Höegh LNG - the FSRU provider. Company presentation. March 2018

Transcription

1 Höegh LNG - the FSRU provider Company presentation March

2 Forward looking statements This presentation contains forward-looking statements which reflects management s current expectations, estimates and projections about Höegh LNG s 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; changes to 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, including the impact from changes in financial markets; changes in the ability to achieve 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 Company overview Market update Financials Summary 3

4 Höegh LNG at a glance Sector: Maritime energy infrastructure Floating Storage & Regasification Units (FSRUs) Largest, most modern and most efficient FSRU fleet in the market 7 FSRUs in operation 3 FSRUs under construction 2 LNGCs in operation Market cap / EV*: USD 560m / USD 1.5bn Assets / equity ratio*: USD 2.0bn / 39.2% 10 years Avg. remaining contract length USD 3.6 bn Revenue backlog Revenues / EBITDA*: USD 279m / USD 150m Employees: 125 onshore / 525 offshore HLNG / HLNG02 / HLNG03 HMLP / HMLP-A *

5 Regasification is the critical link in the global natural gas supply chain The natural gas value chain Höegh LNG focus Natural Gas Liquefied Natural Gas Natural Gas Production Liquefaction Transportation Regasification/ infrastructure Consumption Höegh LNG business model Construction, ownership and operation of FSRUs on long-term contracts

6 Consistently solid operational performance across the fleet Technical availability Arctic Lady 99.87% 99.70% 99.95% 99.94% 99.79% >99.50 % Arctic Princess Independence Neptune GDF Suez Cape Ann Höegh Grace Höegh Gallant Target FSRU NB PGN FSRU Lampung Lost time injury frequency 1 Höegh Giant 1.07 <1.00 FSRU NB FSRU LNG carrier FSRU intermediate trading FSRU contract with future start-up Target 1 Per million work hours 6

7 Fleet allocation subject to optimisation pending contract awards Built EBITDA Charterer Höegh LNG Holdings Arctic Princess* ** Statoil Arctic Lady* ** Total Independence KN Höegh Giant 2017 GNF FSRU# Tendering/Penco FSRU# Tendering FSRU# Tendering Höegh LNG Partners Neptune ** Engie GDF Suez Cape Ann ** Engie PGN FSRU Lampung PGN Höegh Gallant Egas Höegh Grace SPEC USDm/yr Long-term contract LNGC interim trading FSRU/LNGC charter Extension option Under construction 7 * LNG carriers ** 100% basis, units are jointly owned

8 Increasing business development activity In discussions for interim employment for FSRU #8 from mid-2018 until start-up under the contract with GNL Penco in Chile LNG export growth exceeding expectations Main commercial focus on securing long-term employment for FSRU #9 and #10, which deliver in December 2018 and May 2019 respectively Currently involved in several advanced tendering processes with decisions expected in 2018 Business development activity continues to increase Coinciding with LNG trade exceeding expectations New tenders being launched Ongoing tender processes picking up momentum Source: Shell LNG outlook

9 Agenda Company overview Market update Financials Summary 9

10 mtpa mtpa LNG trade up 11% in LNG trade by exporter 350 LNG trade by importer Australia and US volumes Chinese imports exceeding South korea Qatar MEG ex Qatar Africa Asia Australia USA South America Europe Japan+Korea China RoA MEG Africa Europe North America South America Source: Waterborne LNG, IHS Markit 10

11 Continued expansion of LNG supply to support FSRU demand Australia 13 mtpa USA 12 mtpa Russia 11 mtpa Cameroon 2 mtpa Malaysia 1 mtpa USA 37 mtpa Australia 8 mtpa Russia 6 mtpa Indonesia 4 mtpa Mozambique 3 mtpa Malaysia 2 mtpa Source: IHS Markit, GIIGNL, Höegh LNG 11

12 # of projects A significant number of markets contemplating importing LNG through FSRUs Floating regasification projects by region Source: IHS Markit 18 South America 6 North America 18 Europe 6 Sub-Saharan Africa Middle East South Asia Southeast Asia Existing Under construction Under development Proposed 3 Northeast Asia 2018 IHS Markit Projects in the public domain* Australia Brazil Colombia Cote d Ivoire Croatia Cyprus Hong Kong Lebanon Mexico Pakistan Turkey the UAE the UK 12 * Projects that have been mentioned in media by project developers, excluding officially awarded projects Source: IHS Markit, Höegh LNG

