Awilco LNG

Investor Presentation • Feb 12, 2016

Q4 2015

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 12/02 2016

1. Company Overview and Highlights Q4

2. Financials Q4

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 two 125,000 cbm steam Moss type LNG vessels; WilGas and WilEnergy. Awilco LNG is listed on Oslo Axess under the ticker code ALNG.

4 th Quarter Highlights

4 th quarter 2015

• Awilco LNG reported:
• − Net freight income of MUSD 8.9 MUSD 7.2 in Q3 2015
• − EBITDA of MUSD 5.8 MUSD 2.8 in Q3 2015

• − Net profit/(loss) of MUSD (12.6) MUSD (7.3) in Q3 2015

• Vessel utilisation of 81 %, compared to 68 % in Q3 2015 (trading vessels)

• One-off impairment loss of MUSD 8.4

Full year 2015

• Awilco LNG reported:

−	Net freight income of	MUSD 32.5	MUSD 67.2 in 2014
−	EBITDA of	MUSD 15.8	MUSD 41.0 in 2014
−	Net profit/(loss) of	MUSD(36.3)	MUSD (2.7) in 2014

Contract Overview

	2015	2016
WilPride		Available
WilForce	On charter	On charter
WilGas	Available	Lay-up - Marketed for project work
WilEnergy	Lay-up - Marketed for project work	Lay-up - Marketed for project work

WilPride:	On subs for single voyage
WilForce:	Employed until January 2017
WilGas:	Lay-up
WilEnergy:	Lay-up

Agenda 12/02 2016

1. Company Overview and Highlights Q4

2. Financials Q4

3. Market update

4. Summary

Q4 2015 Income statement

USD million	Q4'15	Q3'15	2015	2014
Freight income	9.6	8.3	37.4	78.5
Voyage related expenses	(0.7)	(1.1)	(4.9)	(11.2)
Net freight income	8.9	7.2	32.5	67.2
Operating expenses	(2.3)	(3.4)	(12.7)	(21.1)
Administration expenses	(0.8)	(0.9)	(4.0)	(5.1)
EBITDA	5.8	2.8	15.8	41.0
Depreciation	(4.1)	(4.0)	(16.6)	(18.4)
Impairment	(8.4)	-	(11.5)	-
Net finance	(6.0)	(6.1)	(24.0)	(25.2)
Profit/(loss) before tax	(12.6)	(7.3)	(36.3)	(2.6)
Tax	-	-	-	(0.1)
Profit/(loss)	(12.6)	(7.3)	(36.3)	(2.7)

Net freight income MUSD 8.9

• Improved rates and utilisation of WilPride, up from 56% in Q3 to 62% in Q4

Operating expenses MUSD (2.3)

• Reduction from Q3 following WilGas in cold lay-up in Q3, reducing operating expenses to approx. USD 2,000 per day

Impairment MUSD (8.4)

• Impairment charge of MUSD 5.0 on WilPride and MUSD 3.4 charge on the two second generation vessels

Q4 2015 Balance sheet

USD million	31.12.15	30.09.15	31.12.14
Vessels	422.5	434.6	467.1
Other non-current assets	0.1	0.1	0.3
Total non-current assets	422.6	434.7	467.4
Trade receivables	2.5	2.6	2.5
Other short term assets	3.1	2.7	6.8
Cash	17.3	21.4	20.8
Total current assets	22.8	26.7	30.1
Total assets	445.5	461.4	497.5
Total equity	155.6	168.2	191.8
Long-term interest bearing debt	272.8	276.1	285.6
Other non-current liabilities	0.2	0.2	0.2
Non-current liabilities	273.0	276.3	285.7
Short-term interest bearing debt	12.8	12.5	11.7
Other current liabilities	4.1	4.4	8.2
Total current liabilities	16.9	16.9	19.9
Total equity and liabilities	445.5	461.4	497.5

