Flex LNG releases 1Q19 financial results

Highlights:

• Reported revenues for 1Q19 of US$19.1 million, compared to US$36.1 million for 4Q18.
• Reported operating income of US$3.0 million for 1Q19, compared to US$21.5 million in 4Q18.
• Reported net loss of US$3.4 million for 4Q19, compared to net income of US$15.2 million for 4Q18.
• In April, the company signed a US$250 million secured term loan facility for the financing of the two newbuildings delivering in 2019.
• In April, the company signed a US$300 million sale and charter-back transaction with Hyundai Glovis Co. Ltd. for the vessels Flex Enterprise and Flex Endeavour.
• On 30 May, in relation to the proposed listing of the company’s ordinary shares on the New York Stock Exchange (NYSE) under the symbol ‘FLNG’, the US Securities and Exchange Commission (SEC) declared the company’s registration statement on Form 20-F effective.

Øystein M Kalleklev, CEO comments:

“First half of 2019 has been challenging due to the disruption in the LNG trade caused by an unseasonably mild winter, a glut of LNG hitting the market as well as shift in trading patterns favouring shorter hauls to Europe. We in Flex LNG have deliberately elected to sail against the current to be able to position us for the shift in currents expected to take place in the second half of the year. With tighter market and significant contango in the gas market we are upbeat about the outlook for owners of uncommitted two stroke LNG carriers. Furthermore, we continue to strengthen the organisation with insourcing of ship management with the aim of delivering the highest standard in terms of customer experience. Additionally, our US listing will give us access to a larger and deeper capital market which is advantageous in such a capital-intensive shipping segment as LNG transportation.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/31052019/flex-lng-releases-1q19-financial-results/