Awilco LNG

Investor Presentation • Feb 28, 2019

Q4 2018

Jon Skule Storheill

Øyvind Ryssdal

28 February 2019

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 28/02 2019

1. Highlights

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

4 th quarter 2018 highlights

4 th quarter 2018

Net freight income	MUSD 10.4	MUSD 7.4 in Q3 2018
EBITDA	MUSD 7.1	MUSD 3.8 in Q3 2018
Net profit/(loss)	MUSD (1.2)	MUSD (4.8) in Q3 2018

• Utilisation 84 % compared to 70 % previous quarter (excluding DD off-hire)
• TCE* USD 62,900 pd (USD 45,000 pd in Q3 2018), current CBE** of USD ~53,000 pd
• WilPride completed dry-docking, total cost of MUSD 3.6 and 20 off-hire days
• Good progress in ongoing discussions on LNG shipping consolidation

Full year 2018

Net freight income	MUSD 34.8	MUSD 13.6 in 2017
EBITDA	MUSD 22.4	MUSD 1.7 in 2017
Net profit/(loss)	MUSD (11.4)	MUSD (31.8) in 2017

• Vessel utilisation 80 % compared to 74 % in 2017

*TCE: net freight income divided by the number of calendar days minus off-hire days

**CBE: All-in cash break even in USD per day including operating expenses, administration expenses, dry-docking and financing costs (estimated)

Agenda 28/02 2019

1. Highlights

2. Financials Q4

3. Market update

4. Summary

Q4 2018 income statement

USD million	Q4'18	Q3'18	2018	2017
Freight income	11.1	8.6	40.0	20.4
Voyage related expenses	(0.7)	(1.3)	(5.1)	(6.9)
Net freight income	10.4	7.4	34.8	13.6
Other income	-	4.0	4.0	-
Operating expenses	(1.9)	(6.7)	(12.5)	(7.9)
Administration expenses	(1.4)	(0.8)	(3.9)	(3.9)
EBITDA	7.1	3.8	22.4	1.7
Depreciation	(3.2)	(3.3)	(13.0)	(12.3)
Net finance	(5.1)	(5.3)	(20.9)	(21.2)
Profit/(loss) before tax	(1.2)	(4.8)	(11.4)	(31.8)
Tax	-	-	-	-
Profit/(loss)	(1.2)	(4.8)	(11.4)	(31.8)

Q4 2018 financial position

USD million	31.12.18	30.09.18	31.12.17
Vessels	362.1	360.9	363.9
Total non-current assets	362.1	360.9	363.9
Trade receivables	2.7	4.8	1.6
Other short term assets	6.1	8.4	5.1
Cash	22.5	24.3	29.0
Total current assets	31.4	37.4	35.7
Total assets	393.6	398.3	399.6
Total equity	115.6	116.8	127.0
Long-term interest bearing debt	-	258.6	263.9
Other non-current liabilities	0.3	2.3	2.3
Non-current liabilities	0.3	260.9	266.2
Short-term interest bearing debt	266.7	6.4	2.7
Other current liabilities	10.9	14.3	3.7
Total current liabilities	277.6	20.7	6.4
Total equity and liabilities	393.6	398.3	399.6

Q4 2018 cash flow

USD million	Q4'18	Q3'18	2018	2017
Cash Flows from Operating Activities:
Profit/(loss) before taxes	(1.2)	(4.8)	(11.4)	(31.8)
Income taxes paid	-	-	-	-
Interest and borrowing costs expensed	5.4	5.4	21.5	22.2
Depreciation, amortisation and impairment	3.2	3.3	13.0	12.3
Trade receivables, inventory and other short term assets	4.3	(4.1)	(2.2)	(1.6)
Accounts payable, accrued exp. and deferred revenue	(2.9)	5.6	5.7	1.1
Net cash provided by / (used in) operating activities	8.8	5.4	26.5	2.1
Cash Flows from Investing Activities:
Investment in vessels / sale of vessels	(4.4)	(3.6)	(11.2)	(2.3)
Net cash provided by / (used in) investing activities	(4.4)	(3.6)	(11.2)	(2.3)
Cash Flows from Financing Activities:
Gross proceeds from equity issue	-	-	-	26.8
Transaction costs of equity issue	-	-	-	(0.7)
Repayment of borrowings	(1.0)	(0.6)	(2.7)	(5.6)
Interest and borrowing costs paid	(5.1)	(3.5)	(19.1)	(21.4)
Net cash provided by / (used in) financing activities	(6.2)	(4.1)	(21.8)	(0.9)
Net changes in cash and cash equivalents	(1.8)	(2.2)	(6.4)	(1.1)
Cash and cash equivalents at start of period	24.3	26.5	29.0	30.0
Cash and cash equivalents at end of period	22.5	24.3	22.5	29.0

Agenda 28/02 2019

1. Highlights

2. Financials Q3

3. Market update

4. Summary

Spot rates

USD/DAY

• All time high assessed rate in November 2018 at USD 185,000 pd
• Average assessed rates up 95 % in 2018, from USD 44,000 pd in 2017 to USD 86,000 pd in 2018
• Very disappointing activity and rates December February, but in fact normal seasonal movement
• Seasonality works both ways

Source: Fearnley LNG

Why?

