Flex LNG Reports Reduced Second Quarter Revenues


Flex LNG Ltd. (“Flex LNG” or the “Company”) yesterday 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 Presentation
Flex 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

Full Report

Source: Flex LNG Ltd.



Leave A Reply

Your email address will not be published. Required fields are marked *