Q3      2012   Jon Skule Storheill    Snorre Krogstadwww.awilcolng.no         -1-
Disclaimer  This presentation may include certain forward-looking statements, estimates, predictions,  influences and proj...
Agenda 21/11                   1. Company overview and Highlights Q3                   2. Q3 Financials                   ...
Company overview                   Awilco LNG is a pure play LNG transportation provider, owning and                   ope...
3rd Quarter Highlights • Awilco LNG reported:       − Net freight income of MUSD 12.3               MUSD 10.1 in Q2 2012  ...
Contract overview                     2012                            2013                                2014WilPower    ...
Agenda 21/11                   1. Company overview and Highlights Q3                   2. Q3 Financials                   ...
Q3 2012 Income statement                                                                     Total freight revenue MUSD 12...
Q3 2012 Balance sheet                                                                    Vessels MUSD 196.1USD million    ...
Q3 2012 Cash flow USD million                                                Q312 Q212       2011                         ...
Agenda 21/11                   1. Company overview and Highlights Q3                   2. Q3 Financials                   ...
Rate development     • Continued low activity and softening rates in Q3            • Short term market followed same patte...
Gas price spread                           Gas spread vs. Spot rate                                                    Car...
LNG volumes                   Change in LNG exports y-o-y (mmtpa)                                                 Change i...
Liquefaction growth 2012-2017                                           Expected increase in LNG production               ...
World LNG Fleet by Year Built                                               LNG Fleet development and orderbook           ...
Agenda 21/11                   1. Company overview and Highlights Q3                   2. Q3 Financials                   ...
Summary Market• Short term - increased activity       − Activity is picking up due to seasonal stronger winter market     ...
Summary Awilco LNG • WilPower available for contract in a firming spot market • Awilco LNG has two of the first newbuildin...
Q&A                           A Pure Play LNG Transportation Provider                   2nd gen. fleet of                 ...
Appendixwww.awilcolng.no   - 21 -
Our fleet of 2nd generation vesselsWilGas                         WilPower                       WilEnergyBuilt:         1...
Awilco LNG newbuildings Yard: Daewoo Shipbuilding Cost approximately MUSD 200, depending on final specification Soft payme...
Jon Skule StorheillCEOMobile: +47-9134 4356E-mail: jss@awilcolng.noSnorre Schie KrogstadCFOMobile: +47-9085 8393E-mail: ss...
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Awilco LNG Q3 2012 results presentation

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Awilco LNG Q3 2012 results presentation

  1. 1. Q3 2012 Jon Skule Storheill Snorre Krogstadwww.awilcolng.no -1-
  2. 2. Disclaimer This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such statements, estimates, projections, predictions and influences. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The information and opinions contained in this presentation are subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.www.awilcolng.no -2-
  3. 3. Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summarywww.awilcolng.no -3-
  4. 4. Company overview Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels. The company owns three 125,000 cbm LNG vessels: WilGas, WilPower and WilEnergy. In addition, the company has entered into newbuilding contracts with Daewoo Shipbuilding & Marine Engineering Co Ltd in Korea for two155,900 cbm LNG vessels to be delivered during the 3rd and 4th quarter of 2013. The company is listed on Oslo Axess under the ticker code ALNG.www.awilcolng.no -4-
  5. 5. 3rd Quarter Highlights • Awilco LNG reported: − Net freight income of MUSD 12.3 MUSD 10.1 in Q2 2012 − EBITDA of MUSD 6.4 MUSD 3.0 in Q2 2012 − Net profit of MUSD 5.8 MUSD -2.2 in Q2 2012 • WilPower idle entire quarter • In-house technical management established and building of organization in process • Vessel utilization of 67% vs 68% last quarter • Market relatively quiet for entire quarter, mainly due to lower gas price spread between Europe and Asia Subsequent events • WilGas commenced the two year charter to Petrobras in early Novemberwww.awilcolng.no -5-
