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Flex LNG release third quarter results

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LNG Industry,

Flex LNG Ltd has reported its unaudited financial results for the three and nine months ended 30 September 2017.

Highlights for Q3 2017:

  • Reported revenues of US$9.8 m compared to US$8 m in previous quarter.
  • Reported operating loss before depreciation of US$4.1m (US$7.4m in previous quarter).
  • Reports loss before tax for the third quarter of US$4.0m, or US$0.01 per share and US$11.7m, or US$0.04 per share, for the nine months ending 30 September 2017.
  • During the quarter, operated four chartered-in LNG carriers to be able to establish a market presence and build an operational track record.
  • At the end of third quarter, two chartered-in vessels were redelivered while remaining two chartered-in vessels were subsequently extended for an additional 180 days. Profitable employment has been secured for the two remaining chartered-in vessels.
  • Transferred primary share listing from the Oslo Axess to Oslo Børs.

Other and subsequent events:

  • On 14 November, the company received a firm offer for a US$315m term loan facility (TLF) secured by the three newbuildings with the delivery in first half of 2018. The debt available under the TLF is agreed to be drawn in connection with the delivery of newbuildings and the financing is subject to the execution of definitive documentation and satisfaction of customary closing conditions.

Jonathan Cook, CEO comments:

  • “Over the past months, there has been upward pressure on charter rates as the LNG shipping market has tightened considerably, and we continue to see a trend towards a three-tier market with modern gas injection LNG carriers commanding a premium. As our fleet of state of the art newbuildings begins to deliver in the first quarter of 2018, we believe that a continued strengthening of structural fundamentals in the LNG sector will improve the rate environment further and provide us with various attractive employment options for our vessels.”

Øystein M. Kalleklev, CFO comments:

  • “We are pleased to have reached agreements to finance the first three of our LNG newbuildings that are scheduled to be delivered in the first half of 2018. The financing structure allows us to adjust the facility size depending on how we elect to employ our vessels and to substitute pledged vessels. This structure provides us significant balance sheet and operational flexibility as we grow our business.”

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