Annual Report 2023
LNG transportation through safety and environmental excellence.
Annual Report 2023
2
About Awilco LNG
Organisation
Vessel Overview
Shareholder Information
Board of Director’s Report
Statement of Responsibility
Consolidated Financial Statements and Notes
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Parent Company Financial Statements and Notes
Parent Company Income Statement
Parent Company Statement of Financial Position
Parent Company Cash Flow Statement
Parent Company Statement of Changes in Equity
Parent Company Notes to the Financial Statements
Auditor’s Report
Corporate governance
Social Responsibility
Alternative performance measures
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Table of Contents
Annual Report 2023
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Awilco LNG ASA (the Company) was
incorporated in February 2011 by Awilco AS,
a company in the Awilhelmsen Group, for the
purpose of acquiring three second-hand LNG
vessels.
The three LNG vessels WilGas, WilPower and
WilEnergy were acquired for an aggregate price
of USD 67 million in 2011, financed through
private placements and shareholder loans that
were subsequently converted to equity. The
three vessels were sold in 2015 and 2016 for
combined net proceeds of USD 50 million.
In May 2011 Awilco LNG signed shipbuilding
contracts for the construction of two LNG
carriers, which were part financed through a
private placement of NOK 534.8 million.
In September 2011 the Company’s shares were
listed on the Oslo Stock Exchange under the
ticker ALNG.
In September and November 2013, the Group
took delivery of its two vessels, WilForce and
WilPride.
Both vessels were financed through sale/
leaseback arrangements, financing about 75 %
of the delivered cost.
In 2017 a comprehensive refinancing was
completed, comprising an amended and more
flexible financial lease agreement for WilForce
and WilPride, and an equity issue of USD
26.8 million to re-establish a robust financial
platform.
In January 2020 WilForce and WilPride were
refinanced with a new 10-year sale-leaseback
facility at improved terms. The Group have
purchase options on the vessels starting in
January 2023 and a purchase obligating at the
end of the period in 2030.
In December 2023 the Company signed a
Term Sheet for refinancing of both vessels
at significantly improved terms, with longer
tenor, lower margin, and longer profile. This
refinancing will reduce the Company’s finance
cost and cash break even substantially. Credit
Approval was received in February 2024 and
documentation is progressing as expected.
Closing of the refinancing is expected during
second quarter 2024.
About Awilco LNG
The Awilco LNG Group (the Group or Awilco LNG) is a fully integrated
owner and operator of LNG vessels. The Group owns two 156,000 cbm
2013-built LNG TFDE membrane vessels, WilForce and WilPride.
Annual Report 2023
4
Jon Skule Storheill
Chief Executive Officer
Prior to his appointment
as CEO of Awilco LNG ASA
Mr. Storheill was Managing
Director of Awilco AS, Director
of S&P/Projects with Frontline
Management and Director/
Partner of shipbroking
company P.F. Bassøe AS. Mr.
Storheill has also been the
Chairman of the Board of
Wilhelmsen Marine Services
AS in addition to serving with
various board positions in
the industry. Mr. Storheill
has more than 30 years of
shipping experience and is a
Norwegian citizen.
Per Heiberg
Chief Financial Officer
Prior to joining Awilco LNG
ASA as CFO Mr. Heiberg
served as CFO in Golden
Ocean Group Limited, a US
listed drybulk ship owner,
since April 2016. Mr. Heiberg
was with Golden Ocean since
2005. Prior to joining Golden
Ocean, he worked in the
Nordic Power market and
held various positions within
Statkraft SF and Electrabel
Nordic. Mr. Heiberg is a
Norwegian citizen.
Jan Espen Andersen
Head of Operation
Mr. Andersen was previously
Head of Operations at Höegh
LNG. He is a certified Master
Mariner and has held various
shore side marine related
positions since 1997 following
7 years at sea. Mr. Andersen
has more than 30 years of
shipping experience and is a
Norwegian citizen.
Organisation
Awilco LNG had six employees at the end of 2023. The Group handles
commercial and technical operations of the vessels from its office in Oslo.
The Group purchases certain administrative services from Awilhelmsen
Management AS, a company in the Awilhelmsen Group, and technical
sub-management services from Integrated Wind Solutions (IWS) which
have the same main shareholder as the Group, Awilco AS.
Annual Report 2023
5
Board of Directors
Synne Syrrist
Chairperson and Non-Executive Director
Mrs. Syrrist has work experience as an
independent consultant for Norwegian
companies and as financial analyst in Elcon
Securities ASA and First Securities ASA. She has
also an extensive non-executive experience
from both listed and private companies and is
currently among others a member of the boards
of Integrated Wind Solutions ASA, ABL Group
ASA and Naxs AB. Mrs. Syrrist holds an MSc
from NTNU and is a Certified Financial Analyst
(AFA) from NHH. Mrs. Syrrist is a Norwegian
citizen. Mrs. Syrrist is the Chairperson of the
Remuneration Committee and a member of the
Audit Committee.
Ole Christian Hvidsten
Non-Executive Director
Mr. Hvidsten is Vice President Corporate
Finance in the Awilhelmsen group. He has
extensive experience from senior positions in
investment banking/investment companies and
is a board member of Awilco AS. Before joining
the Awilhelmsen group in 2011, he worked 11
years in the Corporate Finance department
of ABG Sundal Collier. Mr. Hvidsten holds an
MSc in Business Administration from NHH /
Fuqua School of Business (Duke University).
Mr. Hvidsten is a Norwegian citizen and the
Chairperson of the Audit Committee.
Jens-Julius R. Nygaard
Non-Executive Director
Mr. Nygaard is the CEO of Awilco AS and a
member of the Board of Integrated Wind
Solutions ASA. He has around 20 years of
experience from shipping and investment
companies through various positions in the
Awilco group of companies. Mr. Nygaard has
a BA Honours in Finance from Strathclyde
University and an MSc in Shipping, Trade &
Finance from BAYES Business School. Mr.
Nygaard is a Norwegian citizen. Mr. Nygaard is a
member of the Remuneration Committee.
Jon-Aksel Torgersen
Non-Executive Director
Mr. Torgersen is the former CEO of Astrup
Fearnley AS, the parent company of a number
of investment and broker companies. Mr.
Torgersen has extensive board experience
from a number of companies in the property,
shipping, finance and offshore sectors, and
serves as Chairman of the Board of Atlantic
Container Line AB. He is also a member of the
board of Transportation Recovery Fund and
Finnlines Plc. Mr. Torgersen holds an MBA
(Finance) from Hochschule St. Gallen. Mr.
Torgersen is a Norwegian citizen.
Annette Malm Justad
Non-Executive Director
Mrs. Malm Justad previously held positions as
CEO in Eitzen Maritime Services, Vice President
and Head of Purchasing at Yara International
ASA, Vice President and Fleet Manager at Norgas
Carriers AS and has held various technical and
commercial positions for Norsk Hydro ASA.
She serves as Chairman of the Boards of AMSC
ASA, Store Norske Spitsbergen Kulkompani AS
and Småkraft AS. She also serves as a board
member of Torm Plc. and Powercell AB. Mrs.
Malm Justad holds a master’s in technology
management from NTNU/NHH/MIT and a
master in chemical engineering from NTNU.
Mrs. Malm Justad is a Norwegian citizen.
Annual Report 2023
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YEAR BUILT 2013
YARD DSME
CAPACITY 156,007 M3
DWT 87,750 MT
DRAFT 12.521 M
MANAGER ALNG TM
FLAG Malta
PROPULSION TFDE
YEAR BUILT 2013
YARD DSME
CAPACITY 156,089 M3
DWT 87,677 MT
DRAFT 12.521 M
MANAGER ALNG TM
FLAG Malta
PROPULSION TFDE
WilForce
Wilpride
Vessel Overview
Awilco LNG owns two 156,000 cbm 2013-built LNG TFDE
vessels WilForce and WilPride.
Annual Report 2023
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Shareholder Information
Awilco LNG share price development (Ticker:ALNG)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
5
6
7
8
9
10
Volume NOK
Volume (RHS) Share price (LHS)
Annual Report 2023
8
38.56
26.26
1.76
1.41
1.32
1.30
1.17
1.00
0.95
0.93
0.84
0.78
0.76
0.61
0.59
0.59
0.57
0.48
0.40
0.39
Ownership
in percent
Ownership
in percent
Number of shares
Number of shares
Shareholder/
Shareholder/
Morgan Stanley & Co. Int. Plc.
34 812 835
Union Bancaire Privee, UBP SA
1 010 567
The Bank of New York Mellon
1 110 951
SEB CMU/SECFIN Pooled Account
2 329 763
Kilsholmen AS
809 500
The Bank of New York Mellon SA/NV
1 870 729
State Street Bank and Trust Comp
786 577
Vidar Ann Taranger
1 759 733
Skips AS Tudor
781 429
Interactive Brokers LLC
1 729 540
Nordnet Livsforsikring
752 092
HSBC Bank Plc.
1 252 648
Per Olav Sanne
519 000
Clearstream Banking S.A.
1 229 150
Patronia AS
1 322 988
Morgan Stanley & Co. Int.
534 104
The Bank of New York Mellon SA/NV
1 547 352
Jan Olav Prøch
640 000
Awilco AS
51 114 080
The Bank of New York Mellon
1 028 955
20 Largest Shareholders
(As per 31.12.2022)
Annual Report 2023
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LNG prices are lower and spot charter rates
have seasonally weakened over the last months
despite of war in Ukraine and increased tension
in the Red Sea disrupting trade through the
Suez Canal. Focus on energy security witnessed
last year has eased as gas storage levels are
high following a warm winter in 2022/2023,
ample LNG supply and so far a relatively warm
winter 2023/24 according to Fearnley LNG.
Most US LNG has gone to Europe, although
US-to-Asia trade has picked up lately on lower
gas prices. The negative ton-mile effect of the
shorter Europe trade is somewhat mitigated
by a reduced number of transit slots through
the Panama Canal as well as the attacks on
merchant ships in the Red Sea leading to a
complete halt in LNG carriers transiting the Suez
Canal whereby all vessels now go the longer
route around Africa. This effectively doubles the
time used for a Qatar to Europe voyage and if
the situation persists will increase demand for
LNG vessels.
Gas prices are significantly lower than last
year and the European (TTF) and Asian (JKM)
prices are well synchronized resulting in limited
arbitrage for shipping. The lower gas prices
have somewhat changed the fundamentals of
the two/three tier market developed during
last year. On purely financial terms the 2-stroke
vessels have less of an economic advantage vs
the somewhat smaller TFDE vessels with lower
gas prices. On the other hand, the smaller-sized
steam vessels are struggling to find employment
as cargosizes have increased over the last years.
EEXI regulations have forced these vessels to
reduce speed and the introduction of the EU-ETS
regulation will further penalize these vessels and
eventually the CII regulations will inevitably push
these vessels out of normal trade. This means
that about 1/3rd of the LNGC fleet is forced
into niche trades, infrastructure conversions or
recycling.
Spot fixing activity was high during 2023
although most fixtures were sublets from
Board of Directors’
report
Annual Report 2023
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traders and portfolios as very few independent
owners had open vessels. Towards the end
of 2023 and so far in 2024 some independent
owners have shown open positions as vessels
fixed 1-3 years ago are being redelivered in
competition with quite a few sublets from
charterers who have had very good earnings
in 2022/23 are showing availability for 2024
into 2025 when new LNG production is starting
up, putting pressure on short-term charter
rates. Current broker quotes are around USD
60,000-65,000 for a 1-year time charter for a
TFDE vessel which is up from the lows seen in
February 2024. Fewer vessels are available from
2026 and beyond leading to higher rates for
longer-term fixtures.
