Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2016 Earnings Presentation
23 slides from Awilco Lng Asa's earnings presentation, Aug 31, 2016
Slide 1: Q2 2016
Q2 2016 Jon Skule Storheill Snorre Krogstad 31/08/16 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 31/08 2016
Agenda 31/08 2016 1. Company Overview and Highlights Q2 2. Financials Q2 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 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 -4-
Slide 5: 2nd Quarter Highlights
2nd Quarter Highlights 2nd quarter 2016 • Awilco LNG reported: − Net freight income of MUSD 7.2 MUSD 8.2 in Q1 2016 − EBITDA of MUSD 4.2 MUSD 4.9 in Q1 2016 − Net profit/(loss) of MUSD (11.5) MUSD (4.6) in Q1 2016 • WilEnergy and WilGas agreed sold for a combined gross price of MUSD 31.6 leading to
Slide 6: Contract Overview
Contract Overview 2016 2017 WilPride Available WilForce On charter Available WilPride: Available NW Europe mid-September WilForce: Employed until January 2017 www.awilcolng.no -6-
Slide 7: Agenda 31/08 2016
Agenda 31/08 2016 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q2 2016 Income statement
Q2 2016 Income statement USD million Q2’16 Q1’16 2015 Freight income 8.3 8.9 37.4 Voyage related expenses (1.1) (0.7) (4.9) Net freight income 7.2 8.2 32.5 Operating expenses (2.3) (2.4) (12.7) Administration expenses (0.7) (1.0) (4.0) EBITDA 4.2 4.9 15.8 Depreciation (3.4) (3.6) (16.6) Impairment (
Slide 9: Q2 2016 Balance sheet
Q2 2016 Balance sheet USD million 30.06.16 31.03.16 31.12.15 Vessels 377.6 418.9 422.5 Other non-current assets 0.1 0.1 0.1 Total non-current assets 377.7 419.0 422.6 Trade receivables 3.0 3.1 2.5 Other short term assets 4.6 5.1 3.1 Cash 5.7 10.8 17.3 Total current assets 13.2 18.9 22.8 Vessels held
Slide 10: Q2 2016 Cash flow
Q2 2016 Cash flow USD million Q2’16 Q1’16 2015 Cash Flows from Operating Activities: Profit/(loss) before taxes (11.5) (4.6) (36.3) Income taxes paid - - - Interest and borrowing costs expensed 5.8 5.9 24.1 Depreciation, amortisation and impairment 10.0 3.6 28.1 Trade receivables, inventory and othe
Slide 11: Agenda 31/08 2016
Agenda 31/08 2016 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: LNG rates
LNG rates LNG CHARTER RATES 138 – 165K MODERN VESSELS • After 3 years of declining rates the market has turned • New LNG production is finally starting to show an impact • Freight rates have improved but still far below historical average and profitable territory Source: Fearnley LNG www.awilcolng.n
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 • LNG is becoming a competitive energy source which will ensure demand • Arbitrage opportunities from Atlantic to Far East have been elim
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) • As a result of lack of arbitrage inter-basin trade has been declining, but the trend
Slide 15: LNG spot market
LNG spot market SPOT FIXTURES PER QUARTER # of fixtures 70 60 1 1 14 50 2 1 18 7 1 40 8 19 3 9 3 30 15 10 19 46 20 1 42 35 38 13 28 30 10 22 21 14 8 0 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 160M3 TFDE 138-150M3 ST 1st Generation • Increased production, new buyers and short term
Slide 16: LNG trade
LNG trade LNG EXPORT LNG IMPORT MT MT 1H YoY 1H YoY 8 3,5 7 2,5 6 5 1,5 4 0,5 3 2 -0,5 1 -1,5 0 -1 -2,5 Dubai Japan Israel Chile Taiwan Singapore Indonesia China Brazil Malaysia Turkey Egypt Canada USA Kuwait Jordan Korea Belgium Poland India Mexico Portugal Netherlands Dom Republic Argentina Thaila
Slide 17: LNG production
LNG production MTPA LNG PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 9 140 8 20 MT 26 MT 120 7 6 100 5 80 4 60 3 40 2 1 20 0 0 2016 2017 2018 2019 2020 Total • About 20 MTPA of new production capacity has been added first half 2016, ramp up to full capacity normally takes 6 months • Additional 26 MTP
Slide 18: LNG fleet orderbook
LNG fleet orderbook NEWBUILDING DELIVERIES BY QUARTER 25 140 120 20 2 100 15 80 1 1 1 60 10 1 18 1 40 13 12 5 11 8 8 9 7 7 7 20 4 3 3 0 1 1 0 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 • At start of 2016, order
Slide 19: Agenda 31/08 2016
Agenda 31/08 2016 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 19 -
Slide 20: Summary
Summary The market has finally turned ─ Rates still not good but trend is ─ Several charterers looking for medium term contracts with options Mid and long-term demand for LNG transportation remains strong ─ We are at the start of the biggest increase of LNG volumes in history ─ Limited newbuildi
Slide 21: Awilco LNG – summary
Awilco LNG – summary Sale of 2nd gen vessels secures solid cash position Soft earnings and utilisation on WilPride in 2nd quarter, improving in Q3 Market recovering as expected With two modern TFDE vessels available from 2017 ALNG is perfectly placed for the improving market conditions expec
Slide 22: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 22 -
Slide 23: 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 - 23 -