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1Q20 Financial ResultsIR Presentation – 21st April 2020

DELIVERING CLEAN ENERGYTO THE WORLD

© Copyright of this document vested in Qatar Gas Transport Company Ltd. (NAKILAT). All rights reserved.

“CROSSING OCEANS, BROADENING HORIZONS”

All statements in this presentation (other than those of historical fact) contain reference to our future business and financial performance and future events or developments that may constituteforward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project", “may”,“forecast” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, ourrepresentatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of NAKILATs’ management, of which manyare beyond NAKILATs’ control. These are subject to several risks, uncertainties and factors that might cause future results and outcomes to differ including, but not limited to the following:

• general LNG shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, technologicaladvancements

• and opportunities for the profitable operations of LNG carriers;• fluctuations in spot and long-term charter hire rates and vessel values;• changes in our operating expenses, including crew wages, maintenance, dry-docking and insurance costs and bunker prices;• number of off-hire days and dry-docking requirements including our ability to complete scheduled dry-dockings on time and within budget;• planned capital expenditures and availability of capital resources to fund capital expenditures;• may no longer have the latest technology which may impact the rate at which we can charter such vessels;• increased exposure to the spot market and fluctuations in spot charter rates;• fluctuations in prices for crude oil, petroleum products and natural gas, including LNG;• changes in the ownership of our charterers;• our customers’ performance of their obligations under our time charters and other contracts;• our future operating performance and expenses, financial condition, liquidity and cash available for dividends and distributions;• our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, and our ability to meet our restrictive

covenants• future, pending or recent acquisitions of or orders for ships or other assets, business strategy, areas of possible expansion and expected capital spending;• the time that it may take to construct and deliver new buildings and the useful lives of our ships;• fluctuations in currencies and interest rates;• the expected cost of and our ability to comply with environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities, governmental• organizations, classification societies and standards imposed by our charterers applicable to our business;• risks inherent in ship operation, including the risk of accidents, collisions and the discharge of pollutants;• our ability to retain key employees and the availability of skilled labor, ship crews and management;• potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;• potential liability from future litigation;• any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach

Should one or more of these risk factors or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of NAKILATmay (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. NAKILAT neither intends, nor assumes any obligation, to update orrevise these forward-looking statements in light of developments which differ from those anticipated except if required by law. Accordingly, you should not unduly rely of any forward-lookingstatements. NAKILAT makes no representation or warranty, expressed or implied, with respect to any forecast, projection or predictive statements in this presentation.

This presentation has been prepared is the English language. In case of discrepancies if translated, the English language document is the sole authoritative and universally valid version.

Forward Looking Statements & Disclaimer


2

▪ Glossary 4

▪ Nakilat’s Fleet 5

▪ Nakilat’s Shareholding Structure 6

▪ 1Q20 Financial Highlights 7-8

▪ 1Q20 Income Statement Highlights 9

▪ 1Q20 Balance Sheet Highlights 10

▪ Net Borrowing (1Q20) 11

▪ Global LNG Trade (2013 – 2022e) 12-13

▪ China’s LNG demand (2010 – 2040e) 12-13

▪ LNG Shipping Market Update (1Q20) 14

▪ LNG Shipping Supply (1Q20) 15

▪ Global LNG Shipping Balance (1Q20) 15

▪ Nakilat’s Business Outlook 16-17

▪ 1Q20 Earnings Results – Summary 18-19

▪ Net Impact on OSG Acquisition in FY19 20-21

▪ Q & A 22

Table of Contents


3

Glossary

LNGCLiquefied Natural Gas Carrier

FSRUFloating Storage Regasification Unit

Charter Free Vessel which is not attached with charter party

DFDEDual Fuel Diesel Electric Propulsion System

SteamSteam Turbine PropulsionSystem)

MEGIM-type, Electronically Controlled, Gas Injection

BoGBoil-off Gas

DSMEDaewoo Shipbuilding & Marine Engineering


4

HHIHyundai Heavy Industries

Nakilat’s Fleet 5


31

14

10

9

4

2

2

1

1

0 5 10 15 20 25 30 35

Q-FLEX ( 2-STROKE SSD)

