höegh lng the floating lng services provider · 2018-02-20 · flng - 1 - 1 fsru 13* 6** 2 21...
TRANSCRIPT
Höegh LNG – The floating LNG services provider
Fourth Quarter 2011
Presentation of financial results 29 February 2012
Forward looking statements
2
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.
Highlights 4Q 2011 including subsequent events
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• Signed 20 year charter agreement with PT Perusahaan
Gas Negara for the Medan FSRU
• Selected preferred bidder for a 10 year FSRU charter
agreement with AB Klaipedos Nafta in Lithuania
• Signed six month charter agreement for LNG Libra for
North West Shelf
• Raised USD 206 million in new equity in a private
placement
• Exercised option for delivery of one additional FSRU new
building from Hyundai Heavy Industries
• Awarded pre-feed contract for a floating LNG production
solution for the Tamar gas field offshore Israel
• Signed USD 288 million debt facility agreement
Income statement
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USD mill ion 4Q2011 4Q2010 2011 2010
TOTAL INCOME 30,0 25,4 109,8 94,9
-
Charterhire expenses (5,1) (4,9) (20,1) (19,2)
Operating expenses (10,6) (8,1) (32,4) (27,1)
Administrative expenses (6,5) (5,1) (17,0) (13,5)
Project development expenses (4,2) (4,1) (14,2) (11,1)
-
EBITDA 3,5 3,3 26,1 24,0
-
Depreciation and impairment (5,8) (4,3) (19,6) (13,8)
EBIT (2,4) (1,0) 6,5 10,2
-
Interest expenses (6,3) (6,6) (25,2) (22,4)
Interest income 0,0 0,1 0,7 0,2
Other financial items 0,1 (0,7) 0,2 0,9
Taxes (0,1) (0,2) 0,2 (0,8)
NET LOSS (8,6) (8,3) (17,7) (12,0)
Financial position
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USD mill ion31-12-11 30-09-11 31-12-10
Licences, design and other intangibles 83 83 80
Vessels and newbuildings 502 505 466
Restricted cash 13 13 10
Other non-current assets 16 10 3
Promisssory Note / Interest bearing receivables 90 90 53
Other current receivables 5 3 7
Current cash and short term deposits 37 44 29
TOTAL ASSETS 745 748 649
Total equity 133 142 73
Interest bearing debt 439 442 451
MtM of interest rate swaps 132 131 83
Other l iabilities 41 32 42
TOTAL EQUITY AND LIABILITIES 745 748 649
Total equity adjusted for MtM of interest rate swaps 264,9 273,6 155,9
Equity ratio (adjusted for MtM of interest rate swaps) 35,6% 36,6% 24,0%
Net interest bearing debt (less cash, mark. securities and restriced cash) 299,9 295,1 359,4
Cash flow statement
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USD mill ion4Q 2011 4Q 2010 2011 2010
Net loss before tax (9) (8) (18) (11)
Adjustments of non-cash P&L items 12 9 44 36
Net changes in working capital, other 5 4 (2) (1)
Net cash flow operating activities 9 5 24 23
Proceeds from sale of marketable securities/prom.note - 6 52 19
Investments in marketable securities - - (90) -
Investments in vessels and newbuildings (1) (2) (57) (57)
Investments in intangibles / equipment (3) (3) (7) (6)
Net cash flow investing activities (4) 1 (102) (45)
Proceeds from borrowings - 5 - 55
Repayment of borrowings (3) (2) (12) (6)
Interest paid (6) (7) (25) (21)
Issue of share capital net of transaction cost (0) - 126 -
Payment of finance cost (4) - (4) -
Other financing activities 0 - - -
Net cash flow financing activities (13) (3) 85 28
TOTAL CASH FLOW (8) 3 8 7
Shipping
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Existing fleet operated according to expectations, with the exception of an unscheduled dry
docking and repair of the propeller shaft bearing and seal on Arctic Princess
LNG Libra chartered six month to the North West Shelf project
STX Frontier being marketed in the shipping market with availability from second half 2013
Discussing extension of existing charter for Norman Lady
LNG Libra STX Frontier Norman Lady
Regasification Medan FSRU contract finalised
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Final agreement signed with Perusahaan Gas Negara (PGN) on 25 January 2012
20 year firm contract with EBITDA contribution of approx. USD 40 million p.a.
5+5 years extension periods with EBITDA contribution of approx. USD 60 million p.a.
Project consists of FSRU newbuilding #1 and an offshore mooring package with an estimated all-in
project cost of USD 320-330 million
Planned start-up September 2013
Medan FSRU project execution team established and in operation
Financing proceeding according to plan
Medan
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Regasification Contract award for Klaipeda FSRU project
Höegh LNG selected as the preferred FSRU supplier for
the Klaipeda LNG import terminal in Lithuania
10 year firm contract with EBITDA contribution of approx.
USD 50 million p.a.