Vessels MUSD 422.5 • Impairment year end MUSD 8.4
Current assets MUSD 22.8 • Cash MUSD 17.3
Non-current liabilities MUSD 273.0
• MUSD 272.8 long term portion of WilForce and WilPride financial lease liabilities
Current liabilities MUSD 16.9
• MUSD 12.8 short term portion of WilPride and WilForce financial lease liabilities
• MUSD 2.4 deferred revenue

Q4 2015 Cash flow

USD million	Q4'15	2015	2014
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(12.6)	(36.3)	(2.6)
Income taxes paid	-	-	-
Interest and borrowing costs expensed	6.0	24.1	25.1
Depreciation, amortisation and impairment	12.4	28.1	18.4
Trade receivables, inventory and other short term assets	(0.2)	(0.2)	7.0
Accounts payable, accrued exp. and deferred revenue	(0.2)	(4.0)	(2.2)
Net cash provided by / (used in) operating activities	5.3	11.8	45.7
Cash Flows from Investing Activities: Investment in vessels / sale of vessels	(0.3)	17.4	(6.7)
Investment in vessels under construction	-	-	(0.5)
Proceeds from sale of other fixed assets	-	0.1	-
Net cash provided by / (used in) investing activities	(0.3)	17.5	(7.2)
Cash Flows from Financing Activities:
Repayment of borrowings	(3.0)	(10.7)	(10.8)
Interest and borrowing costs paid	(6.0)	(22.1)	(25.0)
Net cash provided by / (used in) financing activities	(9.0)	(32.8)	(35.9)
Net changes in cash and cash equivalents	(4.1)	(3.5)	2.6
Cash and cash equivalents at start of period	21.4	20.8	18.2
Cash and cash equivalents at end of period	17.3	17.3	20.8

Operating activities MUSD 5.3

Investing activities MUSD (0.3)

• Purchase of multi-period spares

Financing activities MUSD (9.0)

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

Cash at the end of the quarter MUSD 17.3

Agenda 12/2 2016

1. Company Overview and Highlights Q4

2. Financials Q4

3. Market update

4. Summary

LNG Rates

• Continued weak market with low rates and low utilisation
• Pockets of high fixing activity and periods with lower vessel availability has so far not been able to improve sentiment

