Slide 1: Q2 2012
Q2 2012 Jon Skule Storheill Snorre Krogstad www.awilcolng.no -1-
Slide 2: Agenda 28/08
Agenda 28/08 1. Company overview and Highlights Q2 2. Q2 Financials 3. Market update 4. Summary www.awilcolng.no -2-
Slide 3: Company overview
Company overview Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels. The company owns three 125,000 cbm LNG vessels: WilGas, WilPower and WilEnergy. In addition, the company has entered into newbuilding contracts with Daewoo Shipbuilding & Marine Engineering Co L
Slide 4: 2nd Quarter Highlights
2nd Quarter Highlights • Awilco LNG reported freight income of MUSD 12.4 (MUSD 17.7 in Q1 2012) and an EBITDA of MUSD 3.0 (MUSD 11.8 in Q1 2012) • Earnings substantially affected by WilPower off contract mid-April, DD from beginning of May until 20th June, and idle thereafter • In April WilGas was f
Slide 5: Contract overview
Contract overview 2012 2013 DD Available WilPower WilGas WilEnegy DD Available Newbuilding Available Construction no 1 Newbuilding Construction no 2 WilPower: Available from 20th June 2012 WilEnergy: Available from February 2013 Newbuilding No.1 Available from August 2013 Newbuilding No.2 Available
Slide 6: Agenda 28/08
Agenda 28/08 1. Company overview and Highlights Q2 2. Q2 Financials 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q2 2012 Income statement
Q2 2012 Income statement Total freight revenue MUSD 12.4 • 68% utilization (88% Q1) USD million Q2'12 Q1'12 2011 Voyage related expenses MUSD (2.4) Freight income 12.4 17.7 30.7 • Position for dry-dock and idling of WilPower Voyage related expenses (2.4) (1.2) (10.0) Net freight income 10.1 16.6 20.
Slide 8: Q2 2012 Balance sheet
Q2 2012 Balance sheet USD million 30.06.12 31.03.12 31.12.11 Vessels 76.8 71.3 69.9 Vessels MUSD 196.7 Vessels under construction 119.9 99.2 79.2 • Book value of existing vessels MUSD 76.8, increased due to docking of WilPower Other non-current assets 0.1 0.1 0.1 • Paid installment on newbuildings o
Slide 9: Q2 2012 Cash flow
Q2 2012 Cash flow USD million Q2'12 Q1'12 2011 Operating activities MUSD 2.4 Cash Flows from Operating Activities: • Reduced profits before taxes due to: Profit/(loss) before taxes 0.0 9.9 (0.6) − docking and idle time WilPower Depreciation and amortization 1.6 2.2 3.9 Impairment of vessel parts and
Slide 10: Agenda 28/08
Agenda 28/08 1. Company overview and Highlights Q2 2. Q2 Financials 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: Market update
Market update Gas is clean Gas is abundantly available Gas is cheap LNG shipping fundamentals are appealing www.awilcolng.no - 11 -
Slide 12: Rate development
Rate development LNG Spot Rate Seasonality 2005-2012 Basis weekly rate as % annual average 160% 140% 120% 100% 80% 60% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 2010 2011 2012 Avg '05-11 • Rates firmed during Q2 – and rates obtained were • Historically rates are slidin
Slide 13: Growing short term market
Growing short term market Global LNG trade (bcm) Global LNG Trade (bcm) 350 • Due to the large investments involved in building liquefaction capacity, the vessels 300 have historically been ordered back to 95 back with large projects 56 250 • While this is true, there have been a trend 40 of increas
Slide 14: LNG Trade Flow Developments
LNG Trade Flow Developments Regional market - Only a handful of players - ’the LNG Club’ – mainly big oil companies and utilites Global market – banks, utilities, trading houses, projects, IOCs, power-companies, etc… Source: Fearnley LNG www.awilcolng.no - 14 -
Slide 15: China LNG import
China LNG import LNG Import into China China LNG import Capacity 1 600 100 90,4 1 400 90 Total quantity of Import (in MT) 80 1 200 70 1 000 60 45,8 MTPA 800 2012 50 600 2011 40 30 400 2010 15,8 20 200 10 0 0 1 2 3 4 5 6 7 8 9 10 11 12 2011 2015E 2020 Total proposed Month • 1st half 2012 imports up 2
Slide 16: India – the new LNG player?
India – the new LNG player? India LNG import Capacity 60 50 50 40 40 MTPA 30 18 20 14 10 0 2011 2012E 2015E 2017E • India is the fifth largest energy consumer in the world and 2nd most populated country • Indian energy consumption is growing by 6.8% vs. global consumption growth of 2.6% • Demand for
Slide 17: Liquefaction growth 2012-2017
Liquefaction growth 2012-2017 Expected increase in LNG production MTPA (not including ramp-up) 200 180 160 140 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 FID taken FID expected 2013 • Historically LNG production has been the bottleneck • Delays will most likely occur • If all projects reali
Slide 18: North America LNG export
North America LNG export DOE: non-FTA Project name MTPA Owners approved Sabine Pass Liquefication 18,0 Cheniere Energy Approved Kitimat (Canada) 10,0 Apache, EOG, Encana Approved Prince Rupert (Canada) 5,0 BG, Quensland gas 2013 Freeport LNG Expansion 13,2 Smith,Conoco, Dow, Osaka GasUnder DOE revie
Slide 19: World LNG Fleet by Year of Built
World LNG Fleet by Year of Built Fleet LNG Fleet (> 100 000 cbm) development and Newbuildings 450 60 400 50 350 300 40 21 250 30 200 150 8 20 14 8 100 17 10 50 12 12 6 0 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Options No contract Committed Total
Slide 20: Agenda 28/08
Agenda 28/08 1. Company overview and Highlights Q1 2. Q1 Financials 3. Market update 4. Summary www.awilcolng.no - 20 -
Slide 21: Summary
Summary Market • Short term - activity is expected to increase as; − Arbitrage opportunities opens up for cargoes going from Atlantic to Pacific − Angola starts production − LNG players positioning themselves for the winter marked • Long term fundamentals - remains strong as; − LNG demand expected t
Slide 22: A Pure Play LNG Transportation Provider
A Pure Play LNG Transportation Provider 2nd gen. fleet of 2 newbuildings 3 LNG carriers world class yard Strong balance sheet Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 22 -
Slide 23: Appendix
Appendix www.awilcolng.no - 23 -
Slide 24: Our fleet of 2nd generation vessels
Our fleet of 2nd generation vessels WilGas WilPower WilEnergy Built: 1984 Built: 1983 Built: 1983 Yard: Nagasaki Yard: Kawasaki Yard: Nagasaki Capacity: 125,631 Capacity: 125,660 Capacity: 125,556 Manager: V.Ships LNG Manager: V.Ships LNG Manager: V.Ships LNG Flag: NIS Flag: MI Flag: MI Main Engine:
Slide 25: Awilco LNG newbuildings
Awilco LNG newbuildings Yard: Daewoo Shipbuilding Cost approximately MUSD 200, depending on final specification Soft payment terms Delivery August and November 2013 ICE classed In total 19 new buildings delivering in 2012 and 2013, only 7 vessels are available for charter Awilco LNG has on paper the
Slide 26: Jon Skule Storheill CEO
Jon Skule Storheill CEO Mobile: +47-9134 4356 E-mail: jss@awilcolng.no Snorre Schie Krogstad Chief Financial Officer Mobile: +47-9085 8393 E-mail: ssk@awilcolng.no www.awilcolng.no - 26 -