Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2018 Earnings Presentation
20 slides from Awilco Lng Asa's earnings presentation, May 24, 2018
Slide 1: Q1 2018
Q1 2018 Jon Skule Storheill Øyvind Ryssdal 24/05/18 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 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.awilcolng.no -3-
Slide 4: Agenda 24/05 2018
Agenda 24/05 2018 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 1st quarter highlights
1st quarter highlights 1st quarter 2018 • Awilco LNG reported: − Net freight income MUSD 12.5 MUSD 7.3 in Q4 2017 − EBITDA MUSD 9.5 MUSD 4.2 in Q4 2017 − Net profit/(loss) MUSD 1.0 MUSD (4.5) in Q4 2017 • Vessel utilisation of 97 % compared to 83 % previous quarter • TCE* of USD ~69,200 pd (USD ~39,
Slide 6: Agenda 24/05 2018
Agenda 24/05 2018 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q1 2018 income statement
Q1 2018 income statement USD million Q1’18 Q4’17 2017 Freight income 13.8 9.6 20.4 Voyage related expenses (1.4) (2.3) (6.9) Net freight income 12.5 7.3 13.6 Operating expenses (1.9) (1.9) (7.9) Administration expenses (1.0) (1.2) (3.9) EBITDA 9.5 4.2 1.7 Depreciation (3.2) (3.2) (12.3) Net finance
Slide 8: Q1 2018 financial position
Q1 2018 financial position USD million 31.03.18 31.12.17 Vessels 361.8 363.9 Total non-current assets 361.8 363.9 Trade receivables 0.4 1.6 Other short term assets 6.0 5.1 Cash 30.1 29.0 Total current assets 36.5 35.7 Total assets 398.3 399.6 Total equity 128.0 127.0 Long-term interest bearing debt
Slide 9: Q1 2018 cash flow
Q1 2018 cash flow USD million Q1’18 Q4’17 2017 Cash Flows from Operating Activities: Profit/(loss) before taxes 1.0 (4.5) (31.8) Income taxes paid - - - Interest and borrowing costs expensed 5.4 5.5 22.2 Depreciation, amortisation and impairment 3.2 3.2 12.3 Trade receivables, inventory and other sh
Slide 10: Agenda 24/05 2018
Agenda 24/05 2018 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: LNGC rates
LNGC rates USD/DAY 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 • Utilisation and rates improved in Q4 2017 and into late January before softenin
Slide 12: Monthly global LNG trade
Monthly global LNG trade MT LNG 30 28 26 24 22 20 18 16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012-2016 Range 2012-2016 Average 2017 2018 (est) • Global LNG trade up by 6 % in Q1 2018, equating to 4.4 MT • Increase due to ramp up of production capacity added second half 2017, partially off
Slide 13: Gas price
Gas price USD/BBL USD/MMBTU 120 25 100 20 80 15 60 10 40 5 20 0 0 Brent (USD/BBL) HH NBP Spot DES Japan • Winter, China substituting coal with gas and the oil price increase pushed Far East prices to highest level in three years in Q1 2018 • Far East and NBP prices have fallen into the shoulder seas
Slide 14: LNG trade change
LNG trade change LNG EXPORT CHANGE Q1 2018 LNG IMPORT CHANGE Q1 2018 MT LNG MT LNG 4,0 6,0 5,0 3,0 4,0 3,0 2,0 2,0 1,0 1,0 0,0 0,0 -1,0 -1,0 -2,0 • LNG exports increased by 6 % • China up 59 % and South Korea up 15 % on switch to gas • No new production facilities added in Q1; exports up due to ramp
Slide 15: LNG production
LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 10 100 9 90 8 80 7 70 6 60 5 50 4 40 3 30 2 20 1 10 0 0 Started 2018 2018 2019 2020 2021 Total (RHS) • 30 MTPA of liquefaction capacity expected to start up in 2018, and a further 61 MTPA in 2019 – 2021 • Cheniere FID on Corpus Christi T3 this w
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook LNG FLEET AND ORDERBOOK EARLY MAY 2018 NO. VESSELS TOTAL FLEET 50 600 45 500 40 35 400 30 25 300 20 200 15 10 100 5 0 0 1976 2017 1977 1978 1979 1980 1981 1983 1984 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 17: Agenda 24/05 2018
Agenda 24/05 2018 1. Highlights 2. Financials Q1 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Increasing volumes and sailing distances creating a firm market – despite influx of newbuildings ─ Winter market high of USD 80’s pd and shoulder season low of USD 40’ pd in 2017/2018 vs USD 45’ pd and USD 28’ pd in 2016/2017 - seasonality still valid ─ US production and Chinese demand dri
Slide 19: Q&A: A Fully Integrated Pure Play LNG Transportation Provider
Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced Opportunistic strategy management team www.awilcolng.no - 19 -
Slide 20: 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 - 20 -