In 2023 the United States became the world’s
largest exporter of LNG, a position previously
held by Qatar. 86 MT of LNG was lifted from the
US, an increase of 10 MT compared to 2022.
The increase was largely driven by the return of
the Freeport plant throughout the year. China
has regained its position as the world’s largest
importer, although still lower than the pre-covid
record high import in 2021. Most LNG to China
came from Australia and Qatar, with less than
5% originating from the US.
Both WilForce and WilPride are financed
through a sale-leaseback facility with maturity
in January 2030 provided by CCB Financial
Leasing Co. Ltd. (CCBFL). In December 2023 the
Company signed a Term Sheet for refinancing
of both vessels which will reduce the Company’s
finance cost and cash break even substantially.
Credit Approval was received in February 2024
and documentation is progressing as expected.
Closing of the refinancing is expected during
second quarter 2024.
BUSINESS SUMMARY
The Awilco LNG Group (Awilco LNG, ALNG
or the Group) is a fully integrated pure play
LNG transportation provider, owning and
operating LNG vessels. The Group currently
owns two 2013-built TFDE LNG carriers. The
parent company Awilco LNG ASA is listed on
Euronext Expand with ticker ALNG. Awilco LNG’s
registered business address is Beddingen 8,
Oslo, Norway. Commercial management is
performed by Awilco LNG ASA and technical
management of the vessels is performed by a
wholly owned subsidiary.
LNG market
Focus on energy security witnessed last year
eased during 2023 as gas storage levels was
high following a warm winter in 2022/2023,
ample LNG supply and a relatively warm winter
2023/2024. Most US LNG has gone to Europe,
although US-to-Asia trade has picked up lately
on lower gas prices. The negative ton-mile
effect of the shorter Europe trade is somewhat
mitigated by a reduced number of transit slots
through the Panama Canal as well as attacks
on merchant ships in the Red Sea leading to a
complete halt of LNG carriers transiting the Suez
Canal whereby all vessels now go the longer
route around Africa. This effectively doubles the
time used for a Qatar to Europe voyage and if
the situation persists will increase demand for
LNG vessels.
Annual Report 2023
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During 2023 33 newbuildings were delivered
and 68 newbuilding orders were placed
according to Fearnely LNG. This is significantly
down from the 145 orders placed in 2022, but
still the orderbook to fleet ratio stood at 45%
at the end of the year. 2024, and particularly
2025 and 2026 are set to be record high with
respect to deliveries, but only 21 out of the
total orderbook of 286 vessels are charter-free
according to Fearnley LNG. Limited new LNG
production is expected until 2nd half of 2025
and 2026 so the high delivery during this time
point to a challenging period going forward
unless ton-miles increase. Newbulding prices
are stable and contract prices for Korean built
vessels remain around USD 260 million for
2027/2028 delivery.
Operations
WilPride traded on a fixed rate contract that
commenced in December 2022 for a minimum
of 3 years. The charterer has the option to
extend the charter for two years at the same
rate. WilForce commenced an 18-month
contract late January 2023.
In August WilForce went off-hire and into
drydock in Singapore to perform her scheduled
second special survey. The work was completed
on time and budget, and the vessel was back
on-hire after about 26 days off-hire including
positioning and repositioning before and after
drydock.
WilPride went off-hire in August for her
scheduled second special survey in Spain. The
work was completed on time and budget, and
the vessel went on-hire after about 34 days
off-hire, including positioning and repositioning
before and after drydock.
Excluding planned off-hire for the dry-dockings,
both WilForce and WilPride traded the entire
year with no off-hire and utilisation was 100%
compared to 81% for 2022.
CONSOLIDATED FINANCIAL STATEMENTS
Income statement
The Group generated net freight income of
USD 79.4 million in 2023, up from USD 45.3
million in 2022, mainly caused by fixing both
vessels on fixed rate time charter contracts in
a strong market during second half of 2022.
The vessels were on these contracts during
the entire year, interrupted only by off-hire for
scheduled dry dockings in third quarter 2023.
These numbers equate to TCE earnings of USD
118,500 (excluding days for scheduled dry dock)
in 2023 compared to USD 62,000 in 2022. Fleet
utilisation for the year ended at 100% compared
to 81 % in 2022.
Operating expenses for the year ended at USD
11.3 million in 2023, up from USD 11.0 million in
2022, driven by increased cost for most services
during the year.
Other income of USD 5.0 million related to a
final settlement related to the collision involving
Wilforce in 2019. The settlement was entered
into in December 2023.
Administration expenses increased from USD
3.6 million in 2022 to USD 4.2 million in 2023.
Depreciation and amortisation were USD 12.9
million in 2023 compared to USD 12.7 million in
2022.
Net financial expenses were USD 17.7 million in
2023, up from USD 12.6 million in 2022 following
continued increase in floating USD rates.
Profit before tax for the period was USD 38.3
million compared to USD 5.8 million in 2022.
Earnings per share
Basic and diluted earnings per share for the year
were USD 0.29, up from USD 0.04 in 2022.
Financial position
Total assets and total equity for the Group as
of December 31, 2023 was USD 349.9 million
and USD 144.7 million respectively (USD 348.1
million and USD 126.4 million at December 31,
2022) corresponding to an equity ratio of 41.4%,
up from 36.3% at December 31, 2022.
Cash and cash equivalents amounted to USD
27.1 million at December 31, 2023, up from USD
26.1 million at December 31, 2022.
Annual Report 2023
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The combined book value of the vessels was
USD 317.3 million at December 31, 2023
compared to USD 317.1 at year-end 2022.
Total interest-bearing debt for the Group was
USD 189.5 million at December 31, 2023, down
from USD 207.6 million at December 31, 2022.
The current portion of the interest-bearing debt
constituted USD 18.8 million as at December 31,
2023.
Cash flow statement
The Group generated USD 70.5 million in
cash inflow from operating activities in 2023
compared to USD 34.5 million in 2022.
Net cash used in investing activities was USD
13.1 million, up from USD 2.8 million in 2022
as both our vessels went through their second
special survey including dry dock in third
quarter 2023 at a total cost of USD 12.4 million.
Net cash outflow from financing activities was
USD 56.3 million in 2023, constituting of USD
18.8 million in repayment of debt, USD 17.6
million of interest under the finance lease
with CCBLFL and dividend payments of USD
20.0 million. Net cash outflows from financing
activities in 2022 was USD 29.2 million.
Subsequent to the CCBFL refinancing completed
in January 2020, cash break-even for each vessel
is expected at approximately USD 71,000 per
day in 2024, subject to interest rate fluctuations
and excluding engine overhauls that will be
capitalized. In December 2023 the Company
signed a Term Sheet for refinancing of both
vessels which will reduce the Company’s finance
cost and cash break even substantially. Closing
of the refinancing is expected during second
quarter 2024.
PARENT COMPANY FINANCIAL STATEMENTS
Operating income for the year amounted
to NOK 12.8 million (NOK 7.9 million) and
administration expenses NOK 33.8 million (NOK
27.3 million).
Net finance income amounted to NOK 0.8
million (NOK 22.1 million).
Loss for the period was NOK 20.2 million (Profit
of NOK 2.8 million).
The Board of Directors propose that the loss
for the period of NOK 20.2 million for the
Parent Company is transferred from retained
earnings. In February 2024 the Company passed
a resolution for distributing share premium to
the shareholders. This is recorded as dividend
per year end and the payment was processed in
April 2024.
The Board of Directors approved a revised
dividend policy in November 2022. The Board
is committed to return value to shareholders
and intend to distribute a substantial part of
annual free cash flow, paid out quarterly, always
subject to debt covenants, capital requirements
and a robust cash buffer. A proposal for further
dividend payments will be presented to the
Annual General Meeting in 2024.
GOING CONCERN ASSUMPTION
The consolidated financial statements of the
Group, and the parent company financial
statements of Awilco LNG ASA, have been
prepared on a going concern basis pursuant
to the Norwegian Accounting Act § 3-3a. In the
opinion of the Board of Directors, these financial
statements provide a fair presentation of the
Company’s business, financial results, and
outlook.
The Group’s ability to continue as a going
concern is dependent upon generating sufficient
cash flow from operation of the vessels. The
Group’s vessels are currently trading on mid-
term fixed rate contracts but might in the future
trade in the spot market which then will expose
the Group’s financial performance to volatility
and seasonality in rates and utilisation.
RISK FACTORS
Shipping market conditions have historically
been volatile and consequently the financial
results may vary significantly from year to year.
The risk factors in the LNG shipping market can
be divided into the following main components:
market risk, operational risk and financial risk.
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13
Market risk
Market risk relates to the supply of LNG vessels
and the demand for LNG transportation. In the
past there have been periods of oversupply of
vessels due to delays in the construction of LNG
production plants, with correspondingly low
utilisation and depressed market rates, which
might occur also in the future. Over time this
express the interim risk to balance supply with
demand as it goes faster to build vessels than to
build LNG production facilities. Currently we see
a record high orderbook with peak deliveries
in 2025 and 2026. LNG production coming on
stream seems to meet the delivery pace and
most newbuilding are committed on long term
contracts to meet demand from this production
capacity. There might be a risk of imbalance in
the market during the coming years as demand
need to come on stream simultaneously
to increased shipping capacity when the
newbuildings are delivered.
The demand for LNG is affected by the
importing countries’ demand for energy as
well as the relative pricing of LNG compared
to alternative energy sources. A high relative
pricing spread between LNG and other
energy sources will reduce the demand for
LNG and thereby negatively impact demand
for LNG transportation. In the longer-term
perspective lower gas prices in combination
with the growing supply side is expected to
support growth in demand for natural gas as a
flexible and clean fuel compared to other fossil
alternatives.
Gas price levels in different geographic
markets have a significant impact on demand
for LNG transportation to execute arbitrage
opportunities. During the winter season in
2022/2023 we experienced extreme price
differences and going forward the arbitrage is
difficult to predict as it is closely linked to the gas
price level in Europe, the US and Far East, which
again is highly dependent upon several factors
including weather, policies and regulations and
the price of alternative energy sources.
Operational risk
Employment risk
The Group’s ability to obtain charters will
depend upon the prevailing market conditions.
If the Group is unable to employ its vessels,
revenue will be substantially reduced.
Laws and regulations
The Group’s operations and vessels are subject
to international laws and regulations, which
have become more proliferate and stringent
in recent years. Although the Group is doing
its outmost to comply, changes in laws and
Annual Report 2023
14
regulations may expose the Group to liability.
Technical risk
LNG vessels are highly sophisticated, and
there is a risk that equipment may fail despite
pre-emptive maintenance. The Group has in
place loss of hire insurance, but a technical
breakdown will affect earnings for a period of at
least 14 days due to the deductible period.
Piracy, war and cyber risk
A piracy attack, outbreak of war or cyber-attack
may affect the trading and earnings of the
vessels.
Crew
Depending on the pace of older ships exiting the
LNG carrier fleet may increase by more than 50
% in the coming years. This exposes the Group
to the risk of not being able to attract qualified
officers and seafarers. The Group has, and will,
continue to take steps to mitigate this risk.
Bunker price
The Group is exposed to bunker price risk when
the vessels are not on charter.
Environmental regulations
From 2023 our vessels are required to comply
with new regulations on energy efficient design
(“EEXI”) and operation through Carbon Intensity
Index (“CII”). EEXI is a one-time certification and
both vessels in the fleet have been confirmed to
be in compliance.