Source: Fearnley LNG

Position list – shorter

OCTOBER 2015 FEBRUARY 2016

	OCTOBER 2015												FEBRUARY 2016
		AFFINITY LNG Changes noted in red. Grey indicates possibility only, light blue indicates vessel awaiting maiden voyage and all vessels are subject to reconfirmation													AFFINITY LNG
	Vessel		Open Delivery / Current PositionUntil			Redelivery Days Condition Blt Cbm (100%) Cont'					Prop'		Vessel		Open Delivery / Current PositionUntil	Changes noted in red. Grey indicates possibility only, light blue indicates vessel awaiting maiden voyage and all vessels are subject to reconfirmation Redelivery Days Condition Blt Cbm (100%) Cont'					Prop'
	Galicia Spirit 09-Oct Uruguay				Open	West of Suez	cold	2004	140,705	G T	S T		Soyo		09.feb Gibraltar	West of Suez flexible - short to medium		warm 2011	160,538	TGZ	TFDE
	WilPride Sonangol Sambizanga 09-Oct Gibraltar		09-Oct Gibraltar		Open	Oct/Nov Europe 30-45 d warm 2011		warm 2013	156 160,786	G T TGZ	TFDE S T		Lobito		09.feb Gibraltar Sonangol Sambizanga 09.feb Gibraltar	flexible - short to medium flexible - short to medium		warm 2011 warm 2011	160,538 160,786	TGZ TGZ	TFDE S T
	Sonangol Etosha 09-Oct Gibraltar					Oct/Nov Europe 30-45 d warm 2011			160,786	TGZ	S T				Sonangol Etosha 09.feb Gibraltar	flexible - short to medium		nitrogen 2011	160,786	TGZ	S T
	Asia Vision 09-Oct Spain		Asia Energy 09-Oct Algeria, heading Gib		flexible - short to medium flexible - short to medium			warm 2014 warm 2014	160 160	TGZ TGZ	TFDE TFDE		WilPride		15.feb Zeebrugge Galicia Spirit ely Mar likely Escobar	Open Open	cold	warm 2013 2004	156 140,705	G T G T	TFDE S T
			Golar Glacier 09-Oct Cape Verde, heading Gib		Open			warm 2014	162	TGZ	TFDE					Suez-India range
	Grace Dahlia 12-Oct Brazil		GasLog Salem 10-Oct Argentina		Open Open		cold cold	2015 2013	155 177	TGZ Moss	TFDE RHST		Golar Ice		09.feb Fujairah Cool Pool TBN 09.feb Fujairah	Open Open		warm 2014	160 poss. Cold 13-15 160-162	TGZ TGZ	TFDE TFDE
			Stena Clear Sky 14-Oct Belgium		Open		cold	2011	173,46	G T	TFDE				Golar Snow 09.feb Fujairah	Open		warm 2015	160	TGZ	TFDE
	Soyo Lobito		19-21 Oct Iberia		flexible - short to medium			warm 2011 warm 2011	160,538 160,538	TGZ TGZ	TFDE TFDE			Golar Glacier 01.mar	Shell TBN 09.feb Fujairah Egypt	flexible - short to medium Open	cold	warm TBN 2014	TBN 162	TBN TGZ	TBN TFDE
		19-21 Oct Iberia flexible - short to medium Seishu Maru mid Nov Atlantic flexible - short to medium					cold	2014	155	Moss	RHST				Grace Dahlia Mar Middle East	Open	cold	2013	177	Moss	RHST
		Suez-India range Excelerate 09-Oct Dubai flexible - short to medium						2005	138	G T	S T		Kita LNG		09.feb Taiwan	Far East Open	cold	2014	160,1	G T	TFDE
	Corcovado LNG 09-Oct Fujairah				Open		cold cold	2014	160	G T	TFDE		Excel	09.feb	Korea	01.mar Darwin 21	cold	2003	138,107	G T	S T
	Golar Bear Golar Penguin 09-Oct Fujairah		09-Oct Fujairah		Open Open			warm 2014 warm 2014	160 160	TGZ TGZ	TFDE TFDE				Asia Endeavour 09.feb Labuan Asia Energy 09.feb Singapore	flexible - short to medium flexible - short to medium		warm 2015 warm 2014	160 160	TGZ TGZ	TFDE TFDE
	Marib Spirit 09-Oct Dubai				flexible - short to medium			warm 2008	165,5	TGZ	DFDE				GasLog Chelsea 09.feb Singapore	Open		warm 2010	153	TGZ	TFDE
	Stena Crystal Sky 14-Oct India Golar Ice		mid Oct Red Sea		Open Open		cold cold	2011 2015	173,46 160	G T TGZ	TFDE TFDE		Malanje Cubal		09.feb Bintulu 09.feb Bintulu	flexible - short to medium Open		warm 2011 warm 2012	160 160,538	TGZ TGZ	TFDE TFDE
