Q4      2012   Jon Skule Storheill    Snorre Krogstadwww.awilcolng.no         -1-
Disclaimer  This presentation may include certain forward-looking statements, forecasts, estimates, predictions, influence...
Agenda 27/2                   1. Company overview and Highlights Q4                   2. Q4 Financials                   3...
Company overview                   Awilco LNG is a pure play LNG transportation provider, owning and                   ope...
4th Quarter Highlights 4th quarter 2012 • Awilco LNG reported:       − Net freight income of      MUSD 13.4            MUS...
Contract overview                     2012                                       2013                                2014 ...
Awilco LNG newbuildings                   • Yard - Daewoo Shipbuilding                   • Ice classed                   •...
Agenda 27/2                   1. Company overview and Highlights Q4                   2. Q4 Financials                   3...
Q4 2012 Income statementUSD million               Q412       Q312       2012     2011                                     ...
Q4 2012 Balance sheetUSD million                        31.12.12   30.09.12   31.12.11Vessels                             ...
Q4 2012 Cash flow USD million                                                Q412    2012     2011                        ...
Agenda 27/2                   1. Company overview and Highlights Q3                   2. Q3 Financials                   3...
Rates gas-spread                                                                 Gas spread vs. Spot rate                 ...
LNG production and ton-mile                     LNG production (MT)                                                       ...
LNG import and export             Change in LNG imports 2012 vs. 2011 (MMPTA)                                            C...
Liquefaction growth 2012-2017                                                              Global LNG liquefaction capacit...
World LNG Fleet by Year Built                                        LNG Fleet (> 100 000 cbm) development and orderbook  ...
Agenda 27/2                   1. Company overview and Highlights Q4                   2. Q4 Financials                   3...
SummaryMarket• Short term market – will depend on LNG production       − Angola startup is important       − Disruption in...
Q&A                           A Pure Play LNG Transportation Provider                   2nd gen. fleet of                 ...
www.awilcolng.no   - 21 -
www.awilcolng.no   - 22 -
www.awilcolng.no   - 23 -
Jon Skule StorheillCEOMobile: +47-9134 4356E-mail: jss@awilcolng.noSnorre Schie KrogstadCFOMobile: +47-9085 8393E-mail: ss...
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Awilco LNG Q4 2012 results presentation

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Awilco LNG Q4 2012 results presentation

  1. 1. Q4 2012 Jon Skule Storheill Snorre Krogstadwww.awilcolng.no -1-
  2. 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 of the newbuildings 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 it’s 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.www.awilcolng.no -2-
  3. 3. Agenda 27/2 1. Company overview and Highlights Q4 2. Q4 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. 4th Quarter Highlights 4th quarter 2012 • Awilco LNG reported: − Net freight income of MUSD 13.4 MUSD 12.3 in Q3 2012 − EBITDA of MUSD 8.0 MUSD 6.5 in Q3 2012 − Net profit of MUSD 6.3 MUSD 5.8 in Q2 2012 • WilGas commenced two year charter in November • Newbuilding progressing as per schedule • Vessel utilization of 67% same as last quarter • Increased market activity and rates at the end of the quarter Full year 2012 • Awilco LNG reported - Net freight income of MUSD 52.3 MUSD 20.7 in 2011 - EBITDA MUSD 29.3 MUSD 4.0 in 2011 - Net profit MUSD 21.7 MUSD -3.3 in 2011www.awilcolng.no -5-