With respect to CII, this is measured on the
vessels’ actual emissions over the previous year
and thereby rated according to a formula. Both
vessels have operated in 2023 with an emission
intensity that corresponds to a “C” rating, which
is well above the required minimum level. We
are continuously working on several efficiency
improvements however the main criteria is the
vessels’ trading pattern which owners have very
limited influence on when on time charter. We
are therefore dependant and working closely
with charterers to ensure that the operation of
the vessels is planned and executed in a way
that ensures at least C rating is achieved also for
2024 and the coming years.
Starting from 2024, our vessels are required
through the EU Emissions Trading System (“ETS”)
to submit emissions allowances for carbon
emissions during voyages to and from EU ports.
Monitoring and Reporting of carbon emissions
are already in place through our procedures for
EU MRV reporting. As the vessels are chartered
out on time charter contracts the related costs
are for the charterer’s account and the financial
risk for the Company is limited to idle and off-
hire periods.
Due to prevailing longer-term market trends, the
normal useful life of The Group’s LNG vessels
has, from the 1st of January 2024 been revised
from an estimation of 40 years to an estimate of
35 years from delivery.
Financial risk
Financing risk
The WilForce and WilPride financial leases
were refinanced in January 2020 with a 10-
year sale-leaseback facility provided by CCB
Financial Leasing Co. Ltd. (CCBFL). Both vessels
were sold for a gross consideration per vessel
of USD 175.0 million including non-amortizing
and non-interest bearing pre-paid charter hire
of USD 43.8 million per vessel. The vessels are
Annual Report 2023
15
chartered back on bareboat basis to wholly
owned subsidiaries of the Company for a
period of up to 10 years. The Group has rolling
repurchase options and repurchase obligations
on expiry. In December 2023 the Company
signed a Term Sheet for the refinancing of both
vessels which will reduce the Company’s finance
cost and cash break even once finalized and
effectuated.
Currency risk
The companies in the Group have USD as
functional currency. Currency risks therefore
arise in connection with transactions
denominated in other currencies than USD.
The Group is to a certain degree exposed
to currency fluctuations, as it is exposed to
administration expenses denominated in
NOK. The Group may use financial derivatives
to reduce short-term currency risk, but as at
December 31, 2023 no such instruments were
entered into.
Liquidity risk
The shipping business is capital intensive and
insufficient liquidity can severely impact the
ability to operate the vessels. The Group’s
approach to managing liquidity risk is to ensure,
as far as possible, always having sufficient
liquidity to meet its obligations without incurring
unacceptable losses or risking employees’ safety
or damage to the Group’s reputation.
According to the sale-leaseback facility
provided by CCBFL, the Awilco LNG Group
shall maintain minimum consolidated cash
and cash equivalents of USD 10.0 million and
positive consolidated working capital. During
2020 the Company and CCBFL agreed to make
certain temporary amendments to the financial
covenants. As a result of these amendments the
Company agreed a permanent restriction from
declaring or paying dividends if the consolidated
cash position of the Awilco LNG Group is lower
than USD 20.0 million on the day of declaration
and the day following payment.
Interest rate risk
The CCBFL sale-leaseback facility completed
in January 2020 is subject to a floating interest
rate, and the Group is continuously evaluating
using financial derivatives to hedge the interest
rate exposure. At yearend 2023 no such
derivatives were entered into.
Counterparty- / credit risk
The Group is exposed to credit risk from its
operating activities through freight income trade
receivables and from its financing activities,
including deposits with banks. The Group aims
to do business with creditworthy counterparties
only. Charter hire is normally received monthly
in advance, effectively reducing the potential
exposure to credit risk. Bank deposits are
only deposited with internationally recognised
financial institutions with a solid credit rating.
HEALTH, SAFETY AND ENVIRONMENT
Based on the long-term goal of environmental
excellence, Awilco LNG works continuously
towards minimising the environmental impact
from its vessels and operations.
Awilco LNG aims to minimise the emissions
of CO2, NOx and SOx from engines, boilers,
incinerators, cargo, fuel oil tanks and systems
through evaporation. In 2023 there was a
positive development in the CO2 intensity
for the vessels measured using the Annual
efficiency rate (AER). This is in large part caused
by significantly reducing the level of vessel idling
and ballast voyages, causing lower emissions
per nm. We expect these values to be stable in
during 2024.
The Group has a zero tolerance for
environmental spills, emissions of ozone
depleting substances and unauthorised disposal
of any type of garbage or waste to the marine
environment.
The Group has a lean onshore organisation and
has outsourced certain services. At year end
2023 the Group had six onshore employees.
There is currently no female representation
among management. The Group is aware of
this imbalance and is positive to improve this
ratio in the future. The Board of Directors of the
Company has two female directors, representing
40 % of the Board.
Annual Report 2023
16
The safety and well-being of Awilco LNG’s
employees and seafarers has the highest
priority. Vessels are to be properly operated and
maintained, and safe for crew, cargo, visitors,
and the environment. The Group’s quality
of operations is supported by experienced,
educated, and well-trained staff onboard
and onshore. The Group adheres to national
and international laws and regulations and
promotes best practices identified within its own
operations and the industry in order to improve
the competence of individual crewmembers
and vessel safety performance. ALNG’s
management is actively engaged in monitoring
the Group’s performance to further encourage
and promote positive trends, and to provide
advice and take corrective action where negative
trends are detected. To ensure retention of
personnel, Awilco LNG aims to ensure a stable
and motivating work environment for both
onshore and offshore employees. The Group is
proactively seeking to identify requirements and
needs for additional training through regular
audits, master and management reviews.
Absence due to illness for onshore employees
was 5.4% in 2023 (0.0 % in 2022). No onshore
work-related injuries were reported in 2022 or
2023. For seafarers, an LTIF (accidents per one
million-man hours worked) of 0.0 was reported
during the year (2.1 in 2022).
For further information please see the Social
Responsibility section in the annual report,
which complies with the requirements under
the Norwegian Accounting Act § 3-3c. The Board
of Directors of the Company have approved
the Guidelines for embedding the work in
connection with the Norwegian Transparency
Act which came into effect on July 1, 2022
and the annual report for 2023 will be made
available on the Company’s website (www.
awilcolng.no) within June 30, 2024.
CORPORATE GOVERNANCE
Awilco LNG strives to protect and enhance
shareholder equity through openness,
sustainability, integrity and equal shareholder
treatment, and sound corporate governance
is a key element in the basis of the Awilco LNG
strategy.
The corporate governance principles of the
Company are adopted by the Board of Directors.
The principles are based on the Norwegian
Code of Practice for Corporate Governance as
of 14 October 2021 (the «Code of Practice»).
Please see the Corporate Governance section in
the annual report, and the Company’s web site
www.awilcolng.no.
Awilco LNG does have a Director and Officers
insurance with a reputable insurer.
STRATEGY
The main strategy for Awilco LNG is to create
shareholder value through the provision of
a quality, sustainable, reliable and customer-
oriented service to the market, in the best
manner for its shareholders, employees and
business connections. The management team
shall safely, efficiently and effectively provide
LNG transportation services to customers with
an objective to secure the most profitable
contracts coupled with the highest achievable
vessel utilisation.
Awilco LNG shall evaluate growth opportunities
in terms of vessel acquisitions and disposals
which best complement the Group’s financial
and operational aspirations.
Annual Report 2023
17
OUTLOOK
The seasonal softening of the market
experienced during fourth quarter 2023
continued into first quarter 2024 due to
comfortable storage levels in Europe and
increased demand from Asia has been
insufficient to drive rates. LNG carriers taking
the longer voyage around Africa due to
the attacks in the Red Sea and the reduced
availability of the Panama Canal has increased
utilization and we see a seasonal improvement
in rates. The short-term market has also
improved from the recent lows although the
large orderbook and limited new production
capacity in 2024 does require an increase in ton-
miles to improve rates. The first of our vessels is
coming open in the third quarter 2024, and we
are well positioned for the next winter period
when rate levels should improve. Long term
focus continues to be on excellent technical and
operational performance and to return cash to
our shareholders.
Oslo, April 16, 2024
Jon-Aksel Torgersen
Board member
Synne Syrrist
Chairperson of the
Board
Annette Malm Justad
Board member
Jon Skule Storheill
CEO
Ole Christian Hvidsten
Board member
Jens-Julius R.
Nygaard
Board member
Annual Report 2023
18
We confirm to the best of our knowledge that
the consolidated financial statements for
2023 have been prepared in accordance with
International Financial Reporting Standards
as adopted by the European Union, as well
as additional information requirements in
accordance with the Norwegian Accounting
Act, and that the financial statements for the
parent company for 2023 have been prepared
in accordance with the Norwegian Accounting
Act and generally accepted accounting practice
in Norway, and that the information presented
in the financial statements gives a true and fair
view of the assets, liabilities, financial position
and profit/(loss) for the period of Awilco LNG
ASA and the Awilco LNG Group as a whole.
We also confirm to the best of our knowledge
that the Board of Directors’ Report includes a
true and fair review of the development and
performance of the business and the position
of Awilco LNG ASA and the Awilco LNG Group,
together with a description of the principal risks
and uncertainties that they face.
Statement Of
Responsibility
Oslo, April 16, 2024
Jon-Aksel Torgersen
Board member
Synne Syrrist
Chairperson of the
Board
Annette Malm Justad
Board member
Jon Skule Storheill
CEO
Ole Christian Hvidsten
Board member
Jens-Julius R.
