Höegh LNG – The floating LNG services provider
Second Quarter 2013
Presentation of financial results
28 August 2013
Forward looking statements
2
This presentation contains forward-looking statements which reflects management’s current exp...
Agenda
3
 Highlights
 Financials
 Operational review
 Market outlook
 Summary
Highlights
4
 Total income USD 51.3 m (32.3)
 EBITDA USD 7.3 m (9.7)
 Loss before tax USD 6.0 m (0.6 profit)
 All four...
Agenda
5
 Highlights
 Financials
 Operational review
 Market outlook
 Summary
Income statement
6
USD million 2Q2013 1Q2013 4Q2012 3Q2012 2Q2012 YTD2013 YTD2012
TOTAL INCOME 51,3 29,5 37,6 38,0 32,3 80...
Financial position
7
USD million 30.06.2013 31.03.2013 31.12.2012 30.09.2012 30.06.2012
Licences, design and other intangi...
Cash flow statement
8
USD million 2Q2013 1Q2013 4Q2012 3Q2012 2Q2012 YTD2013 YTD2012
Net profit or (loss) before tax (6) (...
Agenda
9
 Highlights
 Financials
 Operational review
 Market outlook
 Summary
FSRU newbuilding program with Hyundai Heavy Industries Ltd
10
Hull Project Construction Delivery
2548 Perusahaan Gas Negar...
11
Klaipedos Nafta FSRU
 FSRU launched in May 2013 and will be
delivered ex shipyard end February 2014
 Klaipedos Nafta'...
12
Perusahaan Gas Negara FSRU
 FSRU launched in July 2013 and will be
delivered ex shipyard in April 2014 for
operations ...
13
Perusahaan Gas Negara Mooring
 Mooring construction ahead of
schedule and on budget
 Expect to sign installation cont...
14
Colbún / AES Gener FSRU
 Preferred bidder status since
September 2012
 Colbún and AES Gener's work to
get access to e...
15
Vessels in operation
 Existing fleet operated safely and without incidents
 Project where GDF Suez Cape Ann will serv...
Höegh FLNG Ltd.
16
 Developed a new strategic plan for capitalisation and growth of Höegh FLNG, the
main focus being a se...
Agenda
17
 Highlights
 Financials
 Operational review
 Market outlook
 Summary
Market developments
18
 Natural gas demand has grown by
2.7% p.a. since 2000
 LNG demand has risen by 7.6% p.a.
in the s...
Growing global liquefaction capacity
19
 Global liquefaction capacity was
281 mtpa at the end of 2012
 110 mtpa of capac...
Around 30 potential FSRU regasification projects worldwide
20
Around 30 projects in pipeline
 16 projects in Asia/Middle ...
21
Near-term FSRU contract award opportunities
Project
Pre-
qualified
Bid Selection
Contract
award
Start-up
Uruguay Yes Q2...
Global LNG fleet overview
 15 FSRUs in fleet
 8 FSRU newbuildings on order plus up to
four options to change from LNGC t...
Agenda
23
 Highlights
 Financials
 Operational review
 Market outlook
 Summary
Summary
24
 Strong market prospects for FSRUs driven by
liquefaction capacity under construction
 Newbuilding programme ...
Upcoming SlideShare
Loading in …5
×

Hoegh LNG Q2 2013 results presentation

1,120 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,120
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Hoegh LNG Q2 2013 results presentation

  1. 1. Höegh LNG – The floating LNG services provider Second Quarter 2013 Presentation of financial results 28 August 2013
  2. 2. Forward looking statements 2 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.