  6. 6. Contract overview 2012 2013 2014 WilPower Available WilEnergy On charter Available WilGas On charter (Petrobras) Newbuilding no 1 Construction Available Newbuilding no 2 Construction Available WilPower: Available WilEnergy: Available from end 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. Awilco LNG newbuildings • Yard - Daewoo Shipbuilding • Ice classed • Construction cost approximately MUSD 200 • Delivery on or before schedule in August and October/November 2013 • All pre-delivery installments paid by equity (30%) • ALNG actively pursuing term contracts for the newbuildings • In discussions with banks for financingwww.awilcolng.no -7-
  8. 8. Agenda 27/2 1. Company overview and Highlights Q4 2. Q4 Financials 3. Market update 4. Summarywww.awilcolng.no -8-
  9. 9. Q4 2012 Income statementUSD million Q412 Q312 2012 2011 Total freight revenue MUSD 13.8Freight income 13.8 12.6 56.6 30.7 • Increase from Q3 due to improved rates on new WilGasVoyage related expenses (0.4) (0.4) (4.3) (10.0) contractNet freight income 13.4 12.3 52.3 20.7 • 67% utilisation (same as Q3)Operating expenses (4.0) (4.8) (18.4) (12.0) Operating expenses MUSD (4.0)Administration expenses (1.4) (1.0) (4.6) (4.6)EBITDA 8.0 6.4 29.3 4.1 Administration expenses MUSD (1.4)Depreciation (2.0) (2.0) (7.7) (3.9) Tax MUSD 0.4Impairment parts/equip. - - (1.4) - • Reduction in deferred tax liabilities due to unrealised exchange rate effects in the parent companyNet finance (0.2) (0.3) (0.3) (0.8) • No tax payable in Q4 or 2012Profit/loss before tax 5.9 4.2 19.9 (0.6)Tax 0.4 1.6 1.8 (2.6)Profit/loss 6.3 5.8 21.7 (3.3)www.awilcolng.no -9-
  10. 10. Q4 2012 Balance sheetUSD million 31.12.12 30.09.12 31.12.11Vessels 73.6 75.1 69.9 Vessels MUSD 195.5Vessels under construction 121.9 121.0 79.2 • Book value existing vessels MUSD 73.6 • Supervision cost newbuildings MUSD 0.9 during the quarterOther non-current assets 0.3 0.3 0.1Total non-current assets 195.8 196.3 149.2 Current assets MUSD 7.3Trade receivables 2.5 2.3 3.8 • Cash MUSD 2.6 vs. MUSD 4.1 Q3Other short term assets 2.2 3.6 0.8Cash 2.6 4.1 28.4 Current liabilities MUSD 9.4Total current assets 7.3 10.0 33.0 • Reduction from Q3 due to repayment of MUSD 8.6 on credit facilityTotal assets 203.0 206.3 182.2 • MUSD 1.6 of available MUSD 20.0 drawn on credit facility as of 31. December 2012Total equity 193.3 187.1 171.6Non-current liabilities 0.3 0.5 1.9Short-term interest bearing debt 1.6 10.2 -Trade payables 0.7 1.1 2.2Other current liabilities 7.1 7.4 6.5Total current liabilities 9.4 18.7 8.7Total equity and liabilities 203.0 206.3 182.2www.awilcolng.no - 10 -
  11. 11. Q4 2012 Cash flow USD million Q412 2012 2011 Operating activities MUSD 8.5 Cash Flows from Operating Activities: • Reduced other short term assets Profit/(loss) before taxes 5.9 19.9 (0.6) Taxes paid (0.1) (0.1) - Investing activities MUSD (1.4) Depreciation and amortisation 2.0 7.7 3.9 • MUSD 0.9 supervision cost newbuildings Impairment of vessel parts and equipment - 1.4 - • MUSD 0.5 in minor upgrades of existing vessels Trade receivables, inventory and other short term assets 1.2 (0.1) (4.6) Accounts payable, accrued exp. and deferred revenue (0.5) (0.6) 8.6 Net cash provided by / (used in) operating activities 8.5 28.2 7.3 Financing activities MUSD (8.6) • Repayment of MUSD 8.6 on credit facility Cash Flows from Investing Activities: Investment in vessels (0.5) (12.9) (73.8) Cash at the end of the Quarter MUSD 2.6 Investment in vessels under construction (0.9) (42.7) (79.2) • MUSD 18.4 available under credit facility Investment in other fixed assets - (0.2) (0.1) Net cash provided by / (used in) in investing act. (1.4) (55.7) (153.1) Cash Flows from Financing Activities: Issuance of shares, net of transaction costs - - 131.6 Issuance of shareholder loan - - 39.0 Proceeds from (repayment of) borrowings (8.6) 1.6 - Net cash provided by / (used in) financing activities (8.6) 1.6 170.6 Net changes in cash and cash equivalents (1.5) (25.9) 24.7 Cash and cash equivalents at start of period 4.0 28.4 3.7 Cash and cash equivalents at end of period 2.6 2.6 28.4www.awilcolng.no - 11 -
  12. 12. Agenda 27/2 1. Company overview and Highlights Q3 2. Q3 Financials 3. Market update 4. Summarywww.awilcolng.no - 12 -