  6. 6. Contract overview 2012 2013 2014WilPower AvailableWilEnergy AvailableWilGasNewbuilding no 1 Construction AvailableNewbuilding no 2 Construction Available WilPower: Available WilEnergy: Available from February 2013 Newbuilding No.1: Available from August 2013 Newbuilding No.2: Available from November 2013 WilGas: Available from November 2014www.awilcolng.no -6-
  7. 7. Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summarywww.awilcolng.no -7-
  8. 8. Q3 2012 Income statement Total freight revenue MUSD 12.6USD million Q312 Q212 Q112 2011 • 67% utilization (68% Q2)Freight income 12.6 12.4 17.7 30.7 Voyage related expenses MUSD (0.4)Voyage related expenses (0.4) (2.4) (1.2) (10.0) • No position expenses during the quarterNet freight income 12.3 10.1 16.6 20.7Operating expenses (4.8) (5.8) (3.8) (12.0) Operating expenses MUSD (4.8) • MUSD 0.7 minor repairs initiated in Q2 completed in Q3Administration expenses (1.0) (1.2) (1.0) (4.6) • MUSD 0.2 related to idling of WilPowerEBITDA 6.4 3.0 11.8 4.1Depreciation (2.0) (1.6) (2.2) (3.9) Administration expenses MUSD (1.0) • Reduction in fair value of synthetic optionsImpairment parts/equip. - (1.4) - - • Lower recruitment cost related to in-house technical mgmt.Net finance (0.3) (0.1) 0.3 (0.8)Profit/loss before tax 4.2 0.0 9.9 (0.6) Depreciation MUSD (2.0) • Marginal increase due to docking of WilPowerTax 1.6 (2.1) 2.0 (2.6)Profit/loss 5.8 (2.2) 11.9 (3.3) Net Finance (0.3) • Marginally increased interest expenses due to utilization of credit facility Tax MUSD 1.6 • Reduction in deferred tax liability due to unrealized exchange rate effects in the parent companywww.awilcolng.no -8-
  9. 9. Q3 2012 Balance sheet Vessels MUSD 196.1USD million 30.09.12 30.06.12 31.12.11 • Book value existing vessels MUSD 75.1Vessels 75.1 76.8 69.9 • Supervision cost newbuildings MUSD 1.0 during the quarterVessels under construction 121.0 119.9 79.2Other non-current assets 0.3 0.1 0.1 Current assets MUSD 10.0 • Trade receivables MUSD 2.3 vs. 1.2 Q2Total non-current assets 196.3 196.8 149.2 • Cash MUSD 4.1 vs. MUSD 3.6 Q2Trade receivables 2.3 1.2 3.8Other short term assets 3.6 3.8 0.8 Non-current liabilities MUSD 0.5 • Deferred tax liability of MUSD 0.5 due to unrealized currencyCash 4.1 3.6 28.4 effects in the parent companyTotal current assets 10.0 8.5 33.0Total assets 206.3 205.4 182.2 Current liabilities MUSD 18.7 • MUSD 10.2 of available MUSD 20.0 drawn on credit facility • Trade payables reduced due to paid dry-dock of WilPowerTotal equity 187.1 181.3 171.6Non-current liabilities 0.5 1.6 1.9Short-term interest bearing debt 10.2 10.4 -Trade payables 1.1 6.8 2.2Other current liabilities 7.4 5.3 6.5Total current liabilities 18.7 22.4 8.7Total equity and liabilities 206.3 205.4 182.2www.awilcolng.no -9-
  10. 10. Q3 2012 Cash flow USD million Q312 Q212 2011 Operating activities MUSD 2.1 • Reduced accounts payable due to payment of docking Cash Flows from Operating Activities: Investing activities MUSD (1.4) Profit/(loss) before taxes 4.2 - (0.6) • MUSD 1.0 supervision cost newbuildings Depreciation and amortization 2.0 1.6 3.9 Impairment of vessel parts and equipment - 1.4 - Trade receivables, inventory and other short term assets (0.9) (1.4) (4.6) Cash at the end of the Quarter MUSD 4.1 Accounts payable, accrued exp. and deferred revenue (3.0) 0.8 8.6 • MUSD 9.8 available under credit facility Net cash provided by / (used in) operating activities 2.1 2.4 7.3 Cash Flows from Investing Activities: Investment in vessels (0.2) (8.5) (73.8) Investment in vessels under construction (1.0) (20.7) (79.2) Investment in other fixed assets (0.2) - (0.1) Net cash provided by / (used in) in investing act. (1.4) (29.2) (153.1) Cash Flows from Financing Activities: Issuance of shares, net of transaction costs - - 131.6 Issuance of shareholder loan - - 39.0 Proceeds from borrowings (0.2) 10.4 - Net cash provided by / (used in) financing activities (0.2) 10.4 170.6 Net changes in cash and cash equivalents 0.5 (16.4) 24.7 Cash and cash equivalents at start of period 3.6 20.0 3.7 Cash and cash equivalents at end of period 4.1 3.6 28.4www.awilcolng.no - 10 -
  11. 11. Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summarywww.awilcolng.no - 11 -
  12. 12. Rate development • Continued low activity and softening rates in Q3 • Short term market followed same pattern as spot • Weaker market due to: market, declining rates and low activity − Low gas price spread between Europe and Asia • Rates still at historically high level − Angola start up delayed • Limited number of vessels available for period − Increased number of vessels available for short period contractsSource: Fearnley LNG www.awilcolng.no - 12 -
