Third Quarter 2013 Presentation of financial results 19 November 2013

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1 Höegh LNG The floating LNG services provider Third Quarter 2013 Presentation of financial results 19 November 2013

2 Forward looking statements This presentation contains forward-looking statements which reflects management s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as may, could, should, would, expect, plan, anticipate, intend, forecast, believe, estimate, predict, propose, potential, continue or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG s ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG s ability to win upcoming tenders and securing employment for the FSRUs on order; changes in Höegh LNG s ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG s ability to complete and deliver projects awarded; increases in the Company s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes to vessels useful lives; changes in the ability of Höegh LNG to obtain additional financing, in particular, currently, in connection with the turmoil in financial markets; the success in achieving commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. 2

3 Agenda Highlights Financials Operational review Market outlook Summary 3

4 Highlights Total income USD 45.7 million EBITDA USD 10.9 million Loss before tax of USD 2.6 million Signed USD 310 million limited recourse facility Awarded pre-feed study for jetty-moored barge FLNG solution for North American LNG export project Awarded pre-feed study for offshore moored FLNG project in Australia 13 month time-charter extension for LNG Libra Norman Lady sold in line with strategy to focus on FSRU segment 4

5 Agenda Highlights Financials Operational review Market outlook Summary 5

6 Income statement USD million 3Q2013 2Q2013 1Q2013 4Q2012 3Q2012 YTD2013 YTD2012 TOTAL INCOME 45,7 51,3 29,5 37,6 38,0 126,5 98,0 Charterhire expenses (5,2) (5,1) (5,1) (5,2) (5,2) (15,4) (15,5) Operating expenses (8,7) (8,5) (8,4) (10,1) (7,8) (25,6) (23,0) Construction contract expenses (10,4) (22,5) (32,9) - Administrative expenses (4,6) (3,8) (3,9) 4,1 (3,5) (12,3) (10,1) Business development expenses (5,9) (4,1) (4,6) (5,8) (8,2) (14,6) (20,7) EBITDA 10,9 7,3 7,5 20,5 13,2 25,7 28,8 Gain /(loss) on sale of assets ,4 0,0 - - Depreciation and impairment (7,8) (7,6) (7,3) (8,4) (6,2) (22,7) (14,3) EBIT 3,2 (0,3) 0,1 22,5 7,0 3,0 14,5 Interest expenses (5,9) (5,9) (8,3) (8,5) (6,1) (20,1) (18,3) Interest income 0,0 0,0 0,1 0,0 0,0 0,1 0,1 Other financial items 0,1 0,2 0,5 (0,4) 0,1 0,8 1,5 PROFIT OR (LOSS) BEFORE TAX (2,6) (6,0) (7,6) 13,6 1,1 (16,2) (2,2) Taxes (0,2) (0,1) (0,4) 0,0 (0,2) (0,7) (0,2) NET PROFIT OR (LOSS) (2,8) (6,1) (7,9) 13,6 0,9 (16,9) (2,4) 6

7 Financial position USD million Licences, design and other intangibles Investments in newbuildings and vessels Other assets Hedging reserves Restricted cash Current cash and marketable securities TOTAL ASSETS Total equity Interest bearing debt Hedging reserves Other liabilities TOTAL EQUITY AND LIABILITIES Total equity adjusted for hedging reserves Equity ratio adjusted for hedging reserves 42 % 43 % 43 % 44 % 50 % Net interest bearing debt * * Gross interest bearing debt less cash, marketable securities and restricted cash 7

8 Cash flow statement USD million 3Q2013 2Q2013 1Q2013 4Q2012 3Q2012 YTD2013 YTD2012 Net profit or (loss) before tax (3) (6) (8) 14 1 (16) (2) Adjustments of non-cash P&L items (1) Net changes in working capital, other 3 (5) 1 1 (1) (2) (13) Net cash flow from operating activities 13 (1) Proceeds from sale of marketable securities Investments in marketable securities (50) - - (155) Investments in vessels and newbuildings (14) (38) (90) (32) (98) (141) (189) Investments in intangibles and equipment - - (3) (0) (0) (4) (2) Proceeds from sale of projects and equipment (0) Net cash flow from/(used in) investing activities (14) 42 (93) (62) (17) (65) (163) Proceeds from borrowings Repayment of borrowings (3) (3) (3) (3) (3) (10) (10) Interest paid (8) (8) (8) (6) (6) (25) (18) Net proceeds from issue of capital Other financing activities (0) (1) (4) (6) (0) (5) (0) Net cash flow from/(used in) financing activities (7) (13) (10) (16) 174 TOTAL CASH FLOW (8) 28 (82) 67 (15) (61) 27 8

9 Accounting changes New segment reporting from the third quarter 2013 Commercial Technical FLNG Other With effect from 1 January 2014, joint venture companies will be recognised according to the equity method in the consolidated accounts of Höegh LNG Höegh LNG s share of net profit in joint venture companies will replace the proportionate consolidation of joint venture profit and loss account items in the consolidated accounts EBITDA will be reduced while pre-tax profit will remain unchanged Investment in associated companies will replace the proportionate recognition of joint venture balance sheet items in the consolidated balance sheet of Höegh LNG Höegh LNG will continue to present the segment reporting according to the proportionate consolidation method. This will include a full income statement and selected balance sheet items 9

10 Agenda Highlights Financials Operational review Market outlook Summary 10

11 Main focus: FSRU newbuilding programme All four FSRU s under construction at Hyundai Heavy Industries are on time and on budget Hull Project Construction Delivery 2549 KN, Lithuania 93% February PGN, Indonesia 82% April On offer in tenders 69% June On offer in tenders 0% March