  13. 13. Rates gas-spread Gas spread vs. Spot rate USD/MMBTU USD/day 11 160 000 Spread LNG Spot Asia - NBP (Left) LNG spot rate freight rate (Right) 140 000 9 120 000 7 100 000 5 80 000 60 000 3 40 000 1 20 000 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 2 -1 2010 2011 2012 2013 0 • Gas price-spread re-bounced towards the end of the quarter and continued to be firm into the winter market • Rates improved at the end of the quarter as a result of increased gas price-spread and cargo diversionsSource: Arctic Securities www.awilcolng.no - 13 -
  14. 14. LNG production and ton-mile LNG production (MT) LNG Production vs Tonn-mile BN ton-miles 450 1400 400 1200 350 1 010 1 012 1000 300 845 250 800 200 646 655 600 150 241 237 400 100 221 174 182 200 50 0 0 2008 2009 2010 2011 2012 Global LNG production (MT) Global ton.mile demand (in BN ton-miles) • LNG production down y-o-y in 2012. First time in 30 years • Despite lower LNG production ton-mile demand marginally increased • Angola production now expected start in Q2, but still some uncertainty • LNG production was the problem in 2012, not demandSource: Arctic Securities www.awilcolng.no - 14 -
  15. 15. LNG import and export Change in LNG imports 2012 vs. 2011 (MMPTA) Change in LNG Exports 2012 vs. 2011 (MMTPA) -10 -5 0 5 10 -4 -3 -2 -1 0 1 2 Japan Australia China India Qatar Brazil Norway Taiwan Russian Federation Dubai Trinidad and Tobago Puerto Rico Thailand Nigeria Netherlands UAE Turkey South Korea Libya Greece Peru Dominican Republic Oman Mexico Equatorial Guinea Portugal Chile USA Kuwait Spain Canada Brunei Argentina Italy Malaysia Belgium Yemen Spain Egypt France USA AlgeriaUnited Kingdom Indonesia• Demand in Asia increasing • Australia increased production with Pluto startup - Japan increased with 11% • Will utilization from existing plants increase in 2013 ? - China increased with 20% • Technical issues in several plants• European demand reduced • “Arab spring” effects in Algeria + Egypt - Cheap coal, reduced energy demand • Terror attacks in YemenSource: Enskilda Securities www.awilcolng.no - 15 -
  16. 16. Liquefaction growth 2012-2017 Global LNG liquefaction capacity growth (not including ramp-up) 500 450 11% 400 17% 350 139 Mill. Tons per Year 9% 300 4% 2% 3% 1% 19% 5% 250 13% 200 7% 12% 9% 150 11% 275 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Global LNG Production Capacity (EoY) New Capacity 2017 • 90 - 100 MTPA under construction • Another 90 – 120 MTPA in the pipeline for FID • Further upside from North America • Historically 1.2 vessels needed in order to transport 1 MTPA of LNGSource: Fearnley LNG www.awilcolng.no - 16 -
  17. 17. World LNG Fleet by Year Built LNG Fleet (> 100 000 cbm) development and orderbook Fleet Newbuildings 500 50 450 45 400 40 350 35 300 30 250 25 200 17 7 20 150 10 15 1 100 10 50 5 0 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 No contract Committed Total fleet • Total orderbook of 88 LNG carriers, of which 53 are assumed committed and 35 available (excl FSRU) • Total fleet growth is not adjusted for deletion of old vessels • 34 vessels are older than 30 years in 2013Source: Fearnley LNG www.awilcolng.no - 17 -
  18. 18. Agenda 27/2 1. Company overview and Highlights Q4 2. Q4 Financials 3. Market update 4. Summarywww.awilcolng.no - 18 -
  19. 19. SummaryMarket• Short term market – will depend on LNG production − Angola startup is important − Disruption in production remains a factor − Tonnage surplus is thin and could change rapidly with few new buildings until very end of 2013 − 1st + 2nd generation vessels more exposed to fluctuations in production• Long term fundamentals - remains firm − Gas demand is increasing and expected to outpace any other fossil fuel − Liquefaction capacity is set for growth - 90 MTPA under construction - 90 – 120 MTPA potential FID expected in 2013 /2014 - Trading distances expected to increase in phase with US export - Uncertainties linked to timing of newbuildings deliveries vs. new production capacitywww.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. www.awilcolng.no - 21 -
  22. 22. www.awilcolng.no - 22 -
  23. 23. www.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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