Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q3 2013 Earnings Presentation
24 slides from Awilco Lng Asa's earnings presentation, Nov 28, 2013
Slide 1: Q3 2013
Q3 2013 Jon Skule Storheill Snorre Krogstad 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 28/11 2013
Agenda 28/11 2013 1. Company Overview and Highlights Q3 2. Financials Q3 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 currently owns the 156,000 cbm WilForce and the three 125,000 cbm LNG vessels WilGas, WilPower and WilEnergy. In addition, the Company will take delivery of its second newbuilding fr
Slide 5: 3rd Quarter Highlights
3rd Quarter Highlights 3rd quarter 2013 • Awilco LNG reported: − Net freight income of MUSD 6.6 MUSD 7.5 in Q2 2013 − EBITDA of MUSD 0.4 MUSD 2.3 in Q2 2013 − Net profit of MUSD (2.5) MUSD (0.1) in Q2 2013 • Vessel utilisation of 58 % (trading vessels), compared to 54 % in Q2 2013 • First newbuildin
Slide 6: Contract Overview
Contract Overview 2013 2014 WilGas On charter (Petrobras) DD WilEnergy On charter Option WilForce Construction On subs WilPride Construction Available WilPower Available Lay-up WilGas: Employed until October - November 2014 WilEnergy: Employed until August - November 2014 WilForce: Open after maiden
Slide 7: Agenda 28/11 2013
Agenda 28/11 2013 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q3 2013 Income statement
Q3 2013 Income statement Total freight income MUSD 9.2 USD million Q3'13 Q2'13 Q1'13 2012 • Adjusting for bunker invoicing effect on single voyages, results at same level as Q2 Freight income 9.2 9.6 14.6 56.6 • 58 % utilisation trading vessels (54 % in Q2 2013) Voyage related expenses (2.6) (2.1) (
Slide 9: Q3 2013 Balance sheet
Q3 2013 Balance sheet USD million 30.09.13 30.06.13 31.12.12 Vessels 275.8 70.5 73.6 Vessels MUSD 338.9 Vessels under construction 63.1 125.2 121.9 • Book value existing vessels MUSD 275.8 • Capitalised MUSD 145.1 in supervision and construction cost Other non-current assets 0.4 0.4 0.3 newbuildings
Slide 10: Q3 2013 Cash flow
Q3 2013 Cash flow USD million Q3'13 Q2'13 2012 Cash Flows from Operating Activities: Operating activities MUSD 1.8 Profit/(loss) before taxes (2.5) (0.1) 19.9 Taxes paid - - (0.1) Investing activities MUSD (144.5) Depreciation and amortisation 2.2 2.0 7.7 • MUSD 144.3 supervision and construction of
Slide 11: Sale-Leaseback
Sale-Leaseback Main terms sale-leaseback Teekay LNG Partners L.P. • Awilco LNG and Teekay LNG Partners L.P. have entered into sale lease-back for WilPride at following main terms: - Sale price: MUSD 205 - Pre-paid hire: MUSD 50 (will not be used towards BB hire, and be constant for the period) - Ter
Slide 12: Agenda 28/11 2013
Agenda 28/11 2013 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 12 -
Slide 13: Rate development
Rate development Gas spread vs. Spot rate USD/MMBTU USD/day 11 160 000 Spread LNG Spot Asia - NBP (Left) LNG spot rate freight rate (Right) 140 000 9 120 000 7 100 000 5 80 000 60 000 3 40 000 1 20 000 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9
Slide 14: Production issues
Production issues Ton-miles LNG production vs. Ton-miles MTPA 1200 300 1000 250 800 200 600 150 400 100 200 0 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 E 2013 est production last 4 months LNG production (right) Ton-miles - In 2012 the global liquefaction utilization ca
Slide 15: LNG production growth
LNG production growth LNG capacity and production 400 350 300 250 200 150 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 * Estimated based on same production as last 4 months of 2012 New Capacity Nameplate Capacity Existing production - As of mid-2013 there were 30 trains under construction with
Slide 16: World LNG fleet by year built
World LNG fleet by year built LNG Fleet (> 100 000 cbm) development and orderbook Fleet Newbuildings 500 50 450 45 400 40 350 35 300 30 5 250 25 18 2 200 20 150 3 15 24 22 100 2 10 14 14 50 9 5 0 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 20
Slide 17: Deliveries in percentage of fleet
Deliveries in percentage of fleet LNG fleet cbm - orderbook in percentage CBM % increase 80 000 000 35% % increase Cumulative CBM 70 000 000 30% 60 000 000 25% 50 000 000 20% 40 000 000 15% 30 000 000 10% 20 000 000 10 000 000 5% - 0% 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Slide 18: Efficiency modern vs old vessels
Efficiency modern vs old vessels Freight cost comparison * USD /Day MT/Day 120 000 190 180 100 000 170 160 80 000 150 140 60 000 130 40 000 120 110 20 000 100 DFDE Modern Steam 1st Gen Dayrate basis cost per MMBTU $1 (left) Consumption ballast MT (right) * Based on: Round-trip Dampier/Tokyo/Dampier,
Slide 19: China growth potential
China growth potential Chinese import capacity growth MTPA 80 70 60 50 40 70 30 47 20 37 10 19 22 15 0 2011 2012 2013e 2014e 2015e 2020e - China increased import by 19% in the first 9 months compared to same period 2012 - 2013 estimated import capacity of 22 MTPA - Six import terminals operating, ni
Slide 20: Agenda 28/11 2013
Agenda 28/11 2013 1. Company Overview and Highlights Q3 2. Financials Q3 3. Market update 4. Summary www.awilcolng.no - 20 -
Slide 21: Summary Market
Summary Market Short term market – winter market looking firm − Disruption in production remains a factor − Tonnage surplus remains thin Medium term market – particularly challenging for older vessels − Increased production not likely to keep up with newbuilding deliveries − Anticipated weakening ma
Slide 22: Summary Awilco LNG
Summary Awilco LNG Acquired, financed and operating three 2 nd gen vessels Established the organization and in-house technical management Ordered and supervised the construction of two newbuildings Financed newbuildings Maiden voyage WilForce Midterm contract WilForce Maiden voyage WilPride Mi
Slide 23: Q&A A Pure Play LNG Transportation Provider
Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of 2 newbuildings 3 LNG carriers world class yard Tier 1 customers Solid owners Experienced management team Opportunistic strategy www.awilcolng.no - 23 -
Slide 24: 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 - 24 -