Flex LNG reports loss in 2Q20 results

Highlights

• Revenues of US$25.8 million for 2Q20, compared to US$38.2 million for 1Q20.
• Net loss of US$6.7 million and loss per share of US$0.12 for 2Q20, compared to a net loss of US$14.9 million and loss per share of US$0.27 for 1Q20.
• Average time charter equivalent (TCE) rate of US$46 588 per day for 2Q20, compared to US$67 740 per day for 1Q20.
• Adjusted EBITDA of US$17.4 million for 2Q20, compared to US$27.8 million for 1Q20.
• Adjusted net loss of US$0.7 million for 2Q20, compared to adjusted net income of US$9.3 million for 1Q20.
• Adjusted loss per share of US$0.01 for 2Q20, compared to adjusted earnings per share of US$0.17 for 1Q20.
• Long-term financing secured at attractive terms for all vessels and new-builds.
• In June 2020, the company signed a US$156.4 million sale and leaseback transaction with an Asian based leasing house for the new-build Flex Amber.
• In June 2020, the company signed a US$125 million financing with a syndicate of banks for the new-build Flex Volunteer, which is scheduled for delivery in 1Q21.
• In July 2020, the company took delivery of its seventh new-build LNG carrier, the Flex Aurora.
• In July 2020, the technical ship management for Flex Ranger was successfully transferred to Flex LNG Fleet Management AS. Following this transfer, all vessels are managed by Flex LNG Fleet Management AS.
• In August 2020, the company took delivery of its eighth new-build LNG carrier, the Flex Artemis, which immediately commenced its long-term charter to Clearlake Shipping, a subsidiary of the Gunvor Group.

CEO comments

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

“The Covid-19 pandemic and resulting mobility restrictions posed multifaceted challenges for LNG shipping, which in nature is mobile and woven into global supply chains. Notwithstanding these obstacles, we have managed to operate our ships with 100% up-time and availability, with cargoes being delivered without disruptions or delays to our customers. Furthermore, we have mobilised our newbuildings for delivery of which two ships, Flex Aurora and Flex Artemis, have already been delivered.

“Crew rotations have been made particularly difficult for the shipping industry, resulting in a lot of seafarers being effectively stranded on ships. We are however pleased that we on average have been able to carry out two crew changes per ship in this period, thus minimising extended stay for our seafarers.

“First class operational performance means we are able to deliver trading results in line with our guidance, with a TCE for the quarter of US$47 000 per day, despite our exposure to a weak spot market during the spring and the summer. We expect similar trading result for the third quarter, even with mobilisation of three or possibly four newbuildings during this quarter.”

Read the article online at: https://www.lngindustry.com/lng-shipping/19082020/flex-lng-reports-loss-in-2q20-results/