Nygaard
Board member
Annual Report 2023
19
Consolidated
Financial
Statements
And Notes
Annual Report 2023
20
2023
(17 697 )
2022
(163 )
(12 606 )
In USD thousands
Profit/(loss) for the period
Other comprehensive income:
Other comprehensive income items
Total comprehensive income/(loss) for the period
Note
3,4
5
6
6
7
10
16
16
16
9
9
9
Consolidated Income Statement
Consolidated Income Statement of Comprehensive Income
Freight income
Voyage related expenses
Net freight income
Other income
Operating expenses
Administration expenses
Earnings before interest, taxes, depr. and amort. (EBITDA)
Depreciation and amortisation
Earnings before interest and taxes (EBIT)
Finance income
Net gain/(loss) and valuation adjustment of securities
Finance expenses
Net finance income/(expense)
Profit/(loss) before taxes
Income tax expense
Profit/(loss) for the period
Earnings per share in USD attributable to ordinary equity holders
of Awilco LNG ASA:
Basic, profit/(loss) for the period
Diluted, profit/(loss) for the period
Annual Report 2023
21
31.12.2023
(36 270 )
31.12.2022
(74 562 )
In USD thousands
Note
10
11
12
16
13
14
18
18
7
21
21
9
15
Consolidated Statement of Financial Position
ASSETS
Non-current assets
Vessels
Pension assets
Other fixed assets incl right-of-use assets
Total non-current assets
Current assets
Trade receivables
Inventory
Financial investments
Other short term assets
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Share capital
Share premium
Other paid-in capital
Retained earnings
Total equity
Non-current liabilities
Pension liabilities
Long-term interest bearing debt
Total non-current liabilities
Current liabilities
Short-term interest bearing debt
Trade payables
Income tax payable
Provisions and accruals
Total current liabilities
Total equity and liabilities
Annual Report 2023
22
2023
(526 )
(13 107 )
(13 107 )
(19 967 )
(18 772 )
(17 568 )
(56 306 )
2022
(2 802 )
(2 802 )
(18 879 )
(10 364 )
(29 243 )
In USD thousands
Note
16
10
10
21
14
Consolidated Cash Flow Statement
Cash Flows from Operating Activities:
Prot/(loss) before taxes
Income taxes paid
Interest and borrowing costs expensed
Items included in prot/(loss) not aecting cash ows:
Depreciation and amortisation
Changes in operating assets and liabilities:
Trade receivables, inventory and other short term assets
Trade payables, provisions and accruals
i) Net cash provided by / (used in) operating activities
Cash Flows from Investing Activities:
Investment in vessels
ii) Net cash provided by / (used in) investing activities
Cash Flows from Financing Activities:
Dividends paid
Repayment of borrowings
Interest costs paid
iii) Net cash provided by / (used in) nancing activities
Net change in cash and cash equivalents (i+ii+iii)
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period
Annual Report 2023
23
(74 562 )
(36 270 )
(80 362 )
(74 562 )
(19 967 )
Total
equity
Total
equity
Retained
earnings
Retained
earnings
Other
paid-in
capital
Other
paid-in
capital
Share
premium
Share
premium
Share
capital
Share
capital
(19 967 )
In USD thousands
In USD thousands
Note
Note
Consolidated Statement of Changes in Equity
Equity at 1 January 2023
Profit/(loss) for the period
Total comprehensive income
Dividends paid
Balance as at 31 December 2023
Equity at 1 January 2022
Profit/(loss) for the period
Other comprehensive income for the period
Total comprehensive income
Balance as at 31 December 2022
For the period ended 31 December 2023
For the period ended 31 December 2023
Annual Report 2023
24
Notes to the
Consolidated
Financial Statements
Annual Report 2023
25
Annual Report 2023
26
Annual Report 2023
27
Annual Report 2023
28
Annual Report 2023
29
Annual Report 2023
30
Annual Report 2023
31
Annual Report 2023
32
Annual Report 2023
33
Annual Report 2023
34
Annual Report 2023
35
Note 11 // Trade receivables cont
Annual Report 2023
36
Annual Report 2023
37
Annual Report 2023
38
Note 18 // Share capital and shareholders cont
Annual Report 2023
39
Note 19 // Capital and financial risk management cont
Annual Report 2023
40
Note 19 // Capital and financial risk management cont
Annual Report 2023
41
Note 20 // Related parties cont
Annual Report 2023
42
Note 20 // Related parties cont
Annual Report 2023
43
Note 20 // Related parties cont
Annual Report 2023
44
Annual Report 2023
45
Note 21 // Interest-Bearing debt cont
Annual Report 2023
46
Annual Report 2023
47
Parent Company
Financial
Statements
and Notes
Annual Report 2023
48
2023
12 758
33 823
(21 065)
(3)
(21 062)
16 472
-
15 633
839
(20 222)
-
(20 222)
(20 222)
(132 549)
132 549
(20 222)
2022
7 925
27 268
(19 342)
9
(19 351)
19 878
3 599
1 331
22 146
2 795
-
2 795
2 795
(66 274)
66 274
2 795
In NOK thousands
Note
6
3
4
4
4
5
Income Statement
Operating income
Administration expenses
Earnings before interest, taxes, depr. and amort. (EBITDA)
Depreciation and amortisation
Earnings before interest and taxes
Finance income
Net gain/(loss) and valuation adjustment of securities
Finance expenses
Net finance income/(expense)
Profit/(loss) before taxes
Income tax expense
Profit/(loss) for the period
Allocations/transfers of profit/(loss) for the period:
Allocated to/(transferred from) retained earnings
Repaid share premium repaid in 2024
Transferred from share premium
Total allocations and transfers
Annual Report 2023
49
31.12.2023
5 052
46
679 665
684 764
734
746
208 103
209 582
894 346
13 255
404 222
419 800
(423 570)
413 707
5 537
153 472
159 010
6 118
173 905
78
141 527
321 629
894 346
31.12.2022
4 944
63
679 665
684 672
7 681
695
169 399
177 775
862 448
13 255
682 574
419 800
(403 027)
712 603
5 614
-
5 614
1 360
70 947
234
71 689
144 231
862 447
In NOK thousands
Note
3
6
6
7
8
8
3
6
6
6
9
Parent Company Statement of Financial Position
ASSETS
Non-current assets
Pension assets
Other fixed assets
Shares in subsidiaries
Total non-current assets
Current assets
Short term receivables subsidiaries
Other short term assets
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Share capital
Share premium
Other paid-in capital
Retained earnings
Total equity
Non-current liabilities
Pension liabilities
Loans from subsidiaries
Total non-current liabilities
Current liabilities
Short term payables subsidiaries
Inter company debt
Trade payables
Provisions and accruals
Total current liabilities
Total equity and liabilities
Annual Report 2023
50
2023
(20 222)
(3)
746
114 663
(63 051)
32 133
153 472
153 472
(145 803)
(145 803)
38 703
169 399
208 103
208 103
2022
2 795
9
695
(70 152)
66 995
343
85 603
85 603
(66 274)
(66 274)
19 108
150 291
169 399
169 399
In NOK thousands
Note
6
7
7
Cash Flow Statement
Statement of Changes in Equity
Cash Flows from Operating Activities:
Profit (loss) before taxes
Items included in profit/(loss) not affecting cash flows:
Depreciation and amortisation of property, plant and equipment
Changes in operating assets and liabilities:
Other short term assets
Short term receivables/payables subsidiaries
Trade payables, provisions and accruals
i) Net cash provided by / (used in) operating activities
Cash Flows from Investing Activities:
Loans from subsidiaries
ii) Net cash provided by / (used in) investing activities
Cash Flows from Financing Activities:
Dividend paid
iii) Net cash provided by / (used in) financing activities
Net change in cash and cash equivalents (i+ii+iii)
Cash and cash equivalents at start of period
Cash and cash equivalents at end of period
(403 350)
(20 222)
-
(423 573)
(406 146)
2 795
-
(403 350)
682 575
-
(278 352)
404 222
748 849
-
(66 274)
682 575
Total
equity
Total
equity
Retained
earnings
Retained
earnings
Other
paid-in
capital
Other
paid-in
capital
Share
premium
Share
premium
Share
capital
Share
capital
712 279
(20 222)
(278 350)
413 707
775 758
2 795
(66 274)
712 279
419 800
-
-
419 800
419 800
-
-
419 800
13 255
-
-
13 255
13 255
-
-
13 255
In NOK thousands
In NOK thousands
Equity at 1 January 2023
Profit/(loss) for the period
Share premium reduction
1)
Balance as at 31 December 2023
Equity at 1 January 2022
Profit/(loss) for the period
Share premium reduction
1)
Balance as at 31 December 2022
1)
In February 2024 the Board of directors used the authority given bu the Annual General Meeting in 2023 to pass a resolution
for distribution share premium to the shareholders. This is recorded as dividend per yearend. The dividend payment was pro-
cessed in April 2024
1)
In March 2023 the Board of directors used the authority given bu the Annual General Meeting to pass a resolution for distri-
bution share premium to the shareholders. This is recorded as dividend per yearend. The dividend payment was processed in
March 2023
For the period ended 31 December 2023
For the period ended 31 December 2022
Annual Report 2023
51
NOTE 1 // CORPORATE
INFORMATION
Awilco LNG ASA (the Company) is a public limited
liability company incorporated and domiciled
in Norway. Its registered office is Beddingen 8,
0250 Oslo, Norway. The Company was incorpo-
rated 2 February 2011 and is listed on Euronext
Expand with the ticker ALNG.
Awilco LNG ASA is through its subsidiaries
engaged in the operation of and investments in
LNG transportation vessels.
NOTE 2 // SUMMARY OF
SIGNIFICANT ACCOUNTING
POLICIES
Basis for preparation
The financial statements of Awilco LNG ASA
have been prepared in accordance with the Nor-
wegian accounting act and generally accepted
accounting principles in Norway. The financial
statements are presented in Norwegian kroner
(NOK) rounded off to the nearest thousands,
except as otherwise indicated. The financial
statements are prepared in English, as approved
by the Norwegian Directorate of Taxes.
The principal accounting policies applied in the
preparation of these financial statements are set
out below.
Shares in subsidiaries
Shares in subsidiaries are measured at cost less
accumulated impairment losses. Such assets
are impaired to fair value when the decrease
in value s for reasons not considered being of
a temporary nature and must be deemed nec-
essary based on generally accepted accounting
principles. Impairment losses are reversed when
the rationale for the recognised impairment loss
no longer applies. Dividends, group contribu-
tions and other distributions from subsidiaries
are recognised in the same period as they are
recognised in the financial statement of the
subsidiary. If dividends and group contributions
exceed withheld profits after the acquisition
date, the excess amount represents repayment
of invested capital and will be deducted from the
carrying value of the subsidiary in the balance
sheet of the Company.
Foreign currency
The functional currency of the Company is USD
whereas the accounting and presentation cur-
rency is NOK. Transactions in foreign currencies
are recorded at the rate of exchange on the date
of the transaction. Monetary assets and liabilities
denominated in other currencies are translated
at the exchange rate applicable at the balance
sheet date. Realised and unrealised foreign
currency gains or losses on monetary items are
presented as finance income or finance expense.
Revenue recognition
Revenues from the sale of services are recog-
nised in the income statement once services
have been rendered.
Parent Company
Notes to the Financial
Statements
Annual Report 2023
52
Other fixed assets
Other fixed assets are capitalised and depreciat-
ed linearly over the estimated useful life. Costs
for maintenance are expensed as incurred. If
the carrying value of other fixed assets exceeds
the estimated recoverable amount, the asset is
written down to the recoverable amount. The
recoverable amount is the higher of the net real-
isable value and value in use. In assessing value
in use, the discounted estimated future cash
flows from the asset are used.
Classification of items in the balance sheet
Current assets and current liabilities include
items that fall due for payment within one year
after the balance sheet date. The short-term
part of long-term debt is classified as short-term
debt.
Loans and receivables
Loans and receivables are initially recognised
at fair value net of any transaction costs. The
assets are subsequently carried at amortised
cost using the effective interest method, if the
amortisation effect is material, and the carrying
amount is subsequently reduced by any impair-
ment losses.
Taxes
The income tax expense consists of current
income tax and changes in deferred tax.
Current income tax is the expected tax payable
or receivable on the taxable income or loss for
the year.
Deferred income tax is provided using the
liability method on temporary differences at the
reporting date between the tax bases of assets
and liabilities and their carrying amounts in the
financial statement.
Deferred tax liabilities are recognised for all
Annual Report 2023
53
taxable temporary differences. Deferred tax as-
sets are recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which
the deductible temporary difference can be
utilised. Deferred income tax is calculated on
temporary differences arising on investments in
subsidiaries, except where the timing of the re-
versal of the temporary difference is controlled
by the Company.
Current income tax and deferred tax is recog-
nised in profit or loss except to the extent that it
relates to items recognised directly in equity.
Pensions
The Company is required to provide a pension
plan towards its onshore employees and has
implemented a defined contribution plan. The
plan, which is fully funded, complies with the
requirements in the Mandatory Occupational
Pension act in Norway (“Lov om obligatorisk
tjenestepensjon”). Contributions on salary up
until 12G are funded in a life insurance compa-
ny, whereas contributions on salary above 12G
are transferred to a separately administered
scheme and pledged towards the participating
employees. G refers to the Norwegian National
Insurance basic amount.
Contributions to the pension plan are recog-
nised as an employee benefit expense in the
income statement when they fall due. Prepaid
contributions are recognised as an asset to the
extent that a cash refund or a reduction in the
future payments is expected. The Company has
no further payment obligations once the contri-
butions have been paid.
The liability arising from the plan > 12G is clas-
sified as a non-current liability in the statement
of financial position. Changes in the liability
are recognised as employee benefit expenses
in the income statement in the periods during
which services are rendered by employees. The
liability becomes payable to the employee upon
termination, voluntary or involuntary, of the
employment.
