Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2020 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, May 5, 2020
Slide 1: Q1 2020
Q1 2020 5 May 2020 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 fully integrated 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. Awilco LNG is listed on Oslo Axess under the ticker code ALNG. www.awilco
Slide 4: Agenda
Agenda 05/05 2020 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 1st quarter highlights
1st quarter highlights Q1 2020 Q4 2019 Net freight income MUSD 12.9 MUSD 16.3 EBITDA MUSD 9.9 MUSD 13.0 Net profit MUSD 2.7 MUSD 4.7 • TCE* USD 70,800 pd (USD 88,200 pd in Q4 2019, USD 46,200 pd in Q1 2019) • Utilisation of 100 % compared to 95 % in Q4 2019 • 10-year refinancing fully executed in Ja
Slide 6: Excellent commercial track record
Excellent commercial track record 2019 2020 Q1 2020 Q1 TCE USD pd Full year Guiding Actuals Awilco LNG 58,900 70,000 70,800 TFDE Owner # 1 41,800 50’-60’ 44,000 TFDE Owner # 2 44,400 60,000 ? MEGI Owner 62,400 70,000 ? • ALNG earnings in Q1 2020 MUSD 1.0 - 2.4 per ship higher than reported/guided by
Slide 7: Refinancing completed
Refinancing completed ✓ Sale/leaseback facility fully executed early January 2020 with CCB Financial Leasing ✓ Full take out of previous sale/leaseback facilities – net negative cash effect abt MUSD 3.7 after costs ✓ Finance cost in 2020 expected reduced by abt MUSD 9.0 at current forward Libor vs p
Slide 8: Agenda
Agenda 05/05 2020 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -8-
Slide 9: Q1 2020 income statement
Q1 2020 income statement USD million Q1’20 Q4’19 Q1’19 2019 Freight income 14.0 17.2 9.4 37.1 Voyage related expenses (1.1) (0.9) (1.0) (3.4) Net freight income 12.9 16.3 8.4 33.7 Other income - (0.1) 0.9 11.6 Operating expenses (2.2) (1.9) (3.3) (16.4) Administration expenses (0.8) (1.2) (1.0) (3.7
Slide 10: Q1 2020 financial position
Q1 2020 financial position USD million 31.3.20 31.12.19 31.3.19 Vessels (right-of-use assets) 347.3 350.0 358.9 Total non-current assets 347.3 350.0 358.9 Trade receivables 1.7 0.1 1.6 Other short term assets 4.8 3.7 6.8 Cash and cash equivalents 21.9 23.5 18.7 Total current assets 28.5 27.3 27.1 To
Slide 11: Q1 2020 cash flow
Q1 2020 cash flow USD million Q1’20 Q4’19 2019 Cash Flows from Operating Activities: Profit/(loss) before taxes 2.7 4.7 (8.3) Income taxes paid - - - Interest and borrowing costs expensed 4.1 5.1 20.7 Depreciation, amortisation and impairment 3.1 3.3 13.0 Trade receivables, inventory and other short
Slide 12: Agenda
Agenda 05/05 2020 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 12 -
Slide 13: Spot rates
Spot rates USD/DAY 200 000 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 - Avg. spot rate 138-145k ST Avg. spot rate 155-165k TFDE Historic ave. spot rate 138-145k ST Historic ave. spot rate 155-165k TFDE • ~50 % higher spot fixing activity in Q1 2020 vs 2019, increasing from 7
Slide 14: Volumes growing, sailing distances falling
Volumes growing, sailing distances falling GLOBAL LNG TRADE AVERAGE SAILING DISTANCES MT LNG NM PER CARGO 110 4400 105 4300 4200 100 4100 95 4000 90 3900 85 3800 80 3700 75 3600 3500 70 2018 2019 2020 2018 2019 2020 • LNG trade up ~12.5 % vs Q1 2019 (12 MT) • Warm winter and Covid-19 resulting in de
Slide 15: Gas (finally!) cheaper than coal
Gas (finally!) cheaper than coal USD/MMBTU 14 12 10 8 6 4 2 0 05.01.2018 05.04.2018 05.07.2018 05.10.2018 05.01.2019 05.04.2019 05.07.2019 05.10.2019 05.01.2020 05.04.2020 05.07.2020 05.10.2020 US (HH) Asia (JKM) Europe (TTF) LNG Contract 12% brent Japan LNG import price US (HH) fwd Asia (JKM) fwd E
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 50 700 45 600 40 35 500 30 400 25 20 300 15 200 10 100 5 0 0 Available (LHS) Fixed (LHS) Delivered (LHS) Total fleet (RHS) • Total fleet 518 vessels > 125’ cbm • 6 vessels delivered so far in 2020 – slippage expected going forward • Current orderbook o
Slide 17: Trainspotting
Trainspotting MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 140 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2020 2020 2021 2022 2023 2024 2026 Total (RHS) • 121 MTPA new capacity starting up 2020 – 2026 of which 53 MTPA in the US (44 %) • ~33 % of total trade in 2019 at 361 MT • So far limited impact of
Slide 18: Agenda
Agenda 05/05 2020 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary ➢ Massive supply growth not matched by demand in the short term ─ Covid-19 reducing global demand for energy ─ But power production least hit ─ Sticky prices – but not for long ➢ Mid- and long-term demand for LNG transportation remains strong ─ Covid-19 recovery expected to trigger LNG deman
Slide 20: Q&A
Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Attractive debt financing Tier 1 customers Solid owners Experienced Opportunistic strategy management team www.awilcolng.no - 20 -
Slide 21: Jon Skule Storheill, CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Øyvind Ryssdal CFO Mobile: +47-920 14 029 E-mail: or@awilcolng.no www.awilcolng.no - 21 -