Slide 1: Q2 2019
Q2 2019 CEO Jon Skule Storheill CFO Øyvind Ryssdal 29 August 2019 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
Agenda 29/08 2019 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 2nd quarter 2019 highlights
2nd quarter 2019 highlights Net freight income MUSD 2.7 MUSD 8.4 in Q1 2019 EBITDA MUSD (0.2) MUSD 5.0 in Q1 2019 Net profit/(loss) MUSD (8.6) MUSD (3.4) in Q1 2019 • 2nd quarter negatively impacted by weak rates and off-hire on WilForce • Utilisation 56 % compared to 90 % previous quarter • TCE* US
Slide 6: Agenda
Agenda 29/08 2019 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q2 2019 income statement
Q2 2019 income statement USD million Q2’19 Q1’19 2018 Freight income 3.9 9.4 40.0 Voyage related expenses (1.1) (1.0) (5.1) Net freight income 2.7 8.4 34.8 Other income 6.1 0.9 4.0 Operating expenses (8.3) (3.3) (12.5) Administration expenses (0.7) (1.0) (3.9) EBITDA (0.2) 5.0 22.4 Depreciation (3.3
Slide 8: Q2 2019 financial position
Q2 2019 financial position USD million 30.06.19 31.03.19 31.12.18 Vessels 356.5 358.9 362.1 Total non-current assets 356.5 358.9 362.1 Trade receivables 0.8 1.6 2.7 Other short term assets 12.8 6.8 6.1 Cash 16.4 18.7 22.5 Total current assets 30.1 27.1 31.4 Total assets 386.6 386.0 393.6 Total equit
Slide 9: Q2 2019 cash flow
Q2 2019 cash flow USD million Q2’19 Q1’19 2018 Cash Flows from Operating Activities: Profit/(loss) before taxes (8.6) (3.4) (11.4) Income taxes paid - - - Interest and borrowing costs expensed 5.2 5.2 21.5 Depreciation, amortisation and impairment 3.3 3.3 13.0 Trade receivables, inventory and other
Slide 10: Agenda
Agenda 29/08 2019 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 10 -
Slide 11: 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 Q2 • Average
Slide 12: LNG trade
LNG trade MT LNG LNG EXPORT CHANGE H1 Y-O-Y MT LNG LNG IMPORT CHANGE H1 Y-O-Y 22 8 20 18 7 16 6 14 5 12 10 4 8 3 6 2 4 2 1 0 -1 -2 -2 -4 • Mild weather in H1 and nuclear restarts reducing demand • Export growth of 23 MTPA so far in 2019, mainly from new from Japan and South Korea production capacity
Slide 13: Gas prices
Gas prices USD/MMBTU 12 10 8 6 4 2 0 HH NBP Spot DES Japan HH futures NBP futures JKM futures • Global gas prices currently lowest in 10 years, LNG delivered in Far East priced at ~USD 25/bbl oil equivalent • Forward gas prices supports floating storage • At current spot shipping rates cost of 1 mon
Slide 14: Floating storage
Floating storage AVAILABLE VESSELS FLOATING STORAGE VESSELS 40 40 35 35 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 hunt for storage ongoing due to contango • European storage levels above 90 % in August, the “sink” is filli
Slide 15: 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 1977 2018 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 2014 2015 2016 2017 2019 2020 2021 20
Slide 16: LNG production
LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA 12 120 10 100 8 80 6 60 4 40 2 20 0 0 Started 2019 2019 2020 2021 2022 2023 2024 Total (RHS) FID in 2019 • 111 MTPA capacity starting up 2019 – 2024 of which 69 MTPA in the US (~60 %) • ~35 % of total trade in 2018 at 325 MT (vs orderbook of 21
Slide 17: Agenda
Agenda 29/08 2019 1. Highlights 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary
Summary ➢ Despite weak start to 2019 due to weather and trade war, fundamentals are expected to improve ─ Charterers preparing for winter ─ Contango and full tanks in Europe supporting floating storage and long haul shipping ─ 8 % annual growth in LNG production ─ 7 % annual fleet growth (excluding
Slide 19: 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 - 19 -
Slide 20: 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 - 20 -