Third Quarter 2011 Presentation of financial results 30 November 2011

Transcription

1 Höegh LNG The floating LNG services provider Third Quarter 2011 Presentation of financial results 30 November 2011

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 and market outlook Summary 3

4 Highlights 3Q 2011 including subsequent events Total income USD 27.4 million - up 7% from third quarter 2010 EBITDA of USD 8.6 million Exclusive negotiations with PGN regarding the Medan FSRU project well advanced Submitted bids for 4 FSRU projects Agreed to purchase the LNG carrier LNG Libra 4

5 Highlights Financials Operational review and market outlook Summary 5

6 Income statement USD million 3Q2011 2Q2011 3Q2010 Jan Sep 2011 Jan Sep TOTAL INCOME 27,4 26,5 25,7 79,8 69,5 94,9 Charterhire expenses (5,1) (5,0) (4,9) (15,1) (14,4) (19,2) Operating expenses (7,2) (7,3) (6,8) (21,8) (19,0) (27,1) Administrative expenses (3,0) (3,7) (3,2) (10,5) (8,4) (13,5) Project development expenses (3,5) (3,2) (2,6) (9,9) (7,0) (11,1) EBITDA 8,6 7,3 8,2 22,6 20,7 24,0 Depreciation and amortisation (4,7) (4,5) (4,1) (13,7) (9,5) (13,8) EBIT 3,9 2,7 4,1 8,9 11,2 10,2 Interest expenses (6,5) (6,1) (6,5) (18,9) (15,9) (22,4) Interest income 0,1 0,2 0,1 0,6 0,1 0,2 Other financial items 0,4 0,1 2,4 0,0 1,5 0,9 Taxes (0,0) 0,3 (0,2) 0,3 0,3 (0,8) NET LOSS (2,0) (2,7) (0,1) (9,0) (2,7) (12,0) 6

7 Financial position USD million Licences, design and other intangibles Vessels and newbuildings Restricted cash Other non-current assets Promisssory Note / Interest bearing receivables Other current receivables Current cash and short term deposits TOTAL ASSETS Total equity Interest bearing debt MtM of interest rate swaps Other liabilities TOTAL EQUITY AND LIABILITIES Total equity adjusted for MtM of interest rate swaps Equity ratio (adjusted for MtM of interest rate swaps) 37 % 35 % 25 % 24 % Net interest bearing debt

8 Cash flow statement USD million 3Q2011 2Q2011 3Q2010 Jan Sep 2011 Jan Sep 2010 Jan Dec 2010 Net loss before tax (2) (3) 0 (9) (3) (11) Adjustments of non-cash P&L items Net changes in working capital, other (2) (1) (7) (8) (12) (8) Net cash flow operating activities Proceeds from sale of marketable securities Investments in marketable securities (90) - - (90) - - Investments in vessels and newbuildings (31) (26) (3) (56) (55) (57) Investments in intangibles / equipment (1) (2) 2 (4) (4) (6) Net cash flow investing activities (121) 25 (2) (99) (46) (45) Proceeds from borrowings Repayment of borrowings (3) (3) (2) (9) (4) (6) Interest paid (6) (6) (6) (19) (14) (21) Issue of share capital net of transaction cost Other financing activities Net cash flow financing activities 118 (9) (7) TOTAL CASH FLOW 3 22 (6)

9 Highlights Financials Operational review and market outlook Summary 9

10 Shipping Existing fleet operated according to expectations during the quarter Agreed to purchase the carrier «LNG Libra» with delivery in the second quarter 2012 «LNG Libra» will be traded in the spot market, where the rate outlook is very positive «STX Frontier» is being marketed in the medium-term shipping market with availability from second half 2013 LNG Libra STX Frontier 10

11 Regasification Exclusive negotiations with PGN for the Medan FSRU project well advanced Standard Chartered Bank and BTMU mandated to assist Höegh LNG with the Medan FSRU project financing Höegh LNG has submitted bids and is participating in tendering processes for four new FSRU projects in addition to Medan Medan According to Reuters, China has been adding onshore receiving terminals along its east coast to handle imports of LNG, to meet surging domestic demand for the cleanerburning fuel. But with competition rising among the main investors China National Offshore Oil Corp (CNOOC), PetroChina and Sinopec Corp - and limited land sites along the coast, companies have shifted to floating facilities. "It's all because of increasing difficulties in winning state approval for a land-based receiving terminal," said an CNOOC official. 11

12 FSRU newbuilding programme The FSRU newbuilding program at Hyundai progressing according to plan with steel cutting in 3Q 2012 First two FSRUs scheduled for delivery in 4Q 2013 and 1Q 2014, respectively Second vessel will have full trading capabilities Options for first two additional FSRUs will have to be exercised by mid December 2011 and January 2012, respectively 12

13 LNG FPSO Höegh LNG is in discussions with several oil companies to conduct paid engineering work for developing their gas reserves using LNG FPSOs The holding company for the potential LNG FPSO project in Papua New Guinea was established in October. The partners are now working to secure gas supply from different gas field owners and a project agreement with the PNG government Höegh LNG is considering alternatives for optimising the structure, organisation and financing of its LNG FPSO activities 13

