RESULTS FIRST SEMESTER 2021

Antwerp

9/9/2021 - 5.45 pm Regulated information

The Board of Directors of EXMAR has approved the accounts for the period ending 30 June 2021. The condensed consolidated interim financial statements have not been subject to an audit or a review by the statutory auditors.

HIGHLIGHTS

  • Revival of the economic activity.
  • The first dual fuel newbuilding VLGC, FLANDERS INNOVATION (latest design) was delivered to EXMAR end of June.
  • A second dual fuel VLGC is scheduled for delivery second half of September.
  • MGC earnings reached record levels in the first semester.
  • Recognition of the USD 56.8 million early termination fee received for the FSRU S188 charter resulting in a significant increase in EBIT.
  • Strengthened liquidity position.
  • EXMAR is actively pursuing various employment opportunities for the TANGO FLNG and FSRU S188.

CONSOLIDATED KEY FIGURES

International Financial Reporting

Management reporting based on

Standards (IFRS) (1)

proportionate consolidation (2)

Consolidated statement of profit or loss

(in million USD)

30 June 2021

30 June 2020

30 June 2021

30 June 2020

Revenue

107.9

89.0

159.1

139.0

EBITDA

61.0

37.7

93.1

69.7

Depreciations and impairment losses

-35.0

-33.3

-47.2

-50.5

Operating result (EBIT)

26.1

4.5

45.9

19.2

Net finance result

-5.3

-5.2

-11.0

-12.5

Share in the result of equity accounted investees (net of tax)

13.1

7.0

-1.0

-0.5

Result before tax

33.9

6.3

33.9

6.3

Tax

-1.2

-1.9

-1.2

-1.9

Consolidated result after tax

32.7

4.4

32.7

4.4

of which group share

32.7

4.4

32.7

4.4

Information per share

in USD per share

Weighted average number of shares of the period

57,226,737

57,226,737

57,226,737

57,226,737

EBITDA

1.07

0.66

1.63

1.22

EBIT (operating result)

0.46

0.08

0.80

0.34

Consolidated result after tax

0.57

0.08

0.57

0.08

Information per share

in EUR per share

Exchange rate

1.2089

1.1039

1.2089

1.1039

EBITDA

0.88

0.60

1.35

1.10

EBIT (operating result)

0.38

0.07

0.66

0.30

Consolidated result after tax

0.47

0.07

0.47

0.07

  1. The figures in these columns have been prepared in accordance with IFRS as adopted by the EU.
  2. The figures in these columns show joint ventures applying the proportionate consolidation method instead of applying the equity method. These amounts agree with the "Total" column of Note 4 Segment Reporting in the Financial Report per 30 June 2021. A reconciliation between the amounts applying the proportionate method and the equity method is included in Note 5 of the Financial Report per 30 June 2021.

Half year report 2021 available on the website: today, 9 September 2021

Press Release | Results first semester 2021

Contact: Christine Verhaert | CFO | +32 3 247 56 30

www.exmar.be

The figures discussed below are all based on the proportionate consolidation method.

SHIPPING

The operating result (EBIT) for the Shipping segment amounted to USD 17.6 million for the first half of 2021 compared to USD 11.3 million for the same period in 2020. This increase in EBIT is mainly explained by USD

3.2 million impairment reversals on vessels (based on signed sales memoranda of agreement), increased time charter rates for the midsize fleet and lower depreciation charges resulting from the impairment recorded on several older vessels in 2020.

Following a strong fourth quarter in 2020 with recovery of gas markets thanks to improved economic activity, the LPG freight market commenced strong in 2021. VLGC freight market conditions were volatile which steered MGC freight earnings to record-levels for our fleet in February 2021. Seasonal shifts and changing arbitrage pricing primarily for the US Gulf to Far East route caused volatility especially for the VLGCs while the midsize remained more stable.

VLGC: From record high spot rates in the first quarter in excess of USD 3 million per month the market levelled out below OPEX at the end of the first quarter to again recover to USD 1.5 million per month and further back to about USD 600.000 pcm at mid-year, underlining the freight rate volatility in this segment.

The first out of the two dual fuel VLGC newbuildings from Jiangnan Shipyard, FLANDERS INNOVATION, was delivered at the end of June to commence her long-term charter with Equinor ASA from Norway. With the larger capacity and the Dual Fuel LPG engine these vessels represent the best technology available today with respect to reducing Green House Gas (GHG) emissions. The second vessel is set for delivery end of September 2021.

EXMAR's BW TOKYO is employed on time charter until the fourth quarter. It is expected that the vessel will continue to be employed on period charters for the coming year.

MGC: The MGC market has remained strong and stable for the first half of the year. We have continued to extend vessels to existing and new long-term customers reaching fleet charter coverage already to an excess of 90% for 2021 and 50% for 2022. With firm commodity prices and strong energy demand both for LPG and ammonia, freight markets are expected to remain stable for the remainder of the year.

Pressurized: Pressurized was hit hardest from reduced refinery throughput during the COVID pandemic, especially in Europe in 2020. With slowly recovering refinery utilisation rates and more regional LPG distribution, the period rates improved from around 170,000 pcm to 220,000 pcm during first half of 2021.

EXMAR maintains full charter cover for 2021 for the 5,000 m³ fleet and reached cover in excess of 90 % for the 3,500 m³ fleet.

LNG: Following a strong 2020 year-ending, the LNG freight market was subject to a short dip in winter. The market did recover fast thereafter and remained firm for the remainder of the first half year. This freight market strength was observed in all vessel classes and also for the steam-turbine LNG carriers. More congestion at the Panama Canal, and improving US and Far East LNG trades are supportive factors for further market balance in 2021.

EXMAR's LNG/C EXCALIBUR is on charter to Excelerate Energy until December 2021 - early 2022.

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INFRASTRUCTURE

The EBIT of the Infrastructure segment amounted to USD 31.5 million for the first half of 2021 compared to USD 6.1 million for the same period in 2020. The EBIT of 2021 includes an early termination fee of USD 56.8 million for the early termination of the FRSU S188 charter agreement by Gunvor.

Floating barges: EXMAR's Infrastructure team is actively pursuing various employment opportunities for TANGO FLNG. For several projects technical clearance is confirming feasibility while regulatory approval discussions and commercial negotiations are ongoing in parallel. Meanwhile, EXMAR is receiving the YPF settlement fees, in accordance with the agreed payment schedule in 2020.

On the regasification segment EXMAR has received an interim award on the arbitration commenced by Gunvor in September 2019 in relation to the charter party of the FSRU S188. Following this award EXMAR has received a notice of early termination and a termination fee of USD 56.8 million on subject charter party. The unit has become commercially available by end of June 2021. Marketing of the unit with ongoing technical validation for several opportunities identified has commenced immediately.

The accommodation barges NUNCE and WARIBOKO have operated as per contracts during the first half of the year. NUNCE will continue this long-term employment for the remainder of the year. WARIBOKO is available for re-employment during the second half of the year following a contract with Total E&P Nigeria.

Engineering: EXMAR Offshore Company in Houston has successfully completed the engineering and construction supervision of Murphy Oil's King's Quay semisubmersible floating production system (FPS), based on the OPTI® hull design technology, at Hyundai Heavy Industries (HHI). The award of a fourth OPTI® hull design to HHI for Beacon Offshore's Shenandoah Project in the Gulf of Mexico will ensure a strong engineering activity level the upcoming months. This new design will have a larger payload capacity than the King's Quay FPS.

DV Offshore has performed above expectations in the first six months through the combination of a strong contract/prospect portfolio and strict cost consciousness.

SUPPORTING SERVICES

The contribution of the Supporting services activities to the operating result (EBIT) for the first half of 2021 was USD -3.3 million compared to USD 1.8 million for the same period in 2020.

UPDATE ON LIQUIDITY POSITION AND GOING CONCERN

Update liquidity position: During the first months of the year, EXMAR's liquidity position evolved positively amongst other because of the receipt of an early termination fee for the cancellation of the FSRU S188 charter from Gunvor (USD 56.8 million) and the contractual monthly termination fee payments of YPF (USD 48.7 million).

The Group expects a further strengthening of its liquidity position in the next months, thanks to:

  • End of June 2021, one of the two new VLGCs, i.e. the FLANDERS INNOVATION, was put into operation and the FLANDERS PIONEER is expected to be delivered at the end of the third quarter of 2021. The

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lease financing for both vessels has been arranged and for both a minimum five-year charter with Equinor ASA (Norway) has been signed.

