Awilco LNG

Investor Presentation • Nov 21, 2014

Q3 2014

Jon Skule Storheill Snorre Krogstad

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 forwardlooking 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 forwardlooking statements contained herein, whether as a result of new information, future events or otherwise.

Agenda 21/11 2014

1. Company Overview and Highlights Q3

2. Financials Q3

3. Market update

4. Summary

Company Overview

Awilco LNG is a pure play LNG transportation provider, owning and operating LNG vessels. The Company currently owns two 2013 built 156,000 cbm TFDE membrane LNG vessels; WilForce and WilPride, and three 125,000 cbm steam Moss type LNG vessels; WilGas, WilPower and WilEnergy. Awilco LNG is listed on Oslo Axess under the ticker code ALNG.

3 rd Quarter Highlights

3 rd quarter 2014

• Awilco LNG reported:

−	Net freight income of	MUSD 17.3	MUSD 17.2 in Q2 2014
−	EBITDA of	MUSD 10.9	MUSD 10.9 in Q2 2014
−	Net profit/(loss) of	MUSD (0.3)	MUSD 0.2 in Q2 2014

• Vessel utilisation of 95 % excluding dry-dock, compared to 94 % in Q2 2014 (86 % including dry-dock compared to 84 % in Q2 2014).
• WilEnergy redelivered from charter in mid-September.

Subsequent events

• WilGas redelivered from charterer Petrobras in mid-October, subsequently fixed for a short charter until Jan Feb 2015.
• WilPride fixed until February 2015.

Contract Overview

	2014		2015
WilEnergy	On charter		DD Available
WilGas	On charter DD	On charter	Available
WilPride	On charter		Available
WilForce	On charter		On charter
WilPower	Lay-up - Marketed for project work		Lay-up - Marketed for project work

WilEnergy:	Available
WilGas:	Employed until January – February 2015
WilPride:	Employed until February 2015
WilForce:	Employed until January 2017 option January 2018
WilPower:	Lay-up

Agenda 21/11 2014

1. Company Overview and Highlights Q3

2. Financials Q3

3. Market update

4. Summary

Q3 2014 Income statement

USD million	Q3'14	Q2'14	2013
Freight income	20.8	19.9	54.7
Voyage related expenses	(3.5)	(2.7)	(12.8)
Net freight income	17.3	17.2	41.9
Operating expenses	(5.0)	(4.8)	(18.5)
Administration expenses	(1.4)	(1.5)	(6.8)
EBITDA	10.9	10.9	16.6
Depreciation	(4.8)	(4.4)	(10.0)
Net finance	(6.4)	(6.3)	(5.5)
Profit/(loss) before tax	(0.3)	0.2	1.1
Tax	-	-	0.1
Profit/(loss)	(0.3)	0.2	1.2

Net freight income MUSD 17.3

• 95 % utilisation trading vessels (94 % in Q2 2014)
• Increased voyage expenses mainly due to WilGas repositioning and cool down after scheduled dry-dock

Operating expenses MUSD (5.0)

• Increase mainly due to natural fluctuations in timing of expenses

Depreciation MUSD (4.8)

• Increase due to depreciation of WilGas dry-docking after completion in mid-July

Q3 2014 Balance sheet

USD million	30.09.14	30.06.14	31.12.13
Vessels	471.8	470.9	478.7
Other non-current assets	0.3	0.3	0.4
Total non-current assets	472.1	471.2	479.1
Trade receivables	3.0	3.9	3.7
Other short term assets	7.8	7.1	12.6
Cash	21.5	23.8	18.2
Total current assets	32.3	34.7	34.5
Total assets	504.4	505.9	513.6
Total equity	194.4	194.7	194.5
Long-term interest bearing debt	288.6	291.6	297.3
Other non-current liabilities	0.2	0.2	0.1
Non-current liabilities	288.8	291.7	297.4
Short-term interest bearing debt	11.5	11.2	10.8
Other current liabilities	9.7	8.3	11.0
Total current liabilities	21.2	19.5	21.7
Total equity and liabilities	504.4	505.9	513.6

Vessels MUSD 471.8
• WilGas dry-docking total capital expenditure of MUSD 7.0
Current assets MUSD 32.3 • Other short term assets includes MUSD 3.0 prepaid BB hire
• Cash MUSD 21.5 vs. MUSD 23.8 Q2
Non-current liabilities MUSD 288.8
• MUSD 288.6 long term portion of WilForce and WilPride financial lease liabilities
Current liabilities MUSD 21.2
• MUSD 11.5 short term portion of WilPride and WilForce financial lease liabilities
• MUSD 4.7 deferred revenue

