Flex LNG release interim financial information for 4Q18
Published by Will Owen,
Editor
LNG Industry,
Flex LNG Ltd. has reported its unaudited results for the three and twelve month periods ended 31 December 2018.
Highlights:
- Reported revenues of US$36.1 million for 4Q18, compared to US$7.9 million for 4Q17. Reported revenues of US$77.2 million for the full year 2018, compared to US$27.3 million for the full year 2017.
- Operating income before depreciation of US$28.3 million for 4Q18, compared to US$1.2 million for 4Q17. Operating income before depreciation of US$46.4 million for the full year 2018, compared to an operating loss before depreciation of US$12.6 million for the full year 2017.
- Reported net profit of US$15.2 million for 4Q18, compared to US$1.3 million for 4Q17. Reported net profit of US$11.8 million for the full year 2018, compared to a net loss of US$10.4 million for the full year 2017.
- In October 2018, Flex LNG successfully conducted a private placement, raising gross proceeds of approximately US$300 million, through the placement of 172,938,947 new shares at a subscription price of NOK 14.25 per share. Geveran Trading Co. Ltd. (Geveran), the company’s largest shareholder, was allocated 57,646,316 shares for approximately US$100 million. Following the private placement, Geveran holds a 44.6% ownership in the company.
- In connection with the US$300 million private placement, Flex LNG entered into a transaction for the acquisition of five 5th generation LNG newbuildings.
- Subsequent to quarter end, the company has secured a US$250 million financing from a syndicate of banks for the financing of the two newbuildings delivering in 2019.
- As the market has softened in 1Q compared to 4Q it is expected that the financial figures for 1Q will be more in line with 3Q18 due to lower headline rates and lower utilisation level.
Øystein Kalleklev, CEO comments:
“We are pleased to deliver strong results for the fourth quarter in line with our guidance. During the fourth quarter we capitalised on a strong market and clearly demonstrated the earnings potential of our new fifth generation LNG carriers. While the market is currently soft due to weaker shipping demand, we remain upbeat about the outlook for LNG shipping as a glut of new liquefaction capacity is coming on line both near and long term.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28022019/flex-lng-release-interim-financial-information-for-4q18/
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