Flex Lng Ltd. · NYSE:FLNG
Flex Lng — Investor Presentation (December 2020)
12 slides from Flex Lng's investor presentation, Dec 17, 2020
Slide 1: December 17, 2020
December 17, 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: US Exports Back at Full Capacity
US EXPORTS BACK AT FULL CAPACITY 2 US weekly LNG exports 1,8 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 Week 1 Week 5 Week 9 Week 13 Week 17 Week 21 Week 25 Week 29 Week 33 Week 37 Week 41 Week 45 Week 49 Cameron Corpus Christi Cove Point Elba Island Freeport Sabine Pass 1) Source: Kpler 3
Slide 4: Asia Pulling the Cargoes
ASIA PULLING THE CARGOES Monthly LNG Exports and Asia market share 38 85% 36 80% 34 Asia market share 32 75% 2018 30 2017 70% 2020 28 2019 26 65% 24 22 60% Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Exports Asia share 1) Source: Kpler and Company 4
Slide 5: From European Sink to Asian Pull
FROM EUROPEAN SINK TO ASIAN PULL Europe absorbed >90% of 35MT growth in 2019 Asia absorbed >150% of 5MT growth in 2020 UK China China India France Mexico Spain France Italy Taiwan Bangladesh Indonesia Asia: + 8mt Netherlands Pakistan Europe: unch MEG: unch Belgium Portugal LatAm: - 3mt Portugal Spai
Slide 6: Resulting in European Storage Levels Coming Down
RESULTING IN EUROPEAN STORAGE LEVELS COMING DOWN European Gas Withdrawals European Gas Storage % full 1) Source: ABG SC 6
Slide 7: LNG Product Prices and Arbitrage Spreads Soared
LNG PRODUCT PRICES AND ARBITRAGE SPREADS SOARED 12,00 10,00 8,00 6,00 4,00 2,00 - HHI JKM TTF Oil linked (high) Oil linked (low) 1) Source: Platts, EIA, Energy Aspect, Bloomberg and Company 7
Slide 8: Supply Disruptions and Congestions
SUPPLY DISRUPTIONS AND CONGESTIONS Panama LNG Transits US LNG Cargo routes 1) Source: Platts and Energy Aspects 8
Slide 9: Resulting in Sold Out Market for Ships
RESULTING IN SOLD OUT MARKET FOR SHIPS 250 000 Headline rate (MEGI/XDF) 200 000 150 000 Rates per day 100 000 50 000 - Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec 2017 2018 2019 2020 1) Source Affinity, Fearnley and Company 9
Slide 10: Significant LNG Available in 2021 Despite Limited New Volumes
SIGNIFICANT LNG AVAILABLE IN 2021 DESPITE LIMITED NEW VOLUMES MT 45 40 35 30 25 20 15 10 5 0 US exports Prelude Idku (50%) Gorgon Bintulu Yamal T4 Portovaya Melkøya Potential Idku US (100%) Damietta Full (88%) increase (100%) (100%) capacity 2021 Probable volumes 2021 Possible volumes 2021 1) Source
Slide 11: LNG Expected to Double Even with Rapid Decarbonization
LNG EXPECTED TO DOUBLE EVEN WITH RAPID DECARBONIZATION 1) Source: BP Energy Outlook 2020 11
Slide 12: FLEX-MAS
a FLEX-MAS