First q quart rter 2018 er 2018 Oslo, 8 May 2018 Discla isclaim - - PowerPoint PPT Presentation

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First q quart rter 2018 er 2018 Oslo, 8 May 2018 Discla isclaim - - PowerPoint PPT Presentation

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First q quart rter 2018 er 2018 Oslo, 8 May 2018 Discla isclaim imer This presentation contains forward looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as

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First q quart rter 2018 er 2018

Oslo, 8 May 2018

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Discla isclaim imer

This presentation contains forward looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at its date, and are subject to change without notice.

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Financ nancial als s Q1 2018 Q1 2018 Fleet U t Updat ate Mar arket U t Updat ate Summar mmary & Ou Outl tlook

Agenda nda

2 3 1 4

3

Christi stian A an And nderse sen n – Pr Presi sident nt Ped eder er S Sim imonsen en – Chief ief Fin inancia cial O Offic fficer er

Co Comp mpany ny Rep epres esen entat atives

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Financials Q1 2018

Key financial highlights

In U US$ $ thou

  • usa

sands s (unless s

stated o

  • the

herwise)

Th Three m mon

  • nths

s end ended ed Resta tate ted* Th Three m mon

  • nths

s end ended ed In Income statem ement ent:* 31 M 31 March 2018 2018 31 31 December 2017 2017 TCE earnings* 14,461 14,000 TCE per day ($) 12,637 11,164 Operating profit (loss) before depreciation expense 3,971 2,861 Net loss (12,314) (13,622) Net loss per share (diluted) ($) (0.19) (0.21) Bal alan ance ce sheet eet:* 31 M 31 March 2018 2018 31 31 December 2017 2017 Total assets 888,699 908,023 Total liabilities 492,948 506,508 Cash and cash equivalents 47,129 62,316 Total shareholders’ equity 395,751 401,515 Cash sh flow

  • ws:

31 M 31 March 2018 2018 31 31 December 2017 2017 Net cash used in operating activities (4,457) (3,205) Net cash used in investing activities (5,169) (2,334) Net cash used in financing activities (5,561) 9,749 Net (decrease) increase in cash and cash equivalents (15,187) 4,210 *Please see Q1 2017 interim financial statements for information on the implementing the new accounting standard for revenue recognition (IFRS 15), with effect from 1 January 2018,

  • TCE rate of $12,636/day, up by $1,500/day
  • Low OPEX and G&A maintained
  • Monsoon accrual of $0.7 million reversed
  • Drydock capex of $5.2 million
  • Strong balance sheet – 44.5% equity ratio
  • Available liquidity of $97.1 million

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Financials Q1 2018

2018 Cash break even and CAPEX

  • Estimated average cash break-even for 2018 is $17,700/day
  • 2 of 5 ships drydocked by Q1 - estimated remaining CAPEX is ~$5.0 million in 2018
  • Continued strong cost focus while securing high quality service

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Fleet update

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Global Fleet 267 267 New Orders 7/1 /1 Orderbook 36 36 Re-cycling 1/2 /2

VLGC fleet end Q1 2018

36 43 20 10 21 12 10 20 30 40 50 2015 2016 2017 2018 2019 2020

Orderbook May 2018

Delivered On Order 13.5% 50 100 150 200 250 300 Existing On Order

Orderbook

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2

Fleet update

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Avance Gas Q1 2018

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2

Fleet update

T/C Out Spot fixtures 8/ 8/312 312 0.6 .6 Waiting pr. Ship Dry Dock 2/ 2/69 69 COA nominations 4/ 4/311 311 Off hire 3/ 3/38 38

Avance Gas Q1 2018

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0.6 .6 Waiting pr. Ship

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Middle East exports

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Market update

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

LPG export Saudi, UAE, Qatar

3 years spread 3 years average 2018

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

LPG export Middle East

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US Gulf / USEC exports

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3

Market update

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

VLGC export US Gulf / USEC

3 years spread 3 years average 2018

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

VLGC export US Gulf / USEC

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US Gulf – USEC destinations

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3

Market update

10 20 30 40 50 60

Number of VLGC liftings US Gulf / USEC

2014 2015 2016 2017 2018

10 20 30 40 50 60

Number of VLGC liftings US Gulf / USEC

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US Gulf – USEC destinations

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3

Market update

50% 16% 34%

2015

South America NWE+MED Far East

22% 12% 66%

2017

South America NWE+MED Far East

28% 20% 52%

2016

South America NWE+MED Far East

18% 20% 62%

2018

South America NWE+MED Far East

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Global VLGC fleet

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Market update

17% 9% 25% 49%

< 2001 2001-05 2006-10 > 2011

2 4 6 8 10 12 14 27 yr+ 25/26 yr 23/24 yr 21/22 yr 19/20 yr 17/18 yr

Fleet built prior 2001

31 ships 5% 12% 83%

Storage Ex-trade potential Trading

13.5% 50 100 150 200 250 300 Existing On Order

Orderbook

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Summary and outlook

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Summary and outlook Overhang of ships from mid-March caused by surprising low export activity in US Gulf February 2018 and normal low activity in Middle East Increasing activity both regions from March US LPG production growth from shale gas and tight oil ramp-up US Gulf / USEC LPG export increase from end of winter season Awaiting news update on construction of East Marnier II pipeline to Marcus Hook which will enhance export capacity Expect older part of global VLGC fleet to leave trading fleet towards 2020

