Slide 1: Q1-2020 presentation
Q1-2020 presentation May 28, 2020 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS MATTERS DISCUSSED IN THIS PRESENTATION 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 T
Slide 3: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Revenues of $38.2m vs. $52.0m for Q4-19 Time Charter Equivalent(1) rate of $68kpdr in line with guidance of “close to $70kpdr” Adjusted EBITDA(1) of $27.8m vs. $41.6m Q4-19 Adjusted Net Income(1) of $9.3m vs. $22.0m Q4-19 Adjusted EPS(1) of $0.17 vs. $0.41 for Q4-1
Slide 4: COVID-19 Implications
COVID-19 IMPLICATIONS Availability of the vessels has remained at 100%, no downtime or delays on the vessels Several measures have been implemented since January to maintain the safety and health of our crew, minimising external visits on-board Remote ship visits by video conference has been i
Slide 5: Financing Update
FINANCING UPDATE $125m Bank Facility – Flex Volunteer (Q1 2021) • Commitment received May 2020 for five-year term loan and revolving credit facility • Interest rate exposure fully swapped, attractive all-in cost of 3.30% p.a. including margin • 20 year repayment profile $156.4m Sale and Leaseback –
Slide 6: Financing Overview
FINANCING OVERVIEW $m (1) $100M Bank Facility $156.4M Sale & Leaseback Flex Ranger (2018) 600 Flex Amber (Q3 2020) $250M Bank Facility 500 Flex Constellation (2019) $300M Sale & Charterback Flex Courageous (2019) Flex Endeavour (2018) 400 Flex Enterprise (2018) (1) $125M Bank Facility 300 Flex Volun
Slide 7: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE $m 400 350 300 250 200 150 100 50 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 $156.4M Sale & Leaseback $300M Sale & Charterback $157.5M Sale & Leaseback $125M Bank Facility $629M ECA Facility $100M Bank Facility $250M Bank Facility • Long fundin
Slide 8: Income Statement
INCOME STATEMENT (in thousands of $ except per share data) Three months ended Mar 31, 2020 Dec 31, 2019 • Vessel operating revenues of $38.2m vs. $52.0m for Q4-19 Vessel operating revenues 38,192 51,994 (1) Voyage expenses (1,206) (388) • Adjusted EBITDA of $27.8m vs. $41.6m for Q4-19 Vessel operati
Slide 9: Balance Sheet
BALANCE SHEET (in thousands of $) Mar 31, 2020 Dec 31, 2019 • Solid liquidity of $120.8m as per Mar 31, 2020 Assets • Assets consist of six vessels in operation and Current assets seven newbuildings under construction Cash, restricted cash and cash equivalents 120,802 129,098 • Vessel purchase prepa
Slide 10: Cashflow During the Quarter
CASHFLOW DURING THE QUARTER $m 145 140 (8.3) 14.1 135 (6.5) 130 125 (5.4) (2.2) 120 129.1 115 120.8 110 105 Cash 31.12.2019 Cash from Repayment of Financing cost Dividends paid Exchange rate Cash 31.03.2020 operations debt (ECA Loan) effect 10
Slide 11: Spot Market Review
SPOT MARKET REVIEW Freight rates and ship availability Total Fixture Activity (Existing Vessels Only) 160,000 20 140,000 18 16 120,000 14 # of vessels open 100,000 12 TC $/Day 80,000 10 60,000 8 6 40,000 4 20,000 2 2019 2020 0 0 Apr-20 Dec-19 Aug-19 Mar-20 Jun-19 Sep-19 Oct-19 Nov-19 Jan-20 Jul-19 J
Slide 12: Europe Continues to Be the LNG Sink
EUROPE CONTINUES TO BE THE LNG SINK Europe was 8 of top 10 LNG growth markets in 2019 Europe also dominates 2020 growth table (Jan-May) UK China France Spain Italy Bangladesh Netherlands Belgium Portugal Greece 0 2 4 6 8 10 0 0.5 1 1.5 2 2.5 3 MT 1) Source: Kpler 12
Slide 13: Asian Demand Fairly Stable with 4% Growth Y-o-Y
ASIAN DEMAND FAIRLY STABLE WITH 4% GROWTH Y-O-Y 2019 2020 Mt 25.0 • Chinese demand recovered after 2.0 2.3 covid-19 disruptions in 1.6 1.5 2.3 February/March 20.0 2.2 2.9 1.7 1.4 1.9 2.5 2.8 3.7 1.5 2.6 3.3 • Chinese LNG import from US 1.0 1.3 2.8 expected to be about 0.5Mt in 4.0 1.4 4.6 2.3 1.5 1.
Slide 14: European Imports +67% in 2019 and +26% Y-o-Y 2020
EUROPEAN IMPORTS +67% IN 2019 AND +26% Y-O-Y 2020 Monthly European LNG imports Resulting in high European inventory levels Mt 12 Bcm 10 8 6 4 2 0 Spain France UK Turkey Italy Rest 1) Source: Kpler and Energy Aspects 14
Slide 15: LNG Product Market Review
LNG PRODUCT MARKET REVIEW $/Mmbtu 12.00 10.00 8.00 6.00 4.00 2.00 - HHI JKM TTF Brent 331(14%) +0,8 $/Mmbtu Brent 331(13%) Oil linked pricing ~70% volumes Source: Bloomberg, CME, Poten 15
Slide 16: Low Gas Prices Will Stimulate Coal to Gas Switching
LOW GAS PRICES WILL STIMULATE COAL TO GAS SWITCHING LNG is cheaper than coal Rebound in European carbon prices European CO2 price in € 14.00 35.00 12.00 30.00 USD/MMbtu 10.00 8.00 25.00 6.00 20.00 4.00 2.00 15.00 - 10.00 Aussie coal(USD/mmbtu) Brent(USD/mmbtu) LNG price Asia Coal adj. Efficiency Dut
Slide 17: FIDs Delayed for Now, But ~70MMTPA Made the Cut
FID’S DELAYED FOR NOW, BUT ~70MMTPA MADE THE CUT FID of new volumes in 2019 Main contenders for FID in 2020/21 Volume Mt Likely FIDs Country (Mmtpa) 80 Golden Pass: 15,6 Mmtpa, brownfield 70 Sabine Pass T6: 4,5 Mmtpa, brownfield, Qatargas expansion 33-49 Mozambique : 12,9 Mmtpa, greenfield Calcasieu
Slide 18: ~160MT New Capacity Expected On-Stream by 2025
~160MT NEW CAPACITY EXPECTED ON-STREAM BY 2025 Expected ramp-up of nameplate capacity 60.0 50.0 Glut of LNG coupled with Expect tighter product market 40.0 trade war, two warm winters and more Asian demand rather and covid-19 pandemic than Eurocentric demand 30.0 20.0 33Mt Qatari volumes subject to
Slide 19: Switching to Natural Gas Is Now Free Health Policy
SWITCHING TO NATURAL GAS IS NOW FREE HEALTH POLICY Reduction in emissions from natural gas vs coal in power gen. 1) Source: Reuters, Company, Bloomberg 19
Slide 20: Summary
SUMMARY We delivered TCE of ~$68kpdr in line with guidance of “close to $70kpdr” despite challenging first quarter. Expect TCE close to $50kpdr in Q2. LNG freight market continues to be affected near term by combination of glut of LNG and reduced demand due to covid-19 pandemic Flex LNG well c
Slide 21: Q&A
A Q&A FLEX LNG