Awilco Lng Asa · OSL:ALNG
Awilco Lng Asa — Q4 2018 Earnings Presentation
22 slides from Awilco Lng Asa's earnings presentation, Feb 28, 2019
Slide 1: Q4 2018
Q4 2018 Jon Skule Storheill Øyvind Ryssdal 28 February 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 28/02 2019
Agenda 28/02 2019 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -4-
Slide 5: 4th quarter 2018 highlights
4th quarter 2018 highlights 4th quarter 2018 Net freight income MUSD 10.4 MUSD 7.4 in Q3 2018 EBITDA MUSD 7.1 MUSD 3.8 in Q3 2018 Net profit/(loss) MUSD (1.2) MUSD (4.8) in Q3 2018 • Utilisation 84 % compared to 70 % previous quarter (excluding DD off-hire) • TCE* USD 62,900 pd (USD 45,000 pd in Q3
Slide 6: Agenda 28/02 2019
Agenda 28/02 2019 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no -6-
Slide 7: Q4 2018 income statement
Q4 2018 income statement USD million Q4’18 Q3’18 2018 2017 Freight income 11.1 8.6 40.0 20.4 Voyage related expenses (0.7) (1.3) (5.1) (6.9) Net freight income 10.4 7.4 34.8 13.6 Other income - 4.0 4.0 - Operating expenses (1.9) (6.7) (12.5) (7.9) Administration expenses (1.4) (0.8) (3.9) (3.9) EBIT
Slide 8: Q4 2018 financial position
Q4 2018 financial position USD million 31.12.18 30.09.18 31.12.17 Vessels 362.1 360.9 363.9 Total non-current assets 362.1 360.9 363.9 Trade receivables 2.7 4.8 1.6 Other short term assets 6.1 8.4 5.1 Cash 22.5 24.3 29.0 Total current assets 31.4 37.4 35.7 Total assets 393.6 398.3 399.6 Total equity
Slide 9: Q4 2018 cash flow
Q4 2018 cash flow USD million Q4’18 Q3’18 2018 2017 Cash Flows from Operating Activities: Profit/(loss) before taxes (1.2) (4.8) (11.4) (31.8) Income taxes paid - - - - Interest and borrowing costs expensed 5.4 5.4 21.5 22.2 Depreciation, amortisation and impairment 3.2 3.3 13.0 12.3 Trade receivabl
Slide 10: Agenda 28/02 2019
Agenda 28/02 2019 1. Highlights 2. Financials Q3 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 • All time high assessed rate in November 2018 at USD 185,000 pd • Averag
Slide 12: Why?
Why? ➢ Record number of newbuildings delivered in 2018 ➢ China well prepared and stocked up ahead of winter (vs scramble last winter) ➢ Close to 30 vessels used for storage in Far East in Nov all discharged in Dec ➢ Warm winter in the Far East caused by El Niño ➢ US exports to China halted in H2 201
Slide 13: What now?
What now? ➢ 39 newbuildings delivering in 2019, 15 in Q1 ➢ Finally seeing “normalized” activity level in LNG spot market ➢ Recent reports from US – China trade talks promising - could lead to massive long haul volumes ➢ Assuming policy driven trade US – China, EU will have to source LNG from further
Slide 14: LNG trade
LNG trade LNG EXPORT CHANGE 2018 vs 2017 LNG IMPORT CHANGE 2018 vs 2017 MT LNG MT LNG 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 -2 -4 -4 • In total new capacity of 44 MTPA vs export growth 23 MT in 2018 • Policy driven fuel switching in China and South Korea driving • Australia’s production capaci
Slide 15: Record ordering and deliveries…
Record ordering and deliveries… NO. VESSELS 20 18 16 14 12 10 8 6 4 2 0 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Delivered Available Fixed • 49 vessels delivered and 64 newbuild orders in 2018, 13 orders s
Slide 16: ..for a reason!
..for a reason! LNG PRODUCTION 2011 - 2021 TON-MILE 2011 - 2021 Total ton-mile MT LNG demand (bn) 450 4 500 9 % CAGR 13 % CAGR 400 4 000 350 3 500 2 % CAGR 0 % CAGR 300 3 000 250 2 500 200 2 000 150 1 500 100 1 000 50 500 0 0 • 83 MTPA scheduled to come online in 2019 – 2024 • Ton-mile demand increa
Slide 17: China’s appetite for LNG not slowing
China’s appetite for LNG not slowing IMPORT CAPACITY DOUBLING 2018 IMPORT CAPACITY UTILISATION • China imported 53 MT LNG in 2018, up 40 % YOY • Aims to grow import capacity from 67.5 MTPA to 247 MTPA in 2035 – 9 % annual growth • 12.5% of LNG imports used by LNG powered buses/trucks Source: Shell E
Slide 18: LNG as a fuel
LNG as a fuel LNG FUELLED VESSELS HEAVY DUTY TRANSPORT IN CHINA GLOBAL FLEET AND ORDERBOOK • Global fleet of 143 LNG-fuelled vessels and orderbook of 135 • ~ 44 % annual growth in LNG powered heavy duty trucks and buses • First LNG-powered cruise ship entered service in December 2018 • Some 350,000
Slide 19: Agenda 28/02 2019
Agenda 28/02 2019 1. Highlights 2. Financials Q4 3. Market update 4. Summary www.awilcolng.no - 19 -
Slide 20: Summary
Summary ➢ Despite short term seasonal low Owner’s expectations for the coming three years are high ─ 9 % annual growth in LNG production (vs 2 % growth in 2011 – 2016) ─ 13 % annual growth in ton-miles (vs no growth in 2011 – 2016) ─ 7 % annual fleet growth (excluding phase out) ➢ Mid- and long-term
Slide 21: Q&A
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 - 21 -
Slide 22: 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 - 22 -