  • YPF continues to pay the monthly termination instalments with a remaining receivable balance of USD 61.1 million to be received by April 2022. This receivable is secured by a financial security issued by an investment grade counterparty.
  • The Group has signed memoranda of agreement for the sale of the TEMSE, TOURAINE and BRUSSELS vessels (all held by our equity accounted investees). Two of these vessels are debt free.
  • EXMAR is currently actively pursuing various employment opportunities in the market for the TANGO FLNG and the FSRU S188 and expects both barges to be under contract in the next twelve months.

The Company is of the opinion that, taking into account its available cash and cash equivalents, its undrawn credit facilities available on the date of preparing these condensed consolidated interim financial statements and its projected cash flow based on approved budgets, it has sufficient liquidity to meet its present obligations and cover its working capital needs for a period of at least twelve months from the authorization date of these interim financials.

Going concern: The condensed consolidated financial statements for the period ended 30 June 2021 have been prepared on a going concern basis. The main assumptions and uncertainties for EXMAR underpinning the going concern assessment relates to:

  • The unsecured NOK 650 million bond, which will expire in May 2022 but management is currently assessing and discussing several potential scenario's to partially or fully refinance or repay the outstanding debt and is confident about a positive outcome.
  • The covenant compliance after 2021 depending on when the FSRU S188 and TANGO FLNG will start operating.

The uncertainty, mentioned in EXMAR's 2020 annual report, related to the arbitration initiated by Gunvor has been resolved as a favourable outcome was received end of April 2021.

Considering the elements described above, the Board is confident that management will be able to maintain sufficient liquidities to meet its commitments and therefore it has an appropriate basis for the use of the going concern assumption.

In the event the above assumptions are not timely met, there is a material uncertainty whether the Company will have sufficient liquidities to fulfil its obligations of at least 12 months from the date of authorising these interim financial statements.

COVENANTS

The Company has met all its financial covenants as at 30 June 2021 and the next testing date with respect to the financial position as at the end of December 2021 is in March 2022. EXMAR is continuously monitoring compliance with all applicable covenants and believes that based on forecasts for the remaining of the year, all covenants will be met as per December 2021.

STATUTORY AUDITOR

The condensed consolidated interim financial information as of and for the six month's period ended 30 June 2021 included in this document, have not been subject to an audit or a review by our statutory auditor.

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CHANGES BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE MEMBERS

Board of Directors: The Board of Directors has during its meeting today co-opted with immediate effect Mrs Maryam Ayati and, Mrs Els Verbraecken, representing ACACIA I BV as independent directors of EXMAR NV within the meaning of the Corporate Governance Code 2020. They take over the directorship of Mrs Barbara Saverys and Ludwig Criel, representing JALCOS NV respectively. Their final appointment will be submitted to the General Meeting of Shareholders of EXMAR NV of Tuesday 17 May 2022 for approval.

Mrs Els Verbraecken is Chief Financial Officer and member of the Executive Committee of DEME Group.

Mrs Maryam Ayati is Chief Executive Officer of Neo Holdings and Watr Foundation President. Watr Foundation is a cross-industry owned blockchain foundation, bringing transparency and sustainability to physical commodities. Prior to Neo, Maryam has held executive leadership roles across the globe at Royal Dutch Shell as well as in tech and sustainability.

The Board of Directors of EXMAR NV warmly welcomes both new members, whose contribution and expertise will further complete the Board's competence.

Executive Committee: The Company further announces that Mrs Christine Verhaert, representing Finmore BV, was appointed as Chief Financial Officer and member of the Executive Committee as per 1 July 2021. Finmore BV will continue the function of Mr Patrick De Brabandere who exercised, since the incorporation in 2003, several mandates in the Company.

STATEMENT ON THE TRUE AND FAIR VIEW

The Board of Directors, represented by Nicolas Saverys and Carl-Antoine Saverys and the Executive Committee, represented by Francis Mottrie, CEO (representing FMO BV) and Christine Verhaert, CFO (representing Finmore BV) hereby certifies, on behalf and for the account of the Company, that, to their knowledge:

  • the condensed consolidated interim financial information as of 30 June 2021 and for the six months then ended which has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union, give a true and fair view of the equity, financial position and financial performance of the Company, and the entities included in the consolidation as a whole,
  • the interim management report includes a fair overview of the information required under Article 13, §5 and §6 of the Royal Decree of 14 November 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.

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Exmar NV published this content on 19 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 September 2021 00:11:08 UTC.