Pareto. Conference Jon Skule Storheill 13/

Transcription

1 Pareto Conference 2017 Jon Skule Storheill 13/

2 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 things, (i) goals and strategies, (ii) evaluation of the Company s markets, competition and competitive position, and (iii) anticipated future performance and trends which may be expressed or implied by financial or other information or statements contained herein. 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 forward-looking statements, forecasts, estimates, predictions, influences and projections are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that will occur in the future, some of which are beyond our control and difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, and no representation is made as to the accuracy of these. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements, forecasts, estimates, predictions, influences and projections are: changes in LNG transportation market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; changes in applicable regulations and laws; technological developments affecting gas and LNG demand; political events affecting production and consumption of LNG; changes in the financial stability of clients of the Company; the Company s ability to secure employment for available vessels and newbuildings on order; increases in the Company s cost base; failure by yards to comply with delivery schedules; changes to vessels useful lives and residual values; the Company s ability to obtain financing and lastly unpredictable or unknown factors with material adverse effects on forward-looking statements. Neither the receipt of this presentation by any person, nor any information contained herein, constitutes, or shall be relied upon as constituting, any advice relating to the future performance of the Company. Each person should make their own independent assessment of the merits of the Company and its business and should consult their own professional advisors. The information and opinions contained in this presentation relate only as of the date of this presentation, and are subject to change without notice. Neither the Board of Directors of the Company or the Company and its management make any representation or warranty, express or implied, as to the accuracy or completeness of this presentation or of the information contained herein and none of such parties shall have any liability for the information contained in, or any omissions from, this presentation, nor for any of the written, electronic or oral communications transmitted to the recipient in the course of the recipient s own investigation and evaluation of the Company or its business. Unless legally required, the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise

3 Agenda 13/ Company Overview 2. Market update 3. Summary

4 Company overview Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG carriers. The Company owns two 2013 built TFDE LNG carriers, WilPride and WilForce, both currently trading in the spot market, achieving 80 % utilisation since delivery. Awilco LNG is fully financed until 2020, with a low cash break even. Awilco LNG is listed on Oslo Axess under the ticker code ALNG

5 Refinancing leases and equity Awilco LNG is fully financed to renegotiated flexible lease agreement and new equity provides bridge to full market recovery Front loaded reduction in bareboat rate providing significantly lower cash breakeven, average of USD 33,500 per day, down from USD 49,100 per day Bareboat charters for both vessels extended to 31 December 2019 Rolling options for early termination and refinancing of vessels at any time before maturity MUSD 26.8 new equity raised Deferred amounts, total of MUSD 28.5, payable at maturity year-end 2019 Cash sweep mechanism introduced to reduce deferred amounts Purchase obligations of MUSD and MUSD per vessel at maturity (excl deferred hire) No financial covenants except for dividend restrictions Note: Quarterly cash sweep of revenues earned by the vessels in excess of the non-deferred charter hire plus operating costs, voyage expenses and G&A, provided that Awilco LNG has consolidated cash above certain preset minimum thresholds.

6 Agenda 13/ Company Overview 2. Market update 3. Summary

7 LNG rates USD/DAY Avg. Spot Rate k ST Avg. Spot Rate k TFDE Historic Ave. spot rate k ST Historic Ave. spot rate k TFDE After a disappointing start of the 2017, activity and rates have improved throughout the year At historical average spot rates, ALNG annual EBITDA MUSD 42 (estimate) Source: Fearnley LNG

8 Monthly global LNG trade MT LNG Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (est) Global LNG trade up by 14 % July YTD compared to same period last year Increased volumes from ramp-up of plants started in 2016, in addition to new capacity coming on line in 2017 The uncertain political situation in the Middle East has not impacted trade Seasonality is still valid in LNG trading, but new production capacity is lifting volumes across the year Source: Clarksons Platou

9 Gas price USD/MMBTU USD/BBL HH NBP Spot DES Japan Brent (USD/BBL) Europe Far East arbitrage still closed leading to few re-loads Spread Henry Hub vs ROW drives exports from US to Far East, improving ton-mile Big 3 importers Japan, Korea and China all buying US LNG Source: Clarksons Platou

10 LNG trade change LNG EXPORTS LNG IMPORTS MT LNG YoY July 2017 YTD MT LNG YoY July 2017 YTD LNG exports increased by 14 % YoY Australian and US ramp-up is continuing the increasing trend, and will do so for a while The uncertain political situation in the Middle East did not impact Qatari production China imports up 45 % YTD, and the trend is likely to continue following announcement of doubling of import capacity by 2025 The Japanese and Korean declining trend has turned, Korean July imports were up 42 % YoY Europe is increasing, and has massive untapped import capacity Source: Clarksons Platou, Arctic Securities, Reuters

11 LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA Started Total 109 MTPA of new capacity starting Additional 219 MTPA in pre-fid with specified timeline Gorgon T3 and Sabine Pass T3 completed by the end of Q1, while Sabine Pass T4 commenced production in August No material impact on Sabine Pass or Corpus Christi from Hurricane Harvey Source: Clarksons Platou, Poten & Partners, Arctic Securities, Company presentations

12 LNG fleet and orderbook LNG FLEET AND ORDERBOOK NO. VESSELS TOTAL FLEET Open order (LHS) Comitted Order (LHS) Delivered (LHS) Total fleet (RHS) Total fleet of 432 LNGC above 125 cbm (of which 24 laid up) 19 vessels delivered YTD Aug 2017, a further 14 scheduled for delivery in 2017 At the start of the year, 43 vessels were scheduled for delivery in 2017 slippage already evident Eight newbuildings ordered 1 st half 2017 Orderbook at 97 vessels, of which 11 available (Flex x6, BW x2, Maran x2, GasLog x1) 81 vessels built < year 2000, 38 vessels < 130 cbm Source: Fearnley LNG

13 Agenda 13/ Company Overview 2. Market update 3. Summary

14 Summary Firming market, but still seasonal and volatile Improvement in rates, activity and ballast bonuses, expected to continue firming going forward As LNG production capacity increases, LNG is being commoditised and fleet overcapacity will gradually be absorbed Big 3 China, Korea and Japan all showing increasing appetite for LNG Mid- and long-term demand for LNG transportation remains strong We are at the start of the biggest increase of LNG volumes in history Very few long term charters and limited financing, resulting in restrained newbuilding activity Very few uncommitted newbuildings 15 % of existing fleet is built prior to 2000, is smaller and inefficient Awilco LNG Pure play fully integrated LNG transportation company Open vessels in a firming market provides full exposure to increasing rates Refinancing significantly reduces ALNG cash break even, rolling purchase options Awilco LNG is fully financed to 2020, and is ideally positioned for taking advantage of improving market

15 Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced management team Opportunistic strategy

16 Jon Skule Storheill CEO Mobile: Øyvind Ryssdal CFO Mobile: