Flex LNG - Third Quarter Results 2017

21.11.2017 07:00

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21 November 2017 – 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 nine months ended September 30, 2017.

Highlights for Q3 2017:
–           Reported Revenues of $9.8m vs. $8m in previous quarter.
–           Reported Operating Loss before Depreciation of $4.1m vs. Operating Loss before Depreciation of $7.4m in previous quarter.
–           Reports loss before tax for the third quarter of $4.0m, or $0.01 per share and $11.7m, or $0.04 per share, for the nine months ending September 30, 2017.
–           During the quarter, operated four chartered-in LNG carriers (“LNGC”) to be able to establish a market presence and build an operational track record.
–           At the end of third quarter, two chartered-in vessels were redelivered while remaining two chartered-in vessels were subsequently extended for an additional 180 days. Profitable employment has been secured for the two remaining chartered-in vessels
–           Transferred primary share listing from the Oslo Axess to Oslo Børs

Other and Subsequent Events:
–           On 14 November, the Company received a firm offer for a $ 315m term loan facility (“TLF”) secured by the three newbuildings with the delivery in first half of 2018. The debt available under the TLF is agreed to be drawn in connection with the delivery of newbuildings and the financing is subject to the execution of definitive documentation and satisfaction of customary closing conditions

Jonathan Cook, CEO comments:
“Over the past months, there has been upward pressure on charter rates as the LNG shipping market has tightened considerably, and we continue to see a trend towards a three-tier market with modern gas injection LNG carriers commanding a premium. As our fleet of state of the art newbuildings begins to deliver in the first quarter of 2018, we believe that a continued strengthening of structural fundamentals in the LNG sector will improve the rate environment further and provide us with various attractive employment options for our vessels.”

Øystein M. Kalleklev, CFO comments:
“We are pleased to have reached agreements to finance the first three of our LNG newbuildings that are scheduled to be delivered in the first half of 2018. The financing structure allows us to adjust the facility size depending on how we elect to employ our vessels and to substitute pledged vessels. This structure provides us significant balance sheet and operational flexibility as we grow our business.”

Please find enclosed details for presentation and webcast.

Questions should be directed to:

Øystein M. Kalleklev, Chief Financial Officer
Tel. +47 23 11 40 58
Email: ir@flexlng.com