Slide 1: First Quarter 2018 Results Presentation
First Quarter 2018 Results Presentation 29 May 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 01 02 Business Update 02 Financial Update 03 03 Market Outlook 04 04 Summary 33 | | 2017 2018
Slide 4: Business Update
01 01 Business Update 44 | | 2017 2018 2018
Slide 5: Business Update: Highlights for First Quarter 2018
Business Update Highlights for First Quarter 2018 Successful deliveries of Flex Endeavour and Flex Enterprise in January 2018 • Flex Endeavour employed on 15 + 3 months TCP to Uniper while Flex Enterprise employed in spot trading • Two chartered-in vessels re-delivered at the end of first quarter. U
Slide 6: FLEX LNGC Fleet Development
FLEX LNGC Fleet Development Owned Fleet Chartered-in Vessels 8 173,400 173,400 174,000 174,000 2 173,400 170,000 173,400 173,400 174,000 174,000 • 8 ME-GI/X-DF LNGCs • 2 chartered-in TFDE vessels; sub-charterered on multi- - 2 vessels delivered in January 2018 month basis on a profitable basis - 6 v
Slide 7: Financial Update
02 02 Financial Update 77 | | 2017 2018 2018
Slide 8: Income Statement
Income Statement Income Statement as of 31 March 2018 Unaudited Figures in USD, 000 Q1 2018 Q4 2017 Q3 2017 2017 2016 Voyage revenues 15 053 7 860 9 758 27 329 0 Voyage related costs -11 909 -5 803 -12 985 -36 532 0 Administrative expenses -796 -812 -848 -3 409 -1 483 EBITDA 2 348 1 245 -4 075 -12 6
Slide 9: Balance Sheet
Balance Sheet Balance Sheet as of 31 March 2018 Unaudited Figures in USD, 000 Q1 2018 YE 2017 Q1 2018 YTD 2017 Newbuildings & capitalized costs 280 778 594 937 Share capital 3 680 3 680 Vessel purchase prepayment 72 000 72 000 Share premium 885 388 885 323 Vessels and equipment 392 205 3 Other equit
Slide 10: Transition from IFRS Accounting Principles to USGAAP
Transition from IFRS Accounting Principles to USGAAP Flex LNG has changed its accounting principles as of 1 January 2018 Item Conclusion Borrowing and other costs All costs capitalized to date under IFRS are permitted for capitalization under US GAAP. No difference Impairment IFRS uses discounted ca
Slide 11: Flexible Financing Secured for Fourth LNGC
Flexible Financing Secured for Fourth LNGC Sale-leaseback agreed with Asian based Lessor Attractive terms and conditions • Sale price of approx. 75% of yard price, remaining 25% 2020 2020 2019 2019 2018 2018 2018 2018 Q3- Q2- Q3- Q2- Q3- Q2- Q1- Q1- structured as advance hire under lease Endeavour U
Slide 12: Successful long-term financing enables accretive growth
Successful long-term financing enables accretive growth Fleet expansion with agreement to purchase two LNGC newbuildings Very attractive terms and conditions Development LNGC yard prices ex supervision₁ • Purchase price of $ 184m per vessel from an affiliate of Geveran, the purchase price includes b
Slide 13: LNG Market Update
03 03 LNG Market Update 13 || 2017 13 2018 2018
Slide 14: Spot Rates Declined since January, but started to improve in May
Spot Rates Declined since January, but started to improve in May COMPANY Spot SNAPSHOT Rates improved substantially end of 2017 USD / day Spot Charter Rates • Seasonal winter demand and increased demand from China 100 000 90 000 80 000 However, rates began falling in February 70 000 • Reduced season
Slide 15: Strong growth in global LNG trade
Strong growth in global LNG trade Strong growth from Australian and US liquefaction trains and China became second largest import nation Exporters Y-o-Y growth Imports Y-o-Y growth Source: Arctic Securities 15 || 2017 15 2018
Slide 16: Global LNG trade continue strong momentum in 2018
Global LNG trade continue strong momentum in 2018 China continues strong growth with 55% growth YTD vs 2017 Source: Arctic Securities 16 || 2017 16 2018
Slide 17: 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 18: 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 19: Structural Drivers for Increased LNG Demand
Structural Drivers for Increased LNG Demand Top four LNG Importing Countries 19 || 2017 19 2018 Source: SEB, FT, Reuters, Texas A&M University, the Australian
Slide 20: Summary
04 04 Summary 20 || 2017 20 2018 2018
Slide 21: Summary of First Quarter 2018
Summary of First Quarter 2018 • LNGC market sentiment is improving and long- term market outlook is compelling • Attractive long-term financing of Flex Rainbow secured • Accretive growth through the acquisition of two LNGC newbuildings at very attractive terms and conditions from an affiliate of Gev
Slide 22: Thank You
Thank You 22 || 2017 22 2018