13 Units FSRU supply insufficient to meet demand from projects under development FSRU fleet and orderbook 1 by owner and employment Dynagas Dynagas Maran Java-1 SWAN Kolin Kalyon Gazprom 6 uncommitted FSRUs under construction, with delivery 2018 (1), 2019 (2) and 2021 (3) In addition, long-lead items for LNGC to FSRU conversions have been reported ordered Höegh LNG Excelerate Golar LNG BW Gas Other Exmar MOL OLT Committed Available Committed NB Uncommitted NB 1 Orderbook defined as firm orders, excluding LOIs, options and conversions not firmed up Source: Höegh LNG 13

14 Increased momentum in LNGC markets rates at four-year high levels TFDE headline rate assessment: Spot vs. 1-year TC LNGC spot rates reached USD 80,000 per day towards the end of 2017, the best in four years 1-yr TC rates USD ~55,000 per day; longer-term TC rates in the low USD 60,000s All Höegh LNG FSRUs have full trading capabilities as LNGCs Fuel consumption similar to LNGCs Operating expenses similar to LNGCs Source: Clarkson Platou 14

15 Agenda Company overview Market update Financials Summary 15

16 USD million USD million USD million Solid earnings development 2017 marked new record levels Total income EBITDA Net profit * Adjusted for hedging 16

17 USD million Strong financial position USD million 4Q Q Q 2016 Investments in FSRUs 1,386 1,397 1,140 Investments in new buildings Other Long-term restrcited cash Marketable securities Cash and short-term restricted cash Total assets 1,959 1,992 1,713 Equity attributable to the parent Non-controlling interests Total equity Interest bearing debt 1,156 1, Other Equity* and equity ratio* % 45% 40% 35% 30% 25% 20% 15% 10% Total equity and liabilities 1,959 1,992 1, % NIBD Adjusted equity Adjusted equity ratio 39.2% 32.7% 39.7% % * Adjusted for hedging reserves 17

18 Equity Debt Diversified capital structure with multiple financing sources Capital structure HLNG HMLP Outstanding / Mcap Comments Alternatives Commercial bank debt USD 606m 20 banks Export Credit Agencies (ECA) USD 254m 3 ECAs Senior unsecured bonds USD 313m 2 bonds Term Loan B Senior secured bonds Project bonds Sale and lease back Oslo Børs listing USD 570m NYSE listing (common units) USD 310m Non-HLNG units Equity partners Preference shares USD 118m Sum USD 2,171m 18

19 USD million Laddered out debt repayment profile Debt repayment schedule Amortisation includes debt on FSRUs #8-10, assuming that financing for FSRUs #9-10 are structured similarly to FSRU # HLNG03 HLNG02 Höegh Gallant Höegh Grace Höegh Giant Independence Lampung Amortisation Amortisation refinanced debt Balloons Bonds Amortisation of refinanced debt assumes similar amortisation profile as the current facilities, and that balloons are refinanced in full Commercial debt tranches on Independence, Gallant, Grace and Lampung mature ahead of ECA tranches with 12 year tenors 19

20 USD million Capital expenditures well covered by existing liquidity and planned financing Available liquidity USDm Cash, net of HMLP 137 Marketable securities 74 Revolving credit facility 52 Debt for FSRU #8 200 Available liquidity at 31 December % funding of FSRUs #9 and # Increased leverage on Höegh Giant / FSRU #8 59 Planned financing Capital expenditures Outstanding capital expenditures ~

21 USD million Höegh LNG Partners an attractive source of growth capital 180 HMLP proceeds to Höegh LNG Latest transaction: 49% of Höegh Grace 160 Net proceeds of USD 86.7 million year contract with SPEC in Colombia 120 Current yield of 10% IPO 1 Höegh Gallant 1 51% of Höegh Grace 49% of Höegh Grace in Q Gallant seller s credit Recently launched an ATM equity raising programme Drop-down proceeds MLP distribution IDR 1 Pre-funding of Höegh Gallant acquisition in IPO proceeds in

22 Agenda Company overview Market update Financials Summary 22

23 Summary Record EBITDA of 149 million and net profit of USD 41 million in 2017 Consistently solid operational performance measures across the global fleet Primary focus on securing firm employment for FSRUs under construction Increasing tendering activity on the back of growing LNG demand Strong financial platform with diversified financing sources 23