Flex LNG Q2, 2020 Earnings Release
August 19 2020 - 1:00AM
Flex LNG Ltd. ("Flex LNG" or the “Company”) today announced its
unaudited financial results for the second quarter and six months
ended June 30, 2020.
Highlights:
- Revenues of $25.8 million for the second quarter 2020, compared
to $38.2 million for the first quarter 2020.
- Net loss of $6.7 million and loss per share of $0.12 for the
second quarter 2020, compared to a net loss of $14.9 million and
loss per share of $0.27 for the first quarter 2020.
- Average Time Charter Equivalent ("TCE") rate of $46,588 per day
for the second quarter 2020, compared to $67,740 per day for the
first quarter 2020.
- Adjusted EBITDA of $17.4 million for the second quarter 2020,
compared to $27.8 million for the first quarter 2020.
- Adjusted net loss of $0.7 million for the second quarter 2020,
compared to adjusted net income of $9.3 million for the first
quarter 2020.
- Adjusted loss per share of $0.01 for the second quarter
2020, compared to adjusted earnings per share of $0.17 for the
first quarter 2020.
- Long-term financing secured at attractive terms for all vessels
and newbuildings.
- In June 2020, the Company signed a $156.4 million sale and
leaseback transaction with an Asian based leasing house for the
newbuilding Flex Amber.
- In June 2020, the Company signed a $125 million financing with
a syndicate of banks for the newbuilding Flex Volunteer, which is
scheduled for delivery in the first quarter 2021.
- In July 2020, the Company took delivery of its seventh
newbuilding 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
newbuilding LNG carrier, the Flex Artemis, which immediately
commenced its long-term charter to Clearlake Shipping, a subsidiary
of the Gunvor Group.
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 per cent up-time and availability, with
cargoes being delivered without disruptions or delays to our
customers. Furthermore, we have mobilized 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 minimizing 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 $47k 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 mobilization of
three or possibly four newbuildings during this quarter.”
Second Quarter 2020 Result
PresentationFlex LNG will release its financial results
for the second quarter 2020 on Wednesday August 19, 2020. In
connection with the earnings release, a webcast and conference call
will be held at 3:00 p.m. CEST (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/6qeg8ow6
Attend by Conference Call:Applicable dial-in
telephone numbers are as follows:Norway: +47 21 56 31 62United
Kingdom: +44 (0) 203 0095 710United Kingdom (local): 0844 493
3857United States (Toll Free): +1 866 869 2321
Confirmation Code: 4971456
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 00
Forward-Looking
StatementsMatters 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, the length and severity of the COVID-19 outbreak,
the impact of public health threats and outbreaks of other highly
communicable diseases, 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.
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