Flex LNG releases 2Q19 results

Highlights

• Reported revenues of US$19.0 million for 2Q19, compared to US$19.1 million for 1Q19.
• Average Time Charter Equivalent (TCE) rate of US$46 266 per day for 2Q19, compared to US$42 644 per day for 1Q19.
• Reported net loss of US$3.9 million for 2Q19, compared to a net loss of US$3.4 million for 1Q19.
• Adjusted EBITDA of US$11.3 million for 2Q19, compared with US$8.7 million for 1Q19.
• On 17 June 2019, the company’s shares commenced trading on the New York Stock Exchange (NYSE) under the ticker symbol ‘FLNG’.
• In June 2019, the company took delivery of its fifth newbuilding LNG carrier, the Flex Constellation.
• In July 2019, the company closed the US$300 million sale and charterback transaction with Hyundai Glovis Co. Ltd. for the vessels Flex Enterprise and Flex Endeavour.

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

“The first half of 2019 has been a cold shower for most LNG industry participants with the exception of the end consumers, who have benefited from cheap clean fuel and made significant savings on their utility bills. Low gas prices during the first half of the year have also negatively affected the results of Flex LNG, as excess gas supply has predominantly been absorbed by European consumers, cutting sailing distances and thus affecting shipping demand and rates. Despite this challenging market environment, we do see improved outlook for the second half as the LNG shipping market is expected to become increasingly tight and the likelihood of a repeat of last winter's El Nino is low. These factors should provide tailwinds into 2020 and we expect the LNG product market to become increasingly tight from next year. Tighter product markets generally result in higher shipping demand due to arbitrage and re-loads. Hence, we think a tighter product market will positively affect the market balance in 2021.”

Read the article online at: https://www.lngindustry.com/lng-shipping/20082019/flex-lng-releases-2q19-results/