Awilco LNG

Investor Presentation • Aug 27, 2015

Q2 2015

Jon Skule StorheillSnorre 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 secureemployment 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 andopinions 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.

Agenda27/08 2015

• 1. Company Overview and Highlights Q2
• 1. Financials Q2
• 1. Market update
• 1. 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 two 125,000 cbm steam Moss type LNG vessels; WilGas and WilEnergy. Awilco LNG is listed on Oslo Axess under the ticker code ALNG.

2ndQuarter Highlights

2ndquarter 2015

•Awilco LNG reported:

−	f f N t i h t i e r e g n c o m e o	S M U D 6. 0	S Q M U D 1 0. 3 i 1 2 0 1 5 n
−	E B I T D A f o	M U S D 1. 7	Q M U S D 5. 5 i 1 2 0 1 5 n
−	N t f i t / ( l ) f e p r o o s s o	M U S D ( 1 1. 7 )	M U S D ( 4. 7 ) i Q 1 2 0 1 5 n

• •Vessel utilisation of 34 %, compared to 67 % in Q1 2015 (trading vessels).
• •The 1983 built LNG carrier WilPower agreed sold.

Subsequent events

•WilPower delivered on 30 July 2015.

Contract Overview

W i l P i d r e :	O A l i i d- S t t p e n a n c m e p
W i l F o r c e :	E l d t i l J 2 0 1 7 m p o e n a n a r y u u y
W i l G a s :	L f b i i S t b a y -u p r o m e g n n n g e p e m e r
W i l E n e r g y :	L a y -u p

Agenda27/08 2015

• 1. Company Overview and Highlights Q2
• 1. Financials Q2
• 1. Market update
• 1. Summary

Q2 2015 Income statement

U S D i l l io m n	Q 2 '1 5	Q 1 '1 5	2 0 1 4
Fr ig h t in e co m e	7. 3	1 2. 1	7 8. 5	N f i h i M U S D 6. 0 t t e r e g n c o m e
Vo la d te y ag e re ex p en se s	( 1. 3 )	( 1. 8 )	( 1 1. 2 )	Lo t i l isa t ion d te we r u a n ra s • 3 4 % i l isa ion d ing ls ( 6 % in Q 1 2 0 1 ) t t tra 7 5 es se u v •
fr Ne t ig h t in e co m e	6. 0	1 0. 3	6 7. 2
O t in p er a g ex p en se s	( 3. 4 )	( 3. 6 )	( 2 1. 1 )	I i t M U S D ( 3. 2 ) m p a r m e n W i l Po l d du ing t he te we r s o r q ua r r •
A dm in is io tra t n ex p en se s	( 1. 0 )	( 1. 2 )	( 5. 1 )	Pr te d he l d fo le d Q 2, d d t fa ir es en as r s a en a n m ea su re a • lue les t to l l va s c os s e
E B I T D A	1. 7	5. 5	4 1. 0
De ia t io p re c n	( 4. 2 )	( 4. 3 )	( 1 8. 4 )
Im irm t p a en	( 3. 2 )	-	-
Ne t f in an ce	( 6. 0 )	( 5. 9 )	( 2 5. 2 )
Pr f i t / ( lo ) be fo ta o ss re x	( 1 1. 7 )	( 4. 7 )	( 2. 6 )
Ta x	-	-	( 0. 1 )
f / ( ) Pr i t lo o ss	( ) 1 1. 7	( ) 4. 7	( ) 2. 7

