Slide 1: Interim Report Presentation
Interim Report Presentation Period ending September 30, 2019 November 20, 2019 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: Flex LNG Q3-19: Packed with Highlights
FLEX LNG Q3-19: PACKED WITH HIGHLIGHTS Delivered Revenues of $29.8m vs. $19.0m for Q2-19 Achieved Time Charter Equivalent(1) rate of $58.2kpdr in line with guidance of ~$60kpdr Delivered Adjusted EBITDA(1) of $21.8m vs. $11.3m for Q2-19 Executed $525m of loans for Flex Endeavour/Enterprise/Ranger/Co
Slide 4: Ship Management Brought In-House
SHIP MANAGEMENT BROUGHT IN-HOUSE • According to schedule, Flex LNG Fleet Management AS received Document of Compliance on October 17, 2019 • A team of experience technical personnel have been recruited to fill key roles in new management company • Bernhard Schulte Shipmanagement, which has delivered
Slide 5: Implementing SASB ESG Reporting
IMPLEMENTING SASB ESG REPORTING • Flex LNG has implemented the Sustainability Accounting Standards Board (SASB) guidelines and will publish a yearly ESG report based on this framework. The report includes information about: » Environmental Footprint of Fuel Use » Ecological Impacts » Business Ethics
Slide 6: $629,000,000 Financing Secured for 2020 Newbuildings
$629,000,000 FINANCING SECURED FOR 2020 NEWBUILDINGS • $629m attractive debt financing secured for five newbuildings delivering in 2020 ECA lender/guarantor: • Korea Eximbank (KEXIM) to provide $379m in direct loans and guarantees • Commercial banks to provide $250m loan (1) • Accordion up-size opti
Slide 7: Attractive Long-Term Financing Secured
ATTRACTIVE LONG-TERM FINANCING SECURED Endeavour/Enterprise - $300m Sale and Charterback Constellation/Courageous - $250m Term Loan Facility • 10-year sale and charterback transaction maturing July 2029 • Five-year bank facility maturing August 2024 • All-in cost of ~6% p.a. • Interest at LIBOR + 2.
Slide 8: Limited Remaining Capex and Attractive Cash Breakeven Levels
LIMITED REMAINING CAPEX AND ATTRACTIVE CASH BREAKEVEN LEVELS $m 1 400 Limited remaining capex(1) 1 200 349 • Remaining capex of $126m per 1 000 vessel for Flex Vigilant and Flex 800 Volunteer scheduled for delivery in 600 1,286 629 2021 400 56 • In line with recent bank financings 200 126 and well b
Slide 9: Income Statement
INCOME STATEMENT Three months ended • Revenues of $29.8m vs. $19.0m for Q2-19 Unaudited Figures in thousand of $ Sept 30, 2019 Jun 30, 2019 • Adjusted EBITDA(1) of $21.8m vs. $11.3m for Q2-19 Vessel operating revenues 29,814 19,018 Voyage expenses -994 -1,113 • Administrative expenses impacted by co
Slide 10: Balance Sheet
BALANCE SHEET Unaudited Figures in thousand of $ Sept 30, 2019 Jun 30, 2019 • Assets consist of six vessels in operation and seven newbuildings under construction as per Sep 30, 2019 Assets • Increase in Vessels and equipment due to delivery of Current assets Flex Courageous Cash, restricted cash an
Slide 11: Cashflow
CASHFLOW Three months ended • Net cash flow from operating activities of $8.4m Unaudited Figures in thousand of $ Sept 30, 2019 Jun 30, 2019 • Newbuilding capex of $145.2m relates to final Net income/(loss) 468 -3,919 payment upon delivery of Flex Courageous Working capital adjustments -4,506 4,685
Slide 12: Déjà Vu in Freight Market
DÉJÀ VU IN FREIGHT MARKET 200 000 Spot market development 21 Japan, South Korea and China Imports 180 000 19 160 000 140 000 Severe weather in China 17 amounts to ~35% of drop 120 000 Nov; 119 333 USD/ Day 100 000 MT 15 Sep; 66 875 80 000 13 60 000 Jul; 60 750 Aug; 67 600 40 000 11 20 000 - 9 Jan Fe
Slide 13: Lack of Available Ships Driving Rates
1) # of Vessels 10 12 14 16 18 20 0 2 4 6 8 Jan-18 Jan-18 Feb-18 Feb-18 Source: Affinity, Clarksons Mar-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 Jun-18 Jun-18 Jul-18 Jul-18 Aug-18 Aug-18 Aug-18 Sep-18 Sep-18 Oct-18 Oct-18 Nov-18 Nov-18 Total Open Vessels - LHS Dec-18 Dec-18 LACK OF AVAILABLE SHI
Slide 14: More Cargoes Going East Again
MORE CARGOES GOING EAST AGAIN Current trading pattern affects vessel multiplier US Exports by Region 9M 2018 vs. 9M 2019 10 1,9 25 9 Latin America 1,8 8 20 Middle East 7 1,7 # Vessel /Year 6 1,6 5 15 Europe MMt MMt 1,5 4 Latin America Middle East 3 1,4 10 Europe 2 1,3 +15 % 1 5 Asia 0 1,2 Asia Qtr1
Slide 15: Return of Floating Storage
RETURN OF FLOATING STORAGE LNG Prices Floating storage2 14,0 35 Oil price is the price basis 12,0 for about 71% of cargoes¹ 30 10,0 25 # of Vessels $ / MMbtu 8,0 20 6,0 15 4,0 10 2,0 5 0,0 0 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Week # Atlantic MEI Asia JKM Asia TTF Europe Henry Hub USA TTF Futu
Slide 16: Competitive Newbuilding Slots
COMPETITIVE NEWBUILDING SLOTS Order book for large LNG Carriers New ships will replace old ships 16 Committed 14 Flex Uncommitted 12 7 10 7 7 # Vessels 8 8 7 1 5 6 5 1 4 1 4 1 6 6 5 5 1 5 2 4 4 3 3 3 3 2 2 0 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr1 2019 2020 2021 2022 2023 1)
Slide 17: LNG Volumes Growing as Expected
LNG VOLUMES GROWING AS EXPECTED 360 Global LNG Exports Oct-19; 358,59 New nameplate capacity (12m rolling-sum) 40,0 90 340 Oct-18; 320,43 35,0 80 320 70 30,0 14,3 60 300 Oct-17; 293,15 25,0 50 MMtpa 20,0 280 15,4 40 15,0 11,0 CAGR: 10,6% 30 260 16,8 10,0 1,2 2,2 20 240 5,0 4,5 8,6 7,8 10 1,0 3,8 1,5
Slide 18: Record Number of New Volumes Sanctioned
RECORD NUMBER OF NEW VOLUMES SANCTIONED MMtpa Volume 70 Golden Pass: 15,6 Mmtpa, brownfield Sabine Pass T6: 4,5 Mmtpa, brownfield, Likely FIDs Country (Mmtpa) Time Mozambique : 12,9 Mmtpa, greenfield 60 Calcasieu Pass : 10,8 Mmtpa, greenfield Arctic LNG-2: 19.8 Mmtpa, greenfield 12,9 Woodfibre LNG 2
Slide 19: Compelling Long-Term Outlook
COMPELLING LONG-TERM OUTLOOK 1) Source: McKinsey 19
Slide 20: Summary
SUMMARY • Significantly improved market conditions impacting financial results positively • Attractive long-term financing secured for five of remaining seven newbuildings • Very strong capitalization, liquidity position and track record on raising attractive financing • In-house technical ship mana
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—= =—____FLNG FLNG — ws EEL