Third quarter 2018Oslo, 8 November 2018

DisclaimerThis presentation contains forward looking statements. Forward-looking statements are statementsthat are not historical facts and may be identified by words such as “anticipate”, “believe”,“continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions. Theforward-looking statements in this presentation are based upon various assumptions, many ofwhich are based, in turn, upon further assumptions. Although Avance Gas believes that theseassumptions were reasonable when made, these assumptions are inherently subject to significantknown and unknown risks, uncertainties, contingencies and other important factors which aredifficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingenciesand other important factors could cause actual events to differ materially from the expectationsexpressed or implied in this presentation by such forward-looking statements.

The information, opinions and forward-looking statements contained in this presentation speakonly as at its date, and are subject to change without notice.

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Photo credit slide 1: Saxhena Rahul, Levant

Financials Q3 2018

Fleet Update

Market Update

Summary & Outlook

Agenda

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3

1

4

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Christian Andersen – President

Peder Simonsen – Chief Financial Officer

CompanyRepresentatives

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1 Financials Q3 2018

Key financial highlights

• TCE rate of $15,289/day vs. the 30-day adjusted spot index of $11,870/day

• Low A&G maintained - $990/day

• OPEX 7,457/day, down by $500/day due to lower storing and M&R expenses

• Capex of $1.2 million

• Strong balance sheet – 42.5% equity ratio

• Quarter-end liquidity of $67.3 million

• Today’s liquidity ~$79.0 million

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In US$ thousands (unless stated otherwise)Three months

endedThree months

ended

Income statement: 30-Sep-2018 30-Jun-2018

TCE earnings 19,066 9,269

Operating expenses (9,604) (10,150)

A&G expenses (1,276) (1,263)

Depreciation and amortization expenses (10,021) (10,272)

Non-operating expenses (7,037) (6,847)

Net loss (8,872) (19,263)

Net loss per share (diluted) ($) (0.14) (0.30)

Balance sheet: 30-Sep-2018 30-Jun-2018

Total assets 875,983 890,928

Total liabilities 503,830 512,169

Cash and cash equivalents 42,255 56,211

Total shareholders’ equity 372,173 378,759

Cash flows: 30-Sep-2018 30-Jun-2018

Net cash used in operating activities (7,233) (7,092)

Net cash used in investing activities (1,157) (3,287)

Net cash used in financing activities (5,506) 19,461

Net increase (decrease) in cash and cash equivalents (13,896) 9,082

Key performance indicators ($/day):* 30-Sep-2018 30-Jun-2018

TCE 15,289 7,711

TCE (discharge to discharge) 16,130 7,951

OPEX 7,457 7,967

A&G 991 991

* TCE calculated basis operating days. OPEX and A&G calculated basis calendar days. Operating days is calendar days less offhire/drydock days. Waiting days are included in operating days.

1 Financials Q3 2018

2018 Cash break even and CAPEX

• Estimated average cash break-even for calendar year 2018 is $17,900/day

• 5 of 6 ships drydocked by Q3 - estimated remaining CAPEX is ~$1.0 million in 2018

• Continued strong cost focus while securing high quality service

• Final 2017/2018 ship drydocked in Q4 - Promise reentering service end November

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5

7,600

1,000

5,000

4,300

Cash break even ($/day)

OPEX A&G Interest Paid Installments

$17,900/day

1 Operating performance

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• Planned off hire is related to drydocking of one ship each in Q2 and Q3 2018

• TCE per day (ex waiting days)

• $15,289/day Q318 ($15,433/day)

• $7,711/day Q218 ($8,720/day)

• CoA coverage stable - spot utilization higher in Q3

*Operating days is calendar days less offhire/drydock days. Waiting days are included in operating days.

53%

40%

12%

Commercial utilization Q2 2018

COA Spot Waiting days

44%

55%

1%

Commercial utilization Q3 2018

COA Spot Waiting days

94%

3%2%

Fleet utilization Q2 2018

Operating days Planned dry dock Off hire

97%

3%1%

Fleet utilization Q3 2018

Operating days Planned dry dock Off hire

2 Fleet update

Avance Gas Q3 2018

77

T/C Out

0

Spot loadings

7

COA loadings

15

Monthly waiting days

3.3

Dry dock

1/30Off-hire

1/11

Middle East

8

US Gulf / USEC

12

Other

2

Far East

17

Europe

1

South America

3

2 Fleet update

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Avance Gas Q3 2018

14

18

1 288

12

616

Middle East exports

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3 Market update

Source:

Middle East VLGC Liftings

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3 Market update

Source:

US Gulf / USEC exports

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3 Market update

Source:

US Gulf – VLGC Liftings

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3 Market update

Source:

VLGC Liftings Main Areas

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3 Market update

Middle East

US Gulf/USEC

Source:

US Gulf – USEC destinations

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3 Market update

Source:

3 Market update

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VLGC fleet end Q3 2018

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Global VLGC Fleet

264

Re-cycled (By End Q3/Q4)

5 / 1

Orderbook (2018/Later)

3 / 37

Source: Company, Clarksons, Steem1960, Fearnleys, Nordic Shipping

Global VLGC fleet

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3 Market update

33 ships

Source: Company, Clarksons, Steem1960, Fearnleys, Nordic Shipping

Quick look into Q4/2018

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4 Summary and outlook

• Marcus Hook five export cargoes October

• Stable export from all regions October vs September

• Spot market share of total liftings down in Middle East in October

• Avance Gas TCE guidance for Q4 basis booked 74% shipdays well above cash break-even and above US$ 20 000/day

