Höegh LNG The floating LNG services provider. Fourth Quarter February 2014

Transcription

1 Höegh LNG The floating LNG services provider Fourth Quarter 2013 Presentation Fourth Quarter of financial 2013 results Presentation 28 of February financial 2014 results 28 February 2014

2 Forward looking statements This presentation contains forward-looking statements which reflects management s current expectations, estimates and projections about its operations. 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 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; increases in 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, in particular, currently, in connection with the turmoil in financial markets; the success in achieving 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. 2

3 Agenda Highlights Financials Operational review Market outlook Summary 3

4 Highlights Quarter EBITDA of USD 8.9 million Loss before tax of USD 4.2 million GDF Suez Cape Ann in operation as first stationary FSRU in the Chinese market Time Charter for Libra extended until end 2014 Subsequent events Mooring delivered at the site in Lampung, Indonesia Commitment letters received for a USD 400 million Senior Secured Credit Facility for the financing of FSRU #3 and FSRU #4 4

5 Agenda Highlights Financials Operational review Market outlook Summary 5

6 Income statement USD million 4Q2013 3Q2013 2Q2013 1Q2013 4Q2012 YTD2013 YTD2012 TOTAL INCOME 51,6 45,7 51,3 29,5 37,6 178,0 135,6 Charterhire expenses (5,2) (5,2) (5,1) (5,1) (5,2) (20,6) (20,7) Operating expenses (8,2) (8,7) (8,5) (8,4) (10,1) (33,8) (33,1) Construction contract expenses (12,8) (10,4) (22,5) - - (45,6) - Administrative expenses (5,4) (4,6) (3,8) (3,9) 4,1 (17,7) (6,0) Business development expenses (11,1) (5,9) (4,1) (4,6) (5,8) (25,7) (26,5) EBITDA 8,9 10,9 7,3 7,5 20,5 34,6 49,3 Gain /(loss) on sale of assets 2, ,4 2,2 10,4 Depreciation and impairment (8,0) (7,8) (7,6) (7,3) (8,4) (30,7) (22,7) EBIT 3,1 3,2 (0,3) 0,1 22,5 6,1 36,9 Interest expenses (6,3) (5,9) (5,9) (8,3) (8,5) (26,3) (26,8) Interest income 0,0 0,0 0,0 0,1 0,0 0,2 0,1 Other financial items (1,1) 0,1 0,2 0,5 (0,4) (0,3) 1,1 PROFIT OR (LOSS) BEFORE TAX (4,2) (2,6) (6,0) (7,6) 13,6 (20,3) 11,4 Taxes 0,3 (0,2) (0,1) (0,4) 0,0 (0,5) (0,2) NET PROFIT OR (LOSS) (3,9) (2,8) (6,1) (7,9) 13,6 (20,8) 11,2 6

7 Financial position USD million Licences, design and other intangibles Investments in newbuildings and vessels Other assets Hedging reserves Restricted cash Current cash and marketable securities TOTAL ASSETS Total equity Interest bearing debt Hedging reserves Other liabilities TOTAL EQUITY AND LIABILITIES Total equity adjusted for hedging reserves Equity ratio adjusted for hedging reserves 42% 42% 43% 43% 44% Net interest bearing debt * * Gross interest bearing debt less cash, marketable securities and restricted cash 7

8 Cash flow statement USD million 4Q2013 3Q2013 2Q2013 1Q2013 4Q2012 YTD2013 YTD2012 Net profit or (loss) before tax (4) (3) (6) (8) 14 (20) 11 Adjustments of non-cash P&L items (1) Net changes in working capital, other (2) 3 (5) 1 1 (3) (12) Net cash flow from operating activities 5 13 (1) Proceeds from sale of marketable securities Investments in marketable securities (50) - (205) Investments in vessels and newbuildings (45) (14) (38) (90) (32) (186) (221) Investments in intangibles and equipment (0) - - (3) (0) (3) (3) Proceeds from sale of vessels and projects 5 (0) Net cash flow from/(used in) investing activities (19) (14) 42 (93) (62) (84) (225) - Proceeds from borrowings Repayment of borrowings (3) (3) (3) (3) (3) (14) (13) Interest paid (8) (8) (8) (8) (6) (33) (24) Net proceeds from issue of capital Other financing activities (7) (0) (1) (4) (6) (12) (6) Net cash flow from/(used in) financing activities 3 (7) (13) (15) 289 TOTAL CASH FLOW (12) (8) 28 (82) 67 (73) 94 8

