HÖEGH LNG – A FULLY INTEGRATED LNG INFRASTRUCTURE COMPANY
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PRESENTATION AT PARETO ENERGY CONFERENCE 17 September 2020 1 - - PowerPoint PPT Presentation
HEGH LNG A FULLY INTEGRATED LNG INFRASTRUCTURE COMPANY Sveinung J.S. Sthle President & CEO PRESENTATION AT PARETO ENERGY CONFERENCE 17 September 2020 1 Forward looking statements This presentation contains forward-looking
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This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about Höegh LNG’s
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 statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG’s ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG’s ability to win upcoming tenders and securing employment for the FSRUs on order; changes in Höegh LNG’s ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG’s ability to complete and deliver projects awarded; changes to the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, including the impact from changes in financial markets; changes in the ability to achieve commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements.
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HMLP: Mcap USD ~350m HMLP-A preferred HLNG NO: Mcap USD ~100m HLNG03 / HLNG04 bond loans
Assets / Equity ratio¹
Revenues / EBITDA²
Employees
1: 30 June 2020, adjusted for mark-to-market of interest rate swaps 2: LTM Revenues and EBITDA
Long-term contracts – stable cash flows – strong distribution coverage
Future business
99,9 % 99,8 % 99,8 % 99,5 % 99,8 %
2016 2017 2018 2019 2020 YTD
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− All charter parties in force and unchanged − All units fully operational and crewed according to relevant safety requirements
0,00 0,38 0,00 0,31 0,00
2016 2017 2018 2019 2020 YTD
1: Calculated per million exposure hours for sea going personnel only
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10 20 30 40 50 60 70 80 90
2q17 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20
USD million
EBITDA Recognition of future revenue
20 40 60 80 100 120 140
2q17 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20
USD million
Total income Recognition of future revenue
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− USD 6-8 million in reduced Opex and SG&A − USD 3 million in dry docking off-hire to be postponed to 2021 − All savings are estimated compared with original plans and budget for 2020
− USD 3.5 million decline in SG&A q-o-q − Two thirds a result of implemented cost-saving plan, with some aid from Covid-19 related savings with virtually no travel expenses incurred in Q2 − About one third is explained by seasonality due to holiday pay − Favourable FX development for non-USD SG&A
FSRUs 2 247 Other 146 Cash & eq. 152 Asset-backed debt 1 358 Bonds; 221 Other 186 Equity 780 500 1 000 1 500 2 000 2 500 3 000 Assets Liabilities
USD million
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1: HMLP consolidated, adjusted for mark-to-market of hedging reserves
Built EBITDA Charterer USDm/yr Höegh LNG Holdings
Arctic Princess* 2006 19** Equinor Arctic Lady* 2006 19** Total Independence 2014 47 KN Höegh Giant 2017 Naturgy Höegh Esperanza 2018 CNOOC / AGL Höegh Gannet 2018 Trafigura Höegh Galleon 2019 Cheniere / AIE Höegh Gallant (TC in) 2014 Mitsui Höegh LNG Partners Neptune 2009 33** Total Cape Ann 2010 33** Total PGN FSRU Lampung 2014 40 PGN Höegh Gallant 2014 HLNG Höegh Grace*** 2016 42 SPEC
Long-term contract Extension option Under construction
2020 2022 2021 2023
FSRU and/or LNGC intermediate charter
2036 2038 2024 2026 2028 2030 2032 2033 2035 2037 2034 2027 2029 2031 2025
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** 100% basis, units are jointly owned
AGL - Conditional on FID AIE - Conditional on FID
*** The initial term of the charter is 20 years. However, each party has an unconditional option to cancel the charter after 10 and 15 years without penalty. However, if SPEC waives its right to terminate in year 10 within a certain deadline, Höegh LNG Partners LP will not be able to exercise its right to terminate in year 10.
Lease back period from HMLP expires mid-2025
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2020 2021 2022
Charter coverage Charter coverage incl. Options
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1: On 100% basis for 12 vessels, four units are jointly owned
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FSRU project #3
− Ongoing negotiations − Potential FID 2020 − Potential start-up 2021
− Proposal receives interest − Constructive dialogue with authorities
2021
FSRU project #4 FSRU project #5 FSRU project #6
2 4 6 8 10 12 Höegh LNG Excelerate Golar LNG BW LNG Other Captive
Units
Conv FSRU NB FSRU NB order Conv order
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1: Including purpose built FSRUs and conversions, barges excluded
Source: publicly available company information, Höegh LNG
Botas MOL Gazprom Kol / Kal SWAN Java-1 Maran Dynagas Botas Dynagas
KARMOL
El Salvador
OLT VPower
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− A large share will be in the form of LNG − LNG exports projected to more than double by 2050 − This will require new import facilities
Source: DNVGL Energy Transition 2020
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15 20 25 30 35 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Million tonnes
2015 2016 2017 2018 2019 2020
Source: IHS Markit. The use of this content was authorized in advance. Any further use or redistribution of this content is strictly prohibited without written permission by IHS Markit
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Source: IHS Markit. The use of this content was authorized in advance. Any further use or redistribution of this content is strictly prohibited without written permission by IHS Markit
11,9 4,0 4,6 4,2 10,9
300 320 340 360 380 400 420 440 2019 2020 2021 2022 2023 2024
Million tonnes
Reduction Pre-COVID LNG outlook COVID outlook: July 2020
Note: Outlook from July 2020, Pre-Covid outlook from February 2020
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2 4 6 8 10 12 14 16 18
MGO, Global 20 ports average (USD/MMBtu) HFO / IFO380, Global 20 ports average (USD/MMBtu) LNG Platts Japan Korea Marker (USD/MMBtu) LNG Platts Mediterranean (USD/MMBtu) LNG Platts North West Europe (USD/MMBtu) HH Spot Price (USD/MMBtu) Coal delivered North West Europe, USD/MMBtu
Sources: S&P Global Platts, US Energy Information Administration, Ship&Bunker
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