• Avance Gas continue to increase Atlantic presence

2017

Source: Company, Clarksons, Poten & Partners

Summary and outlook

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4 Summary and outlook

Middle East ramped up Q3 LPG exports; up 19% compared to Q1/18, flat vs Q2/18 and 6% compared to Q3/17

US LPG ramped up Q3 VLGC exports; up 13% compared Q1/18, up 10% vs Q2/18 and 35% compared to Q3/17

East Mariner II pipeline ramping up distribution to Marcus Hook supporting increased USEC VLGC exports from Q4 18

Enterprise (Houston) 30% increased export capacity mid-2019

Ichthys LNG (Darwin, Australia) adding 26 cargoes, ramping up 2019

Six VLGCs sold for re-cycling YTD

Two new ships ordered for 2020 delivery

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Appendix

($ 000s)Three months ended

30 September 2018Three months ended

30 June 2018

Operating revenue 36,000 22,648

Voyage expenses (16,934) (13,379)Operating expenses (9,604) (10,150)Administrative and general expenses (1,276) (1,263)

Operating profit (loss) before depreciation expense

8,186 (2,144)

Depreciation and amortization expenses (10,021) (10,272)

Operating loss (1,835) (12,416)

Non-operating (expenses) income:Finance expense (7,048) (7,003)Finance income 4 145Foreign currency exchange gain 7 11

(7,037) (6,847)

Income tax expense — —

Net loss (8,872) (19,263)

Loss per share:Basic (0.14) (0.30)Diluted (0.14) (0.30)

• TCE earnings of $19.1 million, up from $9.3 million,reflecting improved freight market in Q3 18

• Operating expenses of $9.6 million, down from $10.2million in Q2 due to lower storing and maintenanceexpenses in the quarter

• Administrative and general expenses unchanged of$1.3 million from Q2

• Non-operating expenses—mainly financial expenses—of $7.1 million, slightly up due to increased LIBOR andhigher average debt in Q3

• A reported net loss of $8.9 million, compared to a netloss of $19.3 million in Q2 2018

Income Statement Comments

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A Appendix

Financials – Q3 2018

($ 000s)As of

30 September 2018As of

30 June 2018Cash and cash equivalents 42,255 56,211Receivables 15,267 8,046Inventory 5,138 6,066Other current assets 6,929 7,523Total current assets 69,589 77,846Property, plant and equipment 803,210 811,708Long-term derivative financial instruments 3,118 1,280Intangible assets 66 94Total non-current assets 806,394 813,082Total assets 875,983 890,928

Current portion of long-term debt 25,764 20,598Accounts payable 2,830 4,255Accrued expenses (inc voyage expenses) 2,187 3,722Current portion of derivative financial instruments 0 73Other current liabilities 1,499 1,649Total current liabilities 32,280 30,297Long-term debt 346,550 356,872Long-term revolving credit facilities 125,000 125,000Total non-current liabilities 471,550 481,872Share capital 64,528 64,528Paid-in capital 379,851 379,851Contributed capital 95,347 95,239Retained loss (159,181) (150,309)Treasury shares (11,867 ) (11,867 )Accumulated other comprehensive loss 3,475 1,263Total shareholders’ equity 372,153 378,759Total liabilities and shareholders’ equity 875,983 890,928

Balance Sheet Comments

• Cash at end Q3 of $42.3 million down from $56.2million end Q2, the decrease is mainly due to timingof freight payments

• Total assets of $876.0 million, versus $890.9 million inthe prior quarter

• Net total interest-bearing debt of $497.3 million,compared with $502.5 million, reflecting scheduleddebt repayments

• Shareholders’ equity ratio unchanged at 42.5%

• Total available liquidity at quarter end was $67.3million, including $25 million in undrawn credit lines

A Appendix

Financials – Q3 2018

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Cash Flow Statement Comments

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($ 000s) Three months ended30 September 2018

Three months ended30 June 2018

Cash flows (used in) from operating activities:Cash flow from operations (494) (706)Interest paid (6,739) (6,386)

Net cash flows (used in) from operating activities (7,233) (7,092)

Cash flows used in investing activities:Capital expenditures (1,157) (3,287)

Net cash flows used in investing activities (1,157) (3,287)

Cash flows from (used in) financing activities:Repayment of long-term debt (5,506) (5,506)Drawdown revolving credit facility - 25,000

Net cash flows from (used in) financing activities (5,506) 19,494

Effect of exchange rate changes on cash (61) (33)

Net increase (decrease) in cash and cash equivalents 13,896 9,082

Cash and cash equivalents at beginning of period 56,211 47,129

Cash and cash equivalents at end of period 42,255 56,211

• Net cash flow from operating activities negative of$7.2 million in Q3, compared to negative $7.1 millionin Q2, as higher freight rates was offset by higherLIBOR rates

• Cash flow from investing activities reflects dry-docking of the fleet

• Net cash flow from financing activities was negative$5.5 million, compared with positive $19.5 million inQ2, which also reflected $25 million drawdown

• Cash position at quarter-end was $42.3 million, withtotal available liquidity of $56.2 million

A Appendix

Financials – Q3 2018