Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q1 2012 Earnings Presentation
24 slides from Awilco Lng Asa's earnings presentation, May 23, 2012
Slide 1: Q1 2012
Q1 2012 Jon Skule Storheill Snorre Krogstad www.awilcolng.no -1-
Slide 2: Agenda
Agenda 23/05 1. Company overview and Highlights Q1 2. Q1 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: 1st Quarter Highlights
1st Quarter Highlights • Awilco LNG reported freight income of MUSD 17.7 (MUSD 16.8 in Q4 2011) and an EBITDA of MUSD 11.8 MUSD 10.9 in Q4 2011) • WilEnergy contract period extended to 365 days, and the vessel is thus on contract until February 2013 • WilEnergy completed dry dock 16th February on ti
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 June 2012 WilEnergy: Available February 2013 Newbuilding No.1 Available August 2013 Newbuilding No.2 Available November 2013 WilGas
Slide 6: Agenda
Agenda 23/05 1. Company overview and Highlights Q1 2. Q1 Financials 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q1 2012 Income statement
Q1 2012 Income statement Total freight revenue MUSD 17.7 • No mobilization fees (MUSD 2.0 Q4) USD million Q1'12 Q4'11 2011 Freight income 17.7 16.8 30.7 Voyage related expenses MUSD -1.2 • Dry dock of WilEnergy Voyage related expenses -1.2 -0.7 -10.0 Net freight income 16,6 16.1 20.7 Operating expen
Slide 8: Q1 2012 Balance sheet
Q1 2012 Balance sheet USD million 31.03.12 31.12.11 Vessels 71.3 69.9 Vessels MUSD 170.5 Vessels under construcction 99.2 79.2 • Book value of existing vessels MUSD 71.3 • Paid in installment on newbuildings of MUSD 20.0 Other non-current assets 0.1 0.1 during the quarter Total non-current assets 17
Slide 9: Q1 2012 Cash flow
Q1 2012 Cash flow USD million Q1'12 Q4'11 2011 Cash flows from operating activities: Operating activities MUSD 15.2 Profit/(loss) before taxes 9.9 9.0 (0.6) • Increased profits before taxes Depreciation and amortization 2.2 1.7 3.9 Trade receivables, inventory and other short term assets 1.0 5.1 (4.
Slide 10: Agenda
Agenda 23/05 1. Company overview and Highlights Q1 2. Q1 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 • Soft start of the year with less activity as maintenance and • Tight market with few available ships seasonality come into play • 3 tenders concluded ytd: Woodside, Sakhalin and BG (7 • Scheduled and unscheduled shut downs at various vessels) production plants • Ichtys, Yamal and
Slide 13: LNG import
LNG import • Q1 2012 imports up 24% y-o-y to 23.9 million tonnes, new • Q1 imports up 40% y-o-y, to 3.3 million tonnes all time high • The Chinese government has targeted in last 5 year plan to • All nuclear reactors (54) shut down increase the share of gas in total energy demand from 4% in • Restar
Slide 14: LNG project growth 2012-2017
LNG project growth 2012-2017 Expected increase in LNG production • U.S production MTPA (not including ramp-up) - Chenniere recently received export 18.5 Mtpa ex Sabine Pass 200 - Further advanced and likely export projects (Freeport + 180 Cameron) in final stages awaiting approval totally and 160 li
Slide 15: Chinese gas demand
Chinese gas demand ChineseChinese gas gas demand anddemand and supply supply by source (bcm) by source (bcm) 450 400 400 73 350 300 260 97 250 63 200 80 56 150 109 7 100 135 150 50 97 0 2010 2015e 2020e Pipeline imports LNG imports Shale prod. Conventional prod. China • Gas consumption expected to i
Slide 16: World LNG Fleet by Year of Built
World LNG Fleet by Year of Built • Total orderbook – 71 vessels, of which 39 are assumed committed and 32 open (excl FSRU). • Limited yard capacity until end 2014, options will most likely be utilized • Orderbook expected to grow from 2015 onwards, annual yard capacity about 50 vessels/year Source:
Slide 17: Agenda
Agenda 28/02 1. Company overview and Highlights Q1 2. Q1 Financials 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary Market • LNG demand: Expected to grow steadily • Liquefaction capacity: Capacity is set to grow - 90 Mtpa under construction - 90 Mtpa additional FID in period 2012 to 2013 • Shipping: - Shortage of vessels expected next two years - Limited orderbook until end 2014 - Trading distances is exp
Slide 19: 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 - 19 -
Slide 20: Appendix
Appendix www.awilcolng.no - 20 -
Slide 21: 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 22: 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 23: www.awilcolng.no
www.awilcolng.no - 23 -
Slide 24: 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 - 24 -