  13. 13. Gas price spread Gas spread vs. Spot rate Cargo movements from Atlantic to Pacific USD/MMBTU USD/day vs. Spot rate 11 160 000 No. Cargoes USD/day Spread LNG Spot Asia - 40 160 000 NBP (Left) Number of cargoes 140 000 9 LNG spot rate freight 35 140 000 rate (Right) LNG spot rate freight 120 000 30 120 000 rate (Right) 7 100 000 25 100 000 5 80 000 20 80 000 15 60 000 60 000 3 10 40 000 40 000 5 20 000 1 20 000 - - 1 3 5 7 9 11 2 4 6 8 10 12 2 4 6 8 10 -1 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 0 2010 2011 2012 2010 2011 2012 • Gas price spread continued to decline during the quarter, but turning in November • Number of cargoes movements from Atlantic to Pacific and gas price spread increasing in November • Rates kept at historical high levelSource: Arctic Securities, Fearnley LNG www.awilcolng.no - 13 -
  14. 14. LNG volumes Change in LNG exports y-o-y (mmtpa) Change in LNG imports y-o-y (mmtpa) -2 -1 0 1 2 3 4 -8 -6 -4 -2 0 2 4 6 8 10 Qatar Japan Norway India China Nigeria South Korea Russian Federation Taiwan Peru Brazil UAE Puerto Rico Netherlands Libya Dubai Oman Thailand USA Greece Dominican Republic Brunei Turkey Equatorial Guinea Portugal Australia Mexico Trinidad and Canada Tobago Argentina Yemen Chile Algeria Kuwait Indonesia Italy Belgium Malaysia France Egypt Spain USA United Kingdom • LNG production lagging behind last years production • Import to Europe declining while Asian countries are continuing to increase their import • Lower demand from Europe is due to relatively high gas prices and weak economy in EuropeSource: Enskilda Securities www.awilcolng.no - 14 -
  15. 15. Liquefaction growth 2012-2017 Expected increase in LNG production mtpa (FID taken - not including ramp-up) 120 100 9 80 21 60 32 40 21 20 10 0 5 2012 2013 2014 2015 2016 2017 • 90 mtpa FID taken • 100 – 110 additional vessels required by year end 2016 to handle new capacity under construction • Another 90 – 122 mtpa FID expected to be taken by year end 2013 – with start up from 2016 and onwards • Further potential from North America • Start up delays likely to occurSource: Fearnley LNG www.awilcolng.no - 15 -
  16. 16. World LNG Fleet by Year Built LNG Fleet development and orderbook (> 100 000 cbm) Fleet Newbuildings 450 60 400 50 350 300 40 250 30 200 150 14 20 8 8 100 1 10 50 12 14 15 5 2 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 No contract Committed Total fleet • Total orderbook of 78 LNG carriers, of which 48 are assumed committed and 30 open (excl FSRU) • Orderbook likely to grow from 2015 onwards, annual yard capacity about 50 vessels/year • Fleet growth is not adjusted for demolition of old vesselsSource: Fearnley LNG www.awilcolng.no - 16 -
  17. 17. Agenda 21/11 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summarywww.awilcolng.no - 17 -
  18. 18. Summary Market• Short term - increased activity − Activity is picking up due to seasonal stronger winter market − Angola should start production − Continued volatile spot market impacted by gas price spread development − Limited number of newbuildings until Q4 2013• Long term - fundamentals remains firm − Gas demand expected to continue to grow − Liquefaction capacity is set for growth - 90 mtpa under construction - 122 mtpa potential additional FID in period until year end 2013 - Trading distances expected to increase in phase with US exportwww.awilcolng.no - 18 -
  19. 19. Summary Awilco LNG • WilPower available for contract in a firming spot market • Awilco LNG has two of the first newbuildings to be delivered which are not committed to a contract • No need for financing of newbuildings prior to delivery  Awilco LNG is well positioned going forwardwww.awilcolng.no - 19 -
  20. 20. Q&A A Pure Play LNG Transportation Provider 2nd gen. fleet of 2 newbuildings 3 LNG carriers world class yard Strong balance sheet Tier 1 customers Solid owners Experienced management team Opportunistic strategywww.awilcolng.no - 20 -
  21. 21. Appendixwww.awilcolng.no - 21 -
  22. 22. Our fleet of 2nd generation vesselsWilGas WilPower WilEnergyBuilt: 1984 Built: 1983 Built: 1983Yard: Nagasaki Yard: Kawasaki Yard: NagasakiCapacity: 125,631 Capacity: 125,660 Capacity: 125,556Manager: V.Ships LNG Manager: V.Ships LNG Manager: V.Ships LNGFlag: NIS Flag: MI Flag: MIMain Engine: Steam Turbine Main Engine: Steam Turbine Main Engine: Steam TurbineCap: 2/1 Cap: 1 Cap: 1www.awilcolng.no - 22 -
  23. 23. Awilco LNG newbuildings Yard: Daewoo Shipbuilding Cost approximately MUSD 200, depending on final specification Soft payment terms Delivery August and November 2013 ICE classedwww.awilcolng.no - 23 -
  24. 24. Jon Skule StorheillCEOMobile: +47-9134 4356E-mail: jss@awilcolng.noSnorre Schie KrogstadCFOMobile: +47-9085 8393E-mail: ssk@awilcolng.nowww.awilcolng.no - 24 -

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