  3. 3. Agenda 3  Highlights  Financials  Operational review  Market outlook  Summary
  4. 4. Highlights 4  Total income USD 51.3 m (32.3)  EBITDA USD 7.3 m (9.7)  Loss before tax USD 6.0 m (0.6 profit)  All four new FSRUs on time and on budget  New time charter entered into for LNG Libra  Awarded pre-FEED study for North American jetty-moored barge FLNG  Awarded pre-FEED study for offshore FLNG project in Asia  Commitment letters received for USD 299 debt facility for the financing of the PGN FSRU project. Facility expected to be signed shortly
  5. 5. Agenda 5  Highlights  Financials  Operational review  Market outlook  Summary
  6. 6. Income statement 6 USD million 2Q2013 1Q2013 4Q2012 3Q2012 2Q2012 YTD2013 YTD2012 TOTAL INCOME 51,3 29,5 37,6 38,0 32,3 80,7 60,0 Charterhire expenses (5,1) (5,1) (5,2) (5,2) (5,1) (10,2) (10,3) Operating expenses (8,5) (8,4) (10,1) (7,8) (7,5) (16,9) (15,2) Construction contract expenses (22,5) - - - - (22,5) - Administrative expenses (3,8) (3,9) 4,1 (3,5) (2,9) (7,7) (6,6) Business dvelopment expenses (4,1) (4,6) (5,8) (8,2) (7,1) (8,7) (12,4) EBITDA 7,3 7,5 20,5 13,2 9,7 14,8 15,5 Gain /(loss) on sale of assets - - 10,4 0,0 - - - Depreciation and impairment (7,6) (7,3) (8,4) (6,2) (4,1) (15,0) (8,1) EBIT (0,3) 0,1 22,5 7,0 5,6 (0,2) 7,4 Interest expenses (5,9) (8,3) (8,5) (6,1) (6,1) (14,2) (12,2) Interest income 0,0 0,1 0,0 0,0 0,0 0,1 0,1 Other financial items 0,2 0,5 (0,4) 0,1 1,0 0,7 1,4 PROFIT OR (LOSS) BEFORE TAX (6,0) (7,6) 13,6 1,1 0,6 (13,5) (3,3) Taxes (0,1) (0,4) 0,0 (0,2) - (0,5) - NET PROFIT OR (LOSS) (6,1) (7,9) 13,6 0,9 0,6 (14,1) (3,3)
  7. 7. Financial position 7 USD million 30.06.2013 31.03.2013 31.12.2012 30.09.2012 30.06.2012 Licences, design and other intangibles 74 74 74 74 83 Investments in newbuildings , vessels 814 797 713 685 578 Other assets 45 19 15 18 30 Hedging reserves 13 3 - - - Restricted non-current cash 14 13 23 23 23 Current cash and marketable securities 124 176 247 133 223 TOTAL ASSETS 1 084 1 082 1 072 932 937 Total equity 381 349 344 328 326 Interest bearing debt 561 569 559 430 433 Hedging reserves 96 123 133 137 138 Other liabilities 47 41 36 37 40 TOTAL EQUITY AND LIABILITIES 1 084 1 082 1 072 932 937 Total equity adjusted for hedge reserves 463 469 477 465 464 Equity ratio adjusted for hedge reserves 43% 43% 44% 50% 50% Net interest bearing debt * 423 380 290 274 187 * Gross IBD less cash, mark.securities and restricted cash
  8. 8. Cash flow statement 8 USD million 2Q2013 1Q2013 4Q2012 3Q2012 2Q2012 YTD2013 YTD2012 Net profit or (loss) before tax (6) (8) 14 1 1 (14) (3) Adjustments of non-cash P&L items 10 15 (1) 12 10 25 19 Net changes in working capital, other (4) 12 (3) 4 1 8 (11) Net cash flow from operating activities 0 19 10 17 11 20 5 Proceeds from sale of marketable securities 80 - - 81 42 80 102 Investments in marketable securities - - (50) - - - (155) Investments in vessels and newbuildings (38) (90) (32) (98) (2) (128) (87) Investments in intangibles and equipment (0) (3) - - - (4) (2) Proceeds from sale of projects and equimpent - - 20 - - Net cash flow from/(used in) investing activities 42 (93) (62) (17) 40 (51) (142) Proceeds from borrowings - 19 130 - - 19 - Repayment of borrowings (3) (3) (3) (3) (3) (7) (6) Interest paid (8) (8) (6) (6) (6) (16) (12) Net proceeds issue of capital - - - - - - 202 Other financing activities (2) (4) (6) (0) (1) (7) (4) Net cash flow from/(used in) financing activities (14) 2 115 (10) (10) (11) 180 TOTAL CASH FLOW 28 (71) 64 (9) 41 (43) 42
  9. 9. Agenda 9  Highlights  Financials  Operational review  Market outlook  Summary
  10. 10. FSRU newbuilding program with Hyundai Heavy Industries Ltd 10 Hull Project Construction Delivery 2548 Perusahaan Gas Negara 72% April 2014 2549 Klaipedos Nafta 87% February 2014 2550 Colbun / AES Gener 57% June 2014 2551 Open 0% March 2015 Mooring Perusahaan Gas Negara 50% April 2014
  11. 11. 11 Klaipedos Nafta FSRU  FSRU launched in May 2013 and will be delivered ex shipyard end February 2014  Klaipedos Nafta's jetty and pipeline on schedule  Terminal scheduled to commence operations in second half 2014  Pursuing interim employment of FSRU before starting operations in Lithuania
  12. 12. 12 Perusahaan Gas Negara FSRU  FSRU launched in July 2013 and will be delivered ex shipyard in April 2014 for operations to commence according to schedule in June 2014  Construction of FSRU and mooring is progressing according to schedule and budget  Commitment letters received for USD 299 million debt facility, and facility documentation expected to be signed shortly