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Appen ppendi dix

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($ 0 000s) Thr hree ee mo months hs ende ded d 31March ch 2 2018 Thr hree ee mo months hs ende ded d 31 D Dece cember 2017 (restat ated) d) Operatin ing r revenue 29,006 25,232 Voyage expenses (14,545) (11,232) Operating expenses (9,334) (9,836) Administrative and general expenses (1,156) (1,303) Operatin ing p profit it (loss) before d deprecia iatio ion expense 3,971 2,851 Depreciation and amortization expenses (9,776) (9,917) Op Operating l ng loss (5,805) (7,055) No Non-operatin ing ( (expenses) in income: Finance expense (6,566) (6,521) Finance income 85 5 Foreign currency exchange gain (17) 5 (6,509) (6,511) In Inco come tax ax expense

—

(55) Net los loss (12,314) (13,622) Loss pe per s shar are: Basic (0.19) (0.21) Diluted (0.19) (0.21)

  • TCE earnings of $14.5 million, up from $14.0 million,

reflecting slightly higher freight rates in Q1 18

  • Operating expenses of $9.3 million, down from Q4 due

to reversal of accrual related to Monsoon insurance claim from 2015 ($0.5 million) partially offset by insurance deductible related to an unscheduled drydocking of Passat ($0.3 million)

  • Administrative and general expenses decreased to

$1.2 million, also due to reversal of accrual related to Monsoon

  • Non-operating expenses—mainly financial expenses—
  • f $6.5 million, unchanged since Q4 2017
  • A reported net loss of $12.3 million, compared to a net

loss of $13.6 million in Q4 2017

Income Statement Comments

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A

Appendix

Financials – Q1 2018

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($ 0 000s) As As o

  • f

31 M March ch 2018 As As o

  • f

31 D Dece cember 2017 (restat ated) d) Cash and cash equivalents 47,129 62,316 Receivables 11,137 11,836 Inventory 4,553 3,993 Other current assets 6,882 6,233 Total al c cur urrent as assets 69,701 84,378 Property, plant and equipment 818,808 823,495 Long-term derivative financial instruments 67 — Intangible assets 123 150 Tot

  • tal n

l non

  • n-cur

urrent as assets 818,998 823,645 To Total a asse ssets 888,699 908,023 Current portion of long-term debt 20,598 20,598 Accounts payable 2,914 5,867 Accrued expenses (inc voyage expenses) 4,815 4,219 Current portion of derivative financial instruments 1,078 2,538 Other current liabilities 1,607 1,317 Total c current lia iabil ilit itie ies 31,012 34,539 Long-term debt 361,936 367,000 Long-term revolving credit facilities 100,000 100,000 Long-term derivative financial instruments — 4,969 Tot

  • tal n

l non

  • n-current l

lia iabil ilit itie ies 461,936 471,969 Share capital 64,528 64,528 Paid-in capital 379,851 379,851 Contributed capital 95,239 95,185 Retained loss (131,047) (118,733) Treasury shares (11,867 ) (11,867 ) Accumulated other comprehensive loss (953) (7,449) Total al s shar areholde ders’ equi uity 395,751 401,515 Total l lia iabil ilit itie ies a and shareholders’ equit ity 888,699 908,023

Balance Sheet Comments

  • Cash at end Q1 of $47.1 million down from $62.3

million end Q4, due to lower cash flow from

  • perations, debt repayments and dry-docking cash

payments

  • Total assets of $888.7 million, versus $908.0 million in

the prior quarter, mainly reflecting depreciation of the fleet and lower cash position

  • Net total interest-bearing debt of $461.9 million,

compared with $487.6 million, reflecting scheduled debt repayments

  • Shareholders’ equity ratio of 44.5%, compared to

44.2% in Q4 2017

  • Total available liquidity at quarter end was $97.1

million, including available undrawn credit lines

A

Appendix

Financials – Q1 2018

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Cash Flow Statement Comments

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($ 0 000s) Thr hree mo ee months hs ended 31 M March ch 2018 Thr hree mo ee months hs ended 31 D Dece cember 2017 Cash f flows ( (used in in) from operatin ing a activ ivit itie ies: Cash flow from operations 1,516 2,830 Interest paid (5,973) (6,035) Net c cash f flows (used in in) f from o

  • peratin

ing activ ivit itie ies (4,457) (3,205) Cash f flows u used in in in investin ing activ ivit itie ies: Capital expenditures (5,169) (2,334) Net c cash f flows used in in in investin ing activ ivit itie ies (5,169) (2,334) Cash f flows f from ( (used in in) f fin inancin ing activ ivit itie ies: Repayment of long-term debt (5,506) (5,506) Drawdown revolving credit facility

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15,000 Net c cash f flows from ( (used in in) f fin inancin ing activ ivit itie ies (5,506) 9,494 Effect of exchange rate changes on cash (55) 255 Net ( (decrease) in increase in in cash a and cash equiv ivalents (15,187) 4,210 Cas ash an and d cas ash e equi uival alents at at be beginning of pe period 62,316 58,106 Cas ash an and d cas ash e equi uival alents at at e end d of pe period 47,129 62,316

  • Net cash flow from operating activities negative of

$4.5 million in Q1, compared to $3.2 million in Q4, mainly reflecting timing of freight payments and voyage expenses

  • Cash flow from investing activities reflects scheduled

dry-docking of two ships during the quarter

  • Net cash flow from financing activities was $5.5

million, reflecting scheduled debt repayments

  • The cash position at quarter-end was $47.1 million,

with total available liquidity of $97.1 million, including available undrawn credit lines

A

Appendix

Financials – Q1 2018