EXMAR : Results 2020

PRESS RELEASE RESULTS 2020

Antwerp 19/03/2021 - 5.45 pm Regulated information

During its meeting of 19 March 2021 the Board of Directors of EXMAR ("EXMAR" or "the Company") reviewed the results for the year ending 31 December 2020.

CONSOLIDATED KEY FIGURES

International Financial Reporting Standards (IFRS) (No te1)	Management reporting based on proportionate consolidation (Note 2)
Consolidated statement of profit or loss	31/12/2020	31/12/2020
(in million USD)	31/12/2019	31/12/2019
Turnover	285,2 177,5 -38,3 139,2 -28,4 -17,8 93,0 -1,0 92,0 91,9	136,7	384,2 239,9 -102,2 137,7 -42,6 -2,1 93,0 -1,0 92,0 91,9	225,0
EBITDA	47,3	100,9
Depreciations and impairment losses	-31,9	-66,5
Operating result (EBIT)	15,4	34,4
Net finance result	-26,0	-43,3
Share in the result of equity accounted investees (net of income tax)	1,7	0,2
Result before tax	-8,9	-8,7
Tax	-4,3	-4,5
Consolidated result after tax	-13,2	-13,2
of which group share	-13,2	-13,2
Information per share
in USD per share
Weighted average number of shares of the period	57 226 737 3,10 2,43 1,61	57 226 737	57 226 737 4,19 2,41 1,61	57 226 737
EBITDA	0,83	1,76
EBIT (operating result)	0,27	0,60
Consolidated result after tax	-0,23	-0,23
Information per share
in EUR per share
Exchange rate	1,1384	1,1213	1,1384	1,1213
EBITDA	2,72	0,74	3,68	1,57
EBIT (operating result)	2,14	0,24	2,11	0,54
Consolidated result after tax	1,41	-0,21	1,41	-0,21

Note 1: The figures in these columns have been prepared in accordance with IFRS as adopted by the EU.

Note 2: The figures in these columns show joint venture accounted following the proportionate consolidation method instead of applying the equity method. The amounts correspond with the amounts in the column "Total" of Note 2

"Segment Reporting" in the Financial Report per 31 December 2020. A reconciliation between the amounts applying the proportionate consolidation method and the equity method is shown in Note 3 in the Financial Report 31 December 2020.

Cash Flow from operations (EBITDA) as per proportionate consolidation method is USD 239.9 million (including USD 150 million settlement fee payable by YPF on TANFO FLNG which has been fully recognized in 2020 in accordance with IFRS 15) compared to USD 100.9 million in 2019. EBIT for the full year 2020 is USD 137.7 million (USD 34.4 million in 2019).

Press Release | Results 2020

Contact: Patrick De Brabandere | CF0 | [phone]

www.exmar.be

The statutory auditor has confirmed that his audit activities, which have been substantially completed, have not to date revealed the need for any significant adjustments to the Consolidated Key Figures contained in this press release.

Key events 2020 and outlook 2021

•  February 2020: Release of USD 40 million by Bank of China (BOC) from the Debt Service Reserve Account (DSRA) under the TANGO FLNG facility agreement.

•  April 2020: Baron Philippe Bodson, Chairman of the Board, sadly passed away after his fight against COVID-19. Subsequently the Board appointed Nicolas Saverys as Executive Chairman and Francis Mottrie as CEO.

•  June 2020: Written notification of alleged force majeure received from YPF S.A. under the Charter Agreement and Services Agreement for TANGO FLNG.

•  October 2020: Settlement agreement with YPF S.A. (USD 150 million). Replenishment (USD 40 million) of the DSRA under the Facility Agreement with Bank of China.

•  December 2020: Refinancing of the bank facility with NORDEA of EXMAR's LPG midsize fleet for an amount of USD 310 million, of which USD 290 million is drawn.

•  February / March 2021: Signing of the Lease financing of the two VLGC's under construction.

SHIPPING:

EBIT for the Shipping Business Unit in the full year 2020 was USD -7.8 million compared to USD 14.5 million in 2019. The EBIT has been negatively impacted by an impairment of USD 28.5 million on older vessels.

2020 will be remembered as the year dominated by the unprecedented pandemic which distorted economic activities worldwide and made big impacts on daily lives. The reality is that overall, seaborne gas markets fared relatively well.

Time-Charter Equivalent (in USD per day)	Full Year	Full Year
2020	2019
Midsize (38,115 m³)	21,680	18,587
VLGC (83,300 m³)	30,605	28,527
Pressurized (3,500 m³)	5,841	7,539
Pressurized (5,000 m³)	7,865	8,861

VLGC

The EXMAR-controlled BW TOKYO performed well in the course of 2020 being fully covered by a time charter dedicated to major LPG Trader Trafigura.

