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Flex LNG announces its 3Q19 earnings

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LNG Industry,


Flex LNG Ltd. has announced its unaudited financial results for the third quarter and nine months ended 30 September 2019.

Highlights:

  • Reported revenues of US$29.8 million for 3Q19, compared to US$19.0 million for 2Q19.
  • Average Time Charter Equivalent (TCE) rate of US$58,222 per day for 3Q19, compared to US$46 266 per day for 2Q19.
  • Adjusted EBITDA of US$21.8 million for 3Q19, compared with US$11.3 million for 2Q19.
  • Reported net income of US$0.5 million for 3Q19, compared to a net loss of US$3.9 million for 2Q19.
  • In July 2019, the company executed the US$300 million sale and charterback transaction with Hyundai Glovis Co. Ltd. for the vessels Flex Endeavour and Flex Enterprise.
  • In August 2019, the company took delivery of its sixth newbuilding LNG carrier, Flex Courageous.
  • In October 2019, Flex LNG Fleet Management AS received the Document of Compliance qualifying the company for in-house technical ship management services.
  • In November 2019, the company received firm commitments from a syndicate of 11 banks and the Export-Import Bank of Korea (KEXIM) for a US$629 million financing for the five newbuildings, scheduled for delivery in 2020.
  • The Board of Directors has declared a cash dividend for the third quarter of US$0.10 per share.

Øystein M Kalleklev, CEO of Flex LNG Management AS, comments:

“In line with our expectations, the freight market has become increasingly tighter in 2H19, resulting in much more favourable market conditions despite low gas prices. Flex LNG has been very well positioned for the stronger market with ships available in the spot market as well as ships on variable rates linked to these freight rates. We are today delivering results in line with guidance for the third quarter, and our fourth quarter is booked at considerable higher rates with revenue expectations of about US$50 to US$55 million. During the year, we have also secured close to US$1.3 billion of attractive long-term financing, and this, together with our in-house ship management company, means we are well positioned for the journey ahead.”

Harald Gurvin, CFO of Flex LNG Management AS, comments:

“Our track record for 2019 demonstrates our ability to secure financing from various sources at very attractive terms. Having already executed US$650 million in new financings during 2019, the new US$629 million facility for the five newbuildings delivering in 2020 means have we secured long term funding for 11 of our 13 vessels, with comfortable remaining CAPEX for the two vessels delivering in 2021. The new facility was significantly oversubscribed, with commitments from KEXIM and 11 leading international shipping banks. Attractive financing terms also mean attractive cash breakeven levels, giving substantial cash flow potential from our fleet of latest generation LNG carriers.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20112019/flex-lng-announces-its-3q19-earnings/

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