The contract counterpart is AB Klaipedos Nafta (KN)
owned 70.63 % by the Lithuanian government
Project consists of upgraded jetty moored FSRU, HLNG
to provide only FSRU, jetty provided by Klaipedos Nafta
FSRU #2 from Hyundai with full trading capabilities and
upgraded regas system designated for project
Estimated all-in project cost of USD 320-330 million
Planned start-up Q3 2014
Final agreement to be completed shortly
Regasification Höegh LNG participating in several tendering processes
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Source: Höegh LNG
Chile 1:
Status: Indicative bids submitted
Expected contract award: End 2012
Indonesia:
Status: Bids to be submitted in Q1 2012
Expected contract award: Mid 2012
Chile 2:
Status: Indicative bids submitted
Expected contract award: Mid 2012
Undisclosed Asia project:
Status: Bilateral negotiations with counterpart
Expected contract award: End 2012
1
2
3
4
Caribbean:
Status: Bids to be submitted in Q1 2012
Expected contract award: End 2012
5
Regasification FSRU newbuilding programme
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Executed option for delivery of FSRU 3
and granted one new priced option
FSRU 1 and 2 allocated Medan and
Klaipeda, respectively
FSRU 3 currently available in the market
Two priced options with firm delivery dates
Two options with terms to be negotiated
Flexibility on final specifications, in
particular storage size, regasification
capacity and trading capability
FLNG
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Contracted to do pre-FEED engineering work
for the use of an FLNG on the Tamar gas field
offshore Israel
In discussions with several oil companies to
conduct paid engineering work for developing
their gas reserves using FLNGs
Considering alternatives for optimising the
structure, organisation and financing of the
FLNG activities and in the final process of
appointing a Financial Advisor
LNG demand fundamentals remain very strong
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LNG demand to double from 2010
until 2025
Demand driven by Asia-Pacific
region followed by Europe
Demand increase driven mainly by
additional power generation and
the shift in feedstock from oil, coal
and nuclear to natural gas
Incremental demand post 2016 to
be supplied mainly from Australia
and North America
Source: Wood Mackenzie
0
50
100
150
200
250
300
350
400
450
2005 2010 2015 2020 2025
mmtpa
Asia Pacific Europe & Middle East Africa America
LNG supply growth backed by committed liquefaction projects
Australia is the "game changer" for LNG
production post 2015 with approximately 50%
of new potential liquefaction capacity
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Source: Wood Mackenzie, Fearnley LNG
Country Project Name FID Start-Up MTPA
Algeria Gassi Touil Taken 2013 4.7
Papua New Guinea PNG Taken 2014 6.6
Angola ALNG Taken 2012 5.2
Australia Australia Pacific Taken 2015 4.5+4.5
“ Browse 2013 2018 4.0+4.0
“ Gladstone Taken 2015 7.8+10.0
“ Gorgon Taken 2014 5.0+5.0+5.0
“ Ichtys Field Taken 2016 4.2+4.2
“ Pluto Taken 2012 4.8
“ Prelude Taken 2016 3.5
“ Queensland Curtis Taken 2014 4.25+4.25
“ Weatstone Taken 2015 4.4+4.4
Indonesia Tangguh 2012 2015 3.8+3.8
Nigeria Brass 2012 2016 5.0+5.0
“ NLNG 2012 2016 4.7
Papua New Guinea Liquid Niguini 2012 2014 2.0
Canada Kitimat 2012 2015 5.0+5.0
USA Freeport 2012 2015 4.4+4.4+4.4
“ Sabine Pass 2012 2015 9.0+9.0
TOTAL 130-165
Liquefaction capacity (nominal)
0
100
200
300
400
500
600
700
2005 2010 2015 2020 2025
mmtpa
Asia Pacific Europe & Middle East Africa America
Strong LNG transportation market
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Source: Fearnley LNG / Fearnley Fonds, 27.02.2012
Seasonal
Peaks
Fukushima
30+ FSRU regasification projects in pipeline worldwide
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Source: Höegh LNG
30+ projects in pipeline
19 projects in Asia/Middle East
5 projects in South America
7 projects in Europe/Africa
HLNG has several bids in process
Existing
Under construction / awarded
Potential
Existing
Under construction / awarded
Potential
Owner Vessels Projects*
Höegh LNG 2+3 Boston, Medan, Klaipeda
Golar LNG 3+3 Petrobras VT1&2,
Dusup/Dubai, West Java
Excelerate 8+1 Bahia Blanca, Kuwait,
Escobar, Petrobras VT3
* Projects in operation or awarded
Global LNG fleet overview
13 FSRUs in fleet
6 FSRU newbuildings on order plus 2
options to change from LNGC to FSRU
364 LNG vessels in fleet
69 newbuildings on order (18.9%)
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Type Delivered Newbuildings
on order
Under
conversion Total
LNGC 364 69 - 433
FLNG - 1 - 1
FSRU 13* 6** 2 21
Total 377 76 2 455
LNGC fleet FSRU fleet
* 10 newbuildings and 3 conversions
** In additional to six firm FSRU orders globally, Golar LNG has options to convert two LNGC orders to FSRUs
Source: Wood Mackenzie, LNG Unlimited, Fearnley LNG
Floating LNG – the next growth segment
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Undisclosed
Shell
Inpex
PTT
GDF Suez
InterOil
Talisman
Oil Search
Shell’s decision to develop the Prelude
field using a FLNG solution a game
changer for the floating liquefaction
industry
Inpex has chosen FLNG as technical
solution for the Masela field, no FID yet
A number of other upstream operators
are considering FLNG solutions in
developing existing gas reserves
Due to shale gas production, the US will
now start exporting LNG, creating new
opportunities for the use of FLNG
Noble
Petrobras Eni
Anadarko
Summary
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• Important milestones achieved during
the quarter and in subsequent events
• one firm FSRU contract,
• one preferred supplier status for
FSRU,
• successful equity raising and
• the exercise of one FSRU option
• Höegh LNG with a strong competitive
position in a high barrier to entry market
with attractive returns
Thank you!