EXMAR will take delivery of two LPG-fuelled 88,000 m³ VLGC newbuildings (to be named FLANDERS INNOVATION and FLANDERS PIONEER) expected in the second and third quarter of 2021 that will enter into a long-term time-charter to Equinor ASA (Norway). These vessels were the first VLGCs ordered at the time with dual fuel engines able to burn LPG on the main engine, substantially reducing emissions and underlining EXMAR's continued and consistent ability to innovate.

MGC

The midsize freight market started 2020 on a firm note, but softened as the pandemic evolved in the second quarter. With the recovery of the VLGC market in the third and fourth quarters of 2020, midsize freight rates benefitted accordingly and ended the year with a strong upward sentiment.

EXMAR valorised its strong customer portfolio in midsize with extensions of existing time charter contracts with industrial counterparts at improved levels. 76% of EXMAR' s midsize fleet is committed on time charter in 2021 and market indicators appear to forecast 2021 being another rewarding year for the segment.

Pressurized

The pressurized freight markets were hit hardest by the pandemic, especially in trades West of Suez when several European countries were entering into various stages of lockdown. East of Suez freight market conditions were somewhat healthier thanks to a more stable trading pattern over there and LPG being redistributed consequently on pressurized ships.

Just as with the markets in Europe, we expect a strong recovery in freight market conditions for pressurized vessels as well in the East considering the global ageing of the pressurized fleet.

LNG

The LNG carrier EXCALIBUR is under time charter contract until early 2022.

INFRASTRUCTURE

The EBIT for the Infrastructure Business Unit for the full year 2020 was USD 135.8 million including a net settlement fee of USD 149.1 million payable by YPF on TANGO FLNG which, although payable in instalments over a period of 18 months, has been fully recognized in 2020 according to IFRS 15. The EBIT for the year 2019 was USD 2 million.

Floating barges

Since its arrival end 2019 at the Bahia Blanca terminal in Argentina up to May 2020, TANGO FLNG delivered five shipments or 624,000 m³ of LNG to its customer YPF with an availability of 99%. However, in June EXMAR received from YPF a notice of force majeure. YPF claimed that effects of the coronavirus (COVID-19) pandemic both worldwide and in Argentina hindered YPF's ability to perform its obligations under the Charter and Services Agreements. In October 2020 parties reached an agreement over the dispute consisting of a settlement amount of USD 150 million payable by YPF to EXMAR in consideration of the early termination of the agreements. As of today USD 67.5 million has been received, of which USD 40 million has been used for the full replenishment of the DSRA under the Facility Agreement with Bank of China (amounting now to USD 66 million). The balance of the settlement amount is payable by YPF in 13 monthly instalments backed by a financial security issued by an investment grade counterparty. Meanwhile the unit has been demobilized from Argentina and stationed in a sheltered location in Uruguay.

Since the effective termination of the contract with YPF in October 2020, marketing is in full swing and, given its status as a fully-proven facility, there is a healthy interest from the market for the redeployment of TANGO FLNG. The fact that the start of 2021 saw increased price levels of oil and gas globally will certainly benefit the opportunities for reactivation.

EXMAR's barge-based floating regasification unit FSRU S188 is on charter to the Gunvor group for 10 years. The unit continues serving under the charter party. In September 2019 Gunvor has given notice of a dispute with respect to the execution of the Charter and has initiated an arbitration. The arbitration is ongoing without financial impact.

The accommodation barge NUNCE contributes as anticipated under its charter with Sonangol (Angola).

WARIBOKO was engaged for a short-term mission in Congo in the first half of 2020. The unit has been redeployed in Nigeria for Total E&P Nigeria in February 2021 for a period of six to nine months.

Engineering

Despite the COVID-19 pandemic and the resulting oil & gas crisis, Exmar Offshore Company (EOC) has registered high engineering utilization levels in 2020. A substantial percentage of the resources available were dedicated to the detailed engineering and construction supervision of the third semisubmersible floating production system for the King's Quay project of Murphy Oil Corporation which utilizes the OPTI® design. King's Quay will be the largest OPTI® design to date.

Following the transition year of 2019, DV Offshore has sustained itself from the worldwide backlash of delayed or cancelled projects in 2020 by benefiting from long-standing relationships with its core customers.

SUPPORTING SERVICES

The contribution of the supporting activities to the operating result (EBIT) for the full year 2020 was USD 9.7 million (including USD 13 million compensation for the termination of the Shipmanagement contracts) compared to USD 18 million in 2019 (which was positively influenced by a capital gain of USD 19.2 million).

EXMAR Shipmanagement

During the COVID-19 pandemic, EXMAR Shipmanagement has moved swiftly and efficiently to create various health management contingency plans, and thereby achieving operational continuity across the entire fleet. Both for the shore-based and the seagoing teams, communication and connectivity were key for uninterrupted service delivery. An accelerated digitalisation to enable telework, and increased bandwidth for the fleet ensured good connectivity between individual team members, and also between seafarers and their families.

In 2020, EXMAR Shipmanagement's customer portfolio was complemented with three LPG gas carriers from Bashundhara LP Gas. Conversely, Excelerate Energy and Avance Gas decided to consolidate their ship management activities and thereby ended the ship management activities with EXMAR Shipmanagement in 2020. In addition, Citrosuco announced in 2020 there-opening of their own ship management division, planning to transition their fleet into its in-house division by the first half of 2021.

As from mid-2021 the two innovative, LPG-fuelled VLGCs ordered by EXMAR will join the fleet.

Extra commercial focus will be invested to further expand the third-party gas fleet.

Travel PLUS

The COVID-19 outbreak has caused many uncertainties in the travel industry. How travel trends will evolve in 2021 will mainly depend on the implementation of the vaccine strategy.

BEXCO

In 2020 the COVID-19 crisis had an impact on BEXCO's manufacturing operations and deliveries. Nonetheless with creative

teamwork and dedication of its workforce, the company managed to continue to process and produce clients' orders with a minimum of downtime and with costs well under control. Offshore activities performed extremely well in 2020, with BEXCO experiencing its highest turnover ever in deepwater mooring projects. 2021 will see BEXCO continuing to fulfil its contractual commitments to orders for DeepRope and expects further healthy growth in its offshore heavy lift and offshore wind fiber rope and slings.

Update on liquidity position

Over the past months EXMAR's liquidity position has evolved positively and should gradually improve in 2021 amongst other

because of:

- Further to the settlement agreement signed with YPF S.A. on TANGO FLNG for an amount of USD 150 million, payments of USD 67.5 million have been received at the date of this report of which USD 40 million has been used for the full replenishment of the DSRA under the facility agreement with Bank of China. The balance of the termination fee will be received over the next 13 months.

- The EUR 18 million Revolving Credit Facility, which was suspended following the YPF dispute, has been released. An amount of EUR 3 million has been drawn on this facility.

- On 14 December 2020, the refinancing of the bank facility of EXMAR's LPG midsize fleet has been completed for an amount

of USD 310 million, of which USD 290 million is currently drawn.

- The lease financing of the two new VLGC's to be delivered mid-2021 is fully signed. The leased amount of USD 72 million per vessel will be used to pay the delivery instalment to the shipyard and to repay the pre-delivery financing provided by MAP (USD 10 million/vessel).

The Company is of the opinion that, taking into account its available cash and cash equivalents, its undrawn committed facilities available on the date of establishing the consolidated financial statements and its projected cash flows based on approved budgets, it has sufficient liquidity to meet its present obligations and cover its working capital needs for a period of at least 12 months from the authorization date of the annual report.

The consolidated financial statements for the year ended 31 December 2020 have been prepared on a going concern basis.

The main assumptions and uncertainties for EXMAR underpinning the going concern assessment are concentrated around following matters:

- In September 2019, Gunvor gave notice of a dispute under the charterparty and has commenced arbitration. This arbitration procedure is still ongoing. Meanwhile management assumes that the charter remains in full force and effect and is of the opinion that the hire paid is effectively earned and no amounts should be repaid;

- In May 2022 the NOK 650 million Unsecured Bond will come to maturity. Management is considering different scenarios of refinancing or repaying the bond in part or in whole and is confident on the positive outcome of this process.

EXMAR has met all its financial covenants as at 31 December 2020 with sufficient headroom. EXMAR is continuously monitoring compliance with all applicable covenants and believes that based on forecasts for the remaining of the year, and irrespective of the assumptions and uncertainties referred above, all covenants will be met as per June and December 2021.

Considering the elements described above the Board is confident that the Executive Committee will be able to maintain sufficient liquidities to meet its commitments and therefore it has an appropriate basis for the use of the going concern assumption. In the event the above assumptions are not timely met, there is a material uncertainty whether the Company will have sufficient liquidities for the Company to fulfil its obligations of at least 12 months from the date of authorising these financial statements.