November 20, 2019 - Hamilton, BermudaFlex LNG Ltd. ("Flex
LNG" or the “Company”) today announced its unaudited financial
results for the third quarter and nine months ended
September 30, 2019.
Highlights:
- Reported revenues of $29.8 million for the third quarter 2019,
compared to $19.0 million for the second quarter 2019.
- Average Time Charter Equivalent ("TCE") rate of $58,222 per day
for the third quarter 2019, compared to $46,266 per day for the
second quarter 2019.
- Adjusted EBITDA of $21.8 million for the third quarter 2019,
compared with $11.3 million for the second quarter 2019.
- Reported net income of $0.5 million for the third quarter 2019,
compared to a net loss of $3.9 million for the second quarter
2019.
- In July 2019, the Company executed the $300 million sale and
charterback transaction with Hyundai Glovis Co. Ltd. ("Hyundai
Glovis") for the vessels Flex Endeavour and Flex Enterprise.
- In August 2019, the Company took delivery of its sixth
newbuilding LNG carrier, Flex Courageous.
- In October 2019, Flex LNG Fleet Management AS received the
Document of Compliance qualifying the Company for in-house
technical ship management services.
- In November 2019, the Company received firm commitments from a
syndicate of 11 banks and the Export-Import Bank of Korea ("KEXIM")
for a $629 million financing for the five newbuildings scheduled
for delivery in 2020.
- The Board of Directors has declared a cash dividend for the
third quarter of $0.10 per share.
Øystein M Kalleklev, CEO of Flex LNG
Management AS, commented:“In line with our expectations,
the freight market has become increasingly tighter in the second
half of 2019 resulting in much more favourable market conditions
despite low gas prices. Flex LNG has been very well positioned for
the stronger market with ships available in the spot market as well
as ships on variable rates linked to these freight rates. We are
today delivering results in line with guidance for third quarter
and our fourth quarter is booked at considerable higher rates with
revenue expectations of about $50 to $55 million. During the year
we have also secured close to $1.3bn of attractive long-term
financing and this together with our in-house ship management
company means we are well positioned for the journey
ahead.”
Harald Gurvin, CFO of Flex LNG
Management AS, commented:“Our track record for 2019
demonstrates our ability to secure financing from various sources
at very attractive terms. Having already executed $650 million in
new financings during 2019, the new $629 million facility for the
five newbuildings delivering in 2020 means have we secured long
term funding for 11 of our 13 vessels, with comfortable remaining
capex for the two vessels delivering in 2021. The new facility was
significantly oversubscribed, with commitments from KEXIM and 11
leading international shipping banks. Attractive financing terms
also mean attractive cash breakeven levels, giving substantial cash
flow potential from our fleet of latest generation LNG
carriers.”
Third Quarter 2019 Result Presentation
In connection with the earnings release, a webcast and
conference call will be held at 3:00 p.m. CET (9:00 a.m. ET).
In order to attend the webcast and/or conference call you may do
one of the following:
Attend by Webcast:
Use to the follow link prior to the webcast:
https://edge.media-server.com/mmc/p/hhpedipx
Attend by Conference Call:
Applicable dial-in telephone numbers are as follows:
Norway: +47 21 56 31 62
United Kingdom: +44 (0) 203 009 5710
United Kingdom, local: 084 449 33857
United States: +1 917 720 0178
United States (toll free): +1 866 869 2321
Confirmation Code: 8292178
A Q&A session will be held after the teleconference/webcast.
Information on how to submit questions will be given at the
beginning of the session. The presentation material which will be
used in the teleconference/webcast can be downloaded on
www.flexlng.com and replay details will also be available at this
website.
For further information, please contact:
Harald Gurvin, CFO
Telephone: +47 23 11 40 09
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "target," "project," "likely," "may," "will," "would,"
"could" and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although management believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or
projections. The Company undertakes no obligation, and specifically
declines any obligation, except as required by law, to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include: unforeseen liabilities, future
capital expenditures, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand in the LNG
tanker market, changes in the Company’s operating expenses,
including bunker prices, dry-docking and insurance costs, the fuel
efficiency of the Company’s vessels, the market for the Company’s
vessels, availability of financing and refinancing, ability to
comply with covenants in such financing arrangements, failure of
counterparties to fully perform their contracts with the Company,
changes in governmental rules and regulations or actions taken by
regulatory authorities, including those that may limit the
commercial useful lives of LNG tankers, potential liability from
pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due
to accidents or political events, vessel breakdowns and instances
of off-hire, and other factors, including those that may be
described from time to time in the reports and other documents that
the Company files with or furnishes to the U.S. Securities and
Exchange Commission (“Other Reports”). For a more complete
discussion of certain of these and other risks and uncertainties
associated with the Company, please refer to the Other Reports.
This information is subject of the disclosure
requirements pursuant to section 5 -12 of the Norwegian Securities
Trading Act or the Continuing Obligations of Oslo Børs.
- Q3 2019 FLEX Press Release
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