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AURORA LPG
First quarter 2015
presentation
May 27, 2015
CEO Børge Johansen
&
CFO Nikolai Jebsen
© Aurora LPG2
DISCLAIMER
THE PRESENTATION AND ITS APPENDICES (JOINTLY THE “PRESENTATION”) HAVE BEEN PREPARED BY AURORA LPG HOLDING ASA (THE “COMPANY”) FOR INFORMATION PURPOSES ONLY. THE RECEIPT OF THIS PRESENTATION IS PERSONAL, AND THE PRESENTATION MAY NOT REPRODUCED, REDISTRIBUTED OR PASSED ON, IN WHOLE OR IN PART, TO ANY OTHER PERSON.
THE PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE OR ACQUIRE ANY SHARES OR OTHER SECURITIES OR FINANCIAL INSTRUMENTS. THE PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH, OR APPROVED BY, ANY PUBLIC AUTHORITY, STOCK EXCHANGE OR REGULATED MARKET PLACE.
THE CONTENTS OF THE PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN PROFESSIONAL ADVISORS FOR ANY SUCH MATTERS AND ADVICE.
THE PRESENTATION DOES NOT GIVE A COMPLETE ACCOUNT OF THE COMPANY, ITS AFFAIRS, FINANCIAL STATUS OR OTHERWISE, OR THE SECURITIES ISSUED BY THE COMPANY. THE COMPANY IS NOT MAKING ANY REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED, AS TO THE ACCURACY, RELIABILITY OR COMPLETENESS OF THE PRESENTATION, AND NEITHER THE COMPANY, NOR ANY OF ITS DIRECTORS, OFFICERS OR EMPLOYEES, WILL HAVE ANY LIABILITY TO YOU OR ANY OTHER PERSONS RESULTING FROM YOUR USE OF THE INFORMATION IN THE PRESENTATION. NO PART OF THIS PRESENTATION SHOULD FORM THE BASIS OF OR BE RELIED UPON IN CONNECTION WITH ANY INVESTMENT DECISION OR ANY CONTRACT OR COMMITMENT TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES.
THERE MAY HAVE BEEN CHANGES IN MATTERS THAT AFFECT THE COMPANY SUBSEQUENT OR PRIOR TO THE DATE OF THE PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THE PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT OR PRIOR TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE OR PRIOR CHANGED. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED HEREIN.
AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. FURTHERMORE, THE PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS.
THE DISTRIBUTION OF THE PRESENTATION, AS WELL AS ANY PURCHASE, SALE OR TRANSFER OF SECURITIES ISSUED BY THE COMPANY, MAY IN CERTAIN JURISDICTIONS BE RESTRICTED BY LAW, INCLUDING BUT NOT LIMITED TO THE UNITED STATES, CANADA, JAPAN, UNITED KINGDM AND AUSTRALIA. PERSONS INTO WHOSE POSSESSION THIS PRESENTATION MAY COME ARE REQUIRED TO INFORM THEMSELVES ABOUT AND TO COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN ANY JURISDICTION IN OR FROM WHICH IT INVESTS OR RECEIVES OR POSSESSES THIS PRESENTATION. THE PRESENTATION IS NOT DIRECTED TO, OR INTENDED FOR DISTRIBUTION TO OR USE BY, ANY PERSON OR ENTITY THAT IS A CITIZEN, RESIDENT OR LOCATED IN ANY JURISDICTION WHERE SUCH DISTRIBUTION, PUBLICATION OR USE WOULD BE CONTRARY TO LAW OR REGULATION OR WHICH WOULD REQUIRE ANY REGISTRATION OR LICENSING WITHIN SUCH JURISDICTION. IN PARTICULAR, NEITHER THIS PRESENTATION NOR ANY COPY OF IT MAY BE TRANSMITTED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, INTO UNITED STATES, CANADA, JAPAN OR AUSTRALIA.
THE PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS.