12 Klaipedos Nafta FSRU FSRU will be delivered ex shipyard end February 2014 Klaipedos Nafta's jetty and pipeline scheduled for completion 1 September 2014 Terminal scheduled to commence operations in second half 2014 Pursuing interim employment of FSRU before starting operations in Lithuania Jetty construction in progress in Klaipeda port Pipeline from jetty under construction 12

13 Perusahaan Gas Negara FSRU FSRU will be delivered ex shipyard in April 2014 for operations to commence according to schedule in June 2014 Construction of FSRU and mooring is progressing according to schedule and budget USD 310 million debt facility signed Pump tower for cargo tank being installed 13

14 Perusahaan Gas Negara Mooring Mooring construction ahead of schedule and on budget Installation contract to be signed in Q Mooring to be transferred to PGN upon acceptance Weather waning swivel Gas transfer lines Platform Mooring jacket structure under construction Transfer pipeline 14

15 Colbún / AES Gener FSRU Final contract with Colbún and AES Gener is delayed Colbún and AES Gener are making progress on the permitting and commercial agreements in Chile, but the timing of final completion is uncertain Höegh LNG is pursuing alternative employment opportunities for FSRU Hull

16 Vessels in operation Existing fleet operated safely and without incidents On 17 November, GDF Suez Cape Ann arrived in Tianjin to be used as China's first FSRU for up to five years On 13 November, Gas Natural extended LNG Libra's time charter by 13 months to the end of 2014 Norman Lady's time charter ended on 14 September The vessel has been sold for green recycling 16

17 Höegh FLNG Ltd. Pursuing barge based FLNG projects in Asia, North America and Africa with liquefaction capacity 0.5 to 2 mtpa Awarded a pre-feed study for 2 mtpa jetty-moored barge FLNG solution for a North American LNG export project. Potential full FEED in 2014 Awarded pre-feed study for 2 mtpa FLNG for a gas field offshore Australia. Potential full FEED in 2014 Executing strategy based on barge FLNG solutions, which includes the design and ordering of our first FLNG. This order will form the basis for a separate listing of the company. Selected Norwegian investment bank to manage IPO process 17

18 Agenda Highlights Financials Operational review Market outlook Summary 18

19 LNG production forecast to 2030: LNG contributes an increasing share of natural gas trade 600 mtpa LNG will account for more than 15% of global gas consumption by 2030 Australia is set to overtake Qatar as the largest LNG supplier by Depending on export permits, North America could overtake Australia as the next leader in LNG production (Source: Energy Outlook 2030, BP 2013) 19

20 Asian LNG imports , a doubling in demand (Source: BG Group) 20

21 FSRU market outlook Owner FSRUs (oper+constr) Customers* Höegh LNG 2+4 GDF Suez (2), Perusahaan Gas Negara, Klaipedos Nafta, Colbún/AES Gener Golar LNG 4+3 Petrobras (2), Pertamina, Dubai Power Authority, Jordanian Energy Ministry, Kuwait Oil Corporation Excelerate 8+1 YPF (2), Petrobras, PREPA, Israel Electric Corporation OLT 1+0 E.ON, IREN (also owners) MOL 0+1 GDF Suez (conditional) BW Gas 0+1 N/A * Projects in operation or awarded Existing Under construction / awarded Potential Around 30 projects in pipeline 16 projects in Asia/Middle East 6 projects in the Americas 9 projects in Europe/Africa 21

22 Near-term FSRU contract award opportunities Project Prequalified Bid Selection Contract award Start-up Columbia Egypt Lebanon India Chile Port Meridian Exclusive

23 3 FLNGs under construction 1) Shell's Prelude 5.2 mtpa 1 FLNG (2017) 2) Petronas' Kanowit 1.2 mtpa FLNG (2015) 4) Höegh LNG s 1.0 mtpa inshore barge (FEED) 3) Exmar's 0.5 mtpa FLNG barge (2015) 1 Whereof 3.6 mtpa of LNG 23

24 Announced FLNG projects COUNTRY LOCATION OF FIELD MAIN SPONSORS STATUS Australia Canada Prelude Cash Maple Sunrise Bonaparte Browse Scarborough Douglas Channel Kitimat / Prince Rupert In EPC phase Completed pre-feed studies Pending resolution with Timor, under review Expecting EPC award soon Changed design from onshore plant to 3 FLNG units FEED Approved. Awaiting FID Pre-FEED Colombia Caribbean coast In EPC phase Indonesia Abadi In FEED phase Malaysia Mozambique Sarawak Kanowit Sarawak Rotan In EPC phase Expecting EPC award soon Pre-FEED USA Texas FEED completed, no off-take or approvals in place 24

25 Global LNG fleet overview Type Delivered Newbuildings on order Under conversion Total LNGC FLNG FSRU 15* 10** - 25 Total newbuildings and 5 conversions LNG carrier fleet 365 LNG carriers in fleet 106 newbuildings on order (29%) 15 FSRUs in fleet FSRU fleet 10 FSRU newbuildings on order plus two options to change from LNGC to FSRU (Source: Wood Mackenzie, LNG Unlimited, Fearnley LNG) 25

26 Agenda Highlights Financials Operational review Market outlook Summary 26

27 Summary Strong market prospects for newbuilt FSRUs Newbuilding programme on track and on budget LNG Libra on extended time charter Norman Lady sold Paid pre-feed work for two FLNG projects Pursuing separate listing of Höegh FLNG 27