Awilco LNG

Investor Presentation • Aug 31, 2017

Q2 2017

Jon Skule Storheill Øyvind Ryssdal

31/08/17

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.

Agenda 31/08 2017

1. Highlights
2. Financials Q2
3. Market update
4. Summary

2 nd quarter highlights

2 nd quarter 2017

• Awilco LNG reported:

−	Net freight income of	MUSD 1.0	MUSD 0.8 in Q1 2017
−	EBITDA of	MUSD (1.8)	MUSD (2.0) in Q1 2017
−	Net profit/(loss) of	MUSD (10.1)	MUSD (10.4) in Q1 2017

• Vessel utilisation of 83 %, compared to 41 % in Q1 2017
• Renegotiated financial lease with Teekay LNG Partners L.P. (Teekay LNG), introducing flexibility, extending maturity and deferring bareboat payments, with effect from July 2017
• Private placement MUSD 25.4 completed

Subsequent events

• Repair offering MUSD 1.4 completed in July
• Vessel utilisation Q3 of 92 % (preliminary)

Refinancing

	▪ Front loaded reduction in BB rate payable to Teekay providing significantly lower cash breakeven
	▪ Rate reduced from current level of USD 49,100 per day to:
	- USD 28,500 per day first 9 months
Deferral of	- USD 33,500 per day subsequent 12 months
charter hire	- USD 38,500 per day last 9 months
	▪ Deferred amounts, total of MUSD 28.5, payable at maturity year-end 2019
	▪ Cash sweep mechanism introduced to reduce deferred amounts*
Charter period extended and flexible	▪ Bareboat charters for both vessels extended to 31 December 2019 ▪ Rolling options for early termination and refinancing of vessels at any time before maturity ▪ Purchase obligations of MUSD 113.3 and MUSD 114.5 per vessel at maturity (excl deferred hire) ▪ No financial covenants except for dividend restrictions
Equity raised	▪ MUSD 26.8 new equity raised (gross) ▪ Re-establishes a robust financial platform for the Company

Awilco LNG is fully financed to 2020 - renegotiated flexible lease agreement with Teekay and new equity provides bridge to full market recovery

www.awilcolng.no - 6 -

Agenda 31/08 2017

Q2 2017 income statement

USD million	Q2'17	Q1'17	2016
Freight income	2.6	2.5	34.8
Voyage related expenses	(1.6)	(1.6)	(2.8)
Net freight income	1.0	0.8	32.0
Operating expenses	(1.9)	(1.9)	(8.7)
Administration expenses	(0.9)	(0.9)	(3.5)
EBITDA	(1.8)	(2.0)	19.8
Depreciation	(2.9)	(2.9)	(12.9)
Impairment	-	-	(6.6)
Net finance	(5.4)	(5.5)	(23.2)
Profit/(loss) before tax	(10.1)	(10.4)	(22.8)
Tax	-	-	-
Profit/(loss)	(10.1)	(10.4)	(22.8)

Q2 2017 balance sheet

USD million	30.06.17	31.03.17	31.12.16
Vessels	368.6	369.2	371.8
Other non-current assets	0.1	0.1	0.1
Total non-current assets	368.7	369.3	371.9
Trade receivables	0.8	-	0.6
Other short term assets	4.3	5.2	5.8
Cash	34.7	19.4	30.0
Total current assets	39.8	24.6	36.4
Total assets	408.4	393.9	408.4
Total equity	137.0	122.4	132.8
Long-term interest bearing debt	265.9	255.4	259.0
Other non-current liabilities	2.4	0.3	0.3
Non-current liabilities	268.2	255.7	259.3
Short-term interest bearing debt	0.2	14.1	13.8
Other current liabilities	2.0	1.7	2.5
Total current liabilities	3.2	15.8	16.3
Total equity and liabilities	408.4	393.9	408.4