Cash and cash equivalents
Cash represents cash on hand and deposits with
banks that are repayable on demand. Cash in-
cludes restricted employee taxes withheld. Cash
equivalents represent short-term, highly liquid
investments which are readily convertible into
known amounts of cash with original maturities
of three months or less.
Dividends
Proposed dividend payments from the Company
are recognised as a liability in the financial state-
ments on the reporting date 31 December the
current year. This includes dividend proposed in
the period after year-end but prior to issuing the
financial statements.
Cash flow statement
The cash flow statement is presented using the
indirect method.
Annual Report 2023
54
2023
2023
2023
18 321
3 907
1 671
186
24 084
1 698
1 209
6 619
33 611
4
4,6
459
-
-
459
2022
2022
2022
14 799
2 482
1 248
83
18 612
1 586
1 367
4 429
25 995
5
5
386
-
-
386
Note 3 // Administration expenses
Salaries and other remuneration
Social security cost
Pension
Other employee related expenses
Total employee related expenses
Management fees
Consultant, legal and auditor’s fees
Other administration expenses
Total administration expenses
Employees year end
Average number of work years
Statutory audit
Other assurance services
Tax advisory
Total fees to auditor, excl. VAT
The Company has a defined contribution plan for its employees which complies with the requirements in the Mandatory Occu-
pational Pension act in Norway (“Lov om obligatorisk tjenestepensjon”). Contributions on salary up until 12G are funded in a life
insurance company, whereas contributions on salary over 12G are transferred to a separately administered scheme and pledged
towards the participating employees. G refers to the Norwegian National Insurance basic amount.
Please see note 20 in the consolidated financial statements for disclosures regarding remuneration to key management.
Please see note 20 in the consolidated financial statements for disclosures regarding remuneration to Board of Directors.
Information regarding management fees to related parties is provided in note 6.
Administration expenses
Number of employees
Auditor’s fee
Pensions
Remuneration to key management
Remuneration to Board of Directors
Annual Report 2023
55
2023
2023
Note
10 268
102
5 041
726
335
16 472
2023
-
-
2023
20
13 012
2 418
183
15 633
-
-
-
31.12.2023
0
(5 052)
5 537
81 475
81 960
(81 960)
22 %
-
6
Note
6
2022
2022
2 103
1 527
8 950
6 986
312
19 878
2022
3 599
3 599
2022
132
1 240
0
27
1 399
-
-
-
31.12.2022
3
(4 944)
5 614
60 956
61 629
(61 629)
22 %
-
Note 4 // Finance income and expenses
Note 5 // Income taxes
Interest income
Interest income group companies
Currency gain
Dividends and group contributions from subsidiaries
Other finance income group companies
Total finance income
Net gain/(loss) and valuation adjustment of securities
Net gain/(loss) and valuation adjustment of securities
Total Net gain/(loss) and valuation adjustment of securities
Finance expenses
Interest expense
Interest expense group companies
Currency loss
Other finance expenses
Total finance expenses
Current income tax
Changes in deferred tax
Total income tax expense / (income)
Specification of basis for deferred tax
Other fixed assets
Pension assets
Pension liabilities
Tax loss carry forward
Basis for deferred tax asset / (liability)
Not recognised deferred tax assets (basis)
Basis for deferred tax asset / (liability)
Tax rate
Deferred tax asset / (liability)
The Company is subject to ordinary corporation tax in Norway at a tax rate of 22 % in 2023.
Recognition of deferred income tax assets is subject to strict requirements in respect of the ability to substantiate that sufficient
taxable profit will be available against which the unutilised tax losses can be used. Based on these requirements and an assess-
ment by the Company deferred tax assets arising from tax loss carry forward has not been recognised. Utilisation of the tax loss
carry forward is not limited in time.
Currency gains and losses mainly relate to translation effects from bank accounts and balances with subsidiaries denominated
in USD and translated into NOK at the balance sheet date. See note 6 for a specification of finance income and expense payable
from/to group companies.
Finance income
Income tax expense
Tax regime
Annual Report 2023
56
2023
2023
(20 211)
(4 446)
(160)
4 606
0
-
-
-
2022
2022
2 795
615
(419)
(196)
(0)
-
-
-
Note 5 // Income taxes cont
Note 6 // Related parties and investments in group companies
Profit/(loss) before taxes
Tax based on ordinary tax rate (22 %)
Effects from:
Permanent differences
Not recognised deferred tax assets
Effect of change in tax rate
Total income tax expense / (income)
To provide the Company with access to important and required knowledge and services, the Company has entered into various
agreements with related parties. Information regarding these contracts and the transactions and balances with related parties,
except for transactions and balances with subsidiaries, is provided in note 20 in the consolidated financial statement. Transac-
tions with subsidiaries are disclosed below.
As at 31 December 2023 the Company has the following subsidiaries:
Current tax payable recognised in income statement
Current tax payable recognised directly in equity
Total income tax payable
Reconciliation of effective tax rate
Transactions with related parties
Subsidiaries
Income tax payable
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
The subsidiaries’ registered office is Beddingen 8, 0250 Oslo, Norway.
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total carrying amount 31 December
Norway
Norway
Norway
Norway
Norway
Norway
Former vessel SPV
Former vessel SPV
Former vessel SPV
Owner of LNG/C WilForce
Owner of LNG/C WilPride
Technical management
2 February 2011
2 February 2011
2 February 2011
6 May 2011
6 May 2011
17 September 2012
8 692
1 146
10 008
373 800
275 900
10 120
679 665
100 %
100 %
100 %
100 %
100 %
100 %
8 692
1 146
10 008
373 800
275 900
10 120
679 665
100 %
100 %
100 %
100 %
100 %
100 %
Company name
Company name
Country Principial activity Date incorporated
Carrying amount
31.12.2023
Ownership/
voting share
Carrying amount
31.12.2022
Ownership/
voting share
Annual Report 2023
57
Short-term
payables
Short-term
payables
31.12.2022
Short-term
receivables
Short-term
receivables
31.12.2023
Long-term
loans (+)
/borrowings (-)
Long-term
loans (+)
/borrowings (-)
Note
2
2
-
4 707
23
1 384
6 118
3
3
3
-
-
1 350
1 360
10 896
1 753
29 777
10 303
(353)
19 009
71 386
-
-
7
-
-
726
734
-
-
-
1 570
1 106
5 005
7 682
11 766
1 851
32 248
108 455
577
19 009
173 905
-
-
-
(153 472)
-
-
(153 472)
-
-
-
-
-
-
-
7
Note 6 // Related parties and investments in group companies cont
The Company provides financing to its subsidiaries through both long-term and short-term loans. Interest on both long-term
loans and short-term receivables/payables is agreed toSOFR + 3 % for USD denominated loans and NIBOR + 3 % for NOK denomi-
nated loans. See below for interest income from subsidiaries.
Commercial management fee
Awilco LNG ASA provides commercial management services to the vessel owning subsidiaries. The commercial management fees
are based on a fixed fee of USD 100 000 per vessel per year a fixed percentage of gross freight income of 1.25 %.
Short-term receivable TNOK 726 towards Awilco LNG Technical Management AS relates to group contribution.
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total
Balances with subsidiaries
Transactions with subsidiaries
Subsidiary
Subsidiary
Company name
Balances with subsidiaries as at 31 December 2023
Balances with subsidiaries as at 31 December 2022
Cash pool deposits subsidiaries
Annual Report 2023
58
2022
2022
2022
2023
2023
2023
3 874
4 052
7 925
2
0
6
821
691
6
1 527
178
29
487
40
204
302
1 240
7 737
5 021
12 758
-
0
-
21
76
6
102
590
94
1 615
8 193
1 531
990
13 012
Note 6 // Related parties and investments in group companies cont
Awilco LNG 4 AS
Awilco LNG 5 AS
Total
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total
Awilco LNG 1 AS
Awilco LNG 2 AS
Awilco LNG 3 AS
Awilco LNG 4 AS
Awilco LNG 5 AS
Awilco LNG Technical Management AS
Total
Project management fee Awilco LNG Technical Management AS
A subsidiary of the Company, Awilco LNG Technical Management AS, provides project management services to the Company.
In 2023 the Company paid a fee of TNOK 857 for these services (TNOK 801 in 2022).
Guarantee commission from subsidiaries
The Company has issued guarantees towards the lessor of WilForce and WilPride on behalf of lessees’ Awilco LNG 4 AS and Aw-
ilco LNG 5 AS respectively, see note 11. A guarantee commission of TNOK 168 was charged each of the two subsidiaries in 2023
(TNOK 156 each in 2022).
Subsidiary
Subsidiary
Subsidiary
Interest income from subsidiaries
Interest expenses subsidiaries
Annual Report 2023
59
Code FX rate FX rate
31.12.2023
31.12.2023Provisions and accruals
Carrying value Carrying value
31.12.2022
31.12.2022
31.12.2023 31.12.2022
USD
NOK
10.1724
1
9.8573
1
173 905
-
8 979
132 549
141 527
Cash pool deposits subsidiaries
Accrued expenses, invoice not received
Salary related provisions
Other accruals and provisions
Total provisions and accruals
The group has a cash pool arrangement which entails that the subsidiaries’ deposits on these accounts are formally either a
receivable or a liability against Awilco LNG ASA.
As at 31 December 2023 TNOK 3 763 was restricted cash related to employee withholding tax (31 December 2022 TNOK 2 667),
TNOK 763 was restricted cash related to requirements from operating Awilco LNG’s vessels (31 December 2022 TNOK 765)
and TNOK 0 was restricted cash provided as deposit towards the office lease (31 December 2023 TNOK 376) as the office lease
agreement ended in 2023.
Awilco LNG’s liquidity is organised in a cash pool arrangement in which cash in the subsidiaries formally represents receivables
or payables towards the parent company Awilco LNG ASA. The Group companies are jointly and severally liable for the total
outstanding amount under the arrangement.
Information about the Company’s share capital is provided in note 18 to the consolidated accounts.
General information regarding capital and financial risk management is provided in note 19 in the consolidated accounts. Awilco
LNG ASA presents its financial statement in NOK, and is thus exposed to foreign exchange translation risk on monetary items
denominated in foreign currencies.
Information on events after the reporting date is disclosed in note 24 in the consolidated accounts.
Please see note 23 in the consolidated accounts. In addition, Awilco LNG ASA has issued certain guarantees on behalf of
companies in the Awilco LNG Group:
The Company has issued a guarantee towards CCB Financial Leasing Co. Ltd on behalf of the Company’s subsidiaries Awilco LNG
4 AS and Awilco LNG 5 AS, guaranteeing for the performance of the bareboat charter agreements described in note 21 in the
consolidated accounts.
28 149
6 048
34 197
89 440
8 573
98 014
71 386
-
5 415
66 274
71 689
Note 7 // Cash and cash equivalents
Note 8 // Share capital
Note 10 // Capital and financial risk management
Note 12 // Events after the reporting date
Note 11 // Commitments, contingencies and guarantees
Note 9 // Provisions and accruals
US dollars
Norwegian kroner
Total cash and cash equivalents
Currency
Annual Report 2023
60
Auditor’s Report
Statsautoriserte revisorer
Ernst & Young AS
Stortorvet 7, 0155 Oslo
Postboks 1156 Sentrum, 0107 Oslo
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Awilco LNG ASA
Repor t on the audit of the financial statem ent s
Opinion
We have audited the financial statements of Awilco LNG ASA (the Company) which comprise the
financial statements of the Company and the consolidated financial statements of the Company and its
subsidiaries (the Group). The financial statements of the Company comprise the statement of financial
position as at 31 December 2023 and the income statement, cash flow statement and statement of
changes in equity for the year then ended and notes to the financial statements, including a summary of
significant accounting policies. The consolidated financial statements of the Group comprise the
statement of financial position as at 31 December 2023, the income statement, statement of
comprehensive income, cash flow statement and statement of changes in equity for the year then ended
and notes to the financial statements, including material accounting policy information.
