WilPride, down Voyage related expenses (0.7) (0.7) (4.9) from 62% in Q4 2015 to 57% in Q1 2016 Net freight income 8.2 8.9 32.5 Operating expense
Slide 9: Q1 2016 Balance sheet
Q1 2016 Balance sheet USD million 31.03.16 31.12.15 Vessels 418.9 422.5 Vessels MUSD 418.9 Other non-current assets 0.1 0.1 Current assets MUSD 18.9 Total non-current assets 419.0 422.6 • MUSD 3.0 increase in other short term assets relates to late invoice of January 2016 bareboat hire in Q1 Trade r
Slide 10: Q1 2016 Cash flow
Q1 2016 Cash flow USD million Q1’16 Q4’15 2015 Cash Flows from Operating Activities: Operating activities MUSD 5.4 Profit/(loss) before taxes (4.6) (12.6) (36.3) Income taxes paid - - - Investing activities NIL Interest and borrowing costs expensed 5.9 6.0 24.1 Depreciation, amortisation and impairm
Slide 11: Agenda 13/5 2016
Agenda 13/5 2016 1. Company Overview and Highlights Q1 2. Financials Q1 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 • Low gas prices eliminates arbitrage and reduces trading activity Source: Fearnley LNG www.awilcolng.no - 12 -
Slide 13: LNG price
LNG price USD/MMBTU 26 24 22 20 18 16 14 12 10 8 6 4 2 0 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 • At present Far East buyers are absent from the spot market, which is pushing spot prices down • Arbitrage opportunities from Atlantic t
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 2016 Mill MT (LHS) Avg. Distance (RHS) • Average distance was down by 9.6% in Q1 while trade (MT) was down 29% compared to same
Slide 15: New LNG trades
New LNG trades GORGON, AUSTRALIA PACIFIC AND GLADSTONE CARGOES • Low LNG demand leads to market inefficiencies • Gladstone cargo reported on its way to Atlantic and Sabine Pass cargoes shipped to India: increased ton-mile • Cargoes are resold and changing destination : increased ton-time SABINE PASS
Slide 16: LNG export
LNG export MT 4 Q1 2016 3 Region ∆ ‘16/’15 2 Asia /oceanic + 20% Africa + 2% 1 Europe (incl. Re-exp) - 3% 0 Middle East - 1% Americas - 23% -1 World Total + 5% -2 Mexico PNG Libya Malaysia Russia Singapore Indonesia Spain Brunei Yemen T&T Peru Egypt Qatar Australia Algeria Eq. Guinea Norway Belgium
Slide 17: LNG imports
LNG imports MT 2 Q1 2016 Imports Region ∆ ‘16/’15 1 (MTPA) Europe 11.3 +13% Americas 4.0 - 37% 0 Middle East 2.7 + 581% NE Asia 41.4 - 3% -1 Other Asia 7.0 + 64% World Total 66.4 4.5% -2 Mexico Portugal UK Malaysia Dom Republic Indonesia China Jordan Argentina Singapore Greece Kuwait Japan Spain Dub
Slide 18: 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 • Australia Pacific and Sabine Pass started production in Q1 2016 • Both Angola and Gorgon expected to re-start in May and Sabine T2 start
Slide 19: LNG Fleet orderbook
LNG Fleet orderbook Newbuilding deliveries by quarter 25 140 120 20 5 100 15 1 80 1 60 10 2 1 15 15 1 40 3 5 11 10 11 11 7 7 8 7 20 4 5 2 1 1 0 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Open Committed Total • Only 7 vessel
Slide 20: Agenda 13/05 2016
Agenda 13/05 2016 1. Company Overview and Highlights Q1 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 20 -
Slide 21: Summary
Summary Disappointing market development in Q1 2016 with low rates and low utilisation due to: ─ Overhang of vessels ─ Reduced ton-mile In order for an substantial improvement we need to see available vessels absorbed by: ─ Continued increase of LNG production – 46 MTPA scheduled to start in 201
Slide 22: Awilco LNG – summary
Awilco LNG – summary Still disappointing earnings and utilisation on WilPride Market recovery is slow but heading in right direction Preserving cash with layups and cost reductions The LNG market is cyclical – requires patience and diligent hard work www.awilcolng.no - 22 -
Slide 23: 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 - 23 -
Slide 24: 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 - 24 -