Q3 2015 Oslo, 5 November 2015 Disclaimer This presentation - PowerPoint PPT Presentation

Q3 2015 Oslo, 5 November 2015

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 3 Fleet & t & Mar arket t Updat ate 4 Summar mmary & Ou Outl tlook 3

1 Highlights Highlights Q3 2015 Comments Average Time Charter Equivalent • TCE rate of US$ 96 900 / day, up from US$ 86 900/day in Q2 • Newbuildings delivered: Sirocco – 17 th July Levant – 18 th August Chinook – 22 nd September Pampero – 19 th October (Q4) • Board declared a dividend of US$ 2.11 per diluted share Avance Gas Spot VLGC Index 1 Month prior to Calendar Quarter 4

2 Financials Financials – Q3 2015 Income Statement Comments Th Three mo mont nths e end nded Three mo Th mont nths e end nded USD (000s (000s) 30 Septemb 30 S mber 2015 2015 30 J 30 June ne 2015 2015 • Operating revenue increased to US$ 110 million, from US$ 69 Oper eratin ing R Rev even enue 109,943 109, 943 68, 68,576 576 million, with TCE earnings of US$ 94 million Voyage expenses (15,499 (15, 499) (9, (9,458 458 ) • Increased operating expenses attributable to new ships Operating expenses (7,727 (7, 727) (5,875 (5, 875 ) Administrative and general expenses (1, (1,409 409) (2, (2,435 435 ) added to the fleet Oper eratin ing P Profit it bef efore D e Dep eprec ecia iatio ion E Expen ense 85,308 85, 308 50, 50,808 808 • Financial expenses increased by US$ 0.3 million due to Depreciation expenses (8, (8,833 833) (6,854 (6, 854) increased interest bearing debt Op Operating ng Pr Profit (L (Loss) 76,475 76, 475 43,954 43, 954 • A&G expenses down by US$ 1 million Non on-Op Operating ng Inc ncome me (E (Expens nses): ): • Net profit of US$ 73 million (US$ 2.11/share), up from US$ 41 Finance expense (3,587 (3, 587) (2,666 (2, 666 ) Finance income 31 31 44 44 million (US$ 1.20/share) in Q2 Foreign currency exchange gain (88) (88 1 (3,644 (3, 644) (2, (2,621 621 ) Net t Profit ( t (Loss) 72,831 72, 831 41,333 41, 333 Earnin ings p per er Share: e: Net profit (loss) Basic 2.12 2. 12 1.20 1. 20 Diluted 2. 2.11 11 1.20 1. 20 5

2 Financials Financials – Q3 2015 Balance Sheet Comments USD (000s (000s) 30 Septemb 30 S mber 2015 2015 30 June 30 J ne 2015 2015 • Total assets of US$ 1,056 million, up from US$ 887 million, Cash and cash equivalents 63, 63,347 347 99,022 99, 022 reflecting ship deliveries Receivables 69, 69,049 049 52, 52,236 236 Related party receivable balances 130 130 109 109 Prepaid expenses and inventory 5, 5,235 235 4, 4,531 531 • Increase in receivables due to higher demurrage rates, port Derivative financial instruments 553 553 — congestion in India and longer voyages Other current assets 2,078 2, 078 767 767 Total tal C Current t As Assets ts 139,839 139, 839 157, 157,218 218 Property, plant and equipment 896, 896,560 560 657, 657,354 354 • Net interest bearing debt increased by US$ 140 million, Newbuildings deposit 17,475 17, 475 69,700 69, 700 reflecting drawdowns related to Sirocco , Levant and Chinook Goodwill 2,290 2, 290 2,318 2, 318 Total tal N Non-current As t Assets ts 916, 916,325 325 729, 729,372 372 Total tal As Assets ts 1,056, 1, 056,164 164 886, 886,590 590 • Free cash and cash equivalents totaled US$ 63 million, down from US$ 99 million 39, 39,806 806 55,545 55, 545 Current portion of long-term debt Accounts payable 1,138 1, 138 1, 1,809 809 Related party payable balances 692 692 939 939 • Undrawn available credit lines of US$ 50 million Accrued voyage expenses 5, 5,201 201 3, 3,362 362 Accrued expenses 477 477 2, 2,424 424 • Equity ratio of 49.6% Derivative financial instruments 10, 10,169 169 853 853 Other current liabilities 1, 1,280 280 1, 1,802 802 Total C Curren ent Lia iabil ilit ities ies 58, 58,763 763 66,734 66, 734 Long-term debt 473,062 473, 062 317,282 317, 282 Total tal N Non-curren ent L Lia iabil ilit ities ies 473,062 473, 062 317,282 317, 282 Common shares 35,278 35, 278 35,278 35, 278 Paid-in capital 350,359 350, 359 350,359 350, 359 Contributed capital 94,779 94, 779 94, 94,776 776 Retained earnings 66,661 66, 661 35,081 35, 081 Treasury shares (12, (12,381 381 ) (12, (12,459 459 ) Other reserves (10, (10,357 357) (461 (461) Total tal S Shar areholders’ ’ Equity ty 524, 524,339 339 502, 502,574 574 Total tal L Liab abiliti ties an and S Shar areholders’ ’ Equity ty 1, 1,056, 056,164 164 886,590 886, 590 6

2 Financials Financials – Q3 2015 Cash Flow Statement Comments Three m ee months Th Three mo mont nths e end nded USD (000s (000s) ) ended ed 30 J 30 June ne 2015 2015 • Net operating cash flow was US$ 63 million, up from US$ 26 30 30 Sep eptem ember er 2015 2015 million Cash gen ener erated ed from ( (used ed in in) o oper eratio ions 66,126 66, 126 28, 28,872 872 Debt-issuance costs (445) (445 (687) (687 • Net cash flow from financing and investment activities was Interest paid (2,659 (2, 659) (1, (1,940 940) negative US$ 98 million, of which US$ 41 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 63, 63,022 022 26,245 26, 245 dividends Cash flows u used ed in in in inves estin ing a activ ivit ities ies: • A net decrease in cash of US$ 36 million mainly due to Capital expenditures (199,512 (199, 512) (118,416 (118, 416) increased working capital, deliveries of newbuildings and dividend payment Net t cash u used ed in in in inves estin ing activ ivit ities ies (199,512 (199, 512) (118, (118,416 416) 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 150, 150,000 000 100, 100,000 000 Dividends (41, (41,244 244) (24,052 (24, 052) Repayment of long-term debt (7,889 (7, 889) (6,323 (6, 323) Purchase of own shares — — Exercise of share options 48 48 75 75 Net t cas ash provid ided ed b by fin inancin ing activ ivit ities ies 100,819 100, 819 69,700 69, 700 Effect of exchange rate changes on cash (4) (4) 2 Net t dec ecrea ease e in c cas ash an and cas ash e equival alents ts (35, (35,675 675) (22, (22,469 469) Cash and cash equivalents at beginning of period 99,022 99, 022 121, 121,491 491 Cas ash an and c cas ash equival alents ts at e at end o of period 63, 63,347 347 99, 99,022 022 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: Company 9

3 Fleet & Market Update Strong Performance Avance Gas Spot Index vs Avance Gas Spot Fixtures Waiting Days per Ship • Avance Gas Spot Index based on Baltic weekly, reflecting estimated USD per day for a roundtrip Ras Tanura – Chiba – Ras Tanura (13,642 nm), 24 hours for bunkering, 3% sea margin, bunkers prices as quoted on Fridays, lowest of 10 Singapore and Fujairah • Source: Company