In our opinion
the financial statements comply with applicable legal requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2023 and its financial performance and cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway,
the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2023 and its financial performance and cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We are independent of the Company and the Group in
accordance with the requirements of the relevant laws and regulations in Norway and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 13 years since incorporation on 2 February 2011 (with a
renewed election on 24 May 2022).
Penneo Dokumentnøkkel: E3D4H-EJUSA-3T8TN-0PKW0-7MLO2-PMZOB
2
Independent auditor's report - Awilco LNG ASA 2023
A member firm of Ernst & Young Global Limited
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements for 2023. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the financial statements.
Accounting estimates related to vessels
Basis for the key audit matter
As per 31 December 2023, the Group owned two
2013 built 156,000 cbm TFDE LNG carriers. The
accounting estimates for these assets require
management’s judgement and have material
impact for the group due to the assets’
cumulative value and long-lived nature. The key
estimates include assessment of useful lives and
evaluation of indicators of impairment. If
impairment indicators are present, testing of
carrying values for impairment is based on
estimated recoverable amounts. As these
estimates have material impact on the Group,
this was considered a key audit matter.
Management did not identify indicators of
impairment for any of the vessels. Management
has changed the estimate of useful life for the
vessels from 40 to 35 years.
Our audit response
We compared the estimates of useful life to
industry practice, assessed the risk of assets
becoming stranded, and considered the estimate
in light of the group’s strategy and future
expectations to environmental requirements. We
further recalculated depreciations for the year.
We assessed potential indicators of impairment
for each vessel and evaluated management’s
assessment of indicators. Finally, we read the
disclosures regarding this assessment, which are
included in note 2 and note 10 to the Group’s
consolidated financial statements.
Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and the Chief Executive
Officer) is responsible for the other information. Our opinion on the financial statements does not cover
the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that the other information is materially inconsistent with the
financial statements, there is a material misstatement in this other information or that the information
required by applicable legal requirements is not included in the board of directors’ report, the statement
on corporate governance or the statement on corporate social responsibility, we are required to report
that fact.
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3
Independent auditor's report - Awilco LNG ASA 2023
A member firm of Ernst & Young Global Limited
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation of the financial statements of the Company that give a
true and fair view in accordance with the Norwegian Accounting Act and accounting standards and
practices generally accepted in Norway, and for the preparation of the consolidated financial statements
of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by
the EU. Management is responsible for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
Penneo Dokumentnøkkel: E3D4H-EJUSA-3T8TN-0PKW0-7MLO2-PMZOB
4
Independent auditor's report - Awilco LNG ASA 2023
A member firm of Ernst & Young Global Limited
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Repor t on other legal and r egulator y r equir em ent
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Awilco LNG ASA we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 5967007LIEEXZXJO5C34-2023-12-31-en, have been prepared, in all
material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to
Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial
statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF Regulation.
Management’s responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
Regulation. This responsibility comprises an adequate process and such internal control as management
determines is necessary.
Auditor’s responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in accordance with
the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial
information”. The standard requires us to plan and perform procedures to obtain reasonable assurance
Penneo Dokumentnøkkel: E3D4H-EJUSA-3T8TN-0PKW0-7MLO2-PMZOB
5
Independent auditor's report - Awilco LNG ASA 2023
A member firm of Ernst & Young Global Limited
about whether the financial statements included in the annual report have been prepared in accordance
with the ESEF Regulation.
As part of our work, we perform procedures to obtain an understanding of the company’s processes for
preparing the financial statements in accordance with the ESEF Regulation. We test whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL
tagging of the consolidated financial statements and assess management’s use of judgement. Our
procedures include reconciliation of the iXBRL tagged data with the audited financial statements in
human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Oslo, 16 April 2024
ERNST & YOUNG AS
The auditor's report is signed electronically
Johan Lid Nordby
State Authorised Public Accountant (Norway)
Penneo Dokumentnøkkel: E3D4H-EJUSA-3T8TN-0PKW0-7MLO2-PMZOB
Annual Report 2023
66
CORPORATE GOVERNANCE
The main strategy for Awilco LNG ASA
(the Company or Awilco LNG) is to create
shareholder value through the provision of
a quality, reliable and customer-oriented
service to the market, in the best manner for
its shareholders, employees and business
connections. Awilco LNG strives to protect and
enhance shareholder equity through openness,
integrity and equal shareholder treatment, and
sound corporate governance is a key element in
the basis of the Awilco LNG strategy.
The corporate governance principles of the
Company are adopted by the Board of Directors
of Awilco LNG ASA (the Board). The principles
are based on the Norwegian Code of Practice
for Corporate Governance, dated 14 October
2021 (the «Code of Practice»). Below follows
a description of the basis that Awilco LNG
has implemented the Code of Practice. This
description follows the same structure as the
Code of Practice and covers all sections thereof.
Deviations, if any, from the Code of Practice are
discussed under the relevant section.
1 IMPLEMENTATION AND REPORTING ON
CORPORATE GOVERNANCE
The Board of Directors shall ensure that
appropriate goals and strategies are adopted,
that the adopted strategies are implemented
in practice, and that the results achieved are
subject to measurement and follow-up. The
principles shall also contribute to ensure that
the activities of the Company are subject to
adequate controls. An appropriate distribution
of roles and adequate controls shall contribute
to the largest possible value creation over
time, for the benefit of the owners and other
stakeholders.
The Company has defined a mission statement
“Marine Transportation through Safety and
Environmental Excellence” and identified a set
of core objectives that describes the focus and
continuous improvement process based on
the mission statement. The objectives include
policies regarding; safeguarding of people, ships
and cargoes, focus on limitation of any negative
impact on the environment from our vessels
and a separate statement regarding Safety
Management & Environmental Protection Policy.
Corporate Governance
Annual Report 2023
67
This policy document, which is available on the
Company’s website www.awilcolng.no, describes
the basic principles of the corporate values.
Awilco LNG’s code of conduct – values and ethics
forms an important foundation for Awilco LNG’s
corporate governance and demands high ethical
standards, in which focus on safety and integrity
are key factors. The Company has continuous
focus on making sure that the corporate values
are practiced in the Company’s everyday life.
The Company’s code of conduct – values and
ethics can be found on the Company’s website.
2 THE BUSINESS
According to the Company’s articles of
association, its purpose is to carry out “shipping
and other business related hereto”. The
objectives clause of the Company also includes
“acquisitions, management, borrowings and
sale of capital assets in the shipping business
in addition to investments in shares, bonds and
partnership contributions of any type connected
with shipping, as well as participation, including
ownership stakes in other shipping companies
and other business naturally connected hereto.”
The principal objectives and strategies of the
Company are presented in the annual report
and are subject to annual assessments.
The Company’s social responsibility is set out in
a separate section in the annual report.
3 EQUITY AND DIVIDENDS
The Company’s equity is assessed as
appropriate based on its objectives, strategies
and risk profile. The book equity of the Awilco
LNG Group as per 31 December 2023 was USD
144.7 million, which represents an equity ratio
of 41.4 %.
The Company’s long-term objective is to pay a
regular dividend in support of the Company’s
main objective to maximise return on invested
capital. The Board of Directors approved a
revised dividend policy in November 2022.
The Board is committed to return value
to shareholders and intend to continue to
distribute a substantial part of annual free cash
flow, paid out quarterly, always subject to debt
covenants, capital requirements and a robust
cash buffer. An updated proposal for quarterly
dividend payments will be presented to the
Annual General Meeting.
To the extent it is considered desirable, the
Company may raise new equity in the capital
markets.
The Board is currently not authorised to
purchase own shares in the market.
4 EQUAL TREATMENT OF SHAREHOLDERS AND
TRANSACTIONS WITH RELATED PARTIES
The Company has one class of shares, and each
share has one vote at the General Meeting.
Where the board resolves to carry out an
increase in share capital and waive the pre-
emption rights of existing shareholders based
on a mandate granted to the Board of Directors,
the justification should be publicly disclosed
in a stock exchange announcement issued in
connection with the increase in share capital.
Any transactions the Company carries out in its
own shares are carried out through the stock
exchange and at prevailing stock exchange
prices.
In the event of any material transactions
between the Company and shareholders,
Directors or close associates thereof, the
transactions will be conducted on arm’s length
terms and the Board of Directors shall consider
arranging for an independent assessment of the
transaction.
Until August 7, 2023 Awilco LNG had a sub-
management agreement with Awilco Technical
Services AS (ATS) for assistance in technical
management of the fleet. From August 8, 2023
Awilco LNG entered into a service agreement
with Integrated Wind Solution AS (IWS) and
from that day Awilco LNG buys the same
services from IWS instead of ATS. Furthermore,
Awilco LNG has entered into agreements
with Awilhelmsen Management AS (AWM) for
administrative services and rent of offices,
the latter started in 2023. AWM is a related
Annual Report 2023
68
company to Awilco AS, which owns 38.6 % of
the shares in Awilco LNG. The management fees
are, in the Company’s opinion, made at market
terms. Information regarding transactions with
related parties is described in note 21 to the
consolidated financial statements.
5 FREELY NEGOTIABLE SHARES
The shares of Awilco LNG are listed on the
Euronext Expand stock exchange. All issued
shares carry equal shareholder rights in all
respects, and there are no restrictions on
transfer of shares. The articles of association
place no restrictions on voting rights.
6 GENERAL MEETINGS
The Annual General Meeting will normally
take place in the second quarter of each year,
and latest by 30 June. Notice of the meeting
will normally be published through the Oslo
Stock Exchange distribution channel and the
Company’s website at least 21 days in advance.
Documentation containing the information
necessary for the shareholders to make
decisions on all the items on the agenda will
simultaneously be made available on the
Company’s website and will only be sent to
shareholders that request the documentation
on paper. The Board may decide by the notice
of the meeting that shareholders who intend
to attend the General Meeting shall give notice
to the Company within five days prior to the
General Meeting.
Registration is made in writing or by e-mail. The
Board wishes to make efforts to enable as many
shareholders as possible to attend.
Shareholders who are not able to attend are
invited to meet by proxy, and efforts will be
made for the proxies to relate to each individual
item on the agenda.
The General Meeting will be chaired by the
Chairperson of the Board unless otherwise
agreed by a majority of those shares
represented at the meeting.
7 NOMINATION COMMITTEE
According to the articles of association the
Company shall have a Nomination committee
which has the responsibility of proposing
members to the Board of Directors and
members of the Nomination committee. The
Nomination committee shall also propose fee
payable to the members of the Board and the
members of the Nomination committee.
The members of the Nomination committee
shall be shareholders or representatives of
shareholders. The members of the Nomination
committee, including its Chairperson, are
elected by the General Meeting. The members
of the Nomination committee’s period of service
shall be two years unless the General Meeting
decides otherwise.
The Nomination committee is to maintain
contact with shareholder groups, members
of the Board of Directors and the Company’s
executive personnel in its works with proposing
members to the Board of Directors.
The Annual General Meeting held on May
11, 2023 elected the current Nomination
committee consisting of Eric Jacobs and Henrik
A. Christensen.
8 THE BOARD OF DIRECTORS; COMPOSITION
AND INDEPENDENCE
The Company’s Board of Directors shall
comprise three to six directors pursuant to the
decision of the General Meeting. The Directors
are elected for a period of two years unless
otherwise determined by the General Meeting.