Q-MAX ( 2-STROKE SSD)

TFDE

STEAM TURBINE

VLGC

MEGI (NEW BUILD)

XDF (NEW BUILD)

MEGI (CONVERSION)

FSRU (TFDE)

Number Of Vessels

Vessels' Type / Propulsion

29

19

7

4 4 43

21 1

0

5

10

15

20

25

30

35

Nu

mb

er o

f V

esse

ls

Wholly & Jointly-Owned Fleet

Milaha

Qatar Pension Fund (Civil)

*QNB Funds

Qatar Pension Fund (Military)

Qatar Electricity and Water

***Vanguard Funds

**Woqod Group

Qatar Insurance Company

BlackRock Funds

Qatar Petroleum

Other Qatari Shareholders

Other Foreign Ownership

36.25%

12.42%

4.00%

2.40%

2.00%

1.69%

1.51%

1.39%

1.18%

0.90%

24.58%

11.68%

*QNB Funds13 Funds (Al Watani and WadiAlseel), EMFR limited

**Woqod Group6 Companies

***Vanguard Fund11 Funds

****BlackRock Funds: 10 Funds

Nakilat’s Ownership Structure (As of 31 March 2020)


6


Profit: QAR 280MFinancial Results for 1Q-2020

7


QAR 1BnRevenue

QAR 802MEBITDA*

QAR 280M Net Profit

QAR 0.05EPS

11.84%RoE**

1.11Current Ratio

• Total revenue increased by 13.2%. Mainly due to acquisition of 49.9% stake of INSW in Oct’19, higher profitsfrom LPG and towage JV, higher profit from NAC business.

• Expenses increased by 11.4% due to costs related to 4 JV vessels fully acquired in Oct 2019.

• EBITDA higher by 13.1% due to increase in revenue.

• Net Profit increase of 18.3% was driven by higher EBITDA.

Financial Highlights (1Q-2020)

*Note: EBITDA is a non-IFRS financial measure and should not be used in isolation or as substitute for Nakilat’s financial results presented in accordance with International FinancialReporting Standards (“IFRS”)** Note : RoE is annualized

8

236

280

1Q-19 1Q-20

Net Profit

902

1,022

1Q-19 1Q-20

Revenue

666

742

1Q-19 1Q-20

Expenses

708

802

1Q-19 1Q-20

EBITDA

© Copyright of this document vested in Qatar Gas Transport Company Ltd. (NAKILAT). All rights reserved.© Copyright of this document vested in Qatar Gas Transport Company Ltd. (NAKILAT). All rights reserved.

Income Statement (1Q-20) 9

Highlights :

• Total Revenue increased by 13.2% mainly due to

acquisition of 49.9% stake of INSW in Oct’19, higher profits

from LPG and towage JV, higher profit from NAC business

• Operating costs increased by 16.5% due to operating

costs of 4 JV vessels fully acquired in Oct’19

• General and administration expenses decreased by

1.6% as a result of process enhancement and cost

optimization initiatives

• Amort. & Depr. of PPE increased by 20.2% due to 4

vessels fully acquired in Oct’19

• Finance charges increased by 4.3% as a result of finance

charges of 4 JV vessels fully acquired in Oct’19 partly offset

by scheduled repayment of loan

Items (QAR - M) 1Q-20 1Q-19 YoY %

Revenue from operations 997 867 15.0%

Interest, dividend and other income 25 35 -28.6%

Total Revenue 1,022 902 13.2%

Operating costs 190 163 16.5%

G & A expenses 31 31 -1.6%

Amort. & Depr. of PPE 222 185 20.2%

Finance charges 299 287 4.3%

Total Expenses 742 666 11.4%

Net profit for the period 280 236 18.3%

© Copyright of this document vested in Qatar Gas Transport Company Ltd. (NAKILAT). All rights reserved.© Copyright of this document vested in Qatar Gas Transport Company Ltd. (NAKILAT). All rights reserved.