14 Strong LNG demand prospects LNG demand forecast LNG export projects Country Project Name Country Main Partners Project Name FID Startup Main Partners MTPA Algeria Gassi Touil Algeria Sonatrach Gassi Touil Sonatrach TAKEN ,7 Angola Angola LNG Angola Chevron, BP, Eni, Total, Angola Sonangol LNG Chevron, TAKENBP, Eni, 2012 Total, Sonangol 5,2 Australia Australia Pacific LNG Australia Origin, ConocoPhillips, Australia SinoPecPacific LNG Origin, TAKEN ConocoPhillips, 2015 SinoPec 4,5 + 4,5 Australia Browse LNG Australia Woodside, BP, BHP Billiton, Browse Chevron, LNG Shell Woodside, 2012 BP, BHP 2016Billiton, Chevron, Shell Australia Gladstone LNG Australia Santos, Petronas, Total, Gladstone KOGAS LNG Santos, TAKEN Petronas, 2015 Total, KOGAS 7,8-10 Australia Gorgon LNG Australia Chevron, Shell, ExxonMobil Gorgon LNG Chevron, TAKENShell, ExxonMobil Australia Ichtys Field NW Australia Australia INPEX, Total Ichtys Field NW Australia INPEX, 2011 Total ,2 + 4,2 Australia Pluto LNG Australia Woodside, Tokyo Gas, Pluto Kansai LNGElectric Woodside, TAKEN Tokyo 2012 Gas, Kansai Electric 4,8 Australia Prelude FLNG Australia Shell Prelude FLNG Shell TAKEN ,5 Australia Queensland Curtis LNG Australia BG, Queensland Gas Queensland Curtis LNG BG, TAKEN Queensland 2014 Gas 4,25 + 4,25 Australia Weatstone LNG Australia Chevron, Shell Weatstone LNG Chevron, 2011 Shell ,4 + 4,4 Canada Kitimat Canada Apache, EOG, EncanaKitimat Apache, 2011EOG, Encana Indonesia Tangguh LNG (expansion) Indonesia BPMigas Tangguh LNG (expansion) BPMigas ,8 + 3,8 Nigeria Brass LNG Nigeria NNPC, Eni, Conoco, Total Brass LNG NNPC, 2012 Eni, Conoco, 2016Total Nigeria NLNG (Train 7 expansion) Nigeria ExxonMobil, NNPC, Shell, NLNG Total, (Train ENI 7 expansion) ExxonMobil, 2012 NNPC, 2016 Shell, Total, 4,7 ENI Papua New Guinea Liquid Niguini Papua InterOil, New Pacific Guinea LNG, Liquid Niguini, Flex InterOil, 2011Pacific LNG, 2014Liquid Niguini, 2 Flex Papua New Guinea PNG LNG Papua ExxonMobil, New Guinea OilSearch, PNG Santos, LNGNPCP ExxonMobil, TAKEN OilSearch, 2014 Santos, 6,6 NPCP USA Freeport USA Freeport LNG, Macquarie Freeport Freeport 2012LNG, Macquarie ,4 + 4,4 + 4,4 USA Sabine Pass USA Chenniere, JP MorganSabine Pass Chenniere, 2012 JP Morgan TOTAL mtpa Source: Wood Mackenzie Source: Fearnley Fonds 14

15 Strong LNG transportation market 15 Source: Fearnley Fonds,

16 30+ FSRU projects in pipeline worldwide Existing FSRU projects 10 existing floating regasification projects/ 14 regas vessels: HLNG - 2 SRVs (Boston) Golar 3 FSRU conversions (Petrobras VT 1&2 and Dusup/Dubai) Excelerate 8 SRVs (Bahia Blanca, Kuwait, Escobar, Boston, Teesside ) GDF Suez 1 FSU (Chile) 3 projects under construction 5 newbuilding and two conversion FSRUs under construction 30+ projects in pipeline 19 projects in Asia/Middle East Existing Under construction / awarded Potential 5 projects in South America 7 projects in Europe/Africa HLNG has 4 bids outstanding (ex. Medan) 16 Source: Höegh LNG

17 Floating LNG the next growth segment Shell s decision to develop the Prelude field using a LNG FPSO solution has been a game changer for the floating liquefaction industry Inpex has chosen LNG FPSO as technical solution for the Masela field, no FID yet A number of other upstream operators are considering LNG FPSO solutions in developing existing gas reserves Due to shale gas production, the US will now start exporting LNG, thus creating new opportunities for the use of LNG FPSOs Undisclosed Shell Inpex PTT 17

18 Agenda Highlights Financials Operational review and market outlook Summary 18

19 Summary LNG market fundamentals have never been better across the chain Electric power production in Asia is the key driver behind demand for LNG and floating regasification and production solutions FSRU is the most cost effective, quick and flexible alternative to meet increased regasification demand in Asian markets Höegh LNG a strong competitive position in a high barrier to entry market with attractive returns Thank you! 19