Flex LNG Q4, 2019 Earnings Release
February 26 2020 - 1:00AM
Flex LNG Q4, 2019 Earnings Release
Hamilton, Bermuda Flex LNG Ltd. ("Flex LNG" or the "Company")
today reports unaudited financial results for the fourth quarter
and year ended December 31, 2019.
Highlights:
- Reported revenues of $52.0 million for the fourth quarter 2019,
compared to $29.8 million for the third quarter 2019.
- Reported net income of $23.9 million for the fourth quarter
2019, compared to a net income of $0.5 million for the third
quarter 2019.
- Average Time Charter Equivalent ("TCE") rate of $94,000 per day
for the fourth quarter 2019, compared to $58,222 per day for the
third quarter 2019.
- Adjusted EBITDA of $41.9 million for the fourth quarter 2019,
compared with $21.8 million for the third quarter 2019.
- In October 2019, Flex LNG Fleet Management AS, a related party,
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 five of the newbuildings scheduled
for delivery in 2020. The facility agreement was signed in February
2020.
- In November 2019, the Company entered into a long-term
time-charter with Clearlake Shipping, a subsidiary of Gunvor Group,
for the newbuilding Flex Artemis. The period under the charter is
up to ten years, where the first five years are firm.
- In December 2019, the Company entered into a 12-month
time-charter with Endesa for the vessel Flex Ranger, with
charterer's option to extend by an additional 12 months. The firm
period of the charter will expire around June 2021.
- In January 2020, a 12-month extension option was exercised
under the time-charter agreement for Flex Enterprise, giving a firm
period until the end of the first quarter 2021.
- Further strengthening of the commercial team with the
appointment of Ben Martin as Chief Commercial Officer, who will
join Flex LNG on or about April 1, 2020.
- The Board of Directors has declared a cash dividend for the
fourth quarter of $0.10 per share.
Øystein M Kalleklev, CEO of Flex LNG
Management AS, commented:
“2019 was an eventful and productive year for
Flex LNG. We continue to build our organization with exceptional
people, most recently with today's announcement of the recruitment
of Ben Martin who will join us from Trafigura as our Chief
Commercial Officer. Furthermore, we are taking a greater
responsibility of the management of our fleet with Flex LNG Fleet
Management currently managing four of our six vessels on water.
Ship management continues to perform excellent with no loss time
injuries recorded for the second year in a row.
We took delivery of two LNG carriers in June and
August 2019, and these two vessels were put directly into a strong
spot market in the second half of 2019. Given the fact that we
positioned our fleet for a stronger winter market we were able to
achieve trading results in fourth quarter of 2019 similar to what
we did in the fourth quarter of 2018, when rates were at all-time
high. We are thus pleased to announce the best-ever financial
results for Flex LNG with net income of around $24 million for the
fourth quarter. Based on fixtures to date, we anticipate the TCE
for the first quarter 2020 to be close to $70,000 per day, despite
the demand slump in the first quarter due to a record warm winter
and the recent coronavirus outbreak.
We are also pleased that several of our
charterers are returning customers, with recent contract extensions
for both Flex Ranger and Flex Enterprise, as well as the long-term
charter announced with Gunvor for the newbuilding Flex Artemis due
for delivery this summer. During the year we were also successful
in securing about $1.3bn of attractive long-term financing, which
boosted our liquidity position and enables us to run our ships at
industry low cash break-even levels.
Due to the uncertainty and disruptions created
by the coronavirus and associated low gas prices, we have elected
to be cautious by maintaining a $0.10 dividend for the fourth
quarter, and for the time being rather preserve liquidity, which
stood at close to $130 million at year-end. This gives us a
comfortable financial position to handle the current market
situation. While the freight and gas markets are currently
challenging, LNG continues to be a long term story with expected
annual growth of around 3 to 4 per cent for the next two decades as
natural gas, and to greater extent LNG, is the transition fuel for
a cleaner and more sustainable future.”
Fourth Quarter 2019 Result
Presentation
Flex LNG will release its financial results for
the fourth quarter 2019 on Wednesday February 26, 2020.
In connection with the earnings release, a
webcast and conference call will be held at 3:00 p.m. CET (9:00 a.m
EST). 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/7yprvtvc
Attend by Conference Call:
Applicable dial-in telephone numbers are as
follows:
Norway: +47 21 56 31 62
United Kingdom: +44 (0) 203 0095710
United Kingdom (local): 0844 493 3857
United States (Toll Free): +1 866 869 2321
Confirmation Code: 1758646
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
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.
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