© Aurora LPG3
Time Charter Equivalent Revenue USD 18.4 million or USD 68,500 / day
EBITDA USD 16.6 million
Net Income USD 13.9 million
Earnings per share USD 0.47
Cash and net operating/financial assets USD 38.7 million
Net debt USD 72.8 million and Net debt/EBITDA ratio of <1.1x
Dividend of US 10 cents per share, ex date expected on or about June 29, 2015
Share repurchase repurchase program of USD 10M valid through 2015
Mandated banks in connection with new build financing
Q1 SUMMARY
© Aurora LPG4
USD 21.7 million revenue
USD 18.4 million TCE revenue
Ship Opex USD 7,060 / day
Administrative expenses at USD 1,860 / day
EBITDA USD 16.6 million
Net Income USD 13.9 million
US 47 cents per share
Dividend US 10 cents
PROFIT & LOSS
Q1 2015 Q1 2014 2014
Voyage revenue 15 521 - 68 460
Time Charter revenue 6 140 - 10 615
Total revenue 21 661 - 79 076
Voyage expenses -3 234 - -14 615
Ship Operating expenses -1 906 - -4 455
Commercial management expenses -211 - -1 298
Loss on receivables - - -3 952
Administrative expenses -501 -437 -3 433
Depreciation -2 196 -1 -5 104
Total operating expenses -8 047 -438 -32 858
Other gain 784 - -
Operating profit 14 398 -438 46 218
Finance income 140 33 239
Finance expenses -614 -1 135 -2 705
Profit before income tax expense 13 924 -1 540 43 753
Tax expense - - -
Net income 13 924 -1 540 43 753
Earnings per share (basic) 0.47 -0.09 1.74
Earnings per share (diluted) 0.47 -0.09 1.74
© Aurora LPG5
Increased working capital due to voyage in progress
USD 2.6 million debt repayments
Transfer between liquid assets and cash impacted cash from financing
Cash end quarter USD 25.3 million
CASH FLOW
Q1 2015 Q1 2014 2014
Operating activities
Profit before income tax expense 13 782 -1 540 43 753
Other gain -784
Depreciation 2 196 - 5 104
Other non-cash 155 - 1 076
Amortization fees 155 - 196
Share based payment - - 880
Other -80 - -
Change in working capital -1 952 -11 447
Inventories 907 - -2 219
Voyage in progress -6 083 - -397
Receivables and other current assets 6 963 -207 -14 084
Accounts payable -1 499 10 1 547
Deferred revenue -1 774 - 1 774
Other current liabilities -467 664 1 932
Net cash from operating activities 13 459 -1 073 38 482
Investing activities
Investment in restricted cash - -84 553 -
Investment in subsidiaries, net of cash acquired - -35 -
Investment in available-for-sale financial assets - - -4 454
Proceeds from sale of available-for-sale financial assets 5 235 - -
Purchase of vessels and equipment -27 -13 -237 490
Additions to newbuildings -926 -30 895 -94 666
Net cash from investing activities 4 285 -115 496 -336 610
Financing activities
Equity issuance net - 145 590 194 525
Repayment of long term debt -2 642 - -4 347
Net proceeds from issuance of debt - - 118 148
Net cash from financing activities -2 642 145 590 308 327
Net increase (decrease) in cash and cash equivalents 15 102 29 020 10 198
Cash and cash equivalents at beginning of period 10 198 - -
Cash and cash equivalents at the end of period 25 301 29 020 10 198
© Aurora LPG6
Book value of sailing fleet USD 76.7 million on average per vessel
USD 95.6 million invested in newbuilds
Cash and net operating/financial assets USD 38.7 million
Gross debt USD 111.5 million
Net debt USD 72.8 million
Book equity USD 239.3 million or 69% of total assets
BALANCE SHEET
Notes Q1 2015 Q1 2014 2014
ASSETS
Newbuildings 3 95 592 30 895 94 666
Vessels and equipment 3 230 039 - 232 232
Restricted cash - 84 553 -
Other non-current assets 181 49 158
Total non-current assets 325 812 115 497 327 056
Cash and cash equivalents 25 301 29 020 10 198
Derivative financial asset 80 - -
Available-for-sale financial assets - - 4 596
Inventories 1 312 - 2 219
Voyage in progress 6 479 - 397
Accounts receivable 2 942 - 13 321
Pool receivable 2 525
Other current assets 1 654 207 762
Total current assets 40 294 29 227 31 494
Total assets 366 105 144 724 358 550
EQUITY AND LIABILITIES
Share capital 482 376 482
Share premium 194 922 145 214 194 922
Retained earnings 57 676 -1 540 43 894
Total equity 253 080 144 050 239 298
Borrowings 100 943 - 103 430
Total non-current liabilities 100 943 103 430
Borrowings, current portion 10 568 - 10 568
Accounts payable 48 10 1 547
Deferred revenues - - 1 774
Other current liabilities 1 465 664 1 932
Total current liabilities 12 082 674 15 821
Total equity and liabilities 366 105 144 724 358 550
© Aurora LPG7
LPG MARKET IN DRAMATIC CHANGE
Unprecedented well productivity in PADD3 and Marcellus regions will increase LPG production over the next 3-5 years
Ethane pushing LPGs out of the petchem mix Methane (slowly) subsititing residential demand for
LPGs Causing a large oversupply of LPGs
Source: EIA
© Aurora LPG8
Forecast
LPG SURPLUS 300KBPD LARGER YOY
Forecast
Source: EIA, Company research
© Aurora LPG9
RIG COUNT IS DOWN DRAMATICALLY
Source: EIA
© Aurora LPG10
WELL PRODUCTIVITY INCREASING RAPIDLY
Source: EIA
© Aurora LPG
US PROPANE INVENTORIES REACHING
UNPRECEDENTED LEVELS
© Aurora LPG12
INCREASING SHIPPING INTENSITY ON US EXPORTS
Source: EIA
3,0 3,5 4,0 4,5 5,0 5,5
17,5 53 61 70 79 88 96
20,0 60 70 80 90 100 110
22,5 68 79 90 101 113 124
25,0 75 88 100 113 125 138
27,5 83 96 110 124 138 151
30,0 90 105 120 135 150 165
32,5 98 114 130 146 163 179
35,0 105 123 140 158 175 193
Shipping intensity (vessels per 1 million MT)
US
LPG
exp
ort
s M
T
© Aurora LPG13
Address
Aurora LPG Holding ASA
Dronningen 1
0287 Oslo
Norway
Contact
CEO: Børge F. Johansen mobile +47 41 41 44 44 [email protected]
CFO: Nikolai C.H. Jebsen mobile +47 46 28 22 22 [email protected]
COO: Sujoy K. Seal mobile +47 94 81 66 76 [email protected]
AURORA LPG HOLDING ASA
