Flex Lng Ltd. · NYSE:FLNG
Flex Lng — Investor Presentation (April 2019)
23 slides from Flex Lng's investor presentation, April 2019
Slide 1: FLEX LNG Ltd.
FLEX LNG Ltd. April 2019 11 | | 2017 2019
Slide 2: Disclaimer
Disclaimer • THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTATIONPURPOSES AND DOES NOT PURPORTETO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN. • THE PRESENTATION DOES NOT CON
Slide 3: Introduction
Introduction ®FLEX LNG 3 | 2019
Slide 4: Investment Highlights
Investment Highlights Brand New Fleet of 13 5th Gen. LNGC Unparalleled spot exposure 29 % Play on Coal to Natural Gas switch Trading: 4 | On Order: 9 71 % Open Contracted Geared to benefit growing LNG trade Favorable Unit Cost - US$ / MMBtu 2,50 2,00 1,50 1,00 0,50 - 138 ST (2nd Gen) 160k TFDE 174k
Slide 5: Seatankers – a Marine Powerhouse
Seatankers – a Marine Powerhouse Operating philosophy • Keep it simple and focused • Lean & efficient management teams • Define where we are in the cycle • Consolidation & economy of scale works • Build credibility with customers, investors & financiers • Think and act like an investor • Solid cash
Slide 6: Market for seaborne LNG transport is maturing
Market for seaborne LNG transport is maturing LNG 1.0 LNG 2.0 LNG 3.0 • 1960s to mid 2000s • Mid-2000s – about now • The way of the future • Traditional liner model (P2P) • Portfolio players • Commoditization of LNG • Back2back contracts 20yr+ • Term contracts (7-15yr) • Short and medium term contra
Slide 7: Unique fleet comprising of modern large 5th generation LNGCs
Unique fleet comprising of 13 modern large 5th generation LNGCs ME-GI and X-DF vessels are the most fuel-efficient and technically advanced LNGCs High Pressure Low pressure ME-GI with Partial ME-GI with Full ME-GI Reliquefaction System X-DF Reliquefaction System Ranger (2018) Endeavour (2018) Relian
Slide 8: The LNG Market
The LNG Market 88 | | 2017 2019
Slide 9: LNG Market Growing
LNG Market Growing 