  13. 13. 13 Perusahaan Gas Negara Mooring  Mooring construction ahead of schedule and on budget  Expect to sign installation contract in Q42013  Mooring to be transferred to PGN upon acceptance Mooring yoke structure construction Weather waning swivel Gas transfer lines Platform Transfer pipeline
  14. 14. 14 Colbún / AES Gener FSRU  Preferred bidder status since September 2012  Colbún and AES Gener's work to get access to existing jetty system has taken longer than expected  FSRU negotiations are continuing  Contract term 10 years plus five year extension option
  15. 15. 15 Vessels in operation  Existing fleet operated safely and without incidents  Project where GDF Suez Cape Ann will serve as China's first FSRU on schedule for start inOctober 2013  LNG Libra without employment from January to June 2013. New time charter with Gas Natural until November 2013 with option to extend. Docked in May 2013. Considering a sale of the vessel  Norman Lady's time charter ends in September 2013. Considering a sale
  16. 16. Höegh FLNG Ltd. 16  Developed a new strategic plan for capitalisation and growth of Höegh FLNG, the main focus being a separate listing. A lead investment bank selected to manage the process  Pursuing small scale barge FLNG opportunities in Asia, North America and Africa  Strong interest for barge based solutions  Awarded paid engineering studies for a North American barge FLNG project and an Asian offshore FLNG project
  17. 17. Agenda 17  Highlights  Financials  Operational review  Market outlook  Summary
  18. 18. Market developments 18  Natural gas demand has grown by 2.7% p.a. since 2000  LNG demand has risen by 7.6% p.a. in the same period  Active FSRU market  Two recent awards  One project completed  Eight on order : two uncommitted  Positive long-term outlook for LNG carriers, but challenging short term  Evolving FLNG market  Woodside recommends to build 3 FLNGs for Browse fields  Petronas to decide on second FLNG  PTTEP to decide on FLNG partner for Cash Maple in 2014  GDF Suez to enter FEED for Bonaparte FLNG in 2013/14
  19. 19. Growing global liquefaction capacity 19  Global liquefaction capacity was 281 mtpa at the end of 2012  110 mtpa of capacity is currently under construction  158 mtpa of additional capacity is in FEED stage  357 mtpa of further capacity has been proposed Source:InternationalGasUnion,WorldLNGReport Construction of liquefaction trains 1 and 2 at Sabine Pass
  20. 20. Around 30 potential FSRU regasification projects worldwide 20 Around 30 projects in pipeline  16 projects in Asia/Middle East  6 projects in South America  11 projects in Europe/Africa Owner FSRUs Customers* Höegh LNG 2+4 GDF Suez (2), Perusahaan Gas Negara, Klaipedos Nafta, Colbun/AES Gener Golar LNG 4+2 Petrobras (2), Pertamina, Dubai Power Authority, GasAtacama, Jordanian Energy Ministry, Kuwait National Petroleum Company Excelerate 8+1 YPF (2), KNPC, Petrobras, PREPA, Israel Electric Corporation, Ukraine NLG Terminal National Project BW Gas 0+1 N/A * Projects in operation or awarded Existing Under construction / awarded Potential
  21. 21. 21 Near-term FSRU contract award opportunities Project Pre- qualified Bid Selection Contract award Start-up Uruguay Yes Q2 2013 Q2 2013 Q3 2013 2015 Chile Preferred bidder Done Done Q4 2013 2015* India Yes Q2 2013 Q4 2013 2013 2015 Lebanon Yes Q3 2013 Q4 2013 2014 2016 Pakistan Yes Q4 2013 Q4 2013 Q4 2013 2014 Port Meridian Exclusive N/A N/A Q4 2013 2016 * Subject to final agreement
  22. 22. Global LNG fleet overview  15 FSRUs in fleet  8 FSRU newbuildings on order plus up to four options to change from LNGC to FSRU  365 LNG vessels in fleet  103 newbuildings on order (28%) 22 Type Delivered Newbuildings on order Under conversion Total LNGC 365 103 - 468 FLNG - 3 - 3 FSRU 15* 8** - 23 Total 380 114 0 494 LNGC fleet FSRU fleet * 10 newbuildings and 5 conversions ** In additional to eight firm FSRU orders globally, Golar LNG has options to convert up to four LNGC orders to FSRUs Source: Wood Mackenzie, LNG Unlimited, Fearnley LNG
  23. 23. Agenda 23  Highlights  Financials  Operational review  Market outlook  Summary
  24. 24. Summary 24  Strong market prospects for FSRUs driven by liquefaction capacity under construction  Newbuilding programme on track and on budget  LNG Libra on new time charter  Paid pre-FEED work for two FLNG projects  Considering separate listing of Höegh FLNG

×