Q2 2015 Balance sheet

S U D i l l io m n	3 0. 0 6. 1 5	3 1. 0 3. 1 5	3 1. 1 2. 1 4
Ve ls ss e	4 3 8. 6	4 6 2. 8	4 6 7. 1	S 3 8. 6 V l M U D 4 e s s e s
O t he t ts r no n- cu rre n as se	0. 1	0. 1	0. 3	fo S W i l Po te d he l d le M U D 1 7. 8 we r p re se n as r s a •
To ta l n t ts on -c ur re n as se	4 3 8. 8	4 6 3. 0	4 6 7. 4	C S 1 8 t t M U D 5. r r e n a s s e s u
Tr de iva b le a re ce s	2. 5	2. 4	2. 5	S M U D 3. 0 inc in t he ho t te ts la te to la te re as e o r s r rm a ss e re s • inv ice f Ap i l ba bo t h ire in Q 1 o o r re a
O he ho t t te ts r s r rm a ss e	8 5.	3. 8	6. 8	Ca h M U S D 7. 6 M U S D 1 7. 4 Q 1 s vs •
Ca h s	6 7.	1 4 7.	2 0. 8
To ta l c t ts ur re n as se	1 5. 8	2 3. 7	3 0. 1	S N t l i b i l i t i M U D 2 7 9. 5 o n- c r r e n a e s u M U S D 2 7 9. 3 lon ion f W i l Fo d W i l Pr i de te t •
Ve l he l d fo le ss e r s a	1 7. 8	-	-	g rm p or o rc e a n f ina ia l lea l ia b i l i t ies nc se
To ta l a ts ss e	4 7 2. 4	4 8 6. 7	4 9 7. 5
				C S t l i b i l i t i M U D 1 7. 4 r r e n a e s u M U S D 1 2. 2 ho ion f W i l Pr i de d W i l Fo t te t •
To ta l e i ty q u	1 4 7 5.	1 8 1 7.	1 9 1. 8	s r rm p or o a n rc e f ina ia l lea l ia b i l i t ies nc se
Lo -te in te t be in de b t ng rm re s ar g	2 9. 3 7	2 8 2. 5	2 8 6 5.	M U S D 2. 9 de fe d rre re ve nu e •
O he l ia b i l i ie t t t r no n- cu rre n s	0. 2	0. 2	0. 2
No l ia b i l i ie t t n- cu rr en s	2 9. 7 5	2 8 2. 7	2 8 5. 7
S ho t- te in te t be in de b t r rm re s ar g	1 2. 2	1 2. 0	1 1. 7
O t he t l ia b i l i t ie r cu rre n s	5. 2	4. 9	8. 2
To ta l c t l ia b i l i t ie ur re n s	1 7. 4	1 6. 9	1 9. 9
To ta l e i ty d l ia b i l i t ie q u an s	4 7 2. 4	4 8 6. 7	4 9 7. 5

Q2 2015 Cash flow

U S D i l l io m n	Q 2 '1 5	Q 1 '1 5	2 0 1 4
Ca h F lo fro O t in Ac t iv i t ies s w s m p er a g :
f / ( ) fo Pr i t los be ta o s re xe s	( ) 1 1. 7	( ) 4. 7	( ) 2. 6
Inc i d ta om e xe s p a	-	-	-
In te t d bo ing ts d re s an rro w co s ex p en se	6. 1	6. 0	2 5. 1
De ia t ion t isa t ion d im irm t p re c am or a n p a en ,	7. 4	4. 3	1 8. 4
Tr de iva b les inv to d t he ho t te ts a re ce en ry an o r s r rm a ss e ,	-	-	7. 0
fe Ac ts b le, d d de d co un p ay a ac cr ue ex p. an rre re ve nu e	0. 4	( ) 3. 4	( ) 2. 2
Ne h i de d by / ( d in ) ing iv i ies t c t t t as p ro us e op er a a c v	2. 1	2. 3	4 5. 7
Ca fro h F lo In t in Ac t iv i t ies s w s m ve s g :
Inv tm t in ls es en ve ss e	-	-	( 6. 7 )
Inv tm t in ls de tru t ion es en ve ss e un r c on s c	-	-	( 0. 5 )
Pr ds fro le f he f ixe d t ts oc ee m sa o o r as se	-	0. 1	-
Ne t c h i de d by / ( d in ) inv t ing t iv i t ies as p ro v us e es ac	-	0. 1	( 7. 2 )
Ca h F lo fro F in in Ac iv i ies t t s w s m an c g :
Re t f bo ing p ay m en o rro w s	( 3. 9 )	( 1. 8 )	( 1 0. 8 )
In te t d bo ing ts i d re s an rro w co s p a	( 8. 1 )	( 4. 0 )	( 2 5. 0 )
/ ( ) f Ne t c h i de d by d in ina ing t iv i t ies as p ro v us e nc ac	( ) 1 2. 0	( ) 5. 8	( ) 3 5. 9
Ne t c ha in h a d h e iva len ts ng es ca s n ca s q u	( ) 9. 8	( ) 3. 4	2. 6
Ca h d h e iva len ts t s ta t o f io d s an ca s q u a r p er	1 4 7.	2 0. 8	1 8. 2
Ca h d h e iva len d f io d ts t e s an ca s q a n o p er u	7. 6	1 7. 4	2 0. 8

