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AWILCO LNG ASA ANNUAL REPORT 2021
Design and layout: BIG FISH
Table of contents
Contents
About Awilco LNG
Organisation
Vessel Overview
Shareholder Information
Board of Director’s Report
Statement of Responsibility
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Consolidated Financial Statements
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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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
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.
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.
ABOUT AWILCO LNG
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.
IAN S. WALKER
SVP Chartering
Mr. Walker previously held a similar position within Golar LNG,
and before that held various commercial, marketing and project
development positions in LNG projects for both BG and Shell.
Mr. Walker has been involved in the natural gas & shipping
industry for more than 35 years. Mr. Walker is a Scottish citizen
and resides in Norway.
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.
MANAGEMENT
Awilco LNG had seven employees at the end of 2021. 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 and technical sub-management
services from Awilco Technical Services AS, both companies in
the Awilhelmsen Group.
ORGANISATION
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AWILCO LNG ASA ANNUAL REPORT 2021 AWILCO LNG ASA ANNUAL REPORT 2020
7
YEAR BUILT
2013
YARD
DSME
CAPACITY
156,007 M3
DWT
87,750 MT
DRAFT
12.521 M
MANAGER
ALNG TM
FLAG
NIS
PROPULSION
TFDE
WILFORCE
YEAR BUILT
2013
YARD
DSME
CAPACITY
156,089 M3
DWT
87,677 MT
DRAFT
12.521 M
MANAGER
ALNG TM
FLAG
NIS
PROPULSION
TFDE
WILPRIDE
VESSEL OVERVIEW
Awilco LNG owns two 156,000 cbm 2013-built LNG TFDE vessels WilForce and WilPride.
BOARD OF DIRECTORS
SYNNE SYRRIST
Chairman 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 Awilco Drilling Plc, Integrated Wind Solutions ASA,
AqualisBraemar ASA and Naxs AB. Mrs. Syrrist holds a MSc
from NTNU and is a Certified Financial Analyst (AFA) from NHH.
Mrs. Syrrist is a Norwegian citizen. Mrs. Syrrist is the chairman
of the Remuneration Committee and a member of the Audit
Committee.
STEVE CHRISTY
Non-Executive Director
Mr. Steve Christy has 38 years’ experience in shipping and
energy markets. He has spent the past 7 years heading up and
working with Navig8’s internal research team. This included
analysis of various shipping sectors and giving external
presentations to clients, investors and potential investors. Prior
to joining Navig8 in 2014 Mr. Christy held various positions
within Gibson Shipbrokers (director), KBC and Petroleum
Economics Ltd. (director), mainly focusing on research in the
shipping and energy markets. Mr. Christy is a British citizen and
holds a degree in Mathematics & Statistics.
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 15 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 CASS Business School. Mr.
Nygaard is a Norwegian citizen. Mr. Nygaard isa 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 and Finnlines Plc. He is also a
member of the board of Transportation Recovery Fund. Mr.
Torgersen holds an MBA (Finance) from Hochschule St. Gallen.
Mr. Torgersen is a Norwegian citizen. Mr. Torgersen is the
chairman of the Audit Committee.
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 also serves as
Chairman of the Boards of American Shipping Company ASA
and Store Norske Spitsbergen Kulkompani AS, and as board
member of Småkraft AS and the Port of London Authority. Mrs.
Malm Justad holds a Master in Technology Management from
NTH/NHH/MIT and a Master in Chemical Engineering from
NTH. Mrs. Malm Justad is a Norwegian citizen.
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
19.63
7.86
3.05
1.61
1.21
1.12
1.00
0.95
0.95
0.69
0.64
0.60
0.59
0.50
0.46
0.45
0.44
0.44
0.43
20 LARGEST SHAREHOLDERS (AS PER 31.12.2021)
38.56
317 %
3Design a
3Design a
3Design andlygid
3Design andlygid
3DesiDgn isa
3DesiDgn isa
AWILCO LNG SHARE PRICE DEVELOPMENT (TICKER: ALNG)
The Bank of New York Mellon
26 023 392
Helmer AS
908 847
Morgan Stanley & Co. Int. Plc.
10 415 278
B.O. Steen Shipping AS
4 048 809
The Bank of New York Mellon SA/NV
2 128 210
Vidar Anfinn Taranger
1 600 000
The Bank of New York Mellon SA/NA
1 261 040
Morgan Stanley & Co. International
1 255 661
Patronia AS
1 322 988
Nordnet Livsforsikring AS
1 488 380
Danske Bank A/S
850 000
J.P. Morgan Securities Plc
789 724
Skibs AS Tudor
781 429
The Bank of New York Mellon
576 717
The Bank of New York Mellon
573 162
Nordnet Bank AS
656 876
Stig Øydna Kvarsnes
610 258
Kristian Falnes AS
600 000
Fiducia AS
577 564
Awilco AS
51 114 080
SHAREHOLDER INFORMATION
SHARE PRICE DEVELOPEMENT
DURING 2021
Source: Oslo Stock Exchange
Volume (RHS) Share price (LHS)
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
Board of
Directors’ report
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
In 2021 Global LNG export grew by approximately 14 million
tonnes (MT) with the addition of more than 20 MT annual
liquification capacity. The US is the main source for growth
with 23.2 MT while we saw reduced export from most other
regions, except North Africa. The increased US export volumes
are supportive for LNG freight as the tonne-mile effect is
larger than the historic average. The recent massive ﬂow
into Europe with corresponding reduced volumes to Asia has
altered the expected positive tonne-mile effect somewhat. The
extremely high gas prices caused by the Russian invasion of
Ukraine cause high uncertainty for gas ﬂows and eventually
demand growth going forward.
The uncertainty caused by the Russian invasion of Ukraine
has a large impact in the LNG market as European counties
increase their focus on energy supply, of which LNG will be a
substantial factor. At the time of writing, it is hard to predict
the outcome of this, but the Board are of the opinion that it will
be positive for LNG shipping despite shorter sailing distances
to Europe than to Asia for LNG from the US. In general, we
also see a move from several counties to include natural
gas and LNG in the energy mix needed to reach their zero-
emission goals.
An all-time high 53 newbuildings were delivered and absorbed
by the market in 2021 and 86 newbuilding orders were placed
according to Fearnleys LNG. Over the next two years the pace
of delivery will be significantly reduced to 27 and 43 in 2022
and 2023 respectively as most of the recent orders are placed
for delivery later. The ordering activity has continued into 2022
leading to increased yard prices and a newbuilding is now
priced above USD 220 million, up from USD 180 million at the
start of 2021.
As for 2020 the Group’s two vessels were fully operational
throughout the year despite continued difficulties related to
crew changes and maintenance work caused by the ongoing
Covid-19 pandemic.
Both WilForce and WilPride were refinanced in January 2020
with a new 10-year sale-leaseback facility provided by CCB
Financial Leasing Co. Ltd. (CCBFL). Full year of the financing
and continued low ﬂoating interest rates generating savings
of USD 3.1 million in interest charge towards the lease
obligations compared to the previous year.
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
2021 was an interesting year for LNG and shipping as the year
started with record high gas prices in Asia and TFDE spot
rates at USD 150,000 pd. Both markets fell towards the end of
first quarter before a stronger than normal recovery emerged
in second quarter as Asian importers sought to replenish
stocks to meet next winter season. In third quarter we saw
gas prices increase again while freight remained balanced. At
the start of fourth quarter the classic winter surge started and
we saw freight rates rally up to record heights until Europe
experienced reduced pipeline supply and started to compete
with Asia for supply leading to lower tonne-mile for shipping
and the rates fell from December onwards. The uncertainty for
pipeline supply caused by the war in Ukraine maintain at time
of writing.
The ordering activity seen in 2021 has continued into 2022,
mostly from owners firming up options at the yards at
attractive prices. According to Poten & Partners the total order
book for LNGCs (excluding built ARC-7 vessels) currently
stands at 142 vessels, of which only 31 are uncommitted.
Newbuilding prices have increased significantly over the last
BOARD OF DIRECTORS’ REPORT
year and market sources estimate current yard prices to be
above USD 220 million, and possibly higher for early slots, this
is up from around USD 180 million at the start of 2021
According to Poten & Partners 8.4 MTPA of new LNG production
capacity started in 2021 and a further 21.9 MTPA and 6.6 MTPA
is scheduled to come on stream in 2022 and 2023 respectively.
The current situation in Europe may lead to a positive revision of
these numbers.
Operations
At the start of 2021 both WilForce and WilPride were employed
on short term contracts, in the spot market. During second
quarter both vessels were fixed on multi months contracts with
fixed rate until the beginning of second quarter 2022.The vessel
utilization for the period was 100%, same as for 2020.
At the date of this report both vessels have been redelivered
from their multi months contracts and are trading on spot
contracts around at rates around cash break-even.
CONSOLIDATED FINANCIAL STATEMENTS
Income statement
The Group generated net freight income of USD 57.1 million
in 2021, up from USD 30.7 million in 2020, mainly caused by
a strong spot market in the beginning of the year followed
multi months charter contracts for both vessels from second
quarter lasting well into 2022. These numbers equate to TCE
earnings of USD 78.200 in 2021 and USD 41.600 in 2020. Fleet
utilisation for the year ended at 100 %, same as in 2020.
Operating expenses for the year ended at USD 10.0 million,
up from USD 9.1 million in 2020, mainly driven by increased
cost related to the Covid-19 pandemic and non-recurring
maintenance work.
Other income is limited and only reﬂect a minor adjustment
to one insurance claim following repair work of one engine,
where the expense was settled in 2020.
Administration expenses went up from USD 3.0 million in 2020
to USD 3.9 million in 2021.
Depreciation and amortisation were USD 12.6 million in 2021
compared to USD 12.5 million in 2020.
Net financial expenses were USD 9.6 million in 2021, down
from USD 13.5 million in 2020 following full year at refinanced
terms, lower ﬂoating LIBOR rates and dividend received from
DNK.
Profit before tax for the period was USD 21.1 million compared
to a loss of USD 7.9 million in 2020.
Earnings per share
Basic and diluted earnings per share for the year were positive
with USD 0.16, up from a negative of USD 0.06 in 2020.
Financial position
Total assets and total equity for the Group as at December 31,
2021 was USD 356.7 million and USD 120.6 million respectively
(USD 352.6 million and USD 99.5 at December 31, 2020)
corresponding to an equity ratio of 34 %, up from 28% at
December 31, 2020.
Cash and cash equivalents amounted to USD 23.6 million at
December 31, 2021, up from USD 12.6 million at December 31,
2020.
The combined book value of the vessels was USD 326.9 million
at December 31, 2021 compared to USD 338.3 at year-end
2020.
Total interest-bearing debt for the Group was USD 225.8
million at December 31, 2021, down from USD 243.8 million
at December 31, 2020. The current portion of the interest-
bearing debt constituted USD 18.9 million as at December 31,
2021.
Cash ﬂow statement
The Group generated USD 40.5 million in cash inﬂow from
operating activities in 2021 compared to USD 17.2 million in
2020.
Net cash used in investing activities was USD 1.0 million, up
from USD 0.7 million in 2020.
Net cash outﬂow from financing activities was USD 28.4
million in 2021, constituting of USD 18.9 million in repayment
of debt and USD 9.6 million of interest under the finance lease
with CCBLFL. Net cash outﬂows from financing activities in
2020 was USD 27.4 million.
Subsequent to the CCBFL refinancing completed in January
2020 as described in note 26, cash break-even for each vessel
is expected at approximately. USD 58,000 per day in 2022,
subject to interest rate ﬂuctuations and excluding engine
overhauls that are capitalized.
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
PARENT COMPANY FINANCIAL STATEMENTS
Operating income for the year amounted to NOK 8.0 million
(NOK 5.7 million) and administration expenses NOK 25.8 million
(NOK 20.6 million).
Net finance income amounted to NOK 3.4 million (NOK 5.4
million).
Loss for the period was NOK 14.4 million (NOK 247,9 million).
The Board of Directors propose that the loss for the period of
NOK 14.4 million for the Parent Company is covered by retained
earnings.
As previously informed, the Board is determined to return
capital to shareholders. In an extremely volatile LNG market
the Company has chosen to await market developments before
committing to longer employment. As a consequence, both
vessels are currently trading in the sport market with uncertain
earnings and the Board will therefore ask the General Meeting
scheduled for 24th May, 2022 for a power of attorney to declare
dividend or other means to return capital to shareholders
of a value of up to USD 7 million during 2022 when there is
reasonable earnings visibility for same.
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.
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 trading in the spot market
which exposes 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.
Market risk
Market risk relates to the supply of LNG vessels and the
demand for LNG transportation. In the past there have been
prolonged periods of oversupply of vessels due to delays in the
construction of LNG production plants, with correspondingly low
utilisation and depressed market rates. In the period 2012 to
2017 a newbuild ordering boom combined with limited growth
in LNG production and decreasing average sailing distances
resulted in an oversupply of vessels, depressing activity and
rates. In 2018 and 2019 the growth in LNG supply surpassed
ﬂeet growth. In 2020 we experienced a balanced development
following the negative impact from the Covid-19 pandemic on
the LNG demand side and in 2021 we saw a strong increase
in number of vessels, but the surge for more LNG and longer
sailing distances balanced the market over the year, but with
high volatility.
High ordering activity in the period from 2018 to 2021 indicates a
risk of an oversupplied market in 2022 and onwards, depending
on production growth, global economic conditions, average
sailing distances and notably the Europe -Russia relation
following the war in Ukraine and the continued US – China
relations, among other factors.
