Awilco LNG

Investor Presentation • Nov 17, 2017

Q3 2017

Jon Skule Storheill Øyvind Ryssdal

17/11/17

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

Company overview

Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG vessels. The Company owns two 2013 built 156,000 cbm TFDE membrane LNG vessels, WilForce and WilPride. Awilco LNG is listed on Oslo Axess under the ticker code ALNG.

1. Highlights
2. Financials Q3
3. Market update
4. Summary

3 rd quarter highlights

3 rd quarter 2017

• Awilco LNG reported:

−	Net freight income of	MUSD 4.4	MUSD 1.0 in Q2 2017
−	EBITDA of	MUSD 1.2	MUSD (1.8) in Q2 2017
−	Net profit/(loss) of	MUSD (6.8)	MUSD (10.1) in Q2 2017

• Vessel utilisation of 88 %, compared to 83 % in Q2 2017
• Reduced bareboat payments to Teekay LNG Partners L.P. (Teekay LNG) with effect from July 2017
• Repair offering MUSD 1.4 completed

Q3 2017 income statement

USD million	Q3'17	Q2'17	2016
Freight income	5.7	2.6	34.8
Voyage related expenses	(1.3)	(1.6)	(2.8)
Net freight income	4.4	1.0	32.0
Operating expenses	(2.2)	(1.9)	(8.7)
Administration expenses	(0.9)	(0.9)	(3.5)
EBITDA	1.2	(1.8)	19.8
Depreciation	(3.2)	(2.9)	(12.9)
Impairment	-	-	(6.6)
Net finance	(4.8)	(5.4)	(23.2)
Profit/(loss) before tax	(6.8)	(10.1)	(22.8)
Tax	-	-	-
Profit/(loss)	(6.8)	(10.1)	(22.8)

Q3 2017 balance sheet

USD million	30.09.17	30.06.17	31.12.16
Vessels	366.3	368.6	371.8
Other non-current assets	-	0.1	0.1
Total non-current assets	366.3	368.7	371.9
Trade receivables	1.4	0.8	0.6
Other short term assets	4.2	4.3	5.8
Cash	30.4	34.7	30.0
Total current assets	36.0	39.8	36.4
Total assets	402.2	408.4	408.4
Total equity	131.6	137.0	132.8
Long-term interest bearing debt	264.9	265.9	259.0
Other non-current liabilities	2.3	2.4	0.3
Non-current liabilities	267.2	268.2	259.3
Short-term interest bearing debt	1.5	0.2	13.8
Other current liabilities	2.0	3.0	2.5
Total current liabilities	3.5	3.2	16.3
Total equity and liabilities	402.2	408.4	408.4

Q3 2017 cash flow

USD million	Q3'17	Q2'17	2016
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(6.8)	(10.1)	(22.8)
Income taxes paid	-	-	-
Interest and borrowing costs expensed	5.5	5.5	23.2
Depreciation, amortisation and impairment	3.2	2.9	19.5
Trade receivables, inventory and other short term assets	(0.5)	(1.2)	1.3
Accounts payable, accrued exp. and deferred revenue	(1.1)	1.4	(1.5)
Net cash provided by / (used in) operating activities	0.4	(1.4)	19.6
Cash Flows from Investing Activities:
Investment in vessels / sale of vessels	(0.8)	(0.3)	32.1
Net cash provided by / (used in) investing activities	(0.8)	(0.3)	32.1
Cash Flows from Financing Activities:
Gross proceeds from equity issue	1.4	25.4	-
Transaction costs of equity issue	(0.1)	(0.7)	-
Repayment of borrowings	-	(2.3)	(13.9)
Interest and borrowing costs paid	(5.2)	(5.5)	(25.1)
Net cash provided by / (used in) financing activities	(3.9)	17.0	(39.0)
Net changes in cash and cash equivalents	(4.3)	15.3	12.7
Cash and cash equivalents at start of period	34.7	19.4	17.3
Cash and cash equivalents at end of period	30.4	34.7	30.0

LNG rates

USD/DAY

• Utilisation and rates have improved throughout the year, and the strong momentum continues towards winter
• Average fixture duration doubling in September compared to 1st half 2017, from 26 to 49 days, mainly due to increased US Far East trade
• At historical average spot rates, ALNG annual EBITDA MUSD 42 (estimate)

Source: Fearnley LNG, Poten

Monthly global LNG trade

MT LNG

• Global LNG trade up by 13 % Oct YTD

• Increased volumes from ramp-up of plants started in 2016, in addition to new capacity coming on line in 2017

• Seasonality should be expected, but new production capacity is lifting volumes across the year

Source: Clarksons Platou

Gas price

• Despite huge increase in LNG volumes, prices increasing except US…
• Europe Far East arbitrage open
• Spread Henry Hub vs ROW drives exports from US to Far East, in October approx. 80 % of US volumes headed to Asia, improving ton-mile

Source: Clarksons Platou, DNB

LNG trade change

LNG EXPORT CHANGE

• LNG exports increased by 12 % Sept YTD
• New capacity in Australia and US materialising

LNG IMPORT CHANGE

September 2017 YTD

• Imports to China and Korea up 43 % and 20 % YTD respectively on the back of policies to switch from coal and nuclear to gas
• Europe continue to increase, and has massive untapped import capacity

Source: Clarksons Platou

LNG production

• 109 MTPA of new capacity starting 2017-2020, a 42 % increase from 2016 production at 263 MT
• 2016: 36 MTPA new capacity
• 2011 2015: on average 10 MTPA new capacity per year, but flat production
• Beyond 2020 an additional 219 MTPA in pre-FID with specified timeline, incl Qatar expansion 24 MTPA

Source: Clarksons Platou, Poten, Arctic Securities, Company presentations

LNG fleet and orderbook

LNG FLEET AND ORDERBOOK

• Total fleet of 430 LNGC above 125' cbm
• 23 laid up, 81 vessels built before year 2000, 38 vessels < 130' cbm
• 17 vessels delivered YTD Sep 2017, a further 10 scheduled for delivery in Q4 2017 (vs expected 43 vessels at start of 2017)
• Restrained newbuilding ordering; eight newbuildings ordered in 2017, six in 2016
• Orderbook at 98 vessels, of which 9 available (Flex x6, BW x2, Maran x1)

Source: Fearnley LNG

Summary

• ➢ Market is improving
• ─ Improvement in rates, utilisation and ballast bonuses expected to continue firming going forward
• ─ Vessels fixed in the USD 70's pd, levels not seen since 2014
• ➢ Mid- and long-term demand for LNG transportation remains strong
• ─ LNG is environmentally friendly, available and affordable
• ─ We are at the start of the biggest increase of LNG volumes in history
• ─ Very few long-term charters and limited financing, resulting in restrained newbuilding activity
• ─ Very few uncommitted newbuildings
• ─ 15 % of existing fleet is built prior to 2000, smaller and inefficient
• ➢ Awilco LNG
• ─ Pure play fully integrated LNG transportation company with excellent operational track record
• ─ Open vessels in a firming market provides full exposure to increasing rates
• ─ Refinancing significantly reduces ALNG cash break even, rolling purchase options
• ➢ Awilco LNG is fully financed to 2020, and is ideally positioned for taking advantage of improving market

A Fully Integrated Pure Play LNG Transportation Provider

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

Øyvind Ryssdal CFO Mobile: +47 -920 14 029 E -mail: or@awilcolng.no