	Golar Kelvin 20-Oct Red Sea				Open		cold	2014	162	TGZ	TFDE				Clean Horizon 09.feb Singapore	Open		warm 2015	162	TGZ	TFDE
	Asia Excellence 25-Oct ME/FE				flexible - short to medium		cold	2014	160	TGZ	TFDE				Golar Viking 09.feb Labuan	Open		warm 2005	140,207	TGZ	S T
	Golar Seal		end Oct Middle East Asia Endeavour mid Nov Middle East		Open flexible - short to medium		cold cold	2013 2015	160 160	TGZ TGZ	TFDE TFDE			Hyundai Ecopia 09.feb	Korea Sonangol Benguela09.feb Labuan	flexible - short to medium flexible - short to medium		warm 2008 nitrogen 2011	149,744 160,786	TGZ TGZ	S T S T
	Cool Pool TBN Nov Fujairah				Open		cold		2013-15 160-162k	TGZ	TFDE				Sohar LNG 09.feb Singapore	flexible - short to medium		warm 2001	137	Moss	S T
	Sonangol Benguela09-Oct Labuan					Far East Nov Singapore 60-90d		warm 2011	160,786	TGZ	S T			Seri Anggun 09.feb	Miri Maran Gas Coronis09.feb Singapore	Open Open		warm 2006 warm 2007	145,731 145700	TGZ G T	S T S T
	Cubal		09-Oct Bintulu	Oct		Singapore c.30d		warm 2012	160,538	TGZ	TFDE			Fuji LNG 09.feb	Japan	Open	cold	2004	147	Moss	S T
	Fuji LNG Seri Balhaf		09-Oct Labuan 09-Oct Labuan		Open flexible - short to medium			warm 2004 warm 2008	147 157	Moss TGZ	S T DFDE		Yari LNG	10.feb	Korea Neo Energy 12.feb Singapore	Open Open	cold cold	2014 2007	159,983 149,834	G T TGZ	TFDE S T
			BW Pavilion Vanda09-Oct Singapore	Dec	Pacific	c.90d		warm 2015	162	TGZ	TFDE				Clean Planet 19.feb Manzanillo	Open	cold	2014	162	TGZ	TFDE
	BW Pavilion Leeara09-Oct Taiwan		Sohar LNG 09-Oct Singapore	Dec	short Pacific		c.90d gas free	warm 2001 2015	137 162	Moss TGZ	S T TFDE			Clean Vision end Feb/ely Mar Far East		Open * Open means open indefinitely. All information given by AFFINITY LNG LLP in good faith but without guarantee.	cold	2016	162	TGZ	TFDE
	Golar Arctic 09-Oct Labuan				Open			warm 2003	140,648	G T	S T
	Seri Anggun 09-Oct Miri Golar Grand 09-Oct Brunei				Open Open			warm 2006 warm 2005	145,731 145,879	TGZ G T	S T S T
	Hyundai Ecopia 09-Oct Korea				flexible - short to medium			warm 2008	149,744	TGZ	S T
	K Mugungwha 09-Oct Korea LNG Kolt		09-Oct Korea		flexible - short to medium flexible - short to medium			warm 2008 warm 2009	149 150	G T TGZ	S T S T
			Clean Horizon 09-Oct Singapore		Open		gas free	2015	162	TGZ	TFDE
	Cool Explorer 20-Oct Japan Clean Planet 17-Oct Korea				flexible - short to medium open		cold cold	2013 2014	160 162	TGZ TGZ	TFDE TFDE
	GasLog Chelsea 24-Oct Korea				Open		cold	2010	153	TGZ	TFDE
	Clean Vision 25-29-Oct Korea Kita LNG		end Oct Far East		Open Open		gas free cold	2015 2014	162 160,1	TGZ G T	TFDE TFDE
	Malanje		end Oct Far East		flexible - short to medium		cold	2011	160	TGZ	TFDE
	GasLog Saratoga 09.nov Chile Excel		15.nov Japan		Open Open		cold cold	2014 2003	155 138,107	TGZ G T	TFDE S T
	Cool Pool TBN Dec Far East				Open		cold		2010-15 153-162k	TGZ	TFDE
	LNG Gemini 09-Oct Ferrol				Open	First/Second Generation Vessels	gas free	1978	126,3	Moss	S T
	LNG Leo	09-Oct Ferrol			Open		gas free	1978	126,4	Moss	S T
	WilGas LNG Flora		09-Oct Singapore end Oct Far East		Open flexible - short to medium		cold	warm 1984 1993		125,631 Moss 127,705 Moss	S T S T
Although we have not seen improvement in rates utilisation looks better
• Position list October 2015:												48 vessels available
• Position list February 2016:								31 vessels available

