Slide 1: Interim Report Presentation
Interim Report Presentation Period ending June 30, 2019 August 20, 2019 11 | | 2017 2019
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: Q2 2019 Highlights
Q2 2019 Highlights • Slightly improved financial performance in Q2 • Revenues of $19m, in line with Revenues of $19.1m in Q1-19 • TCE of $46.3kpdr vs. $42.6kpdr in Q1-19 (1) • Adjusted EBITDA of $11.3m vs. $8.7m in Q1-19 • Net loss of $3.9m (incl. $2.2m MTM loss) vs. $3.4m in Q1-19 • Third quarter e
Slide 4: Developing a first class LNG shipping company
Developing a first class LNG shipping company Hardware: People: 13 state-of-the-art LNG carriers: Recruited mgt teams and in- • Six delivered by Aug 2019 house ship mgt. by Q4-19 • Seven for delivery 2020/21 • Commercial and operations • >170,000 cbm cargo size • Technical and crewing • Efficient 2s
Slide 5: Income Statement
Income Statement Three months ended • Revenues of $19.0m, in line with revenues of Unaudited Figures in thousand of $ Jun 30, 2019 Mar 31, 2019 $19.1m in Q1-19. Vessel operating revenues 19,018 19,141 • Adjusted EBITDA of $11.3m, compared to $8.7m Voyage expenses -1,113 -3,789 for Q1-19. Vessel oper
Slide 6: Balance Sheet
Balance Sheet Unaudited Figures in thousand of $ Jun 30, 2019 Mar 31, 2019 • Five vessels on the water and eight newbuildings Assets under construction as per June 30, 2019 Current assets • Increase in Vessels and equipment, net due to Cash, restricted cash and cash equivalents 26,444 45,616 Other c
Slide 7: Cashflow
Cashflow Three months ended • Net cashflow from operating activities of $9.4m. Unaudited Figures in thousand of $ Jun 30, 2019 Mar 31, 2019 • Final payment of $146.2m on delivery of Flex Net (loss)/income -3,919 -3,438 Constellation, with corresponding drawdown of Working capital adjustments 4,685 -
Slide 8: Attractive long-term financings secured
Attractive long-term financings 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 • Both vessels closed end July 2019 • First vesse
Slide 9: Well capitalized for remaining newbuildings
Well capitalized for remaining newbuildings $m ~$110m Pro-Forma (PF) liquidity post Glovis deal (1) $m $349m of capex pre-paid (2) 140 1,400 120 1,200 180 Vigilant 349 100 1,000 180 Volunteer 80 186 126 800 Freedom 126 60 600 186 130 Resolute 40 186 130 400 Reliance 130 20 184 Amber 200 147 0 184 14
Slide 10: Freight market firming up ahead of winter season
Freight market firming up ahead of winter season Spot $/Day Avaliable Vessels Per Basin 250,000 12 10 200,000 8 150,000 # of Vessels 6 100,000 4 50,000 2 - 0 Jul-19 Jul-17 Jul-18 Jan-19 Jan-17 Jan-18 Mar-19 Mar-17 Mar-18 Nov-18 Sep-17 Nov-17 Sep-18 May-19 May-17 May-18 Jan-19 Jun-19 Jul-19 Mar-19 Fe
Slide 11: It takes two (stroke) to Contango 2018 Fall/Winter “Storage Season”
It takes two (stroke) to Contango 2018 Fall/Winter “Storage Season” 14.0 35 LNG Prices 12.0 30 10.0 25 #of Vessels 8.0 20 $ / MMbtu 6.0 15 4.0 10 2.0 5 0.0 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Apr-15 Apr-16 Ap
Slide 12: US Exports Breakdown
US Exports Breakdown US Exports by Region Current trading pattern affects vessel multiplier 9 1.9 1H 2018 vs. 1H 2019 16 8 1.8 14 Latin America 7 1.7 12 Middle East 6 # Vessel /Year 5 1.6 10 MMt Europe 4 1.5 MMt 8 Latin America 3 Middle East 1.4 Europe 6 2 +2% 1.3 1 4 Asia Asia 0 1.2 2 Qtr1 Qtr2 Qtr
Slide 13: Potential LNG upstream project FIDs 2019-23
Potential LNG upstream project FIDs 2019-23 13 || 2017 13 2019 Source: Bloomberg
Slide 14: FIDs in 2019 expected to approach ~100Mmtpa
FIDs in 2019 expected to approach ~100Mmtpa MMtpa MMtpa LNG Capacity to FID by location 35 600 30 2 1.5 82 3.6 12.9 562 25 19.8 20 2.4 2.5 550 15.2 1.2 0.9 16.5 15 29.3 30.3 2.1 9 16.5 10 18.5 18.5 20.1 12.9 500 5 8.5 8.9 9 3.8 32 10,8 2.5 3.4 0 4.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 15: Few available vessels before 2020
Few available vessels before 2020 Order book for large LNG carriers 14 Committed Flex Uncommitted 12 10 7 8 # Vessels 7 5 8 1 6 7 6 1 1 1 4 7 1 5 7 4 5 5 5 5 2 4 3 3 3 2 1 1 1 0 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr1 2019 2020 2021 2022 2023 • We have registered 106 LN
Slide 16: Ordering activity in historical perspective
Ordering activity in historical perspective LNGC Contracting activity LNG Contracting As % of Fleet 80 70% 70 60% 60 50% 50 # No of Vessels 40% 40 30% 30 20% 20 10 10% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 171 Vessels 193 Vessels 140 Vessels 16 || 2017
Slide 17: Tonnage demand by key LNG export areas
Tonnage demand by key LNG export areas ~2,2 x Vsl ~1,75 x Vsl ~1,5 x Vsl ~1,4 x Vsl ~0,8 x Vsl ~1,2 x Vsl World LNG Exports (Annualized) 400 FY 2018 2019 2020 2021 Vessel 350 % of Vessel New Vessel % of New deman % of New Vessel % of MMtpa Country / Region supply multiplier Export demand supply Expo
Slide 18: Contract roll-offs will create term opportunities
Contract roll-offs will create term opportunities Unit Transportation Cost $ 10 / MMbtu 2.00 $ 30 000/day $ 58 000/day $ 75 000/day 1.50 0.39 0.53 0.87 0.08 $ / MMbtu 0.08 0.20 1.00 0.20 0.10 0.21 0.50 0.99 0.85 0.49 - Steam TFDE XDF Charter Rate Canal Fee Bunkers Port Cost BOR Unit Transportation C
Slide 19: Summary and outlook
Summary and outlook • Slightly improved trading result in Q2 • Positive outlook for second half as we are approaching winter season with higher demand and lower supply of ships • Third quarter expected TCE of ~$60kpdr • Very favorable fundamentals for LNG transportation both near and long-term • Str
Slide 20: FLEX ENDEAVOUR | 2019 A FLEX LNG
FLEX ENDEAVOUR 20 | 2019 A FLEX LNG