Q3 2014 Cash flow

USD million	Q3'14	Q2'14	2013
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(0.3)	0.2	1.1
Income taxes paid	-	-	(0.1)
Interest and borrowing costs expensed	6.3	6.3	5.6
Depreciation and amortisation	4.8	4.4	10.0
Trade receivables, inventory and other short term assets	0.1	3.0	(8.5)
Accounts payable, accrued exp. and deferred revenue	1.5	(2.6)	2.6
Net cash provided by / (used in) operating activities	12.4	11.3	10.7
Cash Flows from Investing Activities:
Investment in vessels	(5.6)	(1.0)	(1.1)
Investment in vessels under construction	-	-	(291.6)
Investment in other fixed assets	-	-	(0.2)
Net cash provided by / (used in) investing activities	(5.6)	(1.0)	(292.8)
Cash Flows from Financing Activities:
Proceeds from borrowings	-	-	312.1
Repayment of borrowings	(2.8)	(2.7)	(6.6)
Interest and borrowing costs paid	(6.3)	(6.3)	(7.7)
Net cash provided by / (used in) financing activities	(9.0)	(9.0)	297.8
Net changes in cash and cash equivalents	(2.3)	1.2	15.7
Cash and cash equivalents at start of period	23.8	22.5	2.6
Cash and cash equivalents at end of period	21.5	23.8	18.2

Operating activities MUSD 12.4

• Increase in deferred revenue of MUSD 1.2 from previous quarter

Investing activities MUSD (5.6)

• Final payment WilGas dry-dock

Financing activities MUSD (9.0)

• Interest payment and repayment on WilPride and WilForce financial lease liabilities

Cash at the end of the quarter MUSD 21.5

Agenda 21/11 2014

1. Company Overview and Highlights Q3

2. Financials Q3

3. Market update

4. Summary

Rate development

• Spot charter rates bottomed out in Q2 and has improved since
• Current seasonal low LNG demand rates still holding
• TFDE rate advantage increasing

Source: Fearnley LNG

Production and ton-mile

• Both ton-mile and LNG production improved in Q3
• Production is set for further growth with Arzew and Queensland Curtis scheduled for start-up in Q4 2014 adding 13 MTPA of production capacity when fully operational
• 3 further Australian projects on schedule for startup in 2015 and potentially first US export from Sabine

Source: Arctic Securities

LNG production

• A total of abt 130 MTPA of new LNG capacity is under construction in the period 2014 -2018
• Australia about 60 MTPA and U.S about 40 MTPA
• In addition 150 200 MTPA under various stages of planning from Australia, US, Canada

Source: RS Platou

U.S LNG Export

• 1 MTPA from U.S to Europe requires about 1.1 vessel
• 1 MTPA from U.S to Far East requires about 2 vessels
• By 2021 estimated vessel need from U.S production is about 150 vessels

Source: Fearnley LNG

LNG fleet orderbook

NEWBUILDING DELIVERIES BY QUARTER

• 26 newbuildings delivered YTD in 2014 and 5 vessels scheduled for delivery for the remaining of 2014
• Continued high ordering in Q3 20 vessels ordered
• 122 vessels on order of which 21 open and 101 committed

Source: Fearnley LNG

Agenda 21/11 2014

1. Company Overview and Highlights Q3

2. Financials Q3

3. Market update

4. Summary

Summary

• Activity and rates turned in July and increased through the quarter
• Improvement partly seasonal and partly new LNG on water from PNG
• Further new LNG production is starting to materialise Arzew expected to ship first cargo soon and Queensland Curtis within December. Gladstone, Australia Pacific, Dongi, Gorgon and possibly Sabine Pass in 2015
• 23 newbuildings to be delivered next 3 quarters of which 8 are open
• Real improvement in rates can be expected as new liquefaction hits the water sentiment is improving
• The long term LNG picture is strong with 130 MTPA of new production under construction
• Long term demand for LNG is strong Gas is Clean, Cheap and Available!
• Start up and production levels from new liquefaction determine the LNG market in the short mid term

Summary Awilco LNG

• WilPride utilisation of 90 % in spot market since delivery
• Short-midterm contract WilPride waiting for the "right" deal
• Not "right time" to go long
• Increased interest in 2nd generation vessels for various infrastructure projects

A Pure Play LNG Transportation Provider

www.awilcolng.no - 21 -

www.awilcolng.no - 22 -

www.awilcolng.no - 23 -

Jon Skule Storheill CEO Mobile: +47 -9134 4356 E -mail: jss@awilcolng.no

Snorre Krogstad CFO Mobile: +47 -9085 8393 E -mail: ssk@awilcolng.no