Slide 1: Q2 2013
Q2 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 27/8 2013
Agenda 27/8 2013 1. Company Overview and Highlights Q2 2. Financials Q2 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 Group owns three 125,000 cbm LNG vessels: WilGas, WilPower and WilEnergy. In addition, the Group will take delivery of two 155,900 LNG newbuildings from Daewoo Shipbuilding & Marine Engineer
Slide 5: 2nd Quarter Highlights
2nd Quarter Highlights 2nd quarter 2013 • Awilco LNG reported: − Net freight income of MUSD 7.5 MUSD 12.0 in Q1 2013 − EBITDA of MUSD 2.3 MUSD 5.9 in Q1 2013 − Net profit of MUSD (0.1) MUSD 4.0 in Q1 2013 • Vessel utilisation of 54 % (trading vessels), compared to 62 % in Q1 2013 Subsequent events •
Slide 6: Contract Overview
Contract Overview 2013 2014 WilEnergy Available Newbuilding no 1 Construction Available Newbuilding no 2 Construction Available WilGas On charter (Petrobras) DD WilPower Available Lay-up WilEnergy: Due for re-delivery end of August after a single voyage Newbuilding no.1: Available from September 201
Slide 7: Agenda 27/8 2013
Agenda 27/8 2013 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no -7-
Slide 8: Q2 2013 Income statement
Q2 2013 Income statement Total freight income MUSD 9.6 USD million Q2'13 Q1'13 2012 • Decrease from Q1 due to lower utilisation and charter rates for WilEnergy Freight income 9.6 14.6 56.6 • 54 % utilisation trading vessels (62 % in Q1 2013) Voyage related expenses (2.1) (2.6) (4.3) Voyage related e
Slide 9: Q2 2013 Balance sheet
Q2 2013 Balance sheet USD million 30.06.13 31.03.13 31.12.12 Vessels 70.5 72.1 73.6 Vessels MUSD 195.7 Vessels under construction 125.2 122.8 121.9 • Book value existing vessels MUSD 70.5 • Supervision and construction cost newbuildings MUSD 2.3 Other non-current assets 0.4 0.3 0.3 during the quarte
Slide 10: Q2 2013 Cash flow
Q2 2013 Cash flow USD million Q2'13 Q1'13 2012 Operating activities MUSD 1.6 Cash Flows from Operating Activities: • Decreased inventory and trade receivables offset by decreased trade payables Profit/(loss) before taxes (0.1) 3.8 19.9 Taxes paid - - (0.1) Depreciation and amortisation 2.0 2.0 7.7 I
Slide 11: Sale-Leaseback
Sale-Leaseback Main terms sale-leaseback Teekay LNG Partners L.P. • Awilco LNG and Teekay LNG Partners L.P. entered into following transaction on 4 August: - Vessel: Newbuilding no. 1, option newbuilding no. 2 at similar terms - Sale price: MUSD 205 - Pre-paid hire: MUSD 50 (will not be used towards
Slide 12: Agenda 27/8 2013
Agenda 27/8 2013 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 12 -
Slide 13: LNG spot charter rates
LNG spot charter rates LNG spot charter rates USD / day 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 - Week 40 46 52 6 12 18 24 30 36 42 48 2 8 14 20 26 32 Year 2011 2012 2013 Average Spot Rate 138-145k ST Average Spot Rate 120-130k 1st Gen. Average Spot Rate 155-165k DFDE • R
Slide 14: LNG ton-mile
LNG ton-mile Ton-mile Q1 and Q2 2005 - 2013 Ton-mile 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 Q2 • Ton-mile down quarter on quarter compared to last year and last quarter - Unplanned shutdowns and Force Majeure Nigeria - Reduced gas price spread Source: Arctic Securit
Slide 15: US LNG export potential
US LNG export potential MTPA200 US LNG export potential 8,4 180 Non-FTA Approved FTA Approved 19,9 160 8,2 11,5 140 3,8 21,5 120 10,6 100 16,1 190 80 9,6 6,1 13,0 60 10,7 7,7 40 15,3 20 10,5 16,9 0 • About 43 MTPA already approved for non-FTA export, additional 15 MTPA expected to be approved shortl
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 30 250 7 25 18 2 200 20 150 15 5 100 22 22 10 50 11 13 5 5 0 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Slide 17: Agenda 27/8 2013
Agenda 27/8 2013 1. Company Overview and Highlights Q2 2. Financials Q2 3. Market update 4. Summary www.awilcolng.no - 17 -
Slide 18: Summary Awilco LNG
Summary Awilco LNG Newbuildings − Delivery mid-September and Q4 − Secured financing for newbuilding no.1 and option at similar terms for newbuilding no. 2 − Vessels marketed for both spot and medium contracts − Onshore LNG organisation and crew in place WilGas − Dry-dock scheduled in Q1 2014 WilEner
Slide 19: Summary Market
Summary Market Short term market – rates held up during summer months despite lack of new LNG production − Disruption in production remains a factor − Tonnage surplus remains thin Long term fundamentals – remain positive − Demand for LNG is outpacing supply − Liquefaction capacity is set for growth,
Slide 20: 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 customer 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 -