10Balance Sheet (1Q-2020)

Highlights :

• Cash and bank balances increased by 4.2% mainly due

to cash generated from operations

• Trade and other receivables increased by 12% mainly

due to advances of Hub business (Port Agency)

• Equity investments decreased by 32.7% due to lower

share prices of shares held for investment

• Fair value of interest rate swaps increased by 27.2%

due to decrease in LIBOR

• Accounts payable, accruals and other liabilities

increased by 29% mainly due to loan interest accruals,

advances of Hub business (Port Agency) and deferred

income liability

Items (QAR - M) Mar-20 Dec-19 % Change

Property and equipment 23,992 24,144 -0.6%

Investment in joint venture companies 4,400 4,378 0.5%

Cash and bank balances 2,497 2,397 4.2%

Trade and other receivables 1,509 1,347 12.0%

Equity investments 76 113 -32.7%

Total Assets 32,474 32,379 0.3%

Borrowings 21,202 21,242 -0.2%

Equity after hedge reserve and before non-

controlling interests5,789 6,851 -15.5%

Fair value of interest rate swaps 3,151 2,477 27.2%

Accounts payable, accruals and other

liabilities2,325 1,803 29.0%

Non-controlling interests 7 6 16.7%

Total Equity & Liabilities 32,474 32,379 0.3%

Net Borrowings (QAR in Billions)


11


LNG SHIPPING OVERVIEW 12

Source: WoodMac

1Q20 - Global LNG Trade & China’s LNG Demand Outlook 13


7%China’s LNG Demand 2010 – 2040e

Source: Kpler and Woodmac

Global LNG Trade 2013 – 2022e

0

20

40

60

80

100

120

140

2010

2012

2014

2016

2018

2020

e

2022

e

2024

e

2026

e

202

8e

2030

e

2032

2034

2036

2038

2040

in m

mtp

a

CAGR Demand Growth: ~9%

24

2

24

4

25

0

26

5

29

7

32

4

36

3

38

9

40

4

41

0

-

50

100

150

200

250

300

350

400

450

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

mtpa

CAGR LNG Trade Growth: ~6%

1Q20 - LNG Shipping Market Update 14


Source: Clarksons

Source: Clarksons Source: Clarksons

Source: Clarksons

Source: Clarksons

25,000

35,000

45,000

55,000

65,000

75,000

85,000

95,000

105,000

115,000

125,000

Ch

arte

r R

ate

per

Day

($

)

Multi-Month (3-6) LNG Shipping Rates in 12 Months

174kcbm MEGIs 160kcbm DFDEs 145kcbm Steam

-38%

-32%

-38%

1Q20

0

15,000

30,000

45,000

60,000

75,000

90,000

105,000

120,000

135,000

USD

/ d

ay

Spot Rates (MEGI Vs DFDEs Vs Steam) 2019-20

174kcbm MEGIs 160kcbm DFDEs 145kcbm Steam

4Q19Average Rates in 2020

MEGIs/XDFs: ~$68,350pd160k DEFEs: ~$55,100pd145k Steam: ~$38,850pd

15,000

25,000

35,000

45,000

55,000

65,000

75,000

85,000

95,000

105,000

115,000

Q1

-20

15

Q2

-20

15

Q3

-20

15

Q4

-20

15

Q1

-20

16

Q2

-20

16

Q3

-20

16

Q4

-20

16

Q1

-20

17

Q2

-20

17

Q3

-20

17

Q4

-20

17

Q1

-20

18

Q2

-20

18

Q3

-20

18

Q4

-20

18

Q1

-20

19

Q2

-20

19

Q3

-20

19

Q4

-20

19

Q1

-20

20

$ p

er d

ay

1 Year Time-Charter Rate in 2015-20

Average Rates in 2020

MEGIs/XDFs: ~$87,300pd160k DEFEs: ~$69,000pd145k Steam: ~$47,500pd

MEGIs/XDFs

DFDEs

STEAMs

Spot LNG Shipping Market Rates

Average DFDEs Day Rates Average MEGIs Day Rates

4Q19~$107,500

1Q20~$55,100

4Q19~$123,100

1Q20~$68,350

-49% -44%

Note: *As of 1Q20, World live LNG fleet (excl. vessels <125,000cbm, FSRUs, FSUs, and FLNG, noassumption for scrapping, or LNGC conversion to FSRUs