The Board appoints the Chairperson amongst
the elected Board members.
The composition of the Board of Directors aims
to ensure that the interests of all shareholders
are represented. Currently three of the five
directors are independent from the principal
shareholder of the Company. The Board
consists of the following members: Synne Syrrist
(Chairperson), Ole Christian Hvidsten, Jens-Julius
R. Nygaard, Jon-Aksel Torgersen and Annette
Malm Justad.
9 THE WORK OF THE BOARD OF DIRECTORS
The Board’s statutory duties include the
overall administration and management of the
Company. The Board adopts a meeting schedule
Annual Report 2023
69
for the following year in the fourth quarter
each year. The directors shall normally meet in
person, but if so allowed by the Chairperson,
directors may participate in any meeting by
means of telephone.
The allocation of responsibilities and tasks
within the Board of Directors is regularly
discussed and monitored. The Board is regularly
briefed on the Company’s financial situation,
the vessels’ chartering and market situation,
liquidity situation and cash flow forecast, as well
as any changes in the competition situation. The
Board performs a yearly evaluation of its work.
The Board has established an Audit committee
consisting of Ole Christian Hvidsten (Chairman)
and Synne Syrrist and has implemented an
Audit committee charter. The Company’s CFO is
the secretary of the committee. The auditor shall
participate in discussions of relevant agenda
items in meetings of the Audit committee. The
committee shall hold separate meetings with
the auditor and the CEO at least once a year.
Furthermore, the Company has established
a Remuneration committee consisting of
Synne Syrrist and Jens-Julius R. Nygaard. The
Remuneration committee prepares guidelines
and proposals regarding remuneration of
executive personnel, which are reviewed and
resolved by the Board of Directors.
10 RISK MANAGEMENT AND INTERNAL
CONTROL
The Board ensures that the Company has
satisfactory internal control procedures to
manage its exposure to risks related to the
conduct of the Company’s business, including
social responsibility, to ensure compliance with
laws and regulations and to support the quality
of its financial reporting. The Board performs an
annual review of the Company’s key risks and
the internal controls implemented to address
these risks. The Board has identified and stated
the various risks of Awilco LNG in the Company’s
annual report. Additionally, the Board is
regularly briefed on the Company as described
under section 9 above.
The Company has established an Audit
committee that regularly evaluates and
discusses the various risk elements of Awilco
LNG, and potential for improvement. The Audit
committee reports to the Board.
Awilco LNG’s main goal is safe and efficient
ship operation with no accidents, personal
injury, environmental damage, or damage to
equipment. In order to achieve these goals
Awilco LNG has identified some core objectives
that describe our focus and our continuous
improvement process. The operation of
technical management and newbuildings
is closely monitored through dedicated
supervision and safety reporting systems.
Furthermore, the Company has established
contingency plans and executes drills and
training in order to improve emergency
preparedness.
In addition to its own controlling bodies and
external audit, the Company’s ship management
is subject to external supervision by Det Norske
Veritas (DNV) for certification in accordance with
ISO.
11 REMUNERATION OF THE BOARD OF
DIRECTORS
The remuneration of the Board shall reflect
the Board’s responsibilities, knowhow, time
commitment and the complexity of the
business activities. The directors do not receive
profit related remuneration, share options or
retirement benefits from the Company. The
remuneration is proposed by the Nomination
committee. More information about the
remuneration of the individual directors
is provided in note 21 in the consolidated
accounts.
Directors or their related companies shall
normally not undertake special tasks for the
Company in addition to the directorship.
However, the Company utilises outsourcing
of technical sub-management, accounting
and administrative services from AWM which
is a related company. All agreements and
fees with related parties are approved by the
Board. Furthermore, the members of the Audit
committee and Remuneration committee
receive a fee for serving on the committees.
Annual Report 2023
70
12 REMUNERATION OF EXECUTIVE
PERSONNEL
The Board has drawn up guidelines regarding
remuneration to leading persons. The
remuneration is based on a base salary and
a bonus program. The guidelines regarding
remuneration to leading persons have
been prepared by the board of directors in
accordance with section 6-16 a of the Norwegian
Public Limited Liability Companies Act and
was adopted by the Annual General Meeting
in 2021. Awilco LNG will present a report
on remuneration to leading persons to be
approved by the Annual general meeting in
2024.
For information about remuneration of
executive personnel see note 21 in the
consolidated accounts.
13 INFORMATION AND COMMUNICATION
The Company aims to keep shareholders,
analysts, investors and other stakeholders
continuously updated on the Company’s
operations and performance. The Company
provides information to the market through
quarterly and annual reports; investor- and
analyst presentations open to the media and by
making operational and financial information
available on the Compa¬ny’s website.
Information of importance are made available
to the stock market through notifica¬tion to
the Oslo Stock Exchange in accordance with
the Stock Exchange regulations. Informa¬tion is
provided in English.
All stock exchange announcements and press
releases, including the financial calendar, are
made available on the Company’s website.
14 TAKE-OVER
The Company’s Articles of Association contains
no defence mechanism against the acquisition
of shares, and no other actions have been taken
to limit the opportunity of acquiring shares in
the Company.
In the event of a takeover bid the Board will
seek to comply with the recommendations
outlined in item 14 of the Code of Practice. If
a bid has been received, the Board will seek
to issue a statement evaluating the offer
and make recommendations as to whether
the shareholders should accept the offer or
not. Normally it will be required to arrange a
valuation from an independent expert.
If the Board finds that it is unable to give a
recommendation, the Board will explain the
reason for not giving a recommendation. The
statement should show whether the decision
was unanimous, and if not, the background for
why certain Board members did not adhere to
the statement. If a situation occurs where the
Board proposes to dispose of all or a substantial
part of the activities of the Company such a
proposal will be placed before the General
Meeting.
15 AUDITOR
The auditor is appointed by the General
Meeting, which also determines the auditor’s
fee. The auditor shall annually present an
audit plan to the Audit committee. The auditor
attends the Board of Director’s review and
discussion of the annual accounts. The Board
of Directors minimum holds one annual
meeting with the auditor without the CEO or
other members of the executive group being in
attendance.
The Company’s management regularly holds
meetings with the auditor, in which accounting
principles and internal control routines are
reviewed and discussed.
The auditor shall annually confirm compliance
with the applicable independence rules and
regulations in legislation and the audit firm’s
internal independence standards. The Audit
committee has issued guidelines stipulating
the management’s possibility to undertake
consulting services by the auditor. Auditor’s
fees are disclosed in note 21 in the consolidated
accounts.
Annual Report 2023
71
INTRODUCTION
The Awilco LNG Group (Awilco LNG or the
Company) has implemented a set of objectives,
principles and procedures concerning our
social responsibility to enable the Company
to achieve and maintain its mission statement
and objectives. Awilco LNG has implemented
the highest standard of safe operation to meet
all environmental protection requirements,
ensuring safe custody of our vessels, crew,
customers’ cargoes and owner’s interests. Our
commitment to our social responsibility ensures
that Awilco LNG is a preferable LNG shipping
company.
Awilco LNG is engaged in the global marine
transportation of LNG. Marine transportation
is generally considered the most efficient
form of transporting natural gas over long
distances. Natural gas is widely accepted as
the least pollutive fossil fuel and emits up
to 60 % less CO2 than coal when used for
electricity generation. Natural gas is widespread,
flexible, abundantly available and cheap when
comparing to other fossil fuels. The increased
use of natural gas is expected to reduce the
use of more pollutive fossil fuels such as coal
and oil in the global energy mix. Awilco LNG’s
contribution to sustainable economic growth
mainly relates to the potential for increased use
of natural gas in the global energy mix.
Awilco LNG aims to provide positive impact on
the communities we operate in, our employees,
clients and suppliers through the Code of Ethics
and Conduct (available at our webpage www.
awilcolng.no), such as opposing corruption and
facilitation payments in any form.
In general, global marine transportation has a
significant effect on the environment. Awilco
LNG takes this impact seriously, working
continuously to reduce our environmental
footprint through improving fuel efficiency,
Social Responsibility
Annual Report 2023
72
optimising trade routes and improving waste
management.
This report constitutes Awilco LNG’s reporting
according to the requirements of the Norwegian
accounting act § 3-3c on social responsibility
reporting.
SCOPING OF MATERIAL ISSUES FOR
AWILCO LNG
A materiality assessment forms the basis for
how we prioritise our social responsibility
efforts, and thereby also impacts our internal
and external reporting on social responsibility.
The following issues have been assessed as the
most material based on both their importance
to Awilco LNG’s business and to Awilco LNG’s
stakeholders such as employees, customers,
suppliers, regulators and investors:
The Company’s strategy is to integrate
sustainability on these matters systematically
into all material business processes to ensure
Awilco LNG is assessed as a responsible
enterprise.
THE MATERIAL ISSUES
Mission statement
Awilco LNG’s mission statement is “Marine
transportation through safety and
environmental excellence”.
Health and safety
Company policies and objectives
The safety and well-being of Awilco LNG’s
employees and seafarers has the highest
priority, as set out in the mission statement
above and detailed in the Company’s Safety
Management & Environmental Protection
Policy. Our objectives are zero accidents and no
personnel injuries. The Group shall adhere to
national and international laws and regulations
and constantly promote best practices identified
within its own operations and the industry
to improve the competence of individual
crewmembers and vessel safety performance.
How we achieve our objectives
Our objectives are operationalised in the
Company’s Safety Management & Environmental
Protection Policy. The objective of this policy is
to ensure that the Company gives the highest
priority to the safety of human life and health
through the following measures:
• Provide support to ships’ operation by
implementation of a well-structured Safety
Management System (SMS) based on a
well-defined management organisation.
The SMS is an integral part of all our
activities and includes instructions and
procedures which contribute to the
highest safety standards onboard our
ships, ensuring that cargo is handled
correctly and preventing situations which
threaten safety of our personnel. The SMS
is based on national and international
requirements and standards for quality
and safety, including the ISM code
(International Management Code for the
Safe Operation of Ships and Pollution
Prevention), ISO 14001 (environmental
management system), ISO 9001 (quality
management system) and the TMSA
(Tanker Management and Self-Assessment
guidelines) issued by OCIMF (Oil
Companies International Marine Forum)
• Operate the vessels with continuously
properly trained, informed and motivated
IMPORTANCE TO BUSINESS
IMPORTANCE TO STAKEHOLDERS
Environmental
impact
Anti-
corruption
Health and
safety
Annual Report 2023
73
crews. Awilco LNG aims to ensure a stable
and motivating work environment for
both onshore and offshore employees,
ensuring high retention rates. The
Group is proactively seeking to identify
requirements and needs for additional
training through regular audits, master and
management reviews. A healthy lifestyle is
promoted by providing fresh and healthy
food and physical exercise opportunities
• Provide, equip and maintain the ships
to the necessary standard as required
by national regulation and international
convention
• Avoid safety hazards through preventive
safety measures
• Establish contingency plans and execute
drills and training to improve emergency
preparedness to meet situations which
represent dangers to life, health,
environment, ship and cargo
• Implement and maintain a safety
management culture within the Company
• Use a reporting system for accidents,
near accidents, non-conformities and
improvements, with special attention
to the learning effect through feedback
of experience and suggestions for
improvement
• Use performing measures to
continuously improve our operations
To accomplish the objectives Awilco LNG will
plan, organise, perform, document and verify
performance. Awilco LNG has a comprehensive
Risk Management Program which includes
detailed step by step risk assessment
procedures.
