Flex Lng Ltd. · NYSE:FLNG
Flex Lng — Investor Presentation (June 2018)
22 slides from Flex Lng's investor presentation, June 2018
Slide 1: Company Presentation June 2018
Company Presentation June 2018 11 | | 2017 2018
Slide 2: Disclaimer
Disclaimer • THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTATION PURPOSES AND DOES NOT PURPORTE TO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN. • THE PRESENTATION DOES NOT C
Slide 3: Table of contents
Table of contents 01 About FLEX LNG 02 LNG Shipping Review MEGI Propulsion 03 Summary Summary 04 33 | | 2017 2018
Slide 4: About FLEX LNG
01 About FLEX LNG 44 | | 2017 2018
Slide 5: FLEX LNG at a Glance
FLEX LNG at a Glance Focus: LNG Shipping and Regasification FLEX LNG aims to become a leading operator in LNG shipping markets • FLEX LNG is focused on offering safe, reliable, and cost effective solutions for the LNG shipping industry • The Company is listed on Oslo Stock Exchange and successfully
Slide 6: FLEX LNGC Fleet Development
FLEX LNGC Fleet Development FLEX LNG Fleet Chartered-in Vessels • In 2017, FLEX chartered in four TFDE vessels and traded these 6 173,400 173,400 173,400 173,400 in the spot and short-term markets - The purpose was to establish a market presence, operational 174,000 174,000 174,000 174,000 experienc
Slide 7: FLEX LNG Fleet Breakdown
FLEX LNG Fleet Breakdown Status Vessel Name Builder Prop. Built Capacity Head Owner Employment 1. Existing FLEX ENDEAVOUR DSME MEGI 2018 173,400 m3 FLEX LNG Employed until Q2-19 2. Existing FLEX ENTERPRISE DSME MEGI 2018 173,400 m3 FLEX LNG Spot Market 3. Newbuilding TBN FLEX RANGER SHI MEGI 2018 17
Slide 8: Functional Organizational Chart of FLEX LNG
Functional Organizational Chart of FLEX LNG A highly experienced team is in charge of LNG shipping Comparison of LNG Ship Types on UTC Basis* LNGC Providing technical management and support services • 160 vessels including LNG, tankers, dry Owned Fleet Chartered Fleet Finance & Admin Frontline bulk,
Slide 9: Executive Management Team
Executive Management Team Marius Hermansen – Interim Chief Executive Officer • Mr. Hermansen joined FLEX LNG Board in December 2015. Marius works for Frontline Management and manags S&P activities for Frontline and all related companies • Prior to FLEX and Frontline, Mr. Hermansen worked over 10 yea
Slide 10: Board of Directors
Board of Directors David McManus (64) – Chairman • Mr. McManus has served on the Board since August 2011, and was elected as chairperson in September 2011 • David’s background as an international business leader in the energy industry brings exceptional experience and strong technical and commercial
Slide 11: LNG Shipping Review
02 LNG Shipping Review 11 || 2017 11 2018
Slide 12: Key Trends in the LNG Shipping Market
Key Trends in the LNG Shipping Market 1 • Over the next three years, LNG annual supply is projected to rise by at least 130 million tonnes (mt) to ~420 mt in 2021, coming from both new liquefaction plants and existing projects ramping up Natural Gas becoming • IEA predicts global energy demand will
Slide 13: LNG Shipping Market Balance
LNG Shipping Market Balance COMPANY SNAPSHOT The LNG shipping market is expected to gradually tighten from the end of 2018, with Australia, the U.S. and Russia being the driving forces for soaking up tonnage • Q3 2018 shipping balance is forecasted to increase due to delivery of newbuildings ahead o
Slide 14: Right Ships at the Right Time
Right Ships at the Right Time Majority of uncommitted tonnage delivers in 2020 – but market expected to tighten 2H 2018 Majority of LNGC orderbook remains committed to long term charters # Vessels • Currently, there are 92 LNGC under construction 45 • Traditionally majority of orders are basis long-
Slide 15: MEGI Propulsion
03 03 MEGI Propulsion 15 || 2017 15 2018
Slide 16: A Three Tier Market is Emerging that Favors Modern LNGCs
A Three Tier Market is Emerging that Favors Modern LNGCs MEGI and X-DF vessels are the most fuel-efficient and technically advanced LNG ships COMPANY Three SNAPSHOT Tier Broker Assessments Introducing Two Stroke Propulsion for LNG Carriers USD/day • For many years steam turbines was the only propuls
Slide 17: Transition Towards Modern Vessels is Visible in the Orderbook
Transition Towards Modern Vessels is Visible in the Orderbook LNGC Existing Fleet and Orderbook by Propulsion ST DFDE/TFDE Other XD-F MEGI 50 $ / mmbtu 1 Comparison of LNG Ship Types on UTC Basis* 40 0.8 0.6 30 0.4 20 0.2 0 ST 138k TFDE 160k X-DF 174k MEGI 174k 10 - '75 '94 '13 '72 '73 '74 '76 '77 '
Slide 18: MEGI / X-DF Leads LNG Fleet Evolution on Size and Efficiency
MEGI / X-DF Leads LNG Fleet Evolution on Size and Efficiency COMPANY SNAPSHOT 280 71 vessels ST TFDE & Other MEGI & X-DF 240 Existing LNGC Fleet: 450 vessels Size (‘000 cbm) 200 160 324 120 vessels - 5 10 15 20 25 30 35 40 45 Age (years) Source: Affinity LNG 18 || 2017 18 2018
Slide 19: Unit Transportation Cost (UTC) Analysis - Critical Trade Route Summary
Unit Transportation Cost (UTC) Analysis - Critical Trade Route Summary Critical Trade Routes Summary U.S. Gulf - Northwest Europe 4,961 nm U.S. Gulf - Far East via Panama 9,279 nm Arabian Gulf - Northwest Europe via Suez 6,377 nm Arabian Gulf – East Asia 5,760 nm UTC Breakdown by Trade Route US$ / m
Slide 20: Summary
04 Summary 20 | 2018 (AY FLEX LNG
Slide 21: Summary
Summary LNG shipping market could experience significant shortage of tonnage from the end of 2018 FLEX LNG has a modern fleet of LNG carriers offering Charterers significant fuel savings and reduced boil-off rate • Fleet of 8 MEGI and X-DF vessels - the most advanced LNG ships on the water – deliver
Slide 22: Thank You
Thank You June 2018 22 || 2017 22 2018