Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Investor Presentation (May 2017)
25 slides from Awilco Lng Asa's investor presentation, May 18, 2017
Slide 1: Company Presentation
Company Presentation 18 May 2017 www.awilcolng.no -1-
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Awilco LNG ASA (the “Company”, jointly, together with its subsidiaries, the "Group") solely for use in its dialogue with possible investors (“Recipients”) in a contemplated private placement of new shares by the Company (the “Offer Shares”) with selec
Slide 3: Risk factors
Risk factors Risks related to the Company and the LNG industry The Company's business, financial condition, results of operations and ability to pay dividends depend on the level of activity in the gas industry in general and the LNG industry in particular which can be materially adversely affec
Slide 4: Risk factors
Risk factors The Company relies on a significant supply of consumables, spare parts and equipment. Cost increases, delays or unavailability could negatively impact the Company's operations and result in higher downtime due to the repair and maintenance of its fleet. The Company's vessel operatin
Slide 5: Agenda
Agenda 1 Executive summary 2 Awilco LNG 3 LNG shipping market 4 Financials www.awilcolng.no -5-
Slide 6: Key highlights
Key highlights Renegotiated flexible agreement Ideal timing to participate in with Teekay to extend charter LNG market recovery period and defer charter hire Awilco LNG will be fully financed through the equity issuance Crude / LNG market fundamentals set for products recovery – reflecting sig
Slide 7: Significant relief and extensions secured
Significant relief and extensions secured Key highlights of renegotiated agreement with Teekay Front loaded reduction in bare-boat rate payable to Teekay providing significantly lower cash breakeven – total of USD 29.3m deferred Rate reduced from current level of USD 49,100 per day to: Deferral
Slide 8: An attractive entry point with significant recovery potential
An attractive entry point with significant recovery potential Renegotiated flexible agreement with Teekay provides bridge to full market recovery An attractive pure-play on LNG recovery Short-term LNG fundamentals improving – long term outlook firm Opportunistic strategy for maximising shareholder v
Slide 9: Agenda
Agenda 1 Executive summary 2 Awilco LNG 3 LNG shipping market 4 Financials www.awilcolng.no -9-
Slide 10: Modern fleet with two sister vessels
Modern fleet with two sister vessels WilForce WilPride Pure-play exposure towards LNG transportation market Vessels currently trading in the spot market – with full exposure to improving market conditions Homogenous fleet of modern Year built Yard 2013 DSME Year built Yard 2013 DSME Daewoo-bui
Slide 11: Focused LNG owner and operator
Focused LNG owner and operator Fully integrated LNG transportation provider Trading with a growing list of clients In-house commercial operation 22 different charterers 48 terminals called Established at startup in 2011 Fixed in excess of 40 contracts from spot to Mid-term ENI mid-term clien
Slide 12: Robust headroom whilst significant upside potential retained
Robust headroom whilst significant upside potential retained Renegotiated bareboat rates with Teekay Cash generation to YE2019 at historical rates USD / day USDm 60,000 155-165k cbm dayrate1: USD 72,400 USD 80,000 50,000 52 40,000 >40% reduction 37 30,000 20,000 10,000 0 Jun-17 Dec-17 Jun-18 Dec-18
Slide 13: Highly experienced management team and board
Highly experienced management team and board Executive management team Board of Directors Jon Skule Storheill – Co-founder / Chief Executive Officer since 2011 Sigurd E. Thorvildsen – Chairman and Non-Executive Director Prior experience: CEO of the Awilhelmsen group and Chairman of the Board of
Slide 14: Agenda
Agenda 1 Executive summary 2 Awilco LNG in brief 3 LNG shipping market 4 Financials www.awilcolng.no - 14 -
Slide 15: LNG trade patterns becoming increasingly fragmented demanding further vessels
LNG trade patterns becoming increasingly fragmented demanding further vessels Traditional and emerging trading routes Cargoes following new trade patterns with emerging long- haul routes Cheap US LNG prices catering for long-distance cargoes to Far East destinations − 2016 average 1.7 ships/mtpa
Slide 16: LNG volumes to significantly out-grow the current orderbook
LNG volumes to significantly out-grow the current orderbook LNG production capacity Deliveries – current orderbook Million mt Million CBM 450 120 +62% 400 100 350 300 80 +27% 250 Additional vessels may be 60 ordered for delivery in 2020/2021 in response to 200 future demand and improving vessel prof
Slide 17: Few available LNG vessels to compete in the spot market
Few available LNG vessels to compete in the spot market Current orderbook – number of vessels Number of vessels 17 1 90% of the orderbook is committed (94 out of 13 13 13 104 vessels) 2 Limited speculative newbuilding orders 9 9 expected to create 8 1 16 7 attractive spot market 1 opportunities
Slide 18: LNG rates show signs of tightening spot market and improved negotiation conditions
LNG rates show signs of tightening spot market and improved negotiation conditions Historical LNG spot rates (USD / day) USD / Day 50,000 180,000 45,000 Market shows early 160,000 40,000 signs of recovery, as 35,000 seasonal demand 140,000 fluctuations quickly 30,000 absorb the moderate 120,000 25
Slide 19: Year on year improvement evident in monthly lifting statistics
Year on year improvement evident in monthly lifting statistics Monthly global LNG trade MT LNG 26 25 Global LNG trade up by 24 12% in Q1 2017 compared to same 23 period last year New LNG production 22 capacity added in 2016 was 37MT – full 21 production expected to be reached during 2017 20 Se
Slide 20: Key market trends
Key market trends Continued political support for natural gas as a clean, cheap and available source of energy Exports of LNG set to grow unprecedented the coming next years reflecting increase in export capacity Significant increase in exports particularly out of the US representing long-haul
Slide 21: Agenda
Agenda 1 Executive summary 2 Awilco LNG in brief 3 LNG shipping market 4 Financials www.awilcolng.no - 21 -
Slide 22: Financials – Income statement
Financials – Income statement USD million Q1’17 2016 2015 Freight income: Q1’17: both vessels traded in weak spot market at 41% Freight income 2.5 34.8 37.4 utilization Voyage related expenses (1.6) (2.8) (4.9) 2016: WilForce employed on a 3 year high earning TC, redelivered December 2016. Wil
Slide 23: Financials – Balance sheet
Financials – Balance sheet USD million 31.03.17 31.12.16 31.12.15 Non-current liabilities 31.3.2017: USD 255.4m long-term portion of WilForce and WilPride Vessels 369.2 371.8 422.5 financial lease liabilities Other non-current assets 0.1 0.1 0.1 Current liabilities 31.3.2017: Total non-current
Slide 24: Financials – Cash flow
Financials – Cash flow USD million Q1’17 2016 2015 Cash flows from investing activities: 2016: USD 32.2m net proceeds from sale of Cash Flows from Operating Activities: WilGas and WilEnergy, investment in vessels Profit/(loss) before taxes (10.4) (22.8) (36.3) of USD 0.3m Income taxes paid - - -
Slide 25: 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 - 25 -