ALNG - Contract update and dividend policy

25 Nov 2022 09:51 CET

Awilco LNG ASA (OSE: “ALNG”) (“Awilco” or “the Company”) is pleased to inform it
has entered a new Time Charter Contract with a major utility company for the
WilForce for a firm duration of about 18 months commencing in direct
continuation of the present charter. The contract is estimated to contribute
with an EBITDA of about USD 73 million over the charter period.

Jon Skule Storheill, CEO of Awilco LNG ASA, commented:
“With this contract we have been able to take advantage of the strong market and
have now covered all trading days in 2023 and approximately 80% of 2024 at an
average rate of approximately USD 120,000 pd. This ensures high cash generation
and profitability for the next two years also considering both vessels are
scheduled for special survey, and dry docking second half 2023.”

The fixed rate contracts entered for both vessels will materially increase the
Company’s free cash flow generation. To maximise return to shareholders the
Board of Directors have approved a revised dividend policy and thereby intend to
distribute a substantial part of annual free cash flow, paid out quarterly,
always subject to required working capital and a robust cash buffer. Initial
payment is expected to take place in first quarter 2023 when both vessels have
commenced their respective contracts.”

For further information please contact:
Jon Skule Storheill
Chief Executive Officer
Mobile: (47) 913 44 356

Per Heiberg
Chief Financial Officer
Mobile: (47) 952 20 264

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