Projecting the supply of LNG involves uncertainty. Historically
new projects were often delayed as liquefactions plants are
highly complex construction projects, but project execution
has gradually improved, and recent projects commissioned
several months ahead of schedule is encouraging. Actual LNG
production may ﬂuctuate from one year to another due to for
instance scheduled maintenance programs, feed gas issues,
war and conﬂicts or technical issues. Lower LNG production
will have an impact on the market rates for LNG vessels, as
oversupply of vessels might reduce rate levels.
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 high gas
prices due to constraints on supply 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 has a
significant impact on demand for LNG transportation to execute
arbitrage opportunities. During the winter season in 2021
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 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 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
The LNG carrier ﬂeet will increase by close to 30 % over 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 will be required to comply with the new
regulations on energy efficient design and operation, EEXI and
CII. Based on preliminary calculations done in cooperation with
DNV, we expect that our vessels will be in compliance with EEXI
without any modifications to the vessel’s engine power or design
speed.
With respect to CII, if the vessels are operated with the same
efficiency going forward as in 2020 and 2021, they will achieve a
CII rating of C or better until at least 2027.
Based on the above we maintain our assessment that the useful
lifetime of 40 years for our vessels.
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
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 starting after three years and
repurchase obligations at maturity of the facility at USD 37.5
million per vessel.
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, 2021 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. On June 22, 2020 the Company
and CCBFL agreed to make certain temporary amendments
to the financial covenants, whereby the required minimum
consolidated cash and cash equivalents financial covenant
was reduced to USD 2.0 million and the required consolidated
positive working capital financial covenant was waived, both
effective for a six-month period from July 1, 2020 to December
31, 2020.
On November 23, 2020 the temporary amendments were
extended for a further six-month period, from January 1,
2021 to June 30, 2021. As a condition of the above extension
the Company agreed a 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 following the
payment. These temporary amendments ended at June 30,
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
2021 and at December 31, 2021 the Group had cash and cash
equivalents of USD 23.6 million and was in compliance with all
reinstated ordinary financial covenants in the facilities.
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 the yearend 2021 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. Incremental efforts
to improve and optimize the Group’s operations resulted in
reduced vessel emissions of CO2, NOx and SOx per cargo unit-
mile in 2022.
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 2021 the Group
had seven 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.
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 0.4% in
2021 (0.2 % in 2020). No onshore work-related injuries were
reported in 2021 or 2021. For seafarers, an LTIF (accidents per
one million-man hours worked) of 0.0 was reported during the
year (0.0 in 2020).
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.
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 17 October 2018 (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 do have a Director and Officers insurance.
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.
OUTLOOK
The winter, with record high gas prices in Europe and lower
demand from Asia, led to the seasonal downturn in the market
coming earlier than usual. This pattern has been even more
strengthened by the Russian invasion of Ukraine, leading to
strong demand for natural gas from other sources, mainly
LNG from USA. As USA is the main source of available
LNG this has led to shorter tonne-mile with corresponding
reduced demand for freight. Despite the current weakness
the longer-term trend for LNG shipping looks promising with
the increased long term demand from European counties,
the expected return of demand from Asia and with far less
newbuildings being delivered in 2022 compared to 2021. This
has lead to a large contango between a spot market in the mid
40’s (kUSD per day) and the quoted rates for 1 year TC above
USD 100,000 per day for vessels similar to our TFDE vessels.
In the short term Awilco LNG is focusing on optimizing
performance on current contracts and on our next fixtures as
both vessels currently trade in the spot market.
18
AWILCO LNG ASA ANNUAL REPORT 2021
19
AWILCO LNG ASA ANNUAL REPORT 2021
STATEMENT OF RESPONSIBILITY
We confirm to the best of our knowledge that the consolidated
financial statements for 2021 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 2021 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.
Oslo, April 29, 2022
Jon-Aksel Torgersen
Board member
Synne Syrrist
Chairman of the Board
Annette Malm Justad
Board member
Jon Skule Storheill
CEO
Steve Christy
Board member
Jens-Julius R. Nygaard
Board member
20
AWILCO LNG ASA ANNUAL REPORT 2021
21
AWILCO LNG ASA ANNUAL REPORT 2021
Consolidated
Financial
Statements
And Notes
22
AWILCO LNG ASA ANNUAL REPORT 2021
23
AWILCO LNG ASA ANNUAL REPORT 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
3Designg asDdlgyogut:
3Designg asDdlgyogut:
(7 853)
-
(7 853)
2021
59 552
2 446
57 106
54
10 036
-
3 874
43 250
12 564
30 686
639
10 211
(9 571)
21 115
-
21 115
31.12.2021
326 875
511
165
327 551
993
182
4384
23 637
29 196
356 746
1 976
133 384
65 588
(80 362)
120 586
583
206 906
207 490
18 890
516
-
9 265
28 670
356 746
2020
35 619
4 958
30 661
(625)
9 127
(261)
3 049
18 121
12 506
5 615
123
13 591
(13 468)
(7 853)
-
(7 853)
31.12.2020
338 284
429
295
339 007
61
354
590
12 637
13 642
352 649
1 976
133 384
65 588
(101 477)
99 472
494
225 004
225 498
18 843
348
-
8 490
27 680
352 649
21 115
-
21 115
In USD thousands In USD thousands
Profit/(loss) for the period
Other comprehensive income:
Other comprehensive income items
Total comprehensive income/(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
Note
4,5
6
7
7
7
8
11
17
17
10
Note
11
12
13
14
15
19
19
8
22
22
10
16
9
9
0.16
0.16
(0.06)
(0.06)
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Freight income
Voyage related expenses
Net freight income
Other income
Operating expenses
Vessel repair expenses
Administration expenses
Earnings before interest, taxes, depr. and amort. (EBITDA)
Depreciation and amortisation
Earnings before interest and taxes (EBIT)
Finance income
Finance expenses
Net finance income/(expense)
Profit/(loss) before taxes
Income tax expense
Profit/(loss) for the period
ASSETS
Non-current assets
Vessels
Pension assets
Other fixed assets incl right-of-use assets
Total non-current assets
Current assets
Trade receivables
Inventory
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
24
AWILCO LNG ASA ANNUAL REPORT 2021
25
AWILCO LNG ASA ANNUAL REPORT 2021
Share
capital
Share
capital
Note
Note
Share
premium
Share
premium
Other
paid-in capital
Other
paid-in capital
Retained
earnings
Retained
earnings
Total
equity
Total
equity
3Designg asDdlgyogut:
3Designg asDdlgyogut:
99 472
21 115
-
21 115
120 586
107 324
(7 853)
-
(7 853)
-
99 472
(101 477)
21 115
-
21 115
(80 362)
(93 624)
(7 853)
-
(7 853)
-
(101 477)
65 588
-
-
-
65 588
18 157
-
-
-
47 431
65 588
133 384
-
-
-
133 384
133 384
-
-
-
-
133 384
For the period ended 31 December 2021
For the period ended 31 December 2020
1 976
-
-
-
1 976
49 407
-
-
-
(47 431)
1 976
19
In USD thousands
In USD thousands
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity at 1 January 2021
Profit/(loss) for the period
Other comprehensive income for the period
Total comprehensive income
Balance as at 31 December 2021
Equity at 1 January 2020
Profit/(loss) for the period
Other comprehensive income for the period
Total comprehensive income
Share capital reduction
Balance as at 31 December 2020
CONSOLIDATED CASH FLOW STATEMENT
2021
21 115
-
10 157
12 564
(4 635)
1 272
40 472
(1 025)
(1 025)
-
(18 880)
(9 566)
(28 446)
11 000
12 637
23 637
2020
(7 853)
-
13 208
12 506
2 359
(3 016)
17 205
(682)
(682)
262 500
(270 428)
(19 506)
(27 435)
(10 912)
23 547
12 637
In USD thousands
Note
17
11
11
22
22
15
Cash Flows from Operating Activities:
Profit/(loss) before taxes
Income taxes paid
Interest and borrowing costs expensed
Items included in profit/(loss) not affecting cash ﬂows:
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:
Proceeds from borrowings
Repayment of borrowings
Interest and borrowing costs 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
AWILCO LNG ASA ANNUAL REPORT 2021
27
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
26
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1 // CORPORATE
INFORMATION
Awilco LNG ASA (the Company or Parent Company) is a public
limited liability company incorporated and domiciled in Norway.
Its registered office is Beddingen 8, 0250 Oslo, Norway. The
Company was incorporated February 2, 2011 and is listed on
Euronext Expand with the ticker ALNG.
The consolidated financial statements of the Company comprise
the Company and its subsidiaries, together referred to as the
Group or Awilco LNG.
The principal activity of the Group is the investment in and
operation of LNG transportation vessels. The Group owns and
operates two 2013-built TFDE LNG vessels.
The consolidated financial statements for the period ended
31 December 2021 were authorised for issue by the Board of
Directors on April 29, 2022 and will be presented for approval at
the Annual General Meeting on May 24, 2022.
NOTE 2 // SUMMARY OF
SIGNIFICANT ACCOUNTING
POLICIES
BASIS OF PREPARATION
The consolidated financial statements of Awilco LNG have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union and the
additional applicable disclosure requirements of the Norwegian
accounting act. The consolidated financial statements have
been prepared on a historical cost basis, except for liabilities
for cash-settled share-based payments which are measured
at fair value, pensions which are measured according to IAS 19
and receivables and payables denominated in foreign exchange
which are translated at period-end exchange rates.
The consolidated financial statements are presented in US
Dollars (USD) rounded off to the nearest thousands, except as
otherwise indicated. The consolidated financial statements have
been prepared based on a going concern assumption. Please
see the Board of Directors’ report for further information on this
matter.
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below.
BASIS OF CONSOLIDATION
The consolidated financial statements include Awilco LNG
ASA and its subsidiaries. The financial statements of the
subsidiaries are prepared for the same reporting period as
the parent company, using consistent accounting policies. All
intercompany transactions and balances are eliminated in the
consolidation. Subsidiaries are fully consolidated from the date
of acquisition, being the date on which the Group obtains control
over the subsidiaries and continue to be consolidated until the
date that such control ceases.
REVENUE
Revenue is recognised at an amount that reﬂects the
consideration to which the Group expects to be entitled in
exchange for transferring goods or services to a customer
and is presented as freight income net of offhire deductions.
Revenue is recognised according to the load-to-discharge
principle. Revenue is usually received monthly in advance
whereas performance obligations are satisfied as follows:
Revenue is generated by time charter contracts which contain
both a lease element and a vessel management element
(service agreement). The lease element, as described below
under Leasing are recognised in straight-line over the term
of the charter as services are provided based on the number
of days before and after the reporting period. Where the
repositioning fees depend upon final redelivery location, they
are recognised at the end of the charter when the revenue
becomes fixed and determinable.
The vessel management element is considered a performance
obligation that is satisfied over time, given that the customer
simultaneously receives and consumes the benefits provided by
the Group.
Voyage expenses are expensed as incurred and mobilisation
expenses are not capitalised.
LEASING
The determination of whether an arrangement contains a lease
element is made at contract inception and is based on the
substance of the arrangement. Leases are classified as finance
leases if the terms of the lease agreement transfer substantially
all the risks and benefits incidental to ownership of the leased
item. All other leases are classified as operational leases.
The Group as lessor
Minimum operating lease payments received under operating
leases are recognised in profit or loss on a straight-line
basis over the term of the lease. Lease incentives received
are recognised as an integral part of the total lease revenue
over the term of the lease. Contingent rent is recognised as
revenue in the period in which they are earned.
The Group as lessee
i. Right-of-use assets
The Group recognises right-of-use assets at the
commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement
date less any lease incentives received. Unless the Group is
reasonably certain to obtain ownership of the leased asset at
the end of the lease term, the recognised right-of-use assets
are depreciated on a straight-line basis over the shorter of
its estimated useful life and the lease term. Leased assets
with repurchase obligations at the end of the lease term are
separated into components which are depreciated over the
useful life of the component. Right-of-use assets are subject
to impairment.
ii. Lease liabilities
At the commencement date of the lease, the Group
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease
payments include fixed payments less any lease incentives
receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include
repurchase obligations or alternatively the exercise price of
a purchase option reasonably certain to be exercised by the
Group and payments of penalties for terminating a lease, if
the lease term reﬂects the Group exercising the option to
terminate. Variable lease payments that do not depend on
an index or a rate are recognised as expense in the period
on which the event or condition that triggers the payment
occurs. In calculating the present value of lease payments,
the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is
not readily determinable. After the commencement date, the
amount of lease liabilities is increased to reﬂect the accretion
of interest based on the effective interest method and reduced
for the lease payments made. In addition, the carrying amount
of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase
the underlying asset.
iii. Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption
to its short-term leases (i.e., those leases that have a lease
term of 12 months or less from the commencement date and
do not contain a purchase option). It also applies the lease
of low-value assets recognition exemption to leases of office
equipment that are considered of low value (i.e., below USD
5,000). Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line
basis over the lease term.
iv. Significant judgement in determining the lease term
of contracts with renewal options
The Group determines the lease term as the non-cancellable
term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be
exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised. The Group
applies judgement in evaluating whether it is reasonably
certain to exercise the option to renew. That is, it considers
all relevant factors that create an economic incentive for it
to exercise the renewal. After the commencement date, the
Group reassesses the lease term if there is a significant event
or change in circumstances that is within its control and
affects its ability to exercise (or not to exercise) the option to
renew.
v. Sale-leaseback arrangements
No gain or loss is recognised in the income statement related
to sale/leaseback arrangements where the vessel is sold and
subsequently leased back with repurchase obligations to the
Group.
Sale/leaseback arrangements whereby the seller-lessee
has repurchase obligations at maturity of the lease period
are not considered as a sale of asset, and the seller-lessee
recognises a financial liability equal to the transfer proceeds
and the resulting lease obligation net of pre-paid charter hire
is accounted for as a financial liability according to IFRS 9.
The financial liability is subsequently measured according to
amortised cost using the effective interest method. Associated
costs incurred in arranging the lease agreement is amortised
over the lease period and presented net of the lease liability in
the statement of financial position.
3Designg asDdlgyogut:
28
AWILCO LNG ASA ANNUAL REPORT 2021
29
AWILCO LNG ASA ANNUAL REPORT 2021
FOREIGN CURRENCY
The consolidated financial statements are presented in USD,
which is also the functional currency of all entities in the
Group. Transactions in foreign currencies are recorded at the
rate of exchange on the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rate applicable
at the reporting date. Realised and unrealised foreign
currency gains or losses on monetary items are presented
as finance income or finance expense. Non-monetary items
that are measured at historical cost in a foreign currency are
translated using the exchange rates applicable at the dates of
the initial transactions.
Classification of items in the statement of financial position
Current assets and current liabilities include items that fall
due for payment within one year after the reporting date. The
short-term part of long-term debt maturing within 12 months
after the balance sheet date is classified as short-term debt.
VESSELS, VESSELS UNDER CONSTRUCTION AND
OTHER FIXED ASSETS
Tangible non-current assets such as vessels and other
fixed assets are carried at historical cost less accumulated
depreciation and impairment losses. Vessels under
construction are carried at historical cost less impairment
losses.
Costs of acquired vessels include expenditures that are
directly attributable to the acquisition of the vessels. Cost of
vessels under construction include all directly attributable
costs incurred to bringing the asset to the location and
condition necessary for it to be capable of operating in the
manner intended by management. Examples of such costs
include supervision costs, site team costs, yard instalments,
technical costs and borrowing costs.
Borrowing costs consist of interest and other costs that are
incurred in connection with the borrowing of funds and are
determined by applying an interest rate to the average amount
of accumulated expenditures during the construction period,
limited to the interest expense incurred during the reporting
period. The interest rate used is the weighted average cost of
borrowings in the Group.
Costs of vessels under construction are capitalised, classified
as vessels under construction and presented as a tangible
asset. The capitalised costs are reclassified from vessels
under construction to vessels when the asset is available for
its intended use.
In accordance with IAS 16 each component of the vessels with
a cost that is significant in relation to the total cost of the item
is separately identified and depreciated. Components with
similar useful lives will be grouped into a single component.
Dry-docking is identified as a separate component of cost of
vessels and depreciated separately.
Depreciable amount of an asset is calculated as cost less
residual value and impairment charges. Residual value is
based on estimated salvage value of the vessels. Depreciation
is calculated on a straight-line basis over the useful life of
the assets, and depreciation is commenced when the asset is
available for its intended use. Expected useful lives, methods
of depreciation and residual values are reviewed yearly and
adjusted prospectively, if appropriate. The following estimated
useful lives are applied to the respective components of the
asset:
Vessels 40 years
Vessel dry-docking 5 years
Vessel engine overhauls 4 years
Other fixed assets 3 - 5 years
Costs related to major inspections/classifications (dry-docking
and engine overhauls) are recognised in the carrying amount
of the vessels if certain recognition criteria are satisfied. The
recognition is made as the dry-docking or overhaul is being
performed, and depreciation is recognised from completion
of the dry-docking and overhaul until estimated time to the
next dry-docking or overhaul. Any remaining carrying amount
of the cost of the previous dry-docking or overhaul is de-
recognised upon initiation of the next dry-docking or overhaul.
The remaining costs that do not meet the recognition criteria
are expensed as repairs and maintenance. When vessels are
acquired the remaining dry-docking and overhaul is identified
and depreciated as a separate component, based on estimated
time to the next dry-docking or overhaul.
Ordinary repairs and maintenance expenses are recognised
in the income statement as incurred. Upgrades and material
replacement of parts and equipment are capitalised as costs
of vessels and depreciated together with the respective
component. Replaced parts and equipment are derecognised
and presented as impairment losses in the income statement.
If it is not practicable to determine the carrying amount of
the replaced part, the cost of the replacement is used as an
indication of what the cost of the replaced part was at the time
it was acquired or constructed.
IMPAIRMENT
Vessels, vessels under construction and other fixed assets are
assessed for impairment indicators each reporting period. If
impairment indicators are identified the recoverable amount
is estimated, and if the carrying amount of an asset or cash
generating unit (CGU) exceeds its recoverable amount an
impairment loss is recognised. Each vessel is assessed as a
separate cash generating unit (CGU) by Awilco LNG.
The recoverable amount is the higher of an asset’s fair value
less cost to sell (net selling price) and value in use. The fair
value is the amount obtainable from the sale of an asset in
an arm’s length transaction less the costs of disposal. Value
in use is the present value of estimated future cash ﬂows
expected to arise from the continuing use of an asset and
from its disposal at the end of its useful life.
A previously recognised impairment loss is reversed only if
there has been a change in the estimates used to determine
the recoverable amount; the reversal is limited up until
the carrying amount net of accumulated depreciation if no
impairment loss had been recognised in prior periods. Such
reversals are recognised in the income statement.
NON-CURRENT ASSETS HELD FOR SALE
Non-current assets and disposal groups are classified as held
for sale if their carrying amounts will be recovered principally
through sale rather than continuing use. Non-current assets
and disposal groups classified as held for sale are measured
at the lower of their carrying amount and fair value less cost
to sell and presented separately as assets held for sale and
liabilities held for sale in the statement of financial position.
The criteria for held for sale classification is regarded as met
only when the sale is highly probable and the asset or disposal
group is available for immediate sale in its present condition.
Actions required to complete the sale should indicate that it
is unlikely that significant changes to the plan will be made or
that the plan to sell will be withdrawn. In addition, the criteria
also include management to be committed to the plan and the
sale to be completed within a year. Once classified as held for
sale assets are not depreciated or amortised.
INVENTORY
Inventories consist of bunkers and lube oil on board the
vessels. Inventories are measured at the lower of cost and
net realisable value. Cost is determined in accordance with
the first-in-first-out principle (FIFO), and expenses related
to inventory are presented as voyage related expenses in the
income statement.
PROVISIONS
Provisions are recognised when the Group has a present
obligation (legal or constructive) because of a past event, it is
probable that an outﬂow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Where
the Group expects some or all of a provision to be reimbursed,
for example under an insurance contract, the reimbursement
is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to
any provision is recognised through profit and loss net of any
reimbursement.
FAIR VALUE MEASUREMENT
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, using
assumptions that market participants would use when pricing
the asset or liability. The Group uses valuation techniques
that are appropriate in the circumstances and for which
sufficient data are available to measure fair value. All assets
and liabilities for which fair value is measured or disclosed in
the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level of
input that is significant to the fair value measurement as a
whole:
Level 1: Quoted (unadjusted) market prices in active markets
for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable
Level 3: Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
SHARE-BASED PAYMENTS
For cash-settled share-based payments a provision is
recorded for the rights granted reﬂecting the vested portion
of the fair value of the rights at the reporting date. The
provision is accrued over the period the beneficiaries are
expected to perform the related service (vesting period). The
cash-settled share-based payments are remeasured to fair
value at each reporting date until the award is settled. Any
changes in the fair value of the provision are recognised as
administration expense in the income statement. The amount
of unrecognised compensation expense related to non-
vested share-based payment arrangements granted in the
3Designg asDdlgyogut:
3Designg asDdlgyogut:
30
AWILCO LNG ASA ANNUAL REPORT 2021
31
AWILCO LNG ASA ANNUAL REPORT 2021
cash-settled plans is dependent on the final intrinsic value of
the awards. Social security tax liability is recognised on the
intrinsic value of the cash-settled share-based payments.
PENSIONS
The Group is required to provide a pension plan towards its
onshore employees, and the Group 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 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.
Contributions to the pension plan are recognised 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 Group has no further payment
obligations once the contributions have been paid.
The liability arising from the plan > 12G is classified 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.
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, using tax rates
enacted or substantively enacted at the reporting date, and any
adjustment to tax payable in respect of previous years.
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 consolidated financial statements.
Deferred tax liabilities are recognised for all taxable
temporary differences. Deferred tax assets 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 reversal of the temporary difference is controlled by the
Group and it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred income tax assets and liabilities is determined using
tax rates that are expected to apply to the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at
the reporting date. Deferred tax liabilities and deferred tax
assets are recognised at nominal values and classified as
non-current liabilities and non-current assets in the statement
of financial position. Deferred tax assets and liabilities are
offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Current income tax and deferred tax is recognised in profit or
loss except to the extent that it relates to items recognised
directly in equity or in other comprehensive income.
For Group companies subject to tonnage tax regimes, incurred
tonnage tax is recognised as an operating expense.
FINANCIAL INSTRUMENTS
Financial assets and liabilities are offset and the net amount
presented in the statement of financial position when there
is a legal right to offset the amounts and intention either to
settle on a net basis or to realise the asset and settle the
liability simultaneously.
Financial assets
Initial recognition and measurement: Financial assets are
classified at initial recognition and subsequently measured at
either i) amortised cost or ii) fair value through profit or loss.
The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash ﬂow
characteristics and the Group’s business model for managing
them. Except for trade receivables that do not contain a
significant financing component or for which the Group has
applied the practical expedient, the Group initially measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant financing
component or for which the Group has applied the practical
expedient are measured at the transaction price determined
under IFRS 15 Revenue from Contracts with Customers.
In order for a financial asset to be classified and measured
at amortised cost it needs to give rise to cash ﬂows that are
solely payments of principal and interest on the principal
amount outstanding.
Subsequent measurement: Financial assets are classified in
two categories;
i. Financial assets at amortised cost debt instruments)
The Group measures financial assets at amortised cost if
both of the following conditions are met: i) The financial asset
is held within a business model with the objective to hold
financial assets in order to collect contractual cash ﬂows
and ii) the contractual terms of the financial asset give rise
on specified dates to cash ﬂows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured
using the effective interest method (EIR) and are subject to
impairment. Gains and losses are recognised in profit or
loss when the asset is derecognised, modified or impaired.
3Designg asDdlgyogut:
3Designg asDdlgyogut:
33
Group - gures in USD
32
AWILCO LNG ASA ANNUAL REPORT 2020
AWILCO LNG ASA ANNUAL REPORT 2020
The Group’s financial assets at amortised cost include trade
receivables.
ii. Financial assets at fair value through profit or loss
The category includes financial assets held for trading,
financial assets designated upon initial recognition at fair
value through profit or loss, or financial assets mandatorily
required to be measured at fair value. Financial assets
are classified as held for trading if they are acquired for
the purpose of selling or repurchasing in the near term.
Derivatives, including separated embedded derivatives, are
also classified as held for trading unless they are designated
as effective hedging instruments. Financial assets with cash
ﬂows that are not solely payments of principal and interest
are classified and measured at fair value through profit or
loss, irrespective of the business model. Notwithstanding the
criteria for debt instruments to be classified at amortised
cost as described above, debt instruments may be designated
at fair value through profit or loss on initial recognition if
doing so eliminates, or significantly reduces, an accounting
mismatch. Financial assets at fair value through profit or loss
are carried in the statement of financial position at fair value
with net changes in fair value recognised in the statement of
profit or loss. This category includes derivative instruments
and listed equity investments. Dividends on listed equity
investments are also recognised as other income in the
statement of profit or loss when the right of payment has been
established.
Derecognition: A financial asset is primarily derecognised (i.e.,
removed from the Group’s consolidated statement of financial
position) when either i) The rights to receive cash ﬂows from
the asset have expired or ii) the Group has transferred its
rights to receive cash ﬂows from the asset or has assumed
an obligation to pay the received cash ﬂows in full without
material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset, or (b)
the Group has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred
control of the asset. When the Group has transferred its rights
to receive cash ﬂows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what extent,
it has retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred control of the
asset, the Group continues to recognise the transferred asset
to the extent of its continuing involvement. In that case, the
Group also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis
that reﬂects the rights and obligations that the Group has
retained. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum
amount of consideration that the Group could be required to
repay.
Impairment of financial assets: The Group recognises an
allowance for expected credit losses (ECLs) for all debt
instruments not held at fair value through profit or loss.
ECLs are based on the difference between the contractual
cash ﬂows due in accordance with the contract and all the
cash ﬂows that the Group expects to receive, discounted at
an approximation of the original effective interest rate. The
expected cash ﬂows will include cash ﬂows from the sale of
collateral held or other credit enhancements that are integral
to the contractual terms. ECLs are recognised in two stages.
For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are
provided for credit losses that result from default events
that are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has been a
significant increase in credit risk since initial recognition, a
loss allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of
the default (a lifetime ECL). For trade receivables and contract
assets, the Group applies a simplified approach in calculating
ECLs. Therefore, the Group does not track changes in credit
risk, but instead recognises a loss allowance based on lifetime
ECLs at each reporting date. The Group considers a financial
asset in default when contractual payments are 90 days past
due. However, in certain cases, the Group may also consider
a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive
the outstanding contractual amounts in full before taking
into account any credit enhancements held by the Group.
A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash ﬂows.
Financial liabilities
Initial recognition and measurement: Financial liabilities are
classified, at initial recognition, as financial liabilities at fair
value through profit or loss, financial liabilities measured
at amortised cost or as derivatives designated as hedging
instruments in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and, in the case
of financial liabilities measured at amortised cost, net of
directly attributable transaction costs.
Subsequent measurement: The measurement of financial
liabilities depends on their classification, as described below:
i) Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value
through profit or loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose of repurchasing
in the near term. This category also includes derivative financial
instruments entered into by the Group that are not designated
as hedging instruments in hedge relationships as defined by
IFRS 9. Separated embedded derivatives are also classified as
held for trading unless they are designated as effective hedging
instruments. Gains or losses on liabilities held for trading are
recognised in the statement of profit or loss. Financial liabilities
designated upon initial recognition at fair value through profit or
loss are designated at the initial date of recognition, and only if
the criteria in IFRS 9 are satisfied. The Group has not designated
any financial liability as at fair value through profit or loss.
ii) Financial liabilities measured at amortised cost: After
initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost. Gains and losses are
recognised in profit or loss when the liabilities are derecognised
as well as through the EIR amortisation process. Amortised cost
is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisation is included as finance costs in the
statement of profit or loss.
Derecognition: A financial liability is derecognised when the
obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another
from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such
an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the
statement of profit or loss.
SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
Own equity instruments that are acquired (treasury shares) are
recognised at cost and deducted from equity. No gain or loss is
recognised in the income statement on the purchase, sale, issue
or cancellation of the Group’s own equity instruments. Voting
rights relating to treasury shares are nullified and no dividends
are allocated to them.
DIVIDENDS
Dividend payments are recognised as a liability in the Group’s
financial statements from the date when the dividend is
approved by the General Meeting. A corresponding amount is
recognised directly towards equity.
EARNINGS PER SHARE
The Group presents basic and diluted earnings per share data
for its ordinary shares. Basic earnings per share is calculated by
dividing the profit or loss attributable to ordinary shareholders
of the Company by the weighted average number of ordinary
shares outstanding during the year, adjusted for own shares
held. Diluted earnings per share is determined by adjusting
the profit or loss attributable to ordinary shareholders and
the weighted average number of ordinary shares outstanding,
adjusted for own shares held, for the effects of all dilutive
potential ordinary shares.
CASH FLOW STATEMENT
The cash ﬂow statement is presented using the indirect method.
CASH AND CASH EQUIVALENTS
Cash represents cash on hand and deposits with banks that are
repayable on demand. Cash includes 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.
SEGMENT INFORMATION
The Group’s current business is operating LNG transportation
vessels. The potential market for the vessels is and will be
the international global LNG transportation market, and
the business will be exposed to the same risks and returns
wherever the vessels are employed. The Group’s internal
reporting does not distinguish between different segments, and
as the vessels are managed as one operating segment Awilco
LNG has only one reportable segment.
NEW AND AMENDED STANDARDS AND
INTERPRETATIONS
The group has applied the following standards and amendments
for the first time for their annual reporting period commencing
January 1, 2020:
i. Definition of Material – amendments to IAS 1 and
IAS 8
ii. Revised Conceptual Framework for Financial
Reporting
3Designg asDdlgyogut:
35
Group - gures in USD
34
AWILCO LNG ASA ANNUAL REPORT 2020
3Designg asDdlgyogut:
AWILCO LNG ASA ANNUAL REPORT 2020
Amendments and changes to IFRS
Amendments and changes to IFRS effective from 1 January
2021 did not have a material impact for the Group. The
Group has further done a preliminary assessment of future
announced changes and concluded that none of these will
have a material impact based on the current business and
financial position of the Group
NOTE 3 // SIGNIFICANT
ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
The preparation of financial statements requires management
to make estimates, judgments and assumptions that affect
the amounts reported in the financial statements and
accompanying notes. Management bases its estimates
and judgments on historical experience and on various
other factors that are believed to be reasonable under the
circumstances, the results of which form the basis for making
judgments concerning the carrying values of assets and
liabilities that are not readily apparent from other sources.
This presents a substantial risk that actual conditions will vary
from the estimates. The key sources of estimation uncertainty
at the reporting date that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING
POLICIES
In general management has to apply judgement in the process
of applying the Group’s accounting policies, in addition to
items involving estimates described below, in the process of
preparing the financial statements.
Management has applied significant estimates and
assumptions mainly relating to the following:
- Depreciation of vessels and residual values
- Impairment of vessels
Depreciation of vessels and residual values. Depreciation
is based on Management’s estimates of the vessels’ major
components, useful lives of the components and the vessels’
residual values less costs associated with scrapping at
the end of the vessels’ useful life. Estimates may change
due to changes in scrap value, technological development,
competition and environmental and legal requirements.
Management reviews the future useful lives of each significant
component and the residual values of the vessels annually,
taking into consideration the above-mentioned factors and the
observable age for LNG vessels when scrapped. Scrap values
are estimated based on forward prices of steel. Any changes
in estimated useful lives and/or residual values impact the
depreciation of the vessels prospectively. As at December 31,
2021 the vessels had a carrying value of USD 326.9 million,
and total residual value was estimated at USD 24 million.
Please see note 11 for further information on impairment
assessment of vessels.
Impairment of vessels. Management assesses whether there
are any indicators of impairment at each reporting date.
Each vessel is regarded as a cash generating unit for the
impairment testing.
The vessels are tested for impairment when there are
indicators that the carrying amounts may not be recoverable.
The recoverable amount is the higher of an asset’s fair value
less cost to sell (net selling price) and value in use. Fair value
is the amount obtainable from the sale of an asset in an arm’s
length transaction less the costs of disposal and is based on
completed transactions of comparable assets in the market.
Estimation of fair value is subject to an active transaction
market.
Value in use calculations involve a high degree of estimation
and several critical assumptions such as time charter rates,
utilisation, operational expenses, dry-dockings, useful life,
recycling values and discount rates. The key assumptions
used in the impairment assessment are disclosed in note
11, together with sensitivity tables showing the effect on
recoverable amount from changes in key assumptions.
Changes in circumstances and assumptions may significantly
affect the estimated recoverable amounts, and a weak
shipping market may result in future impairment losses.
Please see note 11 for further information on impairment of
vessels.
36
AWILCO LNG ASA ANNUAL REPORT 2021
37
AWILCO LNG ASA ANNUAL REPORT 2021
3Designg asDdlgyogut:
3Designg asDdlgyogut:
NOTE 5 // SEGMENT INFORMATION
2021
22 836
36 716
59 552
2021
1 419
865
162
2 446
2021
49 014
10 538
59 552
31.12.2021
969
-
4 921
1 407
> 1 yr
-
-
-
6 mon. - 1 yr
-
-
-
< 6 mon.
6 557
8 010
14 567
2020
19 610
16 009
35 619
2020
4 094
584
279
4 958
2020
26 036
9 583
35 619
31.12.2020
-
-
5 022
-
Total
6 557
8 010
14 567
In USD thousands
In USD thousands
NOTE 4 // FREIGHT INCOME
NOTE 6 // VOYAGE RELATED EXPENSES
Freight income
WilForce
WilPride
Total freight income
Voyage related expenses
Bunkers consumption
Commissions
Other voyage expenses
Total voyage related expenses
Freight income
Lease element
Service element
Total freight income
Contract balances
Trade receivables from charterers
Contract assets
Contract liabilities
Provision sale of inventory
Contracted future freight income
WilForce
WilPride
Total contracted future freight income
Freight income consists of revenues from time charter contracts with customers, and includes time charter hire, ballast bonuses, misc.
income and bunkers compensation. MUSD 0.5 of freight income relates to bunkers compensation received from charterers’ on single
voyages, which is presented gross in the income statement (MUSD 1.4 in 2020).
Time charter freight income is split into a lease element and a service element. For accounting purposes the latter is recognised as
revenue, as the Group satisifies its performance obligation of delivering LNG shipping services over time according to the time charter
party, concurrent with recognition of the lease element. The following specifies total freight income split into the lease element and the
service element:
Operating segments
The Group currently owns and operates two LNG vessels which operate globally. For internal reporting and management purposes the
Group’s business is organised into one reporting segment, LNG transportation. Performance is not evaluated by geographical region
as the vessels trade globally and revenue is not dependent on any specific country. The Group does not consider the domicile of its cus-
tomers as a relevant decision making guideline and hence does not consider it relevant to allocate performance to specific geographical
locations. Revenue from the Group’s country of domicile, Norway, was NIL in 2021, same as in 2020.
Information about major customers
In 2021 the Group had three major customers individually contributing with more than 10 % of the Group’s revenues at 18, 29 and 30% of
total revenue, compared to five in 2020 contributing 13, 15, 16, 17 and 19 %
Bunker consumption relates to periods where the vessels have been idle or repositioning, and for single voyage charters where bunkers
consumption has been reimbursed by the charterers (see note 4). When the vessels are on time charter contracts bunker consumption
is for the charterer’s expense. Commissions paid to related parties are disclosed in note 21.
Contract liabilities arise from prepayment of time charter hire from charterers (deferred revenue). Time charter hire is usually paid
monthly in advance and is recognised as revenue as the Group’s performance obligations are satified over time. Contract assets are
reclassified to trade receivables upon invoicing of charter hire.
The following specifies the contractual lease element income assessed as operational lease agreements to be received from 1 January
2022 based on firm charter contracts as per December 31, 2021:
38
AWILCO LNG ASA ANNUAL REPORT 2021
39
AWILCO LNG ASA ANNUAL REPORT 2020
3Designg asDdlgyogut:
2021
1 955
302
194
20
2 470
769
138
496
3 874
2021
7
7.1
2020
1 389
190
137
18
1 735
709
167
438
3 049
2020
8
8.0
In USD thousands
NOTE 8 // ADMINISTRATION EXPENSES
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 administrative expenses
Total administration expenses
Number of onshore employees
Onshore employees year end
Average number of onshore work years
Information regarding remuneration to key management, management fees to related parties, fees to the Board of Directors and audi-
tor’s fees is provided in note 21.
Pensions
The Group has a defined contribution plan for onshore employees which complies with the requirements in the Mandatory Occupational
Pension act in Norway (“Lov om obligatorisk tjenestepensjon”). The pension plan is a defined contribution plan. Contributions on salary
up until 12G are funded in a life insurance company, whereas contributions on salary over 12G are transferred to a separately adminis-
tered scheme and pledged towards the participating employees.
As at 31 December 2020 the Group’s pension liability was KUSD 494 (31 December 2019 KUSD 397)
NOTE 7 // OPERATING EXPENSES AND OTHER INCOME
2021
5 216
3 851
967
1
10 036
2021
-
-
-
2021
54
-
-
54
2020
5 317
2 890
891
30
9 127
2020
(128)
(132)
(261)
2020
(247)
(378)
-
(625)
2020
56
2021
55
Operating expenses
Crew expenses
Other operating expenses
Insurance expenses
Tonnage tax
Total operating expenses
Vessel repair expenses
Machinery equipment
Collision
Total vessel repair expenses
Other income
Machinery equipment (hull and machinery insurance proceeds)
Collision (hull and machinery insurance proceeds)
Loss of hire insurance proceeds from collision
Total other income
Number of seafarers
Seafarers at year-end
In September 2018 damage was incurred to certain non-critical machinery equipment on WilForce. Repairs at yard were completed
in May 2019 and final settlement of the insurance claim was agreed in 2021 and an adjustment to net income of MUSD 0.1 was
recognized. This compared to 2020 were net income of MUSD 0.1 was made.
In May 2019 WilForce was involved in a collision which caused hull damage, but with no harm to life or the environment. Repairs at
yard were completed in September 2019 and most repair expenses and insurance recovery, including compensation for offhire was
recognized in 2019. In 2020 the reported reduction on Vessel repair expenses and reduction in Other income of MUSD 0.3 and MUSD
0.6 respectively are attributable to updated cost estimates for the repair work on WilForce in 2019 and to the settling of one insurance
claim. No adjustment to claims not covered by insurance, mainly related to lost time on hire, was made in 2021 and a trial to assess
liability was done in late March 2022 and the company is currently waiting for the outcome of the trial.
40
AWILCO LNG ASA ANNUAL REPORT 2021
41
AWILCO LNG ASA ANNUAL REPORT 2021
3Designg asDdlgyogut:
3Designg asDdlgyogut:
NOTE 10 // INCOME TAXES CONT
NOTE 11 // VESSELS AND OTHER FIXED ASSETS
2021
21 115
4 645
(4 184)
(154)
699
(1 006)
-
2021
-
-
-
2021
420 329
1 154
(673)
420 809
82 046
12 564
(673)
93 937
326 875
40 years
2 - 5 years
4 - 5 years
10 years
33 years
Straight line
2020
(7 853)
(1 728)
(1 915)
1
1 548
2 093
-
2020
-
-
-
2020
419 540
789
-
420 329
69 540
12 506
-
82 046
338 284
40 years
2 - 5 years
4 - 5 years
10 years
34 years
Straight line
Reconciliation of effective tax rate
Profit/(loss) before taxes
Tax based on ordinary tax rate (22 %)
Effects from:
Loss subject to tonnage tax
Permanent differences
Not recognised deferred tax asset
Currency effects
Total income tax expense / (income)
Income tax payable
Current tax payable recognised in income statement
Current tax payable recognised directly in equity
Total income tax payable
Vessels
Cost as at 1 January
Acquisition vessels
+Newbuildings delivered
+Capitalised dry-docking
+ Capitalised upgrades, dry-dock, spare parts and replacements
Derecognition of cost due to impairment loss parts and equipment
- Disposals
Cost as at 31 December
Accumulated depreciation and impairment as at 1 January
- Depreciation
- Disposals
Accumulated depreciation and impairment as at 31 December
Carrying amount as at 31 December
Estimated useful lifes:
Vessel main components
Vessel indirect leasing expenses
Dry-dock and engine overhauls
Multi-period spares
Estimated remaining useful life
Depreciation method
NOTE 9 // EARNINGS PER SHARE
NOTE 10 // INCOME TAXES
Basic earnings per share are calculated by dividing profit/(loss) for the year attributable to ordinary equity holders by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share are calculated by dividing the profit/(loss) for the year attributable to ordinary equity holders by the weighted
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be
issued on the conversion of all potentially dilutive ordinary shares to ordinary shares. The Company did not have any potentially dilutive
ordinary shares as per 31 December 2021 or 31 December 2020.
Tax regimes
The Company’s subsidiaries in which the vessels are held are subject to Norwegian tonnage tax (NTT). Companies subject to NTT are
exempt from ordinary tax on income derived from operations in international waters. The subsidiaries subject to NTT are taxed on a
notional basis based on the net tonnage of the companies’ vessels. Income and expenses not derived from the operation of vessels
in international waters, such as finance income and expenses, are taxed according to ordinary corporate tax in Norway based on the
relative composition of financial assets to total assets of the subsidiaries’ balance sheets.
The Parent Company and the subsidiaries Awilco LNG Technical Management AS, Awilco LNG 1 AS, Awilco LNG 2 AS and Awilco LNG 3
AS are subject to ordinary corporation tax in Norway.
2020
(7 853)
132 548 611
(0.06)
2020
-
-
-
31.12.2020
1
2 205
65
(476)
25 733
27 528
(27 528)
-
22 %
-
2021
21 115
132 548 611
0.16
2021
-
-
-
31.12.2021
0
1 707
73
-
28 750
30 530
(30 530)
-
22 %
-
Earnings per share
Profit/(loss) for year attributable to ordinary equity holders (KUSD)
Weighted average number of shares outstanding, basic and diluted
Basic/diluted earnings per share (USD)
Income tax expense
Current income tax
Changes in deferred tax
Total income tax expense / (income)
Specification of basis for deferred tax
Other fixed assets
Gain/loss account
Net pension assets
Currency effects on long term debt
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)
42
AWILCO LNG ASA ANNUAL REPORT 2021
43
AWILCO LNG ASA ANNUAL REPORT 2021
3Designg asDdlgyogut:
FX rate
1
8,5326
Carrying value
11 400
1 236
12 637
Code
USD
NOK
FX rate
1
8,8194
Carrying value
22 460
1 177
23 637
31.12.2021
31.12.2020
NOTE 14 // OTHER SHORT TERM ASSETS
NOTE 15 // CASH AND CASH EQUIVALENTS
NOTE 16 // PROVISIONS AND ACCRUALS
31.12.2021
300
57
192
3 835
4 384
31.12.2021
216
2 149
4 921
1 407
572
9 265
31.12.2020
288
48
138
116
590
31.12.2020
702
2 385
5 022
-
381
8 490
Other short term assets
Prepaid expenses
VAT-receivable
Insurance claims
Other short term receivables
Total other short term assets
Currency
US dollars
Norwegian kroner
Total cash and cash equivalents
Provisions and accruals
Accrued expenses, invoice not received
Accrued interest
Deferred revenue (see note 4)
Provision sale of inventory
Salary related provisions
Total provisions and accruals
Please see note 7 for further information on insurance claims. The insurance claims are considered as virtually certain contingent
assets.
As at 31 December 2021 KUSD 1 733 was restricted cash related to the vessel leases (KUSD 3 191 as at 31 December 2020), KUSD 262
was restricted cash related to employee withholding tax (KUSD 98 as at 31 December 2020), KUSD 77 was restricted cash related to
requirements from operating the vessels (KUSD 77 as at 31 December 2020) and KUSD 43 was restricted cash provided as deposit
towards the office lease (KUSD 44 as at 31 December 2020).
Please see note 7 for further information on the provisions for vessel repairs. Deferred revenue relates to time charter hire for January
invoiced in December of USD 4.9 million and provision for sale of inventory of USD 1.4 million. Please see note 4 for contract liabilities.
NOTE 11 // VESSELS AND OTHER FIXED ASSETS CONT
NOTE 12 // TRADE RECEIVABLES
NOTE 13 // INVENTORY
Ageing analysis trade receivables
Both WilForce and WilPride are financed by sale/leaseback agreements which as described in note 3.
Depreciation: Depreciable amount is calculated as cost less residual value. Residual values are calculated based on the vessels’
lightweight tonnage and an estimated scrap rate per ton, less related recycling costs. Estimated residual value per vessel is
approximately USD 12 million.
Interest expense, cash ouﬂow etc on lease liabilities: please see note 17 and note 22.
Impairment: The Group has performed an impairment assessment year end 2021, without identifying the need for any impairment
charges.
The only potential impairment indicator the Group have identified is that the market value of the company at 31. December 2021 was
less than the book value of net assets. The gap has decreased compared with the difference at the end of 2020. The Group have not
identified other factors that indicates weaker cash inﬂows or larger cash outﬂows. Based on this, management has concluded that there
is no indication of impairment of the two vessels, and as a result, no further testing of the recoverable value of the vessels has been
performed.
According to contract terms freight income is generally paid in advance, and thus the Group has limited amounts of trade receivables.
No losses have been realized on trade receivables in 2021 or 2020. See note 4 regarding contract assets and note 20 regarding
management of credit risk.
31.12.2021
993
-
993
31.12.2021
182
182
31.12.2020
61
-
61
31.12.2020
354
354
Trade receivables
Trade receivables
Allowance for doubtful debts
Trade receivables carrying value
Inventory
Bunkers and lube oils
Total inventory
31.12.2021
31.12.2020
Total
993
61
Neither past
due / impaired
993
61
< 30 days
-
-
30-60 days
-
-
61-90 days
-
-
> 90 days
-
-
AWILCO LNG ASA ANNUAL REPORT 2021
45
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
44
3Designg asDdlgyogut:
Shareholder
Awilco AS
The Bank of New York Mellon
Morgan Stanley & Co. Int. Plc.
B.O. Steen Shipping AS
The Bank of New York Mellon SA/NV
Vidar Anfinn Tanager
Nordnet Livsforsikring AS
Patronia AS
The Bank of New York Mellon SA/NV
Morgan Stanley & Co. International
Helmer AS
Danske Bank A/S
J.P. Morgan Securities Plc
Skips AS Tudor
Total > 0.5%
Other shareholders
Total
Number of shares
51 114 080
26 023 392
10 415 278
4 048 809
2 128 210
1 600 000
1 488 380
1 322 988
1 261 040
1 255 661
908 847
850 000
789 724
781 429
103 987 838
28 560 773
132 548 611
In %
38.6%
19.6%
7.9%
3.1%
1.6%
1.2%
1.1%
1.0%
1.0%
0.9%
0.7%
0.6%
0.6%
0.6%
78.5%
21.5%
100.0%
Number of shares
132 548 611
-
-
132 548 611
132 548 611
-
-
132 548 611
Overview of shareholders as at 31 December 2021
NOTE 19 // SHARE CAPITAL AND SHAREHOLDERS
Par value NOK
2.50
(2.40)
-
0.10
0.10
-
-
0.10
Share capital USD
49 407
(47 431)
-
1 976
1 976
-
-
1 976
Share capital
Share capital as at 31 December 2019
Share capital reduction
Issued shares
Share capital as at 31 December 2020
Share capital as at 31 December 2020
Share capital reduction
Issued shares
Share capital as at 31 December 2021
The share capital is denominated in NOK. A reduction in the nominal value of each of the Companny’s shares from NOK 2.5 to NOK 0.10
was resolved at the extraordinary General Meeting held 17 September 2020. All issued shares are of equal rights.
Carrying amount Fair value
NOTE 17 // FINANCE INCOME AND EXPENCE
NOTE 18 // FINANCIAL INSTRUMENTS
2021
1
(26)
664
639
2021
10 156
15
40
10 211
31.12.2021
993
4 084
23 637
28 714
31.12.2021
993
4 084
23 637
28 714
2020
54
68
1
123
2020
13 208
363
20
13 591
31.12.2020
61
302
12 637
12 999
31.12.2020
61
302
12 637
12 999
Carrying amount Fair value
31.12.2021
225 631
516
226 147
31.12.2021
225 631
516
226 147
31.12.2020
243 584
348
243 931
31.12.2020
243 584
348
243 931
Finance income
Interest income
Currency gains
Other finance income
Total finance income
Finance expenses
Interest expenses finance lease liabilities
Currency losses
Other finance expenses
Total finance expenses
Classes of financial instruments and fair values
Financial assets at amortised cost
Trade receivables
Other short term assets
Cash and cash equivalents
Total
Financial liabilities at amortised cost
Lease liabilities
Trade payables
Total
Other finance income include dividend received from DNK of 662 kUSD. For further information on finance lease liabilities please see
note 22.
Fair value of financial instruments
Fair value of trade receivables, other short term assets, cash and cash equivalents and trade payables approximate their carrying
amounts due to the short-term maturities of these instruments, all categorised in fair value level 2.
The fair value of lease liabilities and other non-current liabilities is estimated by discounting future cash ﬂows using rates for debt on
similar terms, credit risk and remaining maturities, categorised in fair value level 3. The fair value of the these approximates the carry-
ing amounts, as there have been no significant changes in the market rates for similar debt financing between the date of securing the
debt financing and the reporting date.
AWILCO LNG ASA ANNUAL REPORT 2021
47
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
46
3Designg asDdlgyogut:
NOTE 20 // CAPITAL AND FINANCIAL RISK MANAGEMENT NOTE 20 // CAPITAL AND FINANCIAL RISK MANAGEMENT CONT
31.12.2021
120 586
356 746
34 %
< 3 months
516
4 688
2 216
7 420
< 3 months
348
4 688
2 452
7 488
Total
516
225 631
48 845
274 992
Total
348
248 437
56 291
305 075
> 5 years
-
135 927
13 416
149 342
> 5 years
-
154 677
18 433
154 677
1-5 years
-
75 008
26 909
101 917
1-5 years
-
75 008
28 790
75 008
3-12 months
-
14 064
6 305
20 369
3-12 months
-
14 064
6 615
14 064
31.12.2020
99 472
352 649
28 %
Capital management
A key objective in Awilco LNG’s capital management is to ensure that the Group maintains a capital structure in order to support its
business, maintain investor and creditor confidence and maximise shareholder value. The Group evaluates its capital structure in light
of current and projected cash ﬂow, the relative strength of the shipping markets, new business opportunities and the Group’s financial
commitments. As part of the Group’s long term capital management strategy, the Company is listed on Euronext Expand. Capital is man-
aged on Group level, although each vessel owning company has a capital structure adressing company specific financial and operational
requirements and risks.
The Group monitors its capital using the book equity ratio:
Dividend policy
The Group’s intention is to pay regular dividends in support of the Group’s main objective of maximising returns to shareholders. Any
future dividends proposed will be at the discretion of the Board of Directors and will depend upon the Group’s financial position, earnings,
debt covenants, capital requirements and other factors. There are no current estimates regarding the potential future dividend level or
timing of dividend payments.
Financial risk management
The Group is in its business exposed to financial risks such as market risk, credit risk and liquidity risk. The Group’s management identifies,
evaluates and implements necessary actions to manage and mitigate these risks. The Board of Directors reviews and agrees to the policies
for managing each of these risks, which are summarised below.
Market risk
Market risk from financial instruments is the risk that future cash ﬂows of a financial instrument will ﬂuctuate because of changes in
market prices. Market risk comprise three types of risk: interest rate risk, foreign currency risk and price risk. Financial instruments held
by the Group are affected by market risk. The Group does not enter into any financial instruments, including financial derivatives, for trading
purposes.
Interest rate risk: At the balance sheet date the Group had oustanding lease liabilities on the vessels of MUSD 225.6 that was subject to
a ﬂoating interest charge (USD LIBOR). A 100 bps change in USD libor would have an effect on the profit/(loss) for the reporting period of
MUSD 2.3 and no direct effect on equity. The Group also had bank deposits subject to ﬂoating NIBOR and LIBOR rates. No interest rate
derivatives have been entered into to mitigate the ﬂoating interest rate risk. The Group continually assess the need for hedging interest rate
risk.
Foreign currency risk: The functional currency of all the entities in the Group is USD, and the Group has limited currency risk arising from
operations, as income and the majority of operating expenses and vessel investments are denominated in USD. However, the Group has
exposure to NOK, as administration expenses and parts of cash and cash equivalents, other short term assets, trade payables and provi-
sions and accruals are denominated in NOK. Financial instruments denominated in currencies other than USD at 31 December 2021 include
trade payables, other short term assets and bank deposits in NOK, which represents a net long exposure to NOK. Based on these financial
instruments denominated in NOK at 31 December 2021, a 10 % change in the USD/NOK rate would have an effect on the profit/(loss) for the
reporting period of KUSD 92 and no direct effect on equity (KUSD 118 in profit/(loss) effect in 2020).
Price risk: The Group will normally have limited exposure to risks associated with price ﬂuctuations on bunker oil, as the bunkers is for
the charterers account when the vessels are on contract. The Group has currently not entered into any bunkers derivatives, however this is
subject to continuous assessments.
The Group is also subject to price risk related to the spot/short term charter market for chartering LNG carriers, which is uncertain and vol-
atile and will depend upon, among other things, the natural gas prices, tonnage supply and energy markets which the Group cannot predict.
Currently, no financial instruments has been entered into to reduce this risk.
Credit risk
Credit risk refers to the risk that a counterparty defaults on its contractual obligations resulting in financial loss to the Group. The Group is
exposed to credit risk from its operating activities through trade receivables and from its financing activities, including deposits with banks.
The Group aims to do business with creditworthy counterparties only. Prior to entering into a charterparty the Group evaluates the credit
quality of the customer, assessing its financial position, credit rating, past experience and other factors. If the counterparty is not assessed
as of adequate credit quality the Group may demand guarantees and/or prepayment of charter hire to reduce credit risk to an acceptable
level. Charter hire is generally paid in advance, effectively reducing the potential exposure to credit risk. The credit quality of outstanding
trade receivables as at 31 December 2021 is assessed as very good. The Group has measured the expected credit loss for the coming twelve
months and estimated it to NIL. Furthermore, as disclosed in note 12, none of the trade receivables outstanding as at 31 December 2021 are
past due. Bank deposits are deposited with internationally recognised financial institutions with a high credit rating. Currently, bank depos-
its are with banks rated Aa3 by Moody’s, hence the assessed credit risk is minimal.
Awilco LNG has not provided any material guarantees for third parties’ labilities, and the maximum exposure to credit risk is represented by
the carrying amount of financial assets in the statement of financial position
Liquidity risk
The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it has sufficient liquidity and/or undrawn commited
credit facilities at all times to meet its obligations without incurring unacceptable losses or risking damage to the Group’s reputation. To
ensure this, the Group continuously monitors the maturity of the financial assets and liabilities and projected cash ﬂows from operations.
Please see the liquidity risk section in the Board of Directors’ report for further information.
The WilForce and WilPride sale/leaseback facilities provided by CCB Financial Leasing Co. Ltd.(CCBFL) contains a minimum value clause in
addition to financial covenants that require the Awilco LNG Group to maintain consolidated minimum cash and cash equivalents of USD 10.0
million and positive consolidated working capital. On 22 June 2020 the Company and CCBFL agreed to make certain temporary amend-
ments to financial covenants in the sale/leaseback facilities for both vessels. The required minimum consolidated cash and cash equivalents
financial covenant of USD 10.0 million was reduced to USD 2.0 million. On 23 November 2020 the temporary amendments outlined above
were extended for a further six-month period from 1 January 2021 to 30 June 2021. The temporarily amended cash covenant of USD 2.0
million ended on June 30, 2021 and the Comapny is in compliance with all ordinary reinstated covenants.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:
Equity ratio
Book equity
Total assets
Book equity ratio
Per 31 December 2021
Trade payables
Interest -bearing debt
Minimum interest payment
Total
Per 31 December 2020
Trade payables
Interest -bearing debt
Minimum interest payment
Total
48
AWILCO LNG ASA ANNUAL REPORT 2021
49
AWILCO LNG ASA ANNUAL REPORT 2021
Remuneration to key management
2021 Remuneration
CEO Jon Skule Storheill
CFO Per Heiberg *
Prev. CFO Øyvind Ryssdal**
Total
* From April 6, 2021
** Up until January 31, 2021
2020 Remuneration
CEO Jon Skule Storheill
CFO Øyvind Ryssdal
Total
NOTE 21 // RELATED PARTIES CONT
3Designg asDdlgyogut:
3Designg asDdlgyogut:
Salary
403
198
80
681
Salary
383
213
596
Bonus
196
48
0
244
Bonus
5
5
10
Pensions
57
28
2
87
Pensions
51
22
74
Other
3
2
0
5
Other
2
42
44
Total
659
276
82
1 017
Total
441
282
723
Loans, advances and guarantees
Awilco LNG has not provided any loans, advances or guarantees to key management.
The Board of Directors’ guidelines regarding remuneration to leading persons
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 2022.
The guidelines set out for determination of salaries and other remuneration applies to leadng persons in the Company. The following
guidelines were applied in 2021:
General policy: The Company shall offer competitive terms of compensation for senior executives to enable the Company to recruit, mo-
tivate and retain senior executives. Competitive terms are defined as terms at the same level as those offered by comparable businesses.
The total remuneration shall reﬂect the responsibility and obligations of senior executives, and promote added value to the Company and
its shareholders. The remuneration should not be of such a nature or extent that it may negatively impact the Company’s reputation. It is
the view of the Board that these objectives are important to the Company’s business strategy and long-term interests.
The Board determines the remuneration of the chief executive officer. The chief executive officer determines the remuneration of other
senior executives. The remuneration of the members of the Board is determined by the Company’s general meeting.
Salary and remuneration: Remuneration to senior executives consists of fixed and variable compensation. The fixed compensation con-
sists of a base salary and also includes insurance and pension schemes, car allowance, parking, newspaper and communications to the
extent deemed appropriate. The fixed compensation will normally constitute the main part of the remuneration to senior executives.
The Company offers a defined contribution plan whereby pension contributions towards salary up to 12G are funded in a life insurance
company. Contributions towards salary above 12G are funded by the Company and transferred to a separately administered scheme and
pledged towards the participating employees. The plan complies with the requirements in the Mandatory Occupational Pension Act in
Norway. The Company’s senior executives are covered by this defined contribution plan. The Company does not have any other pension
arrangements for senior executives.
NOTE 21 // RELATED PARTIES
Description of service
Technical Sub-management Services
Administrative Services
Ship Brokering Services
No.
1
2
3
Related party
Awilco Technical Services AS (ATS)
Awilhelmsen Management AS (AWM)
Fearnleys AS
To provide the Group with access to important and required knowledge and services, the Group has entered into the following agree-
ments and transactions with related parties:
Purchases from related parties are included as part of Administration expenses in the income statement, except from commissions paid
to the Fearnleys AS, which are included in Voyage related expenses.
Balances with related parties (liabilities) are presented as Trade payables or Provisions and accruals in the statement of financial
position.
Balances with related parties (assets) are presented as Trade receivables in the statement of financial position.
(1) The Group’s in-house technical manager, Awilco LNG Technical Management AS (ALNG TM), has entered into a sub-management
agreement with ATS, whereby ATS assists ALNG TM in management of the Group’s ﬂeet. The sub-management services also include
management for hire of the managing director in ALNG TM. ALNG TM pays ATS a management fee based on ATS’ costs plus a margin
of 7 %, cost being time accrued for the sub-manager’s employees involved. The fee is subject to quarterly evaluation, and is regulated
according to the consumer price index in Norway. The agreement can be terminated by both parties with three months notice. ATS is
100 % owned by Awilco AS.
(2) AWM provides the Group with administrative and general services including accounting, payroll, legal, secretary function and IT. The
Group pays AWM a management fee based on AWM’s costs plus a margin of 5 %. The fee is subject to semi-annual evaluation, and is
regulated according to the consumer price index in Norway. The agreement can be terminated by both parties with three months notice.
AWM is 100 % owned by Awilhelmsen AS, which owns 100 % of Awilco AS.
(3) One of the Company’s Board Members was per December 31 ,2021 employed by Astrup Fearnley AS. Fearnleys AS, a subsidiary of
Astrup Fearnley AS, delivers ship brokering services on a competitive basis to the Group.
2021
519
250
7
31.12.2021
25
-
-
31.12.2021
167
-
-
2020
480
229
76
31.12.2020
55
-
-
31.12.2020
162
-
-
Purchases from related parties
Awilco Technical Services AS
Awilhelmsen Management AS
Fearnleys AS
Balances with related parties (liabilities)
Awilco Technical Services AS
Awilhelmsen Management AS
Fearnleys AS
Balances with related parties (assets)
Awilco Technical Services AS
Awilhelmsen Management AS
Astrup Fearnley Group
AWILCO LNG ASA ANNUAL REPORT 2021
51
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
50
3Designg asDdlgyogut:
NOTE 21 // RELATED PARTIES CONT
2020 Remuneration
Directors’ and key management’s shares and options in the Company
Synne Syrrist
Annette Malm Justad
Jens-Julius Nygaard
Jon-Aksel Torgersen
Ole Christian Hvidsten
Total compensation for the period
Total
48
21
21
27
27
144
2020
66
1
3
70
2021
77
-
-
77
Ordinary shares
-
-
-
577 564
-
577 564
Ordinary shares
140 000
-
140 000
Remuneration
committee fee
5
5
11
Audit
committee fee
5
5
11
Director’s fee
37
21
21
21
21
122
Board of Directors
Synne Syrrist
Annette Malm Justad
Jens-Julius Nygaard
Jon-Aksel Torgersen
Ole Christian Hvidsten
Total
Key management
CEO Jon Skule Storheill
CFO Per Heiberg
Total
Auditor’s fee
Statutory audit (expensed)
Other assurance services
Tax advisory
Total fees to auditor, excl. VAT
NOTE 21 // RELATED PARTIES CONT
The variable compensation consists of variable bonus. Bonus to senior executives shall be related to collective and individual goals,
partly based on defined parameters (KPIs) and partly a discretionary evaluation of the Company’s and employee’s performance. Bonus
payments shall reﬂect the values brought to the Company and its shareholders, as well as individual achievements. The potential bonus
to the CEO is not limited, while the potential bonus to the CFO is limited to 12 months salary.
The Company’s CEO and CFO has an agreement of 18 and 12 months severance payment respectively including a six month period of
notice in case of involuntary resignation or by redundancy.
The Company has no current plans to offer senior executives warrants, options or other forms of remuneration related to shares or the
development of the share price in the Company or other companies within the Awilco LNG Group. Issue of shares or granting of share-
based payments to senior executives shall only take place upon the General Meeting’s approval. This shall not prevent senior executives
from taking part in equity issues on the same terms as other investors.
The remuneration of the members of the Board will consist of an annual fixed fee unless the general meeting of the Company decides
otherwise. No member of the Board is entitled to any variable remuneration or any compensation upon termination of the membership
of the Board.
The Company has no current plans to offer senior executives warrants, options or other forms of remuneration related to shares or the
development of the share price in the Company or other companies within the Awilco LNG Group. Issue of shares or granting of share-
based payments to senior executives shall only take place upon the General Meeting’s approval. This shall not prevent senior executives
from taking part in equity issues on the same terms as other investors.
Evaluation of compensation to key management in the previous year: The compensation to key management in the previous year was in
accordance with the same principles described above. Further details regarding remuneration to key management is specified above.
Remuneration to Board of Directors
Remuneration to the Board of Directors consists of a Director’s fee which is fixed for the year depending on the role on the Board as well
as compensation for other Board elected committees. The Board’s fees are approved by the Annual General Meeting.
Balances with related parties (assets) are presented as Trade receivables in the statement of financial position.
31.12.2021
167
-
-
31.12.2020
162
-
-
Balances with related parties (assets)
Awilco Technical Services AS
Awilhelmsen Management AS
Astrup Fearnley Group
2021 Remuneration
Synne Syrrist
Annette Malm Justad
Jens-Julius Nygaard
Jon-Aksel Torgersen
Steve Christy
Total compensation for the period
Total
52
23
26
29
12
142
Remuneration
committee fee
6
3
3
12
Audit
committee fee
6
3
9
Director’s fee
41
23
23
23
12
122
AWILCO LNG ASA ANNUAL REPORT 2021
53
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
52
3Designg asDdlgyogut:
NOTE 22 // INTEREST-BEARING DEBT CONT
Payments towards lease liabilities
Future minimum lease payments and their present value
Lease payments WilForce
Lease payments WilPride
Total
Lease payments WilForce
Lease payments WilPride
Total
Per 31 December 2021
Minimum lease payments
Present value of min. lease payments
Per 31 December 2020
Minimum lease payment
1)
Present value of min. lease payments
1)
Including transaction costs
1)
Including contractual minimum interest payments
Total
14 156
14 160
28 316
Total
16 767
16 802
33 569
Interest
4 781
4 785
9 566
Interest
1)
9 736
9 771
19 507
Principal
9 375
9 375
18 750
Principal
7 031
7 031
14 062
< 1 year
18 750
18 486
< 1 year
18 750
18 479
1-5 yrs
75 002
67 287
1-5 yrs
75 002
67 099
> 5 yrs
135 935
102 902
> 5 yrs
154 685
113 445
Total
229 687
188 674
Total
248 437
199 022
2021
2020
NOTE 22 // INTEREST-BEARING DEBT
Subsequent to the delivery of WilForce and WilPride in 2013, the vessels were sold to companies in the Teekay LNG Partners L.P.
Group (Teekay) for MUSD 205 less MUSD 50 in pre-paid charter hire each, and chartered back by Awilco LNG on bareboat basis with
repurchase obligations at the end of the lease period.
In May 2017 the bareboat agreements with Teekay for both vessels were renegotiated and the leases were extended to 31 December
2019 +/- 60 days in Awilco LNG’s option.
The financial leases with Teekay were refinanced in early January 2020 with a new 10-year sale-leaseback facility provided by
CCB Financial Leasing Co. Ltd. (CCBFL), a wholly owned subsidiary of China Construction Bank (CCB).
Both vessels were sold for a gross consideration of USD 175.0 million per vessel, including non-amortizing and non-interest bearing
pre-paid charter hire of USD 43.75 million per vessel, enabling a full take out of the Teekay sale-leaseback agreements. The vessels
are chartered back on bareboat basis to wholly owned subsidiaries of the Company for a period of up to 10 years. The CCBFL facility
bears a 14-year straight line amortisation profile and carries a ﬂoating interest rate structure based on 3-month USD libor plus a
margin of 370 bps.
The Group has rolling repurchase options starting after three years and repurchase obligations at maturity of the facility at USD 37.5
million per vessel.
The facility contains a minimum value clause in addition to financial covenants that require the Group to maintain consolidated
minimum cash and cash equivalents of USD 10.0 million and positive consolidated working capital.
On 22 June 2020 the Company and CCBFL agreed to make certain temporary amendments to financial covenants in the sale-leaseback
facilities for both vessels. The required minimum consolidated cash and cash equivalents financial covenant of MUSD 10.0 was reduced
to MUSD 2.0 and the required consolidated positive working capital financial covenant was waived, both effective for a six-month period
from 1 July 2020 to 31 December 2020.
On 23 November 2020 the temporary amendments outlined above were extended for a further six-month period, from 1 January 2021
to 30 June 2021. As a condition of the above extension, the Company is restricted from declaring or paying dividends if the consolidated
cash position of the Awilco LNG Group is lower than USD 20.0 million.
The temporary amendment expired on June 30, 2021 and at December 31, 2021 the Group was in compliance with ordinary financial
covenants in the facilities.
Carrying amount
The net carrying amount of the lease liabilities and other interest bearing debt is presented as follows:
31.12.2020
18 843
225 004
243 846
31.12.2021
18 890
206 906
225 796
Short-term interest bearing debt
Long-term interest bearing debt
Total
Interest bearing debt is presented net of capitalized transaction costs which are amortised over the repayment period for the debt.
AWILCO LNG ASA ANNUAL REPORT 2021
55
AWILCO LNG ASA ANNUAL REPORT 2021
Group - gures in USD
54
3Designg asDdlgyogut:
NOTE 23 // SUBSIDIARIES
NOTE 24 // COMMITMENTS, CONTINGENCIES AND GUARANTEES
NOTE 25 // EVENTS AFTER THE REPORTING DATE
Country
Norway
Norway
Norway
Norway
Norway
Norway
Principial activity
Former vessel SPV
Former vessel SPV
Former vessel SPV
Owner of LNG/C WilForce
Owner of LNG/C WilPride
Technical management
Date incorporated
2 February 2011
2 February 2011
2 February 2011
6 May 2011
6 May 2011
17 September 2012
Ownership/
voting share
100 %
100 %
100 %
100 %
100 %
100 %
Company name
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 consolidated financial statements include the financial statements of Awilco LNG ASA and its subsidiaries listed in the table below:
Operating lease commitments
The Group has no operating lease commitments as at 31 December 2021.
Contingent assets
As disclosed in note 7 WilForce was involved in a collision in May 2019 which caused hull damage, but with no harm to life or the envi-
ronment. Based on an assessment of facts and legal advice Awilco LNG holds the other vessel fully and completely liable for the colli-
sion, and the Company expects to recover costs, expenses and losses beyond proceeds from the Group’s insurers from the other party,
including insurance deductibles, off-hire and lost time charter hire, in due course. This claim will not be reﬂected in Awilco LNG’s
financial statements until the awarded compensation is determined, as it is for accounting purposes considered a contingent asset.
Investment
In January the Company purchased 700,000 shares in Cool Company Limited at a total cost of USD 7 million representing an ownership
of approximately 1.75% when the transaction to acquire eight TFDE vessels from Golar LNG is completed.
Operation
At the date of this report both vessels have been redelivered from their multi months contracts and are trading on spot contracts
around at rates around cash brake even.
Geopolitical unrest
The Russian invasion of Ukraine has caused large geopolitical uncertainties and increased uncertainty on how energy markets,
including transportation of LNG, will evolve going forward. This uncertainty increase uncertainty on both earnings and running cost for
Awilco LNG going forward. None of our vessels or any other operations are directly involved in any trade in the region.
NOTE 22 // INTEREST-BEARING DEBT CONT
Reconciliation of movements of liabilities to cash ﬂows arising from financing activities
Balance as at 1 January 2021
Repayment of borrowings
Interest and borrowing costs paid
Total changes from financing cash ﬂows
Liability related changes
Reclass from short-term to long-term
Balance as at 31 December 2021
Balance as at 1 January 2020
Repayment of borrowings
Proceed from financing
Interest and borrowing costs paid
Total changes from financing cash ﬂows
Liability related changes
Reclass from short-term to long-term
Balance as at 31 December 2020
Long-term
interest bearing
debt
225 004
-
-
-
(47)
206 906
Long-term
interest bearing
debt
-
-
-
-
225 004
225 004
Short-term
interest bearing
debt
18 843
(18 750)
-
(18 750)
47
18 890
Short-term
interest bearing
debt
260 187
(270 428)
262 500
(8 413)
(16 341)
(225 004)
18 843
Total
243 846
(18 750)
(9 566)
(28 316)
-
225 796
Total
260 187
(270 428)
262 500
(19 506)
(27 434)
-
Other non-
current
liabilities
-
-
-
-
-
Other non-
current
liabilities
-
-
-
-
-
Interest
payable
-
-
(9 566)
(9 566)
Interest
payable
-
-
(11 093)
(11 093)
Liabilities
Liabilities
56
AWILCO LNG ASA ANNUAL REPORT 2021
57
AWILCO LNG ASA ANNUAL REPORT 2021
Parent Company
Financial
Statements
and Notes
AWILCO LNG ASA ANNUAL REPORT 2020
59
58
Parent - figures in NOK
Parent - figures in NOK
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
AWILCO LNG ASA ANNUAL REPORT 2020
2020
5 693
20 560
(14 867)
9
238 400
(253 276)
7 132
1 743
5 389
(247 887)
-
(247 887)
(247 887)
(247 887)
31.12.2020
3 661
81
679 665
85 603
769 010
30 122
999
77 065
108 186
877 196
13 255
748 849
419 800
(391 772)
790 132
4 215
4 215
891
78 851
56
3 052
82 850
877 196
2021
8 037
25 847
(17 810)
9
-
(17 819)
3 760
314
3 445
(14 373)
-
(14 373)
(14 373)
(14 373)
31.12.2021
4 504
72
679 665
85 603
769 844
5 239
503
150 291
156 032
925 876
13 255
748 849
419 800
(406 145)
775 758
5 144
5 143
1 137
138 880
278
4 680
144 975
925 876
In NOK thousands
Operating income
Administration expenses
Earnings before interest, taxes, depr. and amort. (EBITDA)
Depreciation and amortisation
Impairment (reversals) of shares in subsidiaries
Earnings before interest and taxes
Finance income
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
Total allocations and transfers
In NOK thousands
ASSETS
Non-current assets
Pension assets
Other fixed assets
Shares in subsidiaries
Loans to 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
Total non-current liabilities
Current liabilities
Short term payables subsidiaries
Inter company debt
Trade payables
Income tax payable
Provisions and accruals
Total current liabilities
Total equity and liabilities
Note
6
3
6
4
4
5
Note
3
6
6
6
7
8
8
3
6
6
5
9
PARENT COMPANY INCOME STATEMENT
AWILCO LNG ASA ANNUAL REPORT 2020
61
60
Parent - figures in NOK
Parent - figures in NOK
PARENT COMPANY NOTES TO THE
FINANCIAL STATEMENTS
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
incorporated 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 Norwegian 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 is for reasons not considered being of a
temporary nature and must be deemed necessary based on
generally accepted accounting principles. Impairment losses
are reversed when the rationale for the recognised impairment
loss no longer applies. Dividends, group contributions 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 presentation currency 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 recognised in the
income statement once services have been rendered.
OTHER FIXED ASSETS
Other fixed assets are capitalised and depreciated 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 realisable 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 impairment 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 taxable
temporary differences. Deferred tax assets 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
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2021
For the period ended 31 December 2020
Other
paid-in capital
419 800
-
419 800
Other
paid-in capital
101 683
-
318 117
419 800
Retained
earnings
(391 772)
(14 373)
(406 146)
Retained
earnings
(143 885)
(247 887)
-
(391 772)
Total
equity
790 132
(14 373)
775 758
Total
equity
1 038 019
(247 887)
-
790 132
Share
premium
748 849
-
748 849
Share
premium
748 849
-
-
748 849
In NOK thousands
Equity at 1 January 2021
Profit/(loss) for the period
Balance as at 31 December 2021
In NOK thousands
Equity at 1 January 2020
Profit/(loss) for the period
Share capital reduction
Balance as at 31 December 2020
Share
capital
13 255
-
13 255
Share
capital
331 372
-
(318 117)
13 255
PARENT COMPANY CASH FLOW STATEMENT
2020
(247 887)
9
238 400
(219)
2 570
(3 446)
(10 573)
-
0
0
-
-
(10 573)
87 638
77 065
2021
(14 373)
9
-
503
85 159
1 936
73 232
-
-
-
-
-
73 226
77 065
150 291
In NOK thousands
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
Impairment of shares in subsidiaries
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 to/from subsidiaries
Investment in other fixed assets
ii) Net cash provided by / (used in) investing activities
Cash Flows from Financing Activities:
Proceeds from borrowings
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
Note
6
6
7
7
AWILCO LNG ASA ANNUAL REPORT 2020
63
62
Parent - figures in NOK
Parent - figures in NOK
on investments in subsidiaries, except where the timing of
the reversal of the temporary difference is controlled by the
Company.
Current income tax and deferred tax is recognised 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 company,
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 recognised 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 contributions have been paid.
The liability arising from the plan > 12G is classified 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 includes 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 statements on the reporting date 31
December the current year.
CASH FLOW STATEMENT
The cash ﬂow statement is presented using the indirect method.
AWILCO LNG ASA ANNUAL REPORT 2020
NOTE 3 // ADMINISTRATION EXPENSES
2020
9 824
1 561
1 204
132
12 721
1 499
1 236
5 104
20 560
2020
5
5
2020
408
-
-
408
2021
13 015
2 350
1 240
136
16 742
1 537
2 390
5 178
25 847
2021
5
4,8
2021
431
-
-
431
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
Number of employees
Employees year end
Average number of work years
Auditor’s fee
Statutory audit
Other assurance services
Tax advisory
Total fees to auditor, excl. VAT
Pensions
The Company has a defined contribution plan for its employees which 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
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.
Remuneration to key management
Please see note 21 in the consolidated financial statements for disclosures regarding remuneration to key management.
Remuneration to Board of Directors
Please see note 21 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.
AWILCO LNG ASA ANNUAL REPORT 2020
65
64
Parent - figures in NOK
Parent - figures in NOK
AWILCO LNG ASA ANNUAL REPORT 2020
2020
405
3 137
1 035
2 263
291
7 132
2020
58
361
1 282
42
1 743
2020
-
-
-
31.12.2020
5
-
-
(3 661)
554
49 580
50 139
(50 139)
-
22 %
-
2020
(247 887)
(54 535)
52 463
2 072
(0)
2020
-
-
-
Date
incorporated
2 February 2011
2 February 2011
2 February 2011
6 May 2011
6 May 2011
17 September 2012
2021
4
3 203
279
0
274
3 760
2021
276
94
55
42
468
NOTE
6
NOTE
6
2021
-
-
-
31.12.2021
2
-
-
(4 504)
5 144
61 876
62 518
(62 518)
-
22 %
-
2021
(14 373)
(3 162)
440
2 722
(0)
2021
-
-
-
Country
Norway
Norway
Norway
Norway
Norway
Norway
Principial activity
Former vessel SPV
Former vessel SPV
Former vessel SPV
Owner of LNG/C WilForce
Owner of LNG/C WilPride
Technical management
Finance income
Interest income
Interest income group companies
Currency gain
Dividends and group contributions from subsidiaries
Other finance income group companies
Total finance income
Finance expenses
Interest expense
Interest expense group companies
Currency loss
Other finance expenses
Total finance expenses
Income tax expense
Current income tax
Changes in deferred tax
Total income tax expense / (income)
Specification of basis for deferred tax
Other fixed assets
Loans to group companies (currency effects)
Provisions and accruals
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)
Reconciliation of effective tax rate
Profit/(loss) before taxes
Tax based on ordinary tax rate (22 %)
Effects from:
Permanent differences
Not recognised deferred tax assets
Total income tax expense / (income)
Income tax payable
Current tax payable recognised in income statement
Current tax payable recognised directly in equity
Total income tax payable
Company name
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
Subsidiaries
As at 31 December 2021 the Company has the following subsidiaries:
The subsidiaries’ registered office is Beddingen 8, 0250 Oslo, Norway.
Tax regime
The Company is subject to ordinary corporation tax in Norway at a tax rate of 22 % in 2021.
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 assessment 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.
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 assessment 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.
Transactions with related parties
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 21 in the consolidated financial statement. Transactions with
subsidiaries are disclosed below.
NOTE 4 // FINANCE INCOME AND EXPENSE
NOTE 5 // INCOME TAXES CONT
NOTE 6 // RELATED PARTIES
NOTE 5 // INCOME TAXES
AWILCO LNG ASA ANNUAL REPORT 2020
67
66
Parent - figures in NOK
Parent - figures in NOK
AWILCO LNG ASA ANNUAL REPORT 2020
NOTE 6 // RELATED PARTIES AND INVESTMENTS IN GROUP COMPANIES CONT
NOTE 6 // RELATED PARTIES AND INVESTMENTS IN GROUP COMPANIES CONT
Ownership/
voting share
100 %
100 %
100 %
100 %
100 %
100 %
Carrying amount
31.12.2021
8 692
1 146
10 008
373 800
275 900
10 120
679 665
Short-term
payables
2
2
2
-
-
1 132
1 137
Short-term
payables
2
2
2
-
-
886
891
31.12.2021
9 629
1 572
26 259
4 437
82 253
14 731
138 880
2021
3 318
4 719
8 037
2021
-
-
-
1 070
2 067
34
3 171
31.12.2020
9 347
1 557
25 446
32 786
(25 395)
9 715
53 455
2020
2 980
2 712
5 693
2020
-
-
-
1 056
2 074
7
3 137
Short-term
receivables
-
-
-
2 023
3 216
-
5 239
Short-term
receivables
-
-
-
1 020
1 444
2 263
4 727
Note
7
Long-term loans (+)
/borrowings (-)
-
-
-
29 198
56 405
-
85 603
Long-term loans (+)
/borrowings (-)
-
-
-
29 198
56 405
-
85 603
Carrying amount
31.12.2020
8 692
1 146
10 008
373 800
275 900
10 120
679 665
Company name
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
Subsidiary
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
Subsidiary
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
Company name
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
Subsidiary
Awilco LNG 4 AS
Awilco LNG 5 AS
Total
Interest income from subsidiaries
Subsidiary
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 as at 31 December 2021
Balances with subsidiaries as at 31 December 2020
Cash pool deposits subsidiaries
Balances with subsidiaries
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 to LIBOR + 3 % for USD denominated loans and NIBOR + 3 % for NOK denominated loans.
See below for interest income from subsidiaries.
Transactions with 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 %.
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 2021
the Company paid a fee of TNOK 853 for these services (TNOK 671 in 2020).
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 Awilco LNG
5 AS respectively, see note 11. A guarantee commission of TNOK 137 was charged each of the two subsidiaries in 2021 (TNOK 145 each
in 2020).
AWILCO LNG ASA ANNUAL REPORT 2020
69
AWILCO LNG ASA ANNUAL REPORT 2020
68
Parent - figures in NOK
Parent - figures in NOK
Cash pool deposits subsidiaries
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 2021 TNOK 2 212 was restricted cash related to employee withholding tax (31 December 2020 TNOK 738), TNOK 675
was restricted cash related to requirements from operating Awilco LNG’s vessels (31 December 2020 TNOK 653) and TNOK 376 was
restricted cash provided as deposit towards the office lease (31 December 2020 TNOK 376).
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.
NOTE 12 // OTHER FIXED ASSETS
NOTE 11 // COMMITMENTS, CONTINGENCIES AND GUARANTEES
Please see note 24 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 22 in the consolidated
accounts.
Information on events after the reporting date is disclosed in note 26 in the consolidated accounts.
NOTE 8 // SHARE CAPITAL
NOTE 12 // FINANCE LEASE LIABILITIES
NOTE 12 // EVENTS AFTER THE REPORTING DATE
2021
671
(0)
-
671
(591)
(9)
-
(600)
72
31.12.2021
-
138 880
138 880
2020
671
(0)
-
671
(582)
(9)
-
(591)
81
31.12.2020
(0)
78 851
78 851
NOTE 10 // CAPITAL AND FINANCIAL RISK MANAGEMENT
General information regarding capital and financial risk management is provided in note 20 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.
31.12.2021
-
4 680
-
4 680
31.12.2020
159
2 893
-
3 052
NOTE 9 // PROVISIONS AND ACCRUALS
Provisions and accruals
Accrued expenses, invoice not received
Salary related provisions
Other accruals and provisions
Total provisions and accruals
Cost as at 1 January
Acquisition
Disposals
Cost as at 31 December
Accumulated depreciation and impairment as at 1 January
Depreciation
Disposals
Accumulated depreciation and impairment as at 31 December
Carrying amount as at 31 December
Long-term interest bearing debt
Short-term interest bearing debt
Total
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.
The net carrying amount of the finance lease liabilities is presented as follows:
Information on events after the reporting date is disclosed in note 26 in the consolidated accounts.
NOTE 7 // CASH AND CASH EQUIVALENTS
FX rate
8.8194
1
Carrying
value
5 538
5 873
11 411
31.12.2021 31.12.2020
FX rate
8.5326
1
Carrying
value
17 670
5 939
23 610
Code
USD
NOK
Currency
US dollars
Norwegian kroner
Total cash and cash equivalents
2021
7
1
19
21
39
7
94
2020
38
6
102
145
35
34
361
Interest expenses subsidiaries
Subsidiary
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
NOTE 6 // RELATED PARTIES AND INVESTMENTS IN GROUP COMPANIES CONT
31.12.2021
138 880
31.12.2020
53 455
AWILCO LNG ASA ANNUAL REPORT 2020
71
AWILCO LNG ASA ANNUAL REPORT 2020
70
Parent - figures in NOK
Parent - figures in NOK
Auditor’s Report
72
AWILCO LNG ASA ANNUAL REPORT 2021
73
AWILCO LNG ASA ANNUAL REPORT 2021
Statsautoriserte revisorer
Ernst & Young AS
Dronning Eufemias gate 6a, 0191 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
Report on the audit of the financial statements
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 2021, the income statement and statement of cash flows 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 2021, the income statement, statement of comprehensive income, statement of cash flows
and statement of changes in equity for the year then ended and notes to the financial statements,
including a summary of significant accounting policies.
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 2021 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 2021 and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting 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 11 years since incorporation on 2 February 2011.
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 2021. 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
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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 2021, the Group owned two
2013 built 156,000 cbm TFDE LNG carriers. The
accounting estimates for these assets require
management’s judgment 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 carrying
values for impairment based on estimated
recoverable amounts. As these estimates have
material impact for the Group, this was
considered a key audit matter. Management did
not identify indicators of impairment for any of the
vessels.
Our audit response
We compared the estimates of useful lives to
industry practice and experience from prior years.
We further recalculated depreciations for the year.
We assessed potential indicators of impairment
for each vessel and evaluated management’s
assessment of indicators.
We refer to the Group’s disclosures included in
note 3 Significant Accounting Judgements,
Estimates and Assumptions and note 11 Vessels
and other fixed assets in the consolidated
financial statements about accounting estimates
related to vessels.
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 there is a material misstatement of this other information or
that the information required by applicable legal requirements is not included, we are required to report
that fact.
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 and fair presentation of the financial statements of the
Company in accordance with the Norwegian Accounting Act and accounting standards and practices
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generally accepted in Norway and of the consolidated financial statements of the Group in accordance
with International Financial Reporting Standards as adopted by the EU, and 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.
• 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.
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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.
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of our audit of the financial statements of Awilco Lng ASA we have performed an assurance
engagement to obtain reasonable assurance whether the financial statements included in the annual
report, with the file name xxx, has 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 given with legal basis in 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 an annual report and iXBRL tagging of the consolidated
financial statements that complies with the ESEF Regulation. This responsibility comprises an adequate
process and such internal control as management determines is necessary to enable the preparation of
an annual report and iXBRL tagging of the consolidated financial statements that is compliant with the
ESEF Regulation.
Auditor’s responsibilities
Our responsibility 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 based on the
evidence we have obtained. We conducted our engagement 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 that the financial statements included in the annual report have been
prepared in accordance with the ESEF Regulation.
As part of our work, we performed procedures to obtain an understanding of the company’s processes for
preparing its annual report in XHTML format. We evaluated the completeness and accuracy of the iXBRL
tagging and assessed management’s use of judgement. Our work comprised 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.
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Independent auditor's report - Awilco Lng ASA 2021
A member firm of Ernst & Young Global Limited
Oslo, 29 April 2022
ERNST & YOUNG AS
The auditor's report is signed electronically
Johan Lid Nordby
State Authorised Public Accountant (Norway)
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Corporate
governance
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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 2121 (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. 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 2021 was USD 120.6
million, which represents an equity ratio of 34 %.
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. Any future potential dividends declared will
be at the discretion of the Board of Directors and will depend
upon the Group’s financial position, earnings, debt covenants,
capital requirements and other factors. Dividends will be
proposed by the Board for approval by the General Meeting.
Any proposal to confer to the Board of Directors the mandate to
distribute dividends is to be explained.
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
CORPORATE GOVERNANCE
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.
Awilco LNG has entered into a sub-management agreement
with Awilco Technical Services AS (ATS) for assistance in
technical management of the ﬂeet. Furthermore, Awilco LNG
has entered into an agreement with Awilhelmsen Management
AS (AWM) for administrative services. Both ATS and AWM
are related companies 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 Chairman 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
Chairman, 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 24, 2022 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 Chairman amongst the elected Board members.
The composition of the Board of Directors aims to ensure that
the interests of all shareholders are represented. Currently
four of the five directors are independent from the principal
shareholder of the Company. The Board consists of the
following members: Synne Syrrist (Chairman), Steve Christy,
Jens-Julius R. Nygaard, Jon-Aksel Torgersen and Annette
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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 for the following year in the fourth quarter each year.
The directors shall normally meet in person, but if so allowed
by the Chairman, 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
Jon-Aksel Torgersen (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 classification 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 to ATS and AWM which are related companies.
In addition, ship brokering services are purchased on a
competitive basis from a group of companies related to one
of the Board members. 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.
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 2022.
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 Company’s website. Information of importance
are made available to the stock market through notification
to the Oslo Stock Exchange in accordance with the Stock
Exchange regulations. Information 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.
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Social
responsibility
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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, 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
Social responsibility
Importance to business
IMPORTANCE TO STAKEHOLDERS
ENVIRONMENTAL
IMPACT
ANTI-
CORRUPTION
HEALTH AND
SAFETY
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 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
• See to it that a safety management culture is
implemented 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 2021
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:
Going forward
Performance in 2021 was satisfactory, and continues the good
KPI
DEFINITION RESULT 2021 RESULT 2020
LTIF (Lost time injury frequency)
Number of accidents per one-million man-hours worked
0.0 0.0
TRCF (Total recordable case frequency)
The sum of all work related, lost time injuries, restricted
work injuries and medical treatment injuries
0.0 0.0
Personnel injuries
Number of personnel injuries
0 0
Number of fatalities due to injuries
Number of deaths among the crew resulting from a work
injury
NIL NIL
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AWILCO LNG ASA ANNUAL REPORT 2021
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AWILCO LNG ASA ANNUAL REPORT 2021
performance from 2020, with no personnel injuries onboard. In
2022 Awilco LNG will continue efforts to improve and strengthen
the safety culture. 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
regasify 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. Based on both environmental, logistical and
economic factors LNG fueled vessels are considered by many,
including DNV, as the only currently viable alternative to enable
meeting future stricter environmental regulations applicable to
the industry.
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 leak
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 diesel
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 in order to improve the 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 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
• Management 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
• See to it that a safety management culture is
implemented 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 2021
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 environmental
impact:
KPI
DEFINITION RESULT 2021 RESULT 2020
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 efficiency rate (AER)
The mass of carbon emissions per ton-mile [g/nm*ton)]
(based on vessel DWT)
7.59 7.81
CO2 efficiency laden voyages
The total mass of emitted CO2 in grams per m3-mile 6.17 7.40
NOx efficiency laden voyages
The total mass of emitted NOx in grams per m3-mile 0.12 0.142
SOx efficiency laden voyages The total mass of emitted SOx in grams per m3-mile 0.00017 0.00038
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AWILCO LNG ASA ANNUAL REPORT 2021
Going forward
Environmental emissions are to a large extent dependent
on charterers operations and type of fuel burned in ships
engines. In 2022 Awilco LNG will continue efforts to reduce the
Company’s environmental footprint.
EEXI and CII
From 2023 our vessels will be required to comply with the new
regulations on energy efficient design and operation, EEXI and
CII. Based on preliminary calculations done in cooperation with
DNV, we expect that our vessels will be in compliance with EEXI
without any modifications to the vessels engine power or design
speed.
With respect to CII, if the vessels are operated with the same
efficiency going forward as in 2020 and 2021, they will achieve a
CII rating of C or better until at least 2027.
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 2021
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.
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.
These measures are adjusted IFRS measures 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 with IFRS. Disclosures of APMs are
subject to established internal control procedures.
Awilco LNG’s financial APMs:
• Net freight income1): Freight income – Voyage related expenses
• EBIT: Net freight income – Operating expenses – Administration expenses – Depreciation and amortisation – Impairments
• EBITDA: EBIT + Depreciation and amortisation + Impairments
• Interest bearing debt: Long-term interest-bearing debt + Short-term interest-bearing debt + Pension liabilities +
Other non-current liabilities
• Book equity ratio: Total equity divided by Total assets
• TCE (time charter equivalent): 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.
1)
When vessels operate in the spot market, freight income includes bunkers compensation and the fuel element of ballast bonuses,
whereas voyage related expenses include the corresponding bunkers costs and other repositioning costs. The APM net freight income
adjusts for this grossing up, and provides for improved comparability of the Group’s performance between periods.
Alternative performance measures
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AWILCO LNG ASA ANNUAL REPORT 2021
Awilco LNG ASA
PO Box 1583 Vika
0118 Oslo
Norway
Tel +47 22 01 42 00
Org no. 996 564 894
awilcolng.no
AWILCO LNG ASA Oslo ASA Norway Beddingen 8, 0250 Oslo, Norway Oslo The principal activity of the Group is the investment in and operation of LNG transportation vessels. The Group owns and operates two 2013-built TFDE LNG vessels. Awilco LNG ASA Awilco LNG Group 2021 5967007LIEEXZXJO5C34 2021-01-01 2021-12-31 5967007LIEEXZXJO5C34 2020-01-01 2020-12-31 5967007LIEEXZXJO5C34 2021-12-31 5967007LIEEXZXJO5C34 2020-12-31 5967007LIEEXZXJO5C34 2020-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXJO5C34 2021-01-01 2021-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXJO5C34 2021-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXJO5C34 2020-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXJO5C34 2021-01-01 2021-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXJO5C34 2021-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXJO5C34 2020-12-31 ifrs-full:AdditionalPaidinCapitalMember 5967007LIEEXZXJO5C34 2021-01-01 2021-12-31 ifrs-full:AdditionalPaidinCapitalMember 5967007LIEEXZXJO5C34 2021-12-31 ifrs-full:AdditionalPaidinCapitalMember 5967007LIEEXZXJO5C34 2020-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXJO5C34 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXJO5C34 2021-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXJO5C34 2019-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXJO5C34 2020-01-01 2020-12-31 ifrs-full:IssuedCapitalMember 5967007LIEEXZXJO5C34 2019-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXJO5C34 2020-01-01 2020-12-31 ifrs-full:SharePremiumMember 5967007LIEEXZXJO5C34 2019-12-31 ifrs-full:AdditionalPaidinCapitalMember 5967007LIEEXZXJO5C34 2020-01-01 2020-12-31 ifrs-full:AdditionalPaidinCapitalMember 5967007LIEEXZXJO5C34 2019-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXJO5C34 2020-01-01 2020-12-31 ifrs-full:RetainedEarningsMember 5967007LIEEXZXJO5C34 2019-12-31 iso4217:USD iso4217:USD xbrli:shares