Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q2 2017 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, Aug 31, 2017
Slide 1: Q2 2017
Q2 2017 Jon Skule Storheill Øyvind Ryssdal 31/08/17 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 31/08 2017
Agenda 31/08 2017 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 2nd quarter highlights
2nd quarter highlights 2nd quarter 2017 • Awilco LNG reported: − Net freight income of MUSD 1.0 MUSD 0.8 in Q1 2017 − EBITDA of MUSD (1.8) MUSD (2.0) in Q1 2017 − Net profit/(loss) of MUSD (10.1) MUSD (10.4) in Q1 2017 • Vessel utilisation of 83 %, compared to 41 % in Q1 2017 • Renegotiated financia
Slide 6: Refinancing
Refinancing ▪ Front loaded reduction in BB rate payable to Teekay providing significantly lower cash breakeven ▪ Rate reduced from current level of USD 49,100 per day to: - USD 28,500 per day first 9 months Deferral of - USD 33,500 per day subsequent 12 months charter hire - USD 38,500 per day last
Slide 7: Agenda 31/08 2017
Agenda 31/08 2017 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q2 2017 income statement
Q2 2017 income statement USD million Q2’17 Q1’17 2016 Freight income 2.6 2.5 34.8 Voyage related expenses (1.6) (1.6) (2.8) Net freight income 1.0 0.8 32.0 Operating expenses (1.9) (1.9) (8.7) Administration expenses (0.9) (0.9) (3.5) EBITDA (1.8) (2.0) 19.8 Depreciation (2.9) (2.9) (12.9) Impairmen
Slide 9: Q2 2017 balance sheet
Q2 2017 balance sheet USD million 30.06.17 31.03.17 31.12.16 Vessels 368.6 369.2 371.8 Other non-current assets 0.1 0.1 0.1 Total non-current assets 368.7 369.3 371.9 Trade receivables 0.8 - 0.6 Other short term assets 4.3 5.2 5.8 Cash 34.7 19.4 30.0 Total current assets 39.8 24.6 36.4 Total assets
Slide 10: Q2 2017 cash flow
Q2 2017 cash flow USD million Q2’17 Q1’17 2016 Cash Flows from Operating Activities: Profit/(loss) before taxes (10.1) (10.4) (22.8) Income taxes paid - - - Interest and borrowing costs expensed 5.5 5.5 23.2 Depreciation, amortisation and impairment 2.9 2.9 19.5 Trade receivables, inventory and othe
Slide 11: Agenda 31/08 2017
Agenda 31/08 2017 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 11 -
Slide 12: LNG rates
LNG 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 • After a disappointing start of the year, activity and rates improved throughout
Slide 13: Monthly global LNG trade
Monthly global LNG trade MT LNG 27 25 23 21 19 17 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2013 2014 2015 2016 2017 (est) • Global LNG trade up by 13 % 1H 2017 compared to same period last year • Increased volumes from ramp-up of plants started in 2016, in addition to new capacity com
Slide 14: Gas price
Gas price USD/MMBTU USD/BBL 26 160 24 140 22 20 120 18 16 100 14 80 12 10 60 8 6 40 4 20 2 0 0 HH NBP Spot DES Japan Brent (USD/BBL) • The falling gas price trend stopped during the quarter • Europe – Far East arbitrage still closed leading to few re-loads • The low Henry Hub gas price drives export
Slide 15: LNG trade
LNG trade LNG exports YoY June 2017 YTD LNG imports YoY June 2017 YTD MT LNG MT LNG 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 • LNG exports increased by 13 % YoY • China imports are up 45 % YTD (July), and the trend is likely to • Australian and US ramp-up is continuing the increasing trend, and will do conti
Slide 16: LNG production
LNG production MTPA LNG PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 10 120 9 100 8 7 80 6 5 60 4 40 3 2 20 1 0 0 Started 2017 2017 2018 2019 2020 Total • Ramp-up takes about 6 months - full effect of 2016 capacity increase through 2017 • Gorgon T3 and Sabine Pass T3 completed by the end of Q1, while
Slide 17: LNG fleet and orderbook
LNG fleet and orderbook LNG FLEET AND ORDERBOOK 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 2011 2012 2013 2
Slide 18: Agenda 31/08 2017
Agenda 31/08 2017 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 18 -
Slide 19: Summary
Summary ➢ Firming market, but still seasonal and volatile ─ Improvement in rates, activity and ballast bonuses in Q2, further improvement in Q3 and is expected to continue firming going forward ─ As the LNG production capacity increases, fleet overcapacity will gradually be absorbed ─ Big 3 China, K
Slide 20: 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 management team Opportunistic strategy 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 -