Performance in 2023
The Company’s senior management is
actively engaged in monitoring Awilco LNG’s
performance in order to further encourage
and promote positive trends, to provide
advice and to take corrective action where
negative trends are detected. Performance
and results are measured using certain Key
Performance Indicators (KPIs). KPI targets
are resolved by senior management on an
annual basis, and results are reported to senior
management on a quarterly basis. Procedures
and any new initiatives shall be part of the
management review and include monitoring
and measurements, adjustment of targets,
and recording of achieved improvements. The
procedures and activities shall be audited on a
routine basis. The following main KPIs are the
focus of Awilco LNG with regards to health and
safety:
KPI
Denition Result 2023 Result 2022
Number of accidents per one-million man-hours worked
0 2.1
2.1 4.2
1 3
Number of deaths among the crew resulting from a work
NIL NIL
Annual Report 2023
74
Going forward
Performance in 2023 was satisfactory and
improved from the results in 2022. Only one
Restricted Work Case occurred onboard in
third quarter, and no more serious injuries
were reported from either vessel. The injured
crewmember has quickly recovered with no
long-term effects.
In 2024 Awilco LNG will continue efforts to
improve and strengthen the safety culture and
return to 0 injuries for the year.
The Company’s objectives are zero accidents
and no personnel injuries.
Environmental impact
Background
Awilco LNG’s potential environmental impact
can be divided in three main components:
1. Emissions from fuel consumption
2. Major environmental accidents
3. Waste management including
ballast water and spills
Although the shipping industry contributes with
3 to 4 % of the global annual CO2 emissions
to the atmosphere, marine transportation is
generally considered as the most efficient form
of transporting natural gas over long distances.
Awilco LNG’s fleet consists of vessels with tri-fuel
propulsion systems, which mainly run on boil-
off gas from the LNG cargo. When natural gas
is cooled down to its liquefied state at minus
160 degrees Celsius, a certain amount of the
LNG will naturally re-gasify into its gaseous state
(boil-off gas). The boil-off gas is produced at a
rate dependent on the outside temperature
and the level of filling of the tanks and can
either be reliquefied into LNG or used as fuel
for propulsion of the vessels. Due to the cost
and energy needed to power a reliquification
process plant very few vessels are outfitted
with such plants. The boil-off gas is thus used
for propulsion, which makes sense both
economically, as natural gas is significantly
cheaper than oil-based alternatives, and also
environmentally, as natural gas is a considerably
cleaner fuel than oil-based alternatives.
Compared to oil-based fuels, natural gas emits
10-20 % less greenhouse-gases, virtually zero
SOx and particulate matter and 90 % less NOx.
As LNG vessels carry regular bunkers for ballast
voyages the potential for major environmental
accidents mainly relate to the risk of a ship
suffering a breach and subsequently leaking
substantial amounts of bunkers oil into the
environment.
The last potential impact is waste produced by
the vessels, discharge of untreated ballast water
and potential spills of chemicals, bilge water
and sludge etc. into the environment. Discharge
of untreated ballast water may potentially
introduce non-native organisms into marine
environments worldwide.
Company policies and objectives
Based on the long-term goal of environmental
excellence, and as set out in the Company’s
Safety Management & Environmental Protection
Policy, Awilco LNG works toward minimising the
environmental impact from its vessels with the
goal of zero spills. The Company has adapted a
zero-tolerance policy towards:
• Spills to the environment
• Emissions of ozone depleting substances
• Unauthorised disposal of garbage or
waste to the marine environment
Additionally, Awilco LNG aims to minimise as
far as practically possible the emission of CO2,
NOx and SOx from combustion engines, boilers,
incinerators and emissions from cargo and fuel
oil tanks and systems through evaporation.
Awilco LNG shall adhere to national and
international environmental laws and
regulations, and constantly promote best
practices identified within its own operations
and the industry to improve our impact on the
environment.
How we achieve our objectives
Our objectives are operationalised in the
Company’s Safety Management & Environmental
Protection Policy. The objective of this policy is
to ensure that the Company gives the highest
priority to the environment through the
Annual Report 2023
75
following measures:
• Provide support to ships’ operation by
implementation of a well-structured Safety
Management System (SMS) based on a
well-defined management organisation.
The SMS is an integral part of all our
activities and includes instructions and
procedures which contribute to the highest
safety standards onboard our ships,
ensuring that cargo is handled correctly
and preventing situations which threaten
the environment. The SMS is based on
national and international requirements
and standards for quality and safety,
including the ISM code and the TMSA
issued by OCIMF
• The management system of the fleet is
certified according to ISO 14001 and ISO
9001
• Operate the vessels with continuously
properly trained, informed and motivated
crews
• Provide, equip and maintain the ships
to the necessary standard as required
by national regulation and international
convention. Both WilForce and WilPride
are fitted with ballast water treatment
systems.
• Establish contingency plans and execute
drills and training to improve emergency
preparedness to meet situations which
represent dangers to life, health,
environment, ship and cargo
• Implement and maintain a safety
management culture within the Company
• Use a reporting system for accidents,
near accidents, non-conformities and
improvements, with special attention
to the learning effect through feedback
of experience and suggestions for
improvement
• Antifouling paint systems with lowest
resistance (Jotun X200)
• Hull and engine performance monitoring
systems are installed on the vessels and
used for monitoring of performance (KYMA
system)
• Optimisation of hull and propeller
cleaning intervals to reduce drag and fuel
consumption
• Replaced bottled water for crew with
buying in bulk
• Improved waste handling onboard and
increased amount of waste being sent
ashore
• Implement a policy of environmentally
friendly purchasing with approved vendors
based not only on cost and quality but also
environmental performance and focus;
procurement and purchasing activities
shall address environmental aspects such
as:
i. Reducing packaging volumes;
ii. Encouraging recycling activities; and
iii. Use of non-disposable and recyclable
equipment and materials
• Onshore focus on saving energy,
recycling and reducing use of single use
plastics
• Use performing measures to
continuously improve our operations
• Continuously consider vessel technical
improvements and retrofits to reduce fuel
consumption and lower environmental
footprint
The same risk assessment procedures and
continuous improvement tools and initiatives
as described under Health and Safety above
is utilised in Awilco LNG’s work to reduce its
environmental impact.
Performance in 2023
The Company’s senior management is
actively engaged in monitoring Awilco LNG’s
performance, in order to further encourage
Annual Report 2023
76
and promote positive trends, to provide
advice and to take corrective action where
negative trends are detected. Performance
and results are measured using certain Key
Performance Indicators (KPIs). KPI targets
are resolved by senior management on an
annual basis, and results are reported to senior
management on a quarterly basis. Procedures
and any new initiatives shall be part of the
management review and include monitoring
and measurements, adjustment of targets,
and recording of achieved improvements. The
procedures and activities shall be audited
on a routine basis. The following main KPIs
are the focus of Awilco LNG with regards to
environmental impact:
KPI
Denition Result 2023 Result
2022
Number of releases of substances to the
environment
The number of releases of substances to the environment
covered by MARPOL Annex 1-6
NIL NIL
Annual eciency rate (AER) The mass of carbon emissions per ton-mile [g/nm*ton)]
(based on vessel DWT)
6.8 8.67
CO2 eciency laden voyages The total mass of emitted CO2 in grams per m3-mile
7.49 9.07
NOx eciency laden voyages The total mass of emitted NOx in grams per m3-mile
0.141 0.16
SOx eciency laden voyages The total mass of emitted SOx in grams per m3-mile 0.00082 0.0019
2023 emissions performance
In 2023 there was a significant positive
development in the CO2 intensity for the
vessels. The improvement is attained by a
higher level of activity; less idling and ballast
voyages. In addition, both vessels completed
their dry-dockings in 2023, with increased hull
performance as a result.
Going forward
Environmental emissions are to a large extent
dependent on charterers operations and type of
fuel burned in ships engines. In 2024 Awilco LNG
will continue efforts to reduce the Company’s
environmental footprint.
EEXI, CII and EU-ETS
From 2023 our vessels were required to comply
with the new regulations on energy efficient
design and operation, EEXI and CII. Both vessels
in the fleet have been confirmed to be in
compliance with their EEXI and have onboard
approved EEXI technical files.
With respect to CII, both vessels have operated
in 2023 with an emission intensity that
corresponds to a “C” rating. We are working
closely with charterers to ensure that the
operation of the vessels is planned and
executed in a way that ensures this C rating is
achieved also for following years.
Starting from 2024, our vessels will be required
through the EU Emissions Trading System (ETS)
to submit emissions allowances for carbon
emissions during voyages to and from EU
ports. Monitoring and Reporting of the carbon
emissions are already in place through our
Annual Report 2023
77
procedures for EU MRV reporting. Inclusion
of ETS clauses for future and current charter
parties is in progress.
Anti-corruption
Company policies and objectives
Corruption is generally estimated to cost at
least 5 % of global GDP each year. Reduced
corruption would increase safety for seafarers,
reduce costs of operations and reduce
complexity and risk. Awilco LNG is a firm
opponent of corruption in any form, and is
committed to the highest ethical standard in
business conduct worldwide. Awilco LNG desires
fair and open competition in all markets, both
nationally and internationally. Awilco LNG’s
policy is to comply with all applicable laws and
governmental rules and regulations in the
country in which it is operating.
How we achieve our objectives
The Company’s anti-corruption policies are
described in our Code of Ethics and Conduct
document. The following policies to address
the objectives have been implemented in the
Company:
• No employee of the Company shall
directly or indirectly offer, promise, give
or receive bribe, illegal or inappropriate
gifts or other undue advantages or
remuneration in order to achieve business
or other personal advantage
• Under no circumstances shall the
Company or any of its employees be
part of actions that breach applicable
competition legislation. Any employee is to
confer with his or her immediate superior,
the executive management or the board
if he or she has a question with respect
to the possible anti-competitive effect of
particular transactions or becomes aware
of any possible violation of applicable
competitive legislation
Implementation of the Company’s policies takes
place through emphasis on awareness and the
use of risk assessments on a Group level.
Performance in 2023
As in previous years, management has
not become aware of any breaches of the
Company’s Code of Ethics and Conduct
throughout the year.
Going forward
Going forward Awilco LNG will continue work
to ensure that our standards of behaviour are
according to the Code of Ethics and Conduct,
and the Company expects that the positive
results from previous years are upheld.
Annual Report 2023
78
Alternative Performance
Measures
Alternative performance measures (APMs), defined as financial
performance measures not within the applicable financial reporting
framework, are used by Awilco LNG to provide supplemental information.
Financial APMs are intended to enhance comparability of the results and
cash flows from period to period, and it is Awilco LNG’s experience that
these are frequently used by analysts and investors.
defined, calculated and used consistently.
Operational measures such as, but not limited
to, volumes, utilisation and prices per MMBTU
are not defined as financial APMs. Financial
APMs should not be considered as a substitute
for measures of performance in accordance
established internal control procedures.
Awilco LNG’s financial APMs:
term interest-bearing debt +
Short-term interest-bearing debt
current liabilities
divided by Total assets
Net freight income including loss
of hire insurance divided by the number
of calendar days less off-hire days not
covered by loss of hire insurance
The reconciliation of Net freight income, EBIT
and EBITDA with IFRS figures can be derived
directly from the Group’s consolidated Income
Statement.
When vessels operate in the spot market,
freight income includes bunkers compensation
and the fuel element of ballast bonuses,
the corresponding bunkers costs and other
repositioning costs. The APM net freight
provides for improved comparability of the
Group’s performance between periods.
Awilco LNG ASA
Beddingen 8 Aker Brygge
Postal address: