Epic Gas FY2019

Earnings Presentation13 February 2020

This Presentation (hereinafter collectively referred to as the “Presentation”) has been produced by Epic Gas Ltd. (the “Company”, or “Epic”) for

information purposes only.

This Presentation contains information obtained from third parties. As far as the Company is aware and able to ascertain from the information

published by that third party, no facts have been omitted that would render the reproduced information inaccurate or misleading. To the best of the

knowledge of the Company, the information contained in this Presentation is in all material respects in accordance with the facts as of the date

hereof. However, no independent verifications have been made and no representation or warranty (express or implied) is made as to, and no

reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is

accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its parent or subsidiary

undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the

industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical

facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”,

“anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and

views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors

that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary

undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements

are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the

actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking

statements or to conform these forward-looking statements to our actual results.

2

Disclaimer

Q4 2019 Highlights Financing costs reduced, increasing forward rates, but lower utilisation

3

▪ 10% Year on Year Revenue Growth.▪ Refinancing of 22 vessels completed, leading to annual savings of $4.1 million.▪ Net loss of $1.0 million in Q4 2019 due to lower utilisation.▪ Full Year net loss of $3m excluding one off refinancing costs.▪ Exercised purchase option of a modern 11,000cbm that has been on bareboat charter-in since Feb 2015.▪ 37% covered for 2020, at an average daily Time Charter Equivalent rate of $10,668, up 6% year on year.

Q4 2019 Q4 2018 Q419 vs Q418

%

Q3 2019 Q419 vs Q319

%

• Revenue $43.1m $39.3m +10% $47.1m -8%

Calendar Days 4,026 3,496 +5% 3,971 +1%

TCE/Calendar Day $9,388 $9,935 -6% $9,965 -6%

Fleet operational utilisation 90.5% 96.0% -6% 95.1% -5%

Tonnes loaded 707,229 812,000 -13% 796,433 -11%

Total capacity 320,900 cbm 259,900 cbm +23% 320,900 cbm 0%

Average vessel size 7,293 cbm 6,839 cbm +7% 7,293 cbm 0%

Average vessel age 9.4 years 8.4 years 8.4 years

Cargo operations 647 726 -11% 678 -5%

Different ports visited 138 137 +1% 135 +2%

LTIFR (Lost-Time Injury Frequency Rate) 0.67 0.83 0.0

% CO2 Reduction (basis 2018 base-line) 1.9% 1.67%

• Total Opex per cal/day $4,407 $4,071 +8% $4,221 +4%

• Total G&A per cal/day $1,158 $1,216 -5% $1,043 +11%

• EBITDA $10.9m $12.4m -12% $13.5m -19%

Epic Gas at a glance

4

• Epic Gas Ltd., owns and operates a fleet of 44modern, pressurised gas carriers providingseaborne services for the transportation ofliquefied petroleum gas (LPG) andpetrochemicals.

• Our vessels serve as a crucial link in theinternational gas supply chains of leading oilmajors and commodity trading housesthroughout Southeast Asia, Europe, West Africaand the Americas.

• We are headquartered in Singapore withadditional offices in London, Manila and Tokyo.

• Epic Gas has the scale, fleet and operationalresources to serve our customers on a trulyglobal basis. We will continue to leverage our in-house commercial and technical expertise toprovide the safest, most dependable solutions forour customers.

99,500

320,900

4,523

7,293

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Dec 2012 Current

Fle

et

Cap

acit

y (c

bm

)

3s 5s 7s 9s 11s Avg. Size

Strong Operating Model Focused on the largest pressure vessels

Steady Revenue & EBITDA Growth

0

10

20

30

40

50

0

20

40

60

80

100

120

140

160

180

2014 2015 2016 2017 2018 2019

Revenues EBITDA No. of ships (EoP)

Low Newbuild Vessel Supply

5

Smaller LPG Vessels Order Book Remains LowSource: Clarksons Register, Company Data

• 8/9 newbuild pressure vessels to be delivered in 2020/2021 representing a 2.4%/2.8% increase in existing fleet capacity.• A 30-year-old 3,300cbm pressure vessel was scrapped in Q3 2019.• 2 newbuild small-sized semi-ref (non-Ethylene) vessels to be delivered in 2020 representing a 3.5% increase in existing fleet

capacity, accounting for the 32,400cbm scrapped in 2019. Also, 2 small-sized Eth vessels to be delivered in 2020.• A scrapping pool of 24 pressure and 20 semi-ref (non-Ethylene) vessels aged 28 years and over.

Pressure Vessel Global Fleet DevelopmentSource: Clarksons Register, Company Data

334

203

120

419

17

5

5

53

0

100

200

300

400

500

3k - 13k 3k - 13k >13k - 25k >25k

PR SR (incl Eth) FR & SR (incl Eth) FR & SR (incl Eth)

Nu

mb

er

of

Ve

sse

ls

On Water On Order

13%

4%

2%

5%

-20%

0%

20%

40%

60%

80%

-50,000

-25,000

0

25,000

50,000

75,000

100,000

125,000

150,000

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

3,000 - 4,999cbm 5,000 - 6,999cbm 7,000 - 8,999cbm9,000 - 13,000cbm Scrapping Potential ScrappingYoY growth (right axis)

Growing Demand for LPG

6

Global LPG Seaborne Trade 100M TonnesStrong Demand Growth Forecast 5.7% 2020

(Source: Drewry - Nov’19)

Q4’19 US Total LPG Exports 5% qoq, 24% yoy. Butane 49% yoy (Source: IHS Markit – Jan’20)

Big Volumes China & India Remain Key Demand Drivers

(Source: FGE – Jan’20)

-5%

0%

5%

10%

15%

20%

25%

0

50

100

150

2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E

An

nu

al %

Gro

wth

Seab

orn

e LP

G (

mill

ion

to

nn

es)

LPG Seaborne Trade (million tonnes) % growth (Seaborne Trade)

% growth (Tonne-Mile demand)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Q1 17 Q3 17 Q1 18 Q3 18 Q1 19 Q319

Ton

ne

s

Ethane Propane Butane IsoButane

Regional Demand Growing

(Source: FGE – Jan’20)

Strong US LPG exports, stable Chinese Propylene imports

Growing demand drives import Growth

(Source: FGE – Jan’20)

US Pressure and small sized Semi-Ref Exports: WAF Pr Cargoes ex Chesapeake – 4/5 in Q3/Q4’19

(Source: IHS Markit)

China Propylene Imports hold up as Polypropylene production drives Propylene demand and balances increased PDH capacity, with developing Imports from other Asian countries Source: Argus

7

0

20,000

40,000

60,000

80,000

100,000

120,000

Q116

Q216

Q316

Q416

Q117

Q217

Q317

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Ton

ne

s Ex

po

rte

d e

x U

SA

(Sm

all-

ship

)

Carib Cargo Qty Cen/S. Amer Cargo Qty

Med Cargo Qty WAF Cargo Qty

SR (<12k cbm) Total Cargo Qty

Semi-Ref

Pressure

0%

4%

8%

12%

16%

-

1,000,000

2,000,000

3,000,000

2013 2014 2015 2016 2017 2018 2019E 2020E

(Mill

ion

To

nn

es)

Production Defecit Derivative Demand % Growth

2,641

3,048

2,771

2,903 3,099

2,844

3,127

8,000

16,000

24,000

32,000

40,000

0

2,000

4,000

6,000

8,000

10,000

2013 2014 2015 2016 2017 2018 2019 2020E

Year End PDH Capacity ('000 tonnes) Chinese Propylene Imports ('000 tonnes)

Derivative Consumption (propylene) ('000 tonnes) (right-axis)

Longer Term Market History12 Month Time Charter Market (USD/day)

8

Q4 2019 – weaker rates compared to the previous quarter, approx. down by 1-2%• 3,500cbm, 5,000cbm, 7,500cbm & 11,000cbm market daily rates averaged $8,141, $9,052, $10,904 and $13,260, respectively.• Average rates down 6% for 3,500cbm, down 8% for 5,000cbm, up 2-3% for 7,500cbm, and level for 11,000cbm, compared to Q4’18.

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Jan

-09…

Jul-

09

Jan

-10…

Jul-

10

Jan

-11…

Jul-

11

Jan

-12…

Jul-

12

Jan

-13…

Jul-

13

Jan

-14…

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

3,500cbm-Steem1960 5,000cbm-Steem1960 7,500cbm-Grieg, Gibson, BRS 11,000cbm-Epic

Geographical and Commodity Diversity Provides optionality and earnings stability

9

✓ Loaded 707,229 tonnes✓ 292 load operations✓ 3.17 loads ops every day ✓ 647 cargo operations✓ 138 different ports✓ LPG (76%), 538,750 mt, Petchems (24%), 168,480 mt

Diversified Geographical Location of Fleet(as of 01 Feb 2020)

Cargo Operations Summary, Q4 2019Benefits of Commodity & Geography

Diversified Geographical Trade Route OptionsHigher in the Americas, Africa and Asia

✓ Optionality on choice, Diversified earnings, Risk mitigation✓ Maximising seasonal demand and weather impact✓ Ability to flex between LPG and Petchem markets✓ Developing new customers, niche markets, and routes✓ Maximising operational efficiencies.

0

1

2

3

4

5

0

50

100

150

200

250

300

350

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

2014 2015 2016 2017 2018 2019

Tota

l No

. of

Load

Op

erat

ion

s

AFRICA ASIAEUROPE MIDDLE EASTOCEANIA THE AMERICASLoads per Day (right-axis)

LPG break bulk tradeAn Integral Part of the Global Seaborne LPG Supply Chain for all vessel sizes

10

✓ 92 STS operations in Q4’19 ✓ Increased operations off the East Coast of India,

off East Africa and in the Caribs✓ Last tonne-mile delivery, shallow waters, restricted

berths✓ Complementary to LPG supply chain and delivery

by VLGCs✓ Increasing demand for VLGC leading to reduced

availability and increasing tonne / mile demand for smaller vessels on some routes.

Epic Gas Ship to Ship (STS) Operations by Regionqoq - higher off E. India and E. Africa

0

25

50

75

100

125

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018 2019

STS Off Singapore Off Male Middle East W. Africa E. Africa E. India S. America Carib Others

24

108

198

413

358

309

0

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017 2018 2019

Key financials: Operating Metrics

11

Voyage Days

Highlights▪ Rising number of vessels and fleet capacity responding to 5.3% increase in global LPG seaborne trade in 2019.▪ Growth in fleet calendar days following incremental 4x11,000cbm vessels purchased and delivered during July 2019, two under a two

year charter to a leading global LPG trader.▪ Increased fleet revenue days and average vessel size offset by increased waiting time during the quarter ▪ Epic Gas has a loyal, consistent client base and focuses on meeting customer needs, with flexibility between charter and spot contracts ▪ Maintenance is conducted as efficiently as possible, with minimal idle days

3,2733,385 3,362 3,295

3,432 3,495

3,763 3,7383,548 3,459 3,515 3,458 3,428 3,482

3,909 3,913

23% 24%29%

25%20%

26% 25%

31% 32%

25% 25% 23% 25%

35%38%

32%

0%

20%

40%

60%

80%

100%

-

1,000

2,000

3,000

4,000

5,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2016 FY2017 FY2018 FY2019

% V

oy

Day

s in

Sp

ot

Mar

ket

Vo

y D

ays

TC Days Spot Days COA Days (relets excluded) % Spot

Fleet Performance – Days & Earnings

12

Calendar Days *Voyage Days

*Calendar days net of off-hire days associated with major repairs, dry dockings or special or intermediate surveys.

Q4 2019

FYE 2019

Availability97.2%

Offhire2.8%

Availability97.6%

Offhire2.4%

Waiting 7%

Time Charter68%

Spot25%

Waiting 5.1%

Time Charter67.3%

Spot27.6%

$9,388per

Calendar Day

$9,632per

Calendar Day

$9,659per

*Voyage Day

$9,873per

*Voyage Day

Key financials: Income Statement and Cash Flow Q4 and FY 2019

13

Time Charter Equivalent (“TCE”) Revenue and Opex

Highlights• Full Year, 10% revenue sales growth to $169.8m• Full Year, 2% increase in EBITDA to $44.8m• Full Year, net loss of $5.8 million, excluding one-off charges

related to refinancing of $2.8 million, the net loss for the year amounts to $3 million.

$28.8 $28.4$25.9

$28.2$30.1 $29.9 $30.7

$32.0 $32.1 $32.3

$36.1$34.7 $34.0 $34.1

$39.6$37.8

$8,639

$8,183

$7,384

$8,206 $8,424

$8,022 $7,960

$8,449

$8,881 $9,102

$10,132 $9,935

$9,719 $9,454

$9,966

$9,388

$4,449

$4,040 $4,120 $4,335

$4,082 $4,170 $4,274 $4,171 $4,276 $4,127 $4,010 $4,071

$4,400 $4,293 $4,221 $4,407

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2016 FY2017 FY2018 FY2019

TCE

Rev

enu

e a

nd

Op

ex p

er C

alen

dar

Day

TCE

Rev

enu

e ($

mill

ion

s)

TCE Revenue TCE per Calendar Day Vessel Opex/Cal Day (TC-In excluded)

Key financialsBalance Sheet 31 December 2019

14

• Conservative accountingBook value of vessels of $603.8 million, below latest broker FMV estimates

• Strong Cash position$49.8 million (up from $28.2 million as of 31 Dec 2018)

• Investment in fleet to drive further growth Acquisition of four 11,000cbm vessels for a total of $106.5 million, financed with a combination of $63.9 million debt and $42.6 million equity. Exercised purchase option of a modern 11,000cbm that has been on bareboat charter-in since Feb 2015.

• Reduced cost of financingRefinancing of 22 vessels completed, leading to annual savings of $4.1 million

• Loan profile:No loan expiry until 2023

29.934.1 34.5 34.7 32.9

25.9

12.0 11.27.2 5.2 3.6

16.1

94.9

0.0

27.7

8.52.2 4.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Amortisation Balloon

Summary and Outlook

15

✓ Young and growing fleet

✓ Reduced financing costs, strengthened balance sheet

✓ Increased Average Fleet Size

✓ Increasing revenues, and forward TCE cover rate

✓ Reduced utilisation due to regional factors.

Q4 2019 Summary

✓ Utilisation & Freight levels for the larger sizes have upside as

market recovery continues, small orderbook, ongoing growth in

commodity supply and demand growth for LPG shipping.

✓ Ongoing & potential scrapping in both pressurised and semi-ref.

✓ Limited order book for the sector – 17 pressure and 5 semi-ref

(including 2 ethylene carriers).

✓ IMO 2020 complete, turning to IMO 2030 and IMO 2050

Outlook

The Epic Gas Fleet (as of 31st December 2019)

16

Vessel: 11,000 cbm cbm Delivery Yard Vessel: 7,200-7,500 cbm Built Yard

Kahyasi 11,000 2015 Sasaki Epic Borkum 7,200 2000 Murakami Hide

Kris Kin 11,000 2015 Sasaki Epic Barbados 7,200 2001 Murakami Hide

Epic Sicily 11,000 2015 Sasaki Epic Bermuda 7,200 2001 Murakami Hide

Kisber 11,000 2015 Kyokuyo Epic Barnes 7,200 2002 Murakami Hide

Kingcraft 11,000 2015 Kyokuyo Epic Bali 7,200 2010 Kyokuyo

Epic Samos 11,000 2016 Kyokuyo Epic Borneo 7,200 2010 Kyokuyo

Epic Sentosa 11,000 2016 Kyokuyo Epic Bell* 7,200 2014 Kyokuyo

Epic Shikoku 11,000 2016 Kyokuyo Epic Bird* 7,200 2014 Kyokuyo

Epic Sardinia* 11,000 2017 Kyokuyo Epic Bolivar 7,500 2002 Shin Kurushima

Epic Salina 11,000 2017 Kyokuyo Epic Burano 7,500 2002 Watanabe

Sub Total 10 Vessels 110,000 cbm Epic Boracay 7,500 2009 Murakami Hide

Emmanuel** 7,500 2011 Murakami Hide

Vessel: 9,500 cbm cbm Built Yard Epic Borinquen 7,500 2016 Sasaki

Epic Madeira 9,500 2006 Miura Epic Bonaire 7,500 2016 Sasaki

Epic Manhattan 9,500 2007 Miura Epic Baluan 7,500 2017 Sasaki

Westminster** 9,500 2011 Miura

Sub Total 3 Vessels 28,500 cbm Sub Total 15 Vessels 110,100 cbm

Vessel: 5,000-6,300 cbm cbm Built Yard Vessel: 3,500 cbm cbm Built Yard

Epic St. George 5,000 2007 Shitanoe Epic Catalina 3,500 2007 Kanrei

Epic St. Kitts 5,000 2008 Kanrei Epic Cobrador* 3,500 2009 Kanrei

Epic St. Martin 5,000 2008 Kanrei Epic Cordova* 3,500 2009 Kanrei

Epic St. Lucia 5,000 2008 Sasaki Epic Corsica 3,500 2009 Kanrei

Epic St. Vincent 5,000 2008 Sasaki Epic Caledonia 3,500 2014 Kitanihon

Epic St. Croix 5,000 2014 Sasaki Epic Curacao 3,500 2014 Kitanihon

Epic St. Thomas 5,000 2014 Sasaki Sub Total 6 Vessels 21,000 cbm

Epic St. Agnes 5,000 2015 Kitanihon

Epic St. Ivan 5,000 2015 Kitanihon

Epic Balta 6,300 2000 Higaki

Sub Total 10 Vessels 51,300 cbm

*Bareboat **TC-in and 320,900 cbmOverall Total of 44 Vessels,

Key Information on Epic Gas’ Shares

17

Listing Market Merkur MarketMarket Cap (NOK) 1,524.6 M Shares Outstanding /Float 106.6M / 106.6M

Source: OsloBors

EPIC:ME