Awilco LNG

Investor Presentation • May 28, 2014

Q1 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 28/05 2014

1. Company Overview and Highlights Q1

2. Financials Q1

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.

1 st Quarter Highlights

1 st quarter 2014

• Awilco LNG reported:

−	Net freight income of	MUSD 17.6		MUSD 15.8 in Q4 2013
−	EBITDA of	MUSD 10.7	MUSD	8.0 in Q4 2013
−	Net profit of	MUSD 0.0		MUSD (0.3) in Q4 2013

• Vessel utilisation of 95 %, compared to 90 % in Q4 2013
• WilForce commenced a three plus one year contract on 24 January 2014
• WilPride successfully completed maiden voyage

Subsequent events

• WilPride fixed 3 cargoes in Q2, corresponding to a utilization of about of 78%
• WilEnergy charter extended for up to two months until end September with current charterer, but at somewhat lower rate.

Contract Overview

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

WilPride:	Available from mid-July 2014
WilEnergy:	Employed until end September 2014
WilGas:	Employed until October/November 2014
WilForce:	Employed until January 2017 plus one year option
WilPower:	Lay-up

Agenda 28/05 2014

1. Company Overview and Highlights Q1

2. Financials Q1

3. Market update

4. Summary

Q1 2014 Income statement

USD million	Q1'14	Q4'13	2013
Freight income	20.2	21.3	54.7
Voyage related expenses	(2.5)	(5.5)	(12.8)
Net freight income	17.6	15.8	41.9
Operating expenses	(5.6)	(5.3)	(18.5)
Administration expenses	(1.3)	(2.5)	(6.8)
EBITDA	10.7	8.0	16.6
Depreciation	(4.4)	(3.9)	(10.0)
Net finance	(6.3)	(4.4)	(5.5)
Profit/(loss) before tax	0.0	(0.3)	1.1
Tax	-	-	0.1
Profit/(loss)	0.0	(0.3)	1.2

Net freight income MUSD 17.6

• Full quarter trading of WilPride offset by lower earnings on WilPride
• 95 % utilisation trading vessels (90 % in Q4 2014) (utilisation including days on hire including positioning)
• Lower positioning expenses

Operating expenses MUSD (5.6)

• Increase from Q4 due to full quarter operation of WilPride

Administration expenses MUSD (1.3 )

• Reduced due to bonus expensed in Q4 and reduction in fair value of synthetic options

Depreciation MUSD (4.4)

• Increase from Q4 due to full quarter operation of WilPride

Net finance MUSD (6.3)

• Full quarter financial lease for WilPride

Q1 2014 Balance sheet

USD million	31.03.14	31.12.13
Vessels	474.2	478.7
Other non-current assets	0.3	0.4
Total non-current assets	474.5	479.1
Trade receivables	5.8	3.7
Other short term assets	7.9	12.6
Cash	22.5	18.2
Total current assets	36.3	34.5
Total assets	510.8	513.6
Total equity	194.5	194.5
Long-term interest bearing debt	294.5	297.3
Other non-current liabilities	0.1	0.1
Non-current liabilities	294.6	297.4
Short-term interest bearing debt	11.0	10.8
Other current liabilities	10.7	11.0
Total current liabilities	21.7	21.7
Total equity and liabilities	510.8	513.6

Vessels MUSD 474.2 Current assets MUSD 36.3 • Other short term assets includes MUSD 2.9 prepaid hire • Cash MUSD 22.5 vs. MUSD 18.2 Q4 Non-current liabilities MUSD 294.6 • MUSD 294.5 long term portion of WilForce and WilPride financial lease liabilities Current liabilities MUSD 21.7 • MUSD 11.0 short term portion of WilPride and WilForce financial lease liability

• MUSD 15 credit Facility was cancelled by the Company during the quarter

Q1 2014 Cash flow

USD million	Q1'14	Q4'13	2013
Cash Flows from Operating Activities:
Profit/(loss) before taxes	-	(0.3)	1.1
Taxes paid	-	(0.1)	(0.1)
Interest and borrowing costs expensed	6.3	4.5	5.6
Depreciation and amortisation	4.4	3.9	10.0
Trade receivables, inventory and other short term assets	2.5	(8.1)	(8.5)
Accounts payable, accrued exp. and deferred revenue	0.4	4.7	2.6
Net cash provided by / (used in) operating activities	13.6	4.7	10.7

Cash Flows from Investing Activities:

Investment in vessels	-	-	(1.1)
Investment in vessels under construction	(0.5)	(144.0)	(291.6)
Investment in other fixed assets	-	-	(0.2)
Net cash provided by / (used in) investing activities	(0.5)	(144.1)	(292.8)

Cash Flows from Financing Activities:

Proceeds from borrowings	-	155.0	312.1
Repayment of borrowings	(2.6)	(2.2)	(6.6)
Interest and borrowing costs paid	(6.2)	(5.5)	(7.7)
Net cash provided by / (used in) financing activities	(8.8)	147.2	297.8
Net changes in cash and cash equivalents	4.3	7.8	15.7
Cash and cash equivalents at start of period	18.2	10.4	2.6
Cash and cash equivalents at end of period	22.5	18.2	18.2

Operating activities MUSD 13.6

Investing activities MUSD (0.5)

• Newbuildings delivered and trading

• No DD during the quarter

Financing activities MUSD (8.8)

• Full quarter interest payment and repayment for WilPride and WilForce

Cash at the end of the quarter MUSD 22.5

• The MUSD 15 credit facility was cancelled during the quarter

Agenda 28/05 2014

1. Company Overview and Highlights Q1

2. Financials Q1

3. Market update

4. Summary

Rate development

• Gas price seasonally coming off in Pacific and Atlantic – arbitrage still open

• Rates coming off throughout the quarter increasing rate differential TFDE vs steam
• LNG demand remains firm continued lack of LNG volumes combined with increasing tonnage supply remains the challenge for transportation market

Source: Arctic Securities

Production and ton-mile

• Ton-mile and LNG export relatively stable since 2012 – while 22 newbuildings have been delivered in same period

LNG supply

• Norway back on track in Q1, however planned maintenance in Q2
• First cargoes from Skikda have been shipped, Arzew expected startup later in 2014 gas supply an issue
• Angola shut down due to technical issues after producing a few cargoes in Q1
• Look out for PNG in Q2 first cargo loaded in May, expect 20 cargoes by September 6 months ahead of schedule

Source: Fearnley

www.awilcolng.no - 14 -

LNG export assumptions

LNG exports

• Potentially 12 16 MTPA increased production estimate for 2014 = 5-7% growth
• A total of 77 MTPA of new production capacity and ramp up is scheduled by end 2016
• 77 MTPA new LNG production requires 95 110 vessels depending upon trading route
• Production delays will always be an issue

Source: DNB Markets

World LNG fleet by year built

• 36 vessels over 30 years, 12 in layup, 9 coming off charter in 2014
• Total orderbook of 112 LNGC of which 25 open
• 32 vessels are scheduled for delivery in 2014, of which 13 are available delays likely
• Assumed 2 months average delay on NB's + exit 8 vessels total 2014 fleet growth 6%

Source: Fearnleys LNG

China on track

• China imported 18.6 MT in 2013 an increase of 20% YOY
• Regas capacity 6 MTPA in 2008 to 32 MTPA YE 2013. Target is 46 MTPA by end 2015
• 5 year plan target increase share of gas in total energy demand from 4% in 2010 to 6% in 2015 and 10% in 2020 on track
• Target increase gas use from 172 BCM in 2013 to 420 BCM in 2020 LNG is a must!

Source: Fearnley

Agenda 28/05 2014

1. Company Overview and Highlights Q1

2. Financials Q1

3. Market update

4. Summary

Summary

• New projects start-up and vessel orderbook points to a continued weak market balance in 2014 with improvement expected mid/late 2015 – but sentiment is improving
• The long term LNG picture is very strong with +120 MTPA of new production under construction with historic and expected growth at 7%
• Demand for LNG is strong and expected to remain so in the foreseeable future
• This demand will be met just a matter of time
• The next waves of new production will be Australia 2014–16 , USA & Russia 2016-18 and Canada & East Africa from the end of the decade
• Start up and production levels from new liquefaction determine the LNG market going forward

Summary Awilco LNG

• Startup 2011 when acquired and operating three 2nd gen vessels
• Established the organisation and in-house technical management
• Ordered, supervised construction, financed and taken delivery of two newbuildings
• Midterm contract WilForce
• WilPride trading spot market with 84 % utilisation since delivery
• Short-midterm contract WilPride waiting for the "right" deal
• Infrastructure projects 2nd gen vessels increased activity
• Further growth when?

A Pure Play LNG Transportation Provider

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