9 Agenda Highlights Financials Operational review Market outlook Summary 9

10 Status of FSRU newbuilding programme and new contracts Hull Project Construction Delivery 2549 KN, Lithuania 99% March PGN, Indonesia 95% April On offer in tenders 88% June On offer in tenders 5% March

11 Klaipedos Nafta FSRU Terminal on schedule to commence operations October/November 2014 Naming Ceremony 19 February with the President of Lithuania as Lady Sponsor Pursuing interim employment for FSRU 11

12 Perusahaan Gas Negara FSRU and Mooring Commercial operations expected to start June 2014 Mooring arrived site in Lampung Installation scheduled to start the week commencing 3 March Fixed price installation contract 12

13 Near-term FSRU contract award opportunities Project Prequalified Bid Selection Contract award Start-up Columbia Egypt Lebanon India Chile Port Meridian Exclusive Chile 2 Q

14 Höegh FLNG Ltd. Portfolio of potential Barge FLNG projects under development in North America, West Africa and East Africa Completed a pre-feed study for a 2 MTPA barge based solution in North America. The study included the proposal for a full FEED. Completing a pre-feed study for 2 MTPA solution offshore Australia. The study has the potential of developing into a project specific FEED LNG carrier shuttle Flare boom Jetty Liquefaction trains Power generation 200,000 m 3 membrane storage tanks 14

15 Höegh FLNG project opportunities Locations/Projects where Höegh FLNG is in discussions for potential FLNG projects 15

16 Vessels in operation Existing fleet operated safely and without incidents Time Charter for LNG Libra extended by Gas Natural until end 2014 Norman Lady sold for green-recycling GDF Suez Cape Ann employed as the first stationary FSRU in the Chinese market FSRU alongside jetty in Tianjin 16

17 Agenda Highlights Financials Operational review Market outlook Summary 17

18 LNG production capacity under construction Source: Fearnleys

19 Worldwide LNG import outlook (mtpa) (Source: Cheniere / Facts Global Energy) 19

20 FSRU market outlook Owner FSRUs (oper+constr) Customers* Höegh LNG 2+4 GDF Suez (2), Perusahaan Gas Negara, Klaipedos Nafta Golar LNG 4+3 Petrobras (2), Pertamina, Dubai Power Authority, Jordanian Energy Ministry, Kuwait Oil Corporation Excelerate 8+1 YPF (2), Petrobras, PREPA, Israel Electric Corporation OLT 1+0 E.ON, IREN (also owners) MOL 0+1 GDF Suez /Marubeni BW Gas 0+2 N/A * Projects in operation or awarded Existing Under construction / awarded Potential Around 30 projects in pipeline 16 projects in Asia/Middle East 6 projects in the Americas 10 projects in Europe/Africa 20

21 Announced FLNG projects STATUS Under construction Awaiting FID FEED COUNTRY LOCATION OF FIELD Australia Prelude Shell MAIN SPONSORS Colombia Caribbean coast Pacific Rubiales/Exmar Malaysia Sarawak Kanowit Petronas Malaysia Sarawak Rotan Petronas/Murphy Australia Bonaparte GDF Suez/Santos USA Texas Excelerate energy Canada Douglas Channel Douglas Channel Enrgy Partnership Australia Scarborough ExxonMobil Indonesia Abadi Shell/Inpex Australia Cash Maple PTT Pre-FEED Other Canada Kitimat / Prince Rupert AtlaGas/Idemitsu Mozambique Eni Australia Sunrise Woodside/Shell/ConocoPhilips Australia Browse Woodside North America North America West Africa West Africa West Africa 21

22 Global LNG fleet overview Type Delivered Newbuildings on order Under conversion Total LNGC FLNG FSRU 15* Total *10 newbuildings and 5 conversions LNG carrier fleet 363 LNG carriers in fleet 117 newbuildings on order (32%) 15 FSRUs in fleet FSRU fleet 11 FSRU newbuildings on order plus two options to change from LNGC to FSRU (Source: Wood Mackenzie, LNG Unlimited, Fearnley LNG) 22

23 Agenda Highlights Financials Operational review Market outlook Summary 23

24 Summary Full contract coverage for existing fleet Existing business operating safely and without incidents Delivery of three FSRUs next few months PGN Mooring at Lampung site and ready to be installed Selection of preferred bidder for several FSRU projects expected near term Ongoing preparation for separate listing of Höegh FLNG 24