Q2 2017 cash flow

USD million	Q2'17	Q1'17	2016
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(10.1)	(10.4)	(22.8)
Income taxes paid	-	-	-
Interest and borrowing costs expensed	5.5	5.5	23.2
Depreciation, amortisation and impairment	2.9	2.9	19.5
Trade receivables, inventory and other short term assets	(1.2)	1.2	1.3
Accounts payable, accrued exp. and deferred revenue	1.4	(0.9)	(1.5)
Net cash provided by / (used in) operating activities	(1.4)	(1.6)	19.6
Cash Flows from Investing Activities:
Investment in vessels / sale of vessels	(0.3)	(0.3)	32.1
Net cash provided by / (used in) investing activities	(0.3)	(0.3)	32.1
Cash Flows from Financing Activities:
Gross proceeds from equity issue	25.4	-	-
Transaction costs of equity issue	(0.7)	-	-
Repayment of borrowings	(2.3)	(3.3)	(13.9)
Interest and borrowing costs paid	(5.5)	(5.5)	(25.1)
Net cash provided by / (used in) financing activities	17.0	(8.7)	(39.0)
Net changes in cash and cash equivalents	15.3	(10.7)	12.7
Cash and cash equivalents at start of period	19.4	30.0	17.3
Cash and cash equivalents at end of period	34.7	19.4	30.0

Agenda 31/08 2017

LNG rates

USD/DAY

• After a disappointing start of the year, activity and rates improved throughout Q2, and has continued to firm in Q3
• Ballast bonus contribution also increasing last ALNG vessel fixed on full round trip basis + positioning payment

Source: Fearnley LNG

Monthly global LNG trade

• Global LNG trade up by 13 % 1H 2017 compared to same period last year

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

• The uncertain political situation in the Middle East has not impacted trade
• Seasonality is still valid in LNG trading, but new production capacity is lifting volumes across the year

Source: Clarksons Platou

Gas price

• The falling gas price trend stopped during the quarter
• Europe Far East arbitrage still closed leading to few re-loads
• The low Henry Hub gas price drives exports from US to Far East, improving ton-mile
• Big 3 importers Japan, Korea and China all buying US LNG

Source: Clarksons Platou

LNG trade

• LNG exports increased by 13 % YoY
• Australian and US ramp-up is continuing the increasing trend, and will do so for a while

• The uncertain political situation in the Middle East did not impact Qatari volumes in 1H

• China imports are up 45 % YTD (July), and the trend is likely to continue following announcement of doubling of import capacity by 2025

• The Japanese and Korean declining trend has turned, Korean July imports were up 42 % YoY
• Europe is increasing, and has massive untapped import capacity

Source: Clarksons Platou, Arctic Securities, Reuters

LNG production

• Ramp-up takes about 6 months full effect of 2016 capacity increase through 2017
• Gorgon T3 and Sabine Pass T3 completed by the end of Q1, while Sabine Pass T4 commenced production in August
• No material impact reported on Sabine Pass or Corpus Christi from Hurricane Harvey

Source: Clarksons Platou, Poten & Partners, Company presentations

LNG fleet and orderbook

LNG FLEET AND ORDERBOOK

• Total fleet of 429 LNGC above 125' cbm (of which 24 laid up)
• 13 vessels delivered 1H 2017, a further 23 scheduled for delivery in 2017, although delays may be expected
• At the start of the year, 43 vessels were scheduled for delivery in 2017 slippage already evident
• Eight newbuildings ordered 1st half 2017
• Orderbook at 104 vessels, of which 11 available (Flex x6, BW x2, Maran x2, GasLog x1)

Source: Fearnley LNG

Agenda 31/08 2017

Summary

• ➢ Firming market, but still seasonal and volatile
• ─ Improvement in rates, activity and ballast bonuses in Q2, further improvement in Q3 and is expected to continue firming going forward
• ─ As the LNG production capacity increases, fleet overcapacity will gradually be absorbed
• ─ Big 3 China, Korea and Japan all showing increasing appetite for LNG
• ➢ Mid- and long-term demand for LNG transportation remains strong
• ─ 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 uncomitted newbuildings
• ─ 15 % of existing fleet is built prior to 2000, is smaller and inefficient
• ➢ Agreement with Teekay 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