Source: Clarksons Source: Clarksons

1Q20 - LNG Shipping Supply – Global Shipping Balance 15


7%

Development of Global LNG Fleet* (2018 - 2023e) Historic LNGC Newbuild Price 2006 - 2019

Source: SSY, As of 4Q19

472510 510

549604 633

39

5529 2

120

170

220

270

320

370

420

470

520

570

620

2018 2019 2020e 2021e 2022e 2023e

Nu

mb

er

of

LNG

Sh

ips

Total Existing LNG Carriers Fleet Orderbook LNG Carriers Fleet

180

190

200

210

220

230

240

250

145K cbm SteamNewBuild

160k cbm DFDENewbuilding

174k cbm MEGI/XDFNewbuilding

Average Price ~$200m

SteamDFDE MEGI/XDF

0

100

200

300

400

500

600

700

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

LNGC Shipping Balance 2012-2022

LNGCs. (>100,000 CBM) Number of Required Vessels


BUSINESS OVERVIEW 16

Nakilat’s Business Outlook


LNG Shipping Fleet

Expect to see the full impactof the 49.9% stakeacquisition of 4 Q-Flexs in thefollowing quarters

Continue to conductstructural commercialnegotiations with charterersfor the 4 Newbuild LNGCswith delivery on 2020-21.

Shipyard & Marine Services

Market Fundamentals

Portfolio growth

Shipyard is a cyclical businesswith a strategic importance forNakilat.

We are working to minimize theimpact of COVID-19 of thisbusiness segment.

According to Wood Mackenzie,global liquefaction capacityshould grow by ~159mts until2025.

The substantial LNG supply willtrigger further LNG shippingrequirements which will keepthe global market fundamentalsat healthy and prolific levels forshipowners

Nakilat expands its global LNGshipping capacity with the49.9% stake acquisition of 4Q-Flexs LNGCs (217,000cbmper vessel) owned by INSW.

The 4 LNG carriers have beenon 25-year time-charters toQatargas since their deliveryin 2007 and 2008.

17

Summary


Global leaderfor energy

transportation

Maximize shareholder

return

Priority forsafety &

environment

1Q20 Earnings Results:

• Strong profitability results (+18.3% YoY), momentumcontinues

• As of 1Q20, Covid-19 did not have any negative financialimpact on Nakilat’s quarterly financial performance

• Nakilat’s defensive and solid business model provides theflexibility to navigate sustainably through extreme volatilemarkets

• Nakilat’s EBITDA was up by 13.1% year-over-year to reachQAR 802 million

• 1Q20 – LTIF* Yearly Data: (0.15 Nakilat in 1Q19 Vs 0.45Industrial Average 2019)

*Note: Lost Time Incident Frequency Rate

19

FY’19 Earnings Results: Net Impact of Gain on OSG Acquisition


21

Gain on Revaluation of OSG Assets

Contingencies:Included in Share of JVProfit

Accelerated Amortizations:Included in Depreciation /Amortization

Net Impact on Net Profit


Q&A

22

For Investor Relations inquiries please contact:

Fotios Zeritis, MBA, FICS, CIR – Head of Investor Relations

[email protected] or Direct: +974 4496 8911

Any Further Investor Questions?


23

mailto:[email protected]

Qatar Gas Transport Company Ltd. (Nakilat)Head Office: Al Shoumoukh Tower (B)P.O. Box: 22271 ،Doha ،Qatar | C.R.No.: 28566Office: +974 4499 8111Fax: +974 4448 3111www.nakilat.com.qa

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