November 17, 2020 – Hamilton, Bermuda
Flex LNG Ltd. (“Flex LNG” or the “Company”) today announced its unaudited financial results for the third quarter and nine months ended September 30, 2020.
- Revenues of $33.1 million for the third quarter 2020, compared to $25.8 million for the second quarter 2020.
- Net income of $3.8 million and earnings per share of $0.07 for the third quarter 2020, compared to a net loss of $6.7 million and loss per share of $0.12 for the second quarter 2020.
- Average Time Charter Equivalent (“TCE”) rate of $46,569 per day for the third quarter 2020, compared to $46,588 per day for the second quarter 2020.
- Adjusted EBITDA of $21.9 million for the third quarter 2020, compared to $17.4 million for the second quarter 2020.
- Adjusted net income of $1.2 million for the third quarter 2020, compared to adjusted net loss of $0.7 million for the second quarter 2020.
- Adjusted earnings per share of $0.02 for the third quarter 2020, compared to adjusted loss per share of $0.01 for the second quarter 2020.
- In July 2020, the Company took delivery of its seventh newbuilding LNG carrier, Flex Aurora, which commenced an 11 month firm charter in August.
- In August 2020, the Company took delivery of its eighth newbuilding LNG carrier, Flex Artemis, which commenced a long-term charter to Clearlake Shipping, a subsidiary of the Gunvor Group, for up to ten years, where the first five years are firm.
- In September 2020, the Company took delivery of its ninth newbuilding LNG carrier, Flex Resolute, which commenced an 11 month firm charter.
- In October 2020, the Company took delivery of its tenth newbuilding LNG carrier, Flex Amber, which commenced a 12 month firm charter with options to extend by an additional two years.
- 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:
“The third quarter was a very eventful quarter for Flex LNG. We took delivery of Flex Aurora in July, Flex Artemis in August, Flex Resolute in September and subsequent to quarter-end we took delivery of Flex Amber in October. With these additions, our fleet now consists of ten state-of-the-art large LNG carriers. All these newbuildings have been secured on fixed and variable charters, evidencing the attractiveness of our modern efficient vessels.
Our trading results were in line with the second quarter and our guidance. We have thus been able to trade our vessels at cash break-even levels during very challenging market conditions, despite significant spot exposure and operational restrictions caused by Covid-19. We are pleased that our vessels have been operating with 100 per cent up-time, and that we have managed to minimize extended stays on our vessels for our seafarers with 32 crew changes conducted in the period May to October.
During the autumn, both gas and freight markets have recovered, and we are thus expecting our TCE to increase to $70-75,000 per day for the fourth quarter. Improved trading results together with a strong financial position, which includes financing for the three remaining newbuildings, also enables us to reinstate the dividend. ”
Third Quarter 2020 Result Presentation
Flex LNG will release its financial results for the third quarter 2020 on Tuesday November 17, 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/noymzjrh
Attend by Conference Call:
Applicable dial-in telephone numbers are as follows:
Norway: +47 210 33 922
United Kingdom: +44 (0) 203 0095 709
United Kingdom (local): 0844 493 6766
United States, New York: +1 646 787 1226
United States: +1 866 280 1157
Confirmation Code: 5888874
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
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, 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.