Flex LNG – Fourth Quarter Earnings Release
February 28, 2019 – Hamilton, Bermuda
Flex LNG Ltd. (“Flex LNG” or the “Company”) today reports unaudited results for the three and twelve months ended December 31, 2018.
Reported revenues of $36.1 million for the fourth quarter of 2018, compared to $7.9 million for the fourth quarter of 2017. Reported revenues of $77.2 million for the full year 2018, compared to $27.3 million for the full year 2017.
Operating income before depreciation of $28.3 million for the fourth quarter of 2018, compared to $1.2 million for the fourth quarter of 2017. Operating income before depreciation of $46.4 million for the full year 2018, compared to an operating loss before depreciation of $12.6 million for the full year 2017.
Reported net profit of $15.2 million for the fourth quarter of 2018, compared to $1.3 million for the fourth quarter of 2017. Reported net profit of $11.8 million for the full year 2018, compared to a net loss of $10.4 million for the full year 2017.
In October 2018, Flex LNG successfully conducted a private placement, raising gross proceeds of approximately $300 million, through the placement of 172,938,947 new shares at a subscription price of NOK 14.25 per share. Geveran Trading Co. Ltd. (“Geveran”), the Company’s largest shareholder, was allocated 57,646,316 shares for approximately $100 million. Following the private placement, Geveran holds a 44.6% ownership in the Company.
In connection with the $300 million private placement, Flex LNG entered into a transaction for the acquisition of five 5th generation LNG newbuildings.
Subsequent to quarter end, the Company has secured a $250 million financing from a syndicate of banks for the financing of the two newbuildings delivering in 2019.
As the market has softened in the first quarter compared to the fourth quarter we do expect the financial figures for the first quarter to be more in line with the third quarter of 2018 due to lower headline rates and lower utilization level.
Øystein M Kalleklev, CEO comments:
“We are pleased to deliver strong results for the fourth quarter in line with our guidance. During the fourth quarter we capitalized on a strong market and clearly demonstrated the earnings potential of our new fifth generation LNG carriers. While the market is currently soft due to weaker shipping demand, we remain upbeat about the outlook for LNG shipping as a glut of new liquefaction capacity is coming on line both near and long term”.
Fourth Quarter of Result Presentation
Flex LNG will release its financial results for the quarter and twelve months ended December 31, 2018 on Thursday February 28, 2019 on or about 07:00 am CET / 01:00 am EST.
In connection with the earnings release, a webcast and conference call will be held at 14:00 pm CET / 08:00 am 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:
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 States: +1 917-720-0178
Confirmation Code: 6782437
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.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the continuing obligations of