Q4 2015 Oslo, 9 February 2016 Disclaimer This presentation - PowerPoint PPT Presentation

Q4 2015 Oslo, 9 February 2016

Disclaimer 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. 2

Company Agenda Representatives Hig ighlig ights 1 Christi stian A an And nderse sen n – Pr Presi sident nt 2 Financ nancial als Ped eder er S Sim imonsen en – Chief ief Fin inancia cial O Offic fficer er 3 Fleet & t & Mar arket t Updat ate 4 Summar mmary & Ou Outl tlook 3

1 Highlights Highlights Q4 2015 Comments Average Time Charter Equivalent • TCE rate of US$ 61 144/day compared to US$ 96 865/day in Q3 and US$ 64 629/day in Q4 2014 (3 months) • Newbuildings delivered: Pampero – 19 th October • All eight newbuildings now delivered and operating in • the spot market • Voluntary offer for Aurora LPG withdrawn in December • EPS of US$ 1.31 in Q4 • Board declared a dividend of US$ 0.65 per diluted share Avance Gas Spot VLGC Index 1 Month prior to Calendar Quarter 4

2 Financials Financials – Q4 2015 Income Statement Comments Th Three mo mont nths e end nded Three mo Th mont nths e end nded USD (000s (000s) 31 Decemb 31 D mber 2015 2015 30 S 30 Septemb mber 2015 2015 • Operating revenue decreased to US$ 84 million, from US$ Oper eratin ing R Rev even enue 84,123 84, 123 109, 109,943 943 110 million, with TCE earnings of US$ 71 million, reflecting seasonal decline in rates Voyage expenses (13,030 (13, 030) (15, (15,499 499 ) Operating expenses (9, (9,579 579) (7, (7,727 727 ) Administrative and general expenses (2, (2,118 118) (1, (1,409 409 ) • Higher operating expenses due to the larger fleet Oper eratin ing P Profit it bef efore D e Dep eprec ecia iatio ion E Expen ense 59,396 59, 396 85,308 85, 308 • Financial expenses increased by US$ 0.8 million, due to Depreciation expenses (9, (9,732 732) (8,833 (8, 833 ) higher debt and costs associated with the Aurora offer Operating Op ng Pr Profit (L (Loss) 49,664 49, 664 76, 76,475 475 • A&G expenses increased by US$ 0.7 million, mainly due to professional fees in relation to the Aurora offer Non on-Op Operating ng Inc ncome me (E (Expens nses): ): Finance expense (4,430 (4, 430) (3,587 (3, 587 ) Finance income 100 100 31 31 • Net profit of US$ 45 million (US$ 1.31/share), down from Foreign currency exchange gain (193 (193) (88 (88 ) US$ 73 million (US$ 2.11/share) in Q3 Income tax expense (1 (1) — (4,524 (4, 524) (3, (3,644 644 ) • Net profit for 2015 was US$ 183.2 million, compared to Net t Profit ( t (Loss) 45, 45,140 140 72,831 72, 831 US$ 78.9 in the 12 months ended 31 December 2014 Earnin ings p per er Share: e: Net profit (loss) Basic 1. 1.31 31 2. 2.12 12 Diluted 1. 1.31 31 2. 2.11 11 5

2 Financials Financials – Q4 2015 Balance Sheet Comments USD (000s (000s) 31 Decemb 31 D mber 2015 2015 30 Septemb 30 S mber 2015 2015 • Total assets of US$ 1,119 million, up from US$ 1,056 million, Cash and cash equivalents 70, 70,033 033 63, 63,347 347 reflecting delivery of Pampero Receivables 71, 71,238 238 69, 69,049 049 Related party receivables 27 27 130 130 Inventory 4, 4,895 895 5, 5,235 235 • Receivables increased slightly, reflecting the impact of the full Prepaid expenses 2,635 2, 635 — Other current assets 1, 1,962 962 2, 2,078 078 fleet offset by lower seasonal freight rates Total tal C Current t As Assets ts 150,790 150, 790 139, 139,839 839 Property, plant and equipment 965,742 965, 742 896,560 896, 560 • Net interest bearing debt increased by US$ 88 million, mainly Newbuildings deposit 17,475 17, 475 — Goodwill and intangible assets 2, 2,262 262 2, 2,290 290 reflecting the delivery of Pampero , and utilization of revolving Total tal N Non-current As t Assets ts 968,004 968, 004 916,325 916, 325 credit lines Total tal As Assets ts 1, 1,118, 118,794 794 1, 1,056, 056,164 164 42,931 42, 931 39,806 39, 806 Current portion of long-term debt • Free cash and cash equivalents totaled US$ 70 million, up Revolving credit facility 50,000 50, 000 — from US$ 63 million Accounts payable 1, 1,003 003 1, 1,138 138 Related party payable balances 58 58 692 692 Accrued voyage expenses 6, 6,723 723 5,201 5, 201 • Equity ratio of 44.7% Accrued expenses 886 886 477 477 Derivative financial instruments 7, 7,573 573 10, 10,169 169 Other current liabilities 1,243 1, 243 1, 1,280 280 Total C Curren ent Lia iabil ilit ities ies 110,417 110, 417 58, 58,763 763 Long-term debt 508,432 508, 432 473,062 473, 062 Total tal N Non-curren ent L Lia iabil ilit ities ies 618, 618,849 849 473,062 473, 062 Common shares 35, 35,278 278 35,278 35, 278 Paid-in capital 350, 350,359 359 350, 350,359 359 Contributed capital 94, 94,531 531 94, 94,779 779 Retained earnings 39,277 39, 277 66, 66,661 661 Treasury shares (11, (11,867 867 ) (12, (12,381 381 ) Accumulated other comprehensive income (7, (7,633 633) (10,357 (10, 357) Total tal S Shar areholders’ ’ Equity ty 499, 499,945 945 524, 524,339 339 Total tal L Liab abiliti ties an and S Shar areholders’ ’ Equity ty 1,118, 1, 118,794 794 1,056, 1, 056,164 164 6