Operating activities MUSD 2.1

Investing activities nil

Financing activities MUSD (12.0)

• •Interest payment and repayment on WilPride and WilForce financial lease liabilities
• • Increase compared to Q1 due to late invoicing of April bareboat hire, thus cash flow effect in Q2 rather than Q1

Cash at the end of the quarter MUSD 7.6

Agenda27/08 2015

• 1. Company Overview and Highlights Q2
• 1. Financials Q2
• 1. Market update
• 1. Summary

LNG Rates

• •Improving activity during the quarter, however rates continued to slide
• •Too many available ships
• •Spot market activity increased 27% YTD as LNG starting to look like a commodity

Source: Fearnley LNG

LNG production and import

Production per country 2015 vs 2014 per end June Imports per country 2015 vs 2014 end June

• •Production is finally starting to improve: up 6.7 % YOY
• •PNG producing above scheduled capacity and Qatar increased production
• •Import: Korea and Japan down as expected. China disappointing

Source: Clarksons Platou

www.awilcolng.no

LNG production

• •140 MTPA of new LNG capacity (including Angola) with planned startup Q3 2015 - Q4 2019
• •A total of 30 MTPA expected next 6 months
• •Despite recent drop in oil price, later projects seem unaffected but some delays may be expected

Source: Clarksons Platou

www.awilcolng.no

LNG finally supply driven

• •LNG market developing from demand driven to supply driven with increasing available LNG volumes
• •LNG finally becoming a commodity with traders actively involved

Source: IEA MTGMR 2014, Clarksons Platou

LNG fleet orderbook

Newbuilding deliver by quarter

• Six vessels delivered in Q2, 12 vessel delivered 1H 15
• •16 new orders reported during 1H 15
• •142 vessels on order excluding FSRU and FLNG

LNG carrier fleet growth

Deliveries and exit of LNG carriers >10,000 cbm (in mill cbm)

• Deliveries in 2014 2017 based on current orderbook
• •Assume exit age 35 years on average

New orders based on need for new tonnage from new LNG projects in 2017-19

Vessels "leaving" the market due to uneficciency not taken into consideration

Delivery orderbookDelivery "new orders" Exit Avg. fleet growth (Right axis)

Source: Clarksons Platou

www.awilcolng.no

Agenda27/08 2015

• 1. Company Overview and Highlights Q2
• 1. Financials Q2
• 1. Market update
• 1. Summary

Summary

• Continued low rates but improving activity
• Spot market volume increased by almost 30% compared to same period last year
• Recent new LNG startups have been on schedule – or ahead. PNG producing above expected
• About 30 MTPA of new nameplate capacity (including re-start Angola production) scheduled for start during next six months
• Too many available vessels today, this will improve as new production starts
• Watch out for ton-mile development going forward
• Long term shipping demand for LNG remain strong – LNG supply expected to increase by 50 % next 4 years

Awilco LNG – summary

• Earnings are dismal – but a lot of new LNG production expected next 6 months. There is a light in the tunnel!
• Short-midterm contract WilPride – with improving fundamentals Nno rush

Infrastructure projects

• Increased interest in FSRU also for conversions
• These projects are large and slow moving
• Cash is no issue with WilPower sold and delivered to new owners

A Pure Play LNG Transportation Provider

Jon Skule StorheillCEOMobile: +47-9134 4356 E-mail: jss@awilcolng.no

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

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