				AFFINITY LNG
			Changes noted in red. Grey indicates possibility only, light blue indicates vessel awaiting maiden voyage and all vessels are subject to reconfirmation
				West of Suez
		flexible - short to medium
			flexible - short to medium
			flexible - short to medium
			flexible - short to medium
			Open
			Open
				Suez-India range
			Open
			Open
			flexible - short to medium
			Open
			Open
				Far East
			Open
			flexible - short to medium
			flexible - short to medium
			Open
			flexible - short to medium
			Open
			Open
			Open
			flexible - short to medium
			flexible - short to medium
			flexible - short to medium
Seri Anggun 09.feb	Miri		Open		warm 2006	145,731	TGZ	S T
			Open
			Open
			Open
			Open
			Open
			Open

• Position list October 2015: 48 vessels available

Source: Affinity LNG

Inter-Basin Trade

• Volume shipped from Atlantic to Asia was down 27 % in 2015
• Average sailing distance down 4 % in 2015 to levels not seen since 2010

Source: Clarksons Platou

LNG Production and Import

• Production problems Yemen and Algeria
• Reduced import and reloads from Spain
• Increased export from PNG and Australia

• Volumes from US and Australia set for growth going forward

• Japan and Korea import volume down significantly in 2015

• Chinese imports were down vs 20 % historic growth
• Offset by increased import in Europe and Middle East
• New FSRUs change trading pattern

Source: Clarksons Platou

LNG Production

• 2015: Gladstone LNG T1 and Queensland Curtis LNG T2 started production total full capacity of about 8 MTPA in 2016
• 2016: 11 new production facilities scheduled for start-up with capacity of 46 MTPA
• Sabine Pass slightly delayed and Angola expected to start in Q2
• Estimated total production capacity in 2020 is 450 MTPA up 80% from 2015 production!

Source: Clarksons Platou

LNG Fleet orderbook

NEWBUILDINGS DELIVERY BY QUARTER

• 27 LNG carriers delivered in 2015

• 39 LNG carriers scheduled for delivery in 2016
• Annual "slippage" was 8 vessels 2014 + 2015
• Orderbook as of end 2015 was 131 LNG carriers

Source: Fearnley LNG

Agenda 12/02 2016

1. Company Overview and Highlights Q4

2. Financials Q4

3. Market update

4. Summary

Summary

• Disappointing market development in 2nd half 2015 with low rates and low utilisation due to:
• ─ Production problems in Yemen + Algeria
• ─ Only 2 % increase in traded LNG in 2015 while 27 LNGC were delivered
• ─ Reduced ton-mile due to lack of arbitrage
• ─ New LNG production capacity has had little impact on market so far
• Higher pace in spot market and reduction in number of available spot trading vessels has so far not led to improved rates
• In order for an substantial improvement we need to see available vessels absorbed by:
• ─ Increased LNG production 46 MTPA scheduled to start in 2016
• ─ Increased ton-mile low LNG price in Asia opens up for reverse arbitrage
• ─ Smaller and uncompetitive vessels coming off charter will struggle to find employment
• More than 10 % increase in LNG production capacity over the next 6 months
• Long term shipping demand for LNG remain strong
• ─ LNG production capacity expected to increase by 50 % next 4 years vs orderbook of 37 %
• ─ According to BP there is a new LNG train starting every 8 weeks. For the next 5 years!

Awilco LNG – summary

• 2015 very disappointing earnings but improving utilisation on WilPride
• Market recovery has been slower than expected
• Preserving cash with layups and cost reductions
• High activity on project side
• Small scale / bunkering vessel
• Various infrastructure projects including FSU project for our 2nd gen vessels
• The LNG market is cyclical and requires patience!

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