2 Financials Financials – Q4 2015 Cash Flow Statement Comments Three m ee months ended ed Three m ee months ended ed USD (000s (000s) ) 31 Dec 31 ecem ember er 2015 2015 30 30 Sep eptem ember er 2015 2015 • Net operating cash flow was US$ 51 million, down from US$ Cash gen ener erated ed from ( (used ed in in) o oper eratio ions 56, 56,179 179 66, 66,126 126 63 million in Q3 Debt-issuance costs (468) (468 (445 (445) Interest paid (4, (4,736 736) (2, (2,659 659) • Net cash flow from financing and investment activities was negative US$ 44 million, of which US$ 73 million was paid as Net t cash gen ener erated ed by (used ed in in) o oper eratin ing a activ ivit ities ies 50, 50,975 975 63, 63,022 022 dividends Cash flows u used ed in in in inves estin ing a activ ivit ities ies: • A net increase in cash of US$ 7 million in Q4 Capital expenditures (57,670 (57, 670) (199, (199,512 512) Net t cash u used ed in in in inves estin ing activ ivit ities ies (57,670 (57, 670) (199,512 (199, 512) Cash sh f flows ws from (u m (used in) n) fin inancin ing a activ ivit ities ies: Proceeds from issuance of long-term debt 50,000 50, 000 150,000 150, 000 Proceeds from revolving credit facility 50, 50,000 000 Dividends (72, (72,523 523) (41, (41,244 244) Repayment of long-term debt (14,137 (14, 137) (7, (7,889 889) Purchase of own shares — — Exercise of share options 255 255 48 48 Net t cas ash provid ided ed b by fin inancin ing activ ivit ities ies 13, 13,595 595 100,819 100, 819 Effect of exchange rate changes on cash (214 (214) (4) (4) Net t dec ecrea ease e in c cas ash an and cas ash e equival alents ts 6, 6,686 686 (35,675 (35, 675) Cash and cash equivalents at beginning of period 63,347 63, 347 99, 99,022 022 Cas ash an and c cas ash equival alents ts at e at end o of period 70,033 70, 033 63,347 63, 347 7

3 Fleet & Market Update Fleet Overview Avance Av Iri ris G Glory ry Breez eeze Passa ssat Built: 2003 Built: 2008 Built: 2015 Built 2015 Capacity (cbm): 82,557 Capacity (cbm): 83,783 Capacity (cbm): 83,000 Capacity (cbm): 83,000 Yard: Kawasaki (JPN) Yard: Daewoo (KOR) Yard: Jiangnan (PRC) Yard: Jiangnan (PRC) Sirocco cco Thetis G Th Glory Venus G Glor ory Levant Le Built: 2015 Built: 2008 Built: 2008 Built 2015 Capacity (cbm): 83,000 Capacity (cbm): 83,783 Capacity (cbm): 83,765 Capacity (cbm): 83,000 Yard: Jiangnan (PRC) Yard: Daewoo (KOR) Yard: Daewoo (KOR) Yard: Jiangnan (PRC) Pr Prov ovidence Pr Promi omise Chinook ook Pa Pamp mpero Built: 2008 Built: 2009 Built: 2015 Built: 2015 Capacity (cbm): 84,597 Capacity (cbm): 84,597 Capacity (cbm): 83,000 Capacity (cbm): 83,000 Yard: Daewoo (KOR) Yard: Daewoo (KOR) Yard: Jiangnan (PRC) Yard: Jiangnan (PRC) Mi Mistral Mon onsoon oon Built: 2015 Built: 2015 Capacity (cbm): 83,000 Capacity (cbm): 83,000 Yard: Jiangnan (PRC) Yard: Jiangnan (PRC) 8

3 Fleet & Market Update Fleet Utilization Outlook Orderbook Market Utilization VLGCs – Current Orderbook • Source: Nordic Shipping; Company 9