• ➢ Record number of newbuildings delivered in 2018
• ➢ China well prepared and stocked up ahead of winter (vs scramble last winter)
• ➢ Close to 30 vessels used for storage in Far East in Nov all discharged in Dec
• ➢ Warm winter in the Far East caused by El Niño
• ➢ US exports to China halted in H2 2018 and many headed for Europe instead low ton/miles
• ➢ High energy prices in Europe and no West-East arbitrage
• ➢ Multiple liquefaction plants down for maintenance with close to 30 cargoes assumed lost in February alone

What now?

• ➢ 39 newbuildings delivering in 2019, 15 in Q1
• ➢ Finally seeing "normalized" activity level in LNG spot market
• ➢ Recent reports from US China trade talks promising could lead to massive long haul volumes
• ➢ Assuming policy driven trade US China, EU will have to source LNG from further away
• ➢ Huge swing in Korean energy tax system with effect from April will lead to increased LNG imports and displace coal, close to 60 % of LNG import capacity currently not used
• ➢ LNG taxes down 74 %
• ➢ Coal taxes up 27 %

LNG trade

• In total new capacity of 44 MTPA vs export growth 23 MT in 2018
• Australia's production capacity surpassed Qatar

• US ….

• Policy driven fuel switching in China and South Korea driving import growth of 40 and 17 % respectively

• Jan 2019 South Korea implemented higher taxes on coal imports and reduced taxes on LNG imports
• Europe LNG imports responding to gas and carbon prices

Source: Clarksons Platou, Energy Aspects

Record ordering and deliveries…

• 49 vessels delivered and 64 newbuild orders in 2018, 13 orders so far in 2019
• Total fleet 485 vessels > 125' cbm
• Orderbook of 111 vessels, corresponding to 22 % of existing fleet
• ~20 % of the fleet is «Commercially challenged» (smaller/less efficient)

Source: Fearnley LNG

..for a reason!

LNG PRODUCTION 2011 - 2021 TON-MILE 2011 - 2021

• 83 MTPA scheduled to come online in 2019 2024
• 54 MTPA in the US
• 380 MTPA new LNG production in pre-FID phase

• 116 MTPA FIDs in 2019 likely according to market analysts

• Ton-mile demand increased by 13.9 % in 2018

• Asia's appetite for LNG met by new US supply
• sailing distances up 80 90 % vs historical average
• 43 % of US cargoes transported to Far East in 2018 vs 38 % in 2017, despite US - China situation

Source: Reuters, GIIGNL, DNB, Fearnley LNG, Bloomberg

China's appetite for LNG not slowing

IMPORT CAPACITY DOUBLING 2018 IMPORT CAPACITY UTILISATION

• China imported 53 MT LNG in 2018, up 40 % YOY
• Aims to grow import capacity from 67.5 MTPA to 247 MTPA in 2035 9 % annual growth
• 12.5% of LNG imports used by LNG powered buses/trucks

Source: Shell Energy Outlook, Bloomberg

LNG as a fuel

LNG FUELLED VESSELS GLOBAL FLEET AND ORDERBOOK

HEAVY DUTY TRANSPORT IN CHINA

• Global fleet of 143 LNG-fuelled vessels and orderbook of 135
• First LNG-powered cruise ship entered service in December 2018
• LNG available in 24 out of the world's top 25 ports

• Potential market of 200 MTPA (~60 % global LNG trade)

• ~ 44 % annual growth in LNG powered heavy duty trucks and buses

• Some 350,000 LNG powered trucks and busses operating in China
• 6.7 MT of LNG delivered by 2,552 LNG fuel stations

Source: Shell Energy Outlook, Sea/LNG

Agenda 28/02 2019

1. Highlights

2. Financials Q4

3. Market update

4. Summary

Summary

• ➢ Despite short term seasonal low Owner's expectations for the coming three years are high
• ─ 9 % annual growth in LNG production (vs 2 % growth in 2011 2016)
• ─ 13 % annual growth in ton-miles (vs no growth in 2011 2016)
• ─ 7 % annual fleet growth (excluding phase out)
• ➢ Mid- and long-term demand for LNG transportation remains strong
• ─ Gas is cheap, abundantly available and environmentally friendly
• ─ Growing gas demand will trigger further FIDs in 2019 and beyond
• ─ ~20 % of the sailing fleet is smaller and inefficient
• ─ LNG as a marine fuel is IMO 2020 and future compliant SOx in 2020 PM and NOx next?
• ➢ Awilco LNG
• ─ Pure play integrated LNG transportation company with excellent commercial and operational track record in a segment with high barriers to entry
• ─ Actively pursuing refinancing at improved terms
• ➢ Awilco LNG is well positioned for the 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