Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Pareto Conference 2019
16 slides from Awilco Lng Asa's conference presentation, Sep 11, 2019
Slide 1: Pareto
PARETO 11 September 2019 CEO Jon Skule Storheill 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
Agenda 11/09 2019 1. Company 2. Market 3. Summary www.awilcolng.no -3-
Slide 4: Company overview
Company overview Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG carriers. The Company owns two 2013 built 156,000 cbm TFDE LNG carriers, WilPride and WilForce, trading in the short term/spot market achieving about 80 % utilisation since delivery. Awi
Slide 5: It's been an eventful last 12 months
It’s been an eventful last 12 months Commercial ▪ All-time high spot market Q4 2018, weak first half of 2019 ▪ Q3 2018 WilForce delivered on an 9-12 month time charter with annualised EBITDA of MUSD 26 ▪ July 2019 WilPride delivered on an 8-month time charter with annualised EBITDA of MUSD 23 ▪ 90 %
Slide 6: The short and sweet (spot)
The short and sweet (spot) SHORT TERM MARKET < 2 YEARS 100 35% 90 30% 80 70 25% 60 20% 50 15% 40 30 10% 20 5% 10 0 0% Short term volumes (LHS) In % of Total LNG trade (RHS) • Short-term trade was 99 MT of 325 MT total trade in 2018 - almost a doubling of market share in 10 years • Further growth dri
Slide 7: Spot rates
Spot rates USD/DAY 200 000 180 000 160 000 140 000 120 000 100 000 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 • Mild weather in the Far East impacting demand and rates in H1 • Average
Slide 8: Winter market coming?
Winter market coming? EUROPEAN GAS STORAGE ASIAN NET LNG IMPORTS Tank capacity used % MT LNG 100 13 90 12 80 70 11 60 10 50 40 9 30 8 20 7 10 0 6 2017 2018 2019 Avg last 5 years 2018 2019 • EU LNG imports more than doubled in H1 y-o-y • Still solid growth in China at 20 % y-o-y; H1 2019 imports of •
Slide 9: Floating storage
Floating storage NO. VESSELS AVAILABLE VESSELS NO. VESSELS FLOATING STORAGE VESSELS 40 40 35 35 All-time high spot rates ~USD 200,000 30 30 25 25 20 20 15 15 10 10 5 5 0 0 All basins Pacific Ocean Indian Ocean Atlantic Ocean 2016 2017 2018 2019 • Global gas prices currently lowest in 10 years, LNG d
Slide 10: Trainspotting
Trainspotting MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 140 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2019 2019 2020 2021 2022 2023 2024 2026 Total (RHS) FID in 2019 • 125 MTPA capacity starting up 2019 – 2024 of which 69 MTPA in the US (~55 %) • ~40 % of total trade in 2018 at 325 MT (vs orderboo
Slide 11: LNG fleet and orderbook
LNG fleet and orderbook NO. VESSELS TOTAL FLEET 60 700 50 600 500 40 400 30 300 20 200 10 100 0 0 Available (LHS) Fixed (LHS) Delivered (LHS) Total fleet (RHS) • 29 vessels delivered year to date, 10 further vessels scheduled – down 20% from 2018 • Total fleet 506 vessels > 125’ cbm • Orderbook is 1
Slide 12: Vessel demand
Vessel demand TRADEWAR (WHAT IS IT GOOD FOR) REPLACEMENT OF STEAM VESSELS VESSELS VESSELS VESSELS 3 20 80 18 1 70 16 2 60 14 5 2 12 1 50 10 3 40 18 2,41 8 30 1 2,14 14 6 11 12 9 20 1,09 4 0,87 10 2 - 0 0 Australia - China US - Europe US - India US - China Vessels needed to transport 1 MTPA of LNG ST
Slide 13: Agenda
Agenda 11/09 2019 1. Company 2. Market 3. Summary www.awilcolng.no - 13 -
Slide 14: Summary
Summary ➢ Despite weak start to 2019 due to weather and trade war, fundamentals are improving ─ Charterers preparing for winter with increased demand ─ Contango and full tanks in Europe supporting floating storage and long haul shipping ─ 40 % growth in LNG production under construction ─ 22 % fleet
Slide 15: 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 - 15 -
Slide 16: 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 - 16 -