Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2016 Earnings Presentation
21 slides from Awilco Lng Asa's earnings presentation, Feb 15, 2017
Slide 1: Q4 2016
Q4 2016 Jon Skule Storheill Snorre Krogstad 15/02/17 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 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 15/02 2017
Agenda 15/02 2017 1. Highlights and financials Q4 2. Market update 3. Summary www.awilcolng.no -4-
Slide 5: 4th Quarter Highlights
4th Quarter Highlights 4th quarter 2016 • Awilco LNG reported: − Net freight income of MUSD 8.8 MUSD 7.8 in Q3 2016 − EBITDA of MUSD 6.1 MUSD 4.6 in Q3 2016 − Net profit/(loss) of MUSD (2.5) MUSD (4.2) in Q3 2016 • Vessel utilisation of 83 %, compared to 80 % in Q3 2016 (trading vessels) Full year 2
Slide 6: Q4 2016 Income statement
Q4 2016 Income statement USD million Q4’16 Q3’16 2016 2015 Freight income 9.1 8.4 34.8 37.4 Voyage related expenses (0.3) (0.7) (2.8) (4.9) Net freight income 8.8 7.8 32.0 32.5 Operating expenses (1.8) (2.2) (8.7) (12.7) Administration expenses (0.9) (0.9) (3.5) (4.0) EBITDA 6.1 4.6 19.8 15.8 Deprec
Slide 7: Q4 2016 Balance sheet
Q4 2016 Balance sheet USD million 31.12.16 30.09.16 31.12.15 Vessels 371.8 374.7 422.5 Other non-current assets 0.1 0.1 0.1 Total non-current assets 371.9 374.8 422.6 Trade receivables 0.6 2.6 2.5 Other short term assets 5.8 4.0 3.1 Cash 30.0 34.5 17.3 Total current assets 36.4 41.1 22.8 Total asset
Slide 8: Q4 2016 Cash flow
Q4 2016 Cash flow USD million Q4’16 2016 2015 Cash Flows from Operating Activities: Profit/(loss) before taxes (2.5) (22.8) (36.3) Income taxes paid - - - Interest and borrowing costs expensed 5.7 23.2 24.1 Depreciation, amortisation and impairment 2.9 19.5 28.1 Trade receivables, inventory and othe
Slide 9: Agenda 15/02 2017
Agenda 15/02 2017 1. Highlights and financials Q4 2. Market update 3. Summary www.awilcolng.no -9-
Slide 10: 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 DFDE Historic Ave. spot rate 138-145 K st Historic Ave. spot rate 155-165 K DFDE • Activity and rates bottomed during summer of 2016, and improved throughout Q4
Slide 11: Monthly global LNG trade
Monthly global LNG trade MT LNG 24 23 22 21 20 19 18 2013 2014 2015 2016 • Global trade was up by 7 % in 2016 • New LNG production capacity added in 2016 was 41 MT – global trade expected to increase more in 2017 and 2018 • Seasonality is still valid in LNG trading, but new production capacity comin
Slide 12: Gas price
Gas price USD/MMBTU 24 22 20 18 16 14 12 10 8 6 4 2 0 HH NBP Spot DES Japan • Due to cold weather and low inventory, gas price in Far East increased sharply Q4 and hit highest level since 2014 • Far East price coming off at the end of the quarter while Europe sees cold weather and increasing prices
Slide 13: LNG trade
LNG trade LNG exports yoy 2016 LNG imports yoy 2016 MT MT 16 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 -4 -4 • LNG exports increased by 7.2% YoY • China, India and Egypt showing continued strong demand • Total new LNG production capacity increased by 41 MT vs. 17.5 • Europe is price sensitive a
Slide 14: LNG spot market
LNG spot market # of fixtures Spot fixtures per quarter 90 80 1 70 15 4 11 60 9 1 50 2 1 16 1 7 40 8 19 3 3 9 30 15 63 58 56 10 1 19 20 42 40 35 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 Q3'16 Q4'16 160M3 TFDE 138-150M3 ST 1st Generation • 274 fixtures reco
Slide 15: LNG production
LNG production MTPA LNG PRODUCTION CAPACITY UNDER CONSTRUCTION MTPA 9 140 8 7 120 41 MT 6 100 5 80 4 60 3 40 2 1 20 0 0 Est. Produced Started 2016 2017 2018 2019 2020 Total • About 41 MTPA of new production capacity added in 2016 • Ramp-up takes about 6 months - full effect of 2016 capacity increase
Slide 16: LNG fleet and orderbook
LNG fleet and orderbook LNG Fleet and orderbook Total fleet No. vsls 50 600 45 500 40 35 400 30 25 300 20 200 15 10 100 5 0 0 Open order (LHS) Comitted Order (LHS) Delivered (LHS) Total fleet (RHS) • Total orderbook 109 vessels – of which only 7 are available • 41 vessels were scheduled for delivery
Slide 17: Agenda 15/02 2017
Agenda 15/02 2017 1. Highlights and financials Q4 2. Market update 3. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary Market has turned – but still volatile ─ Q4 experienced highest rates in two years ─ Softer market so far in Q1 but rates still significantly higher than last year ─ Continued seasonal variations ─ Fluctuating ton-mile due to price variations Mid- and long-term demand for LNG transportat
Slide 19: Awilco LNG – summary
Awilco LNG – summary Awilco LNG offers full LNG spot market exposure Expect improving and firmer markets going forward – but still volatility With two modern TFDE vessels available from 2017 ALNG is perfectly positioned for improving market www.awilcolng.no - 19 -
Slide 20: 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 - 20 -
Slide 21: 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 - 21 -