27 February 2018 – Hamilton, Bermuda
FLEX LNG LTD. (Oslo Børs: FLNG) (together with its subsidiaries, the “Company” or “FLEX LNG”), an emerging leader in the Liquefied Natural Gas (“LNG”) shipping and floating regasification market, today reports unaudited results for the three and twelve months ended December 31, 2017.
Highlights for Q4 2017:
Reported Revenues of $7.9m compared to $9.8m in previous quarter.
Reported net operating income before depreciation of $1.3m compared to a net operating loss before depreciation of $4.1m in previous quarter.
Reports profit before tax for the fourth quarter of $1.3m, or $0.00 per share and loss of $10.4m, or $0.03 per share, for the twelve months ending December 31, 2017.
During the quarter, operated two chartered-in LNG carriers (“LNGC”) in order to build a market presence and operational track record.
Signed and executed a $315m secured term loan facility
Other and Subsequent Events:
On January 9 and 11, 2018 the Company successfully took delivery of its first LNGC newbuildings the FLEX ENDEAVOUR and the FLEX ENTERPRISE, respectively. After crew mobilization and safety drills the FLEX ENDEAVOUR commenced it’s time charter to Uniper Global Commodities (“Uniper”), a leading international energy company headquartered in Germany. The time charter to Uniper is for a firm period of 15 months plus an option period of 3 months. Subsequent to crew mobilization and safety drills, the FLEX ENTERPRISE was put into spot trade.
In connection with the delivery of the two vessels, $210m of the Company’s $315m secured term loan facility was utilized. The remaining amount available under the secured term loan facility will be utilized in connection with the scheduled delivery of the FLEX RANGER in May 2018. Subsequent to the drawdown of the secured term loan facility, FLEX LNG repaid $100m under the Sterna revolving credit facility. Following this repayment to Sterna, remaining outstanding amount under this $270m facility was $60m.
Jonathan Cook, CEO comments:
“We are pleased to deliver profitable results for the fourth quarter as two of our chartered-in vessels were employed in profitable charters throughout the quarter. In January, we successfully took delivery of the first two of our six newbuildings and secured a 15 to 18 month time charter for one of the vessels in line with our strategy to secure balanced fleet employment as the market continues to improve due to expected tighter supply/demand dynamics in the LNGC market.”
Flex LNG will host an Investor Day in connection with the fourth quarter and full year presentation. Presentation will be held at Høyres Hus at Stortingsgata 20, 0161 Oslo, Norway at 13:00 CET (07:00 EST).
Agenda for the Investor Day:
12:30 – Lunch, coffee and registration
13:00 – Fourth quarter earnings results and Investor Day presentation.
Presenters: Jonathan Cook (CEO) and Øystein M. Kalleklev (CFO), FLEX LNG
14:00 – LNG Shipping Market Outlook. Presenter: Gonzalo de Arteaga, Senior Analyst LNG, Fearnleys
14:30 – Coffee break
14:45 – LNG Carrier Technology Perspectives. Presenter: Johan Petter Tutturen,VP Gas Carriers, DNV GL
15:15 – Q&A and Round Table Discussion
15:45 – Adjournment
The presentation will also be available by webcast at https://edge.media-server.com/m6/p/dt8hvmfm and also by conference call.
The presentation will also be available for download from the Investor Relations section at www.flexlng.com
Q&A session will be held after the event. Information on how to submit questions will be given at the beginning of the session.
Conference call participants should dial into the call 10 minutes before the scheduled time using the following numbers:
International Dial-In/UK Local: +44 (0)330 336 9105
Norway Local: +47 2100 2610
USA Local: +1 646-828-8193
Conference ID for all participants is: 7727996
A replay of the conference call will be available for seven days following the live call. The replay will be available on www.flexlng.com
Questions should be directed to:
Øystein M. Kalleklev, Chief Financial Officer
Tel. +47 23 11 40 58