Awilco LNG

Investor Presentation • Feb 13, 2018

Q4 2017

Jon Skule Storheill

Øyvind Ryssdal

13/02/18

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

• 1. Financials Q4
• 1. Market update
• 1. Summary

4 th quarter highlights

4 th quarter 2017

• Awilco LNG reported:

−	Net freight income	MUSD 7.3	MUSD 4.4 in Q3 2017
−	EBITDA	MUSD 4.2	MUSD 1.2 in Q3 2017
−	Net profit/(loss)	MUSD (4.5)	MUSD (6.8) in Q3 2017

• Vessel utilisation of 83 % compared to 88 % in Q3 2017

Full year 2017

• Awilco LNG reported:

−	Net freight income	MUSD 13.6	MUSD 32.0 in 2016
−	EBITDA	MUSD 1.7	MUSD 19.8 in 2016
−	Net profit/(loss)	MUSD (31.8)	MUSD (22.8) in 2016

• Vessel utilisation of 74 % compared to 79 % in 2016
• Comprehensive refinancing including MUSD 26.8 in new equity and renegotiated financial leases

1. Highlights
2. Financials Q4
3. Market update

1. Summary

Q4 2017 income statement

USD million	Q4'17	Q3'17	2017	2016
Freight income	9.6	5.7	20.4	34.8
Voyage related expenses	(2.3)	(1.3)	(6.9)	(2.8)
Net freight income	7.3	4.4	13.6	32.0
Operating expenses	(1.9)	(2.2)	(7.9)	(8.7)
Administration expenses	(1.2)	(0.9)	(3.9)	(3.5)
EBITDA	4.2	1.2	1.7	19.8
Depreciation	(3.2)	(3.2)	(12.3)	(12.9)
Impairment	-	-	-	(6.6)
Net finance	(5.5)	(4.8)	(21.2)	(23.2)
Profit/(loss) before tax	(4.5)	(6.8)	(31.8)	(22.8)
Tax	-	-	-	-
Profit/(loss)	(4.5)	(6.8)	(31.8)	(22.8)

Q4 2017 balance sheet

USD million	31.12.17	30.09.17	31.12.16
Vessels	363.9	366.3	371.8
Other non-current assets	-	-	0.1
Total non-current assets	363.9	366.3	371.9
Trade receivables	1.6	1.4	0.6
Other short term assets	5.1	4.2	5.8
Cash	29.0	30.4	30.0
Total current assets	35.7	36.0	36.4
Total assets	399.6	402.2	408.4
Total equity	127.0	131.6	132.8
Long-term interest bearing debt	263.9	264.9	259.0
Other non-current liabilities	2.3	2.3	0.3
Non-current liabilities	266.2	267.2	259.3
Short-term interest bearing debt	2.7	1.5	13.8
Other current liabilities	3.7	2.0	2.5
Total current liabilities	6.4	3.5	16.3
Total equity and liabilities	399.6	402.2	408.4

Q4 2017 cash flow

USD million	Q4'17	Q3'17	2017	2016
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(4.5)	(6.8)	(31.8)	(22.8)
Income taxes paid	-	-	-	-
Interest and borrowing costs expensed	5.5	5.5	22.2	23.2
Depreciation, amortisation and impairment	3.2	3.2	12.3	19.5
Trade receivables, inventory and other short term assets	(1.1)	(0.5)	(1.6)	1.3
Accounts payable, accrued exp. and deferred revenue	1.6	(1.1)	1.1	(1.5)
Net cash provided by / (used in) operating activities	4.7	0.4	2.1	19.6
Cash Flows from Investing Activities:
Investment in vessels / sale of vessels	(0.8)	(0.8)	(2.3)	32.1
Net cash provided by / (used in) investing activities	(0.8)	(0.8)	(2.3)	32.1
Cash Flows from Financing Activities:
Gross proceeds from equity issue	-	1.4	26.8	-
Transaction costs of equity issue	-	(0.1)	(0.7)	-
Repayment of borrowings	-	-	(5.6)	(13.9)
Interest and borrowing costs paid	(5.2)	(5.2)	(21.4)	(25.1)
Net cash provided by / (used in) financing activities	(5.2)	(3.9)	(0.9)	(39.0)
Net changes in cash and cash equivalents	(1.4)	(4.3)	(1.1)	12.7
Cash and cash equivalents at start of period	30.4	34.7	30.0	17.3
Cash and cash equivalents at end of period	29.0	30.4	29.0	30.0

1. Highlights

2. Financials Q4

3. Market update

4. Summary

LNG rates

USD/DAY

• Utilisation and rates improved throughout 2017, rates in Q4 moved beyond USD 80,000 pd first time since Q1 2014
• Activity and rates in Q1 have softened marginally, reflecting normal seasonal patterns

Source: Fearnley LNG

Monthly global LNG trade

MT LNG

• Global LNG trade up by 12 % in 2017, equating to 31 MT
• 24 MTPA of new LNG production capacity added in 2017, 36 MTPA in 2016
• Seasonality should be expected, but new production capacity is lifting volumes across the year

Source: Clarksons Platou

Gas price

• Cold weather, China substituting coal with gas and the oil price increase pushed Far East prices to highest level since Q4 2014
• Heading into spring prices are (as always) coming down, Europe Far East arbitrage still open
• The "LNG glut" has so far not materialised, as huge increases in LNG volumes has been followed by increased prices except US…
• Spread HH vs ROW drives exports from US to Far East about 50 % of US volumes in 2017 headed to Asia, improving ton-mile

Source: Clarksons Platou, DNB

LNG trade change

• LNG exports increased by 12 %

• New capacity in Australia and US materialising

• China up 46 % on coal to gas switch, surpassing South Korea as 2nd largest importer

• South Korea up 12 % on switch from nuclear and coal to gas
• India up 9 % with massive potential, but needs infrastructure
• Europe continues to increase, and has massive untapped import capacity

Source: Clarksons Platou, Energy Aspects

LNG production

• 24 MTPA of new capacity started up in 2017
• 38 MTPA of liquefaction capacity expected to start up in 2018, and a further 50 MTPA in 2019 2021
• 49 MTPA out of US in 2018 and 2019
• Beyond 2020 200+ MTPA in pre-FID with specified timeline, incl Qatar expansion 24 MTPA

Source: Clarksons Platou, Arctic Securities, Company presentations

LNG fleet and orderbook

LNG FLEET AND ORDERBOOK END 2017

• 24 vessels delivered in 2017 vs expected 43 vessels at start of year
• 49 vessels scheduled for delivery in 2018, 38 expected
• Total fleet of 434 LNGC above 125' cbm 21 laid up, 78 vessels built before year 2000 (3 scrapped in 2017)
• 5 newbuilding orders so far in 2018 (all assumed committed), restrained ordering in 2017 (10) and 2016 (6)
• Orderbook at 95 vessels, of which only 10 assumed available

Source: Fearnley LNG

1. Highlights

2. Financials Q4

3. Market update

4. Summary

Summary

• ➢ Market recovery firmly established in Q4 2017
• ─ Improvement in rates, utilisation and ballast bonuses
• ─ Current market rates in the USD 70s 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; demand is expected to trigger FIDs in the near future for the next liquefaction wave from 2021
• ─ Very few uncommitted newbuildings
• ─ Few long-term charters and limited financing for speculative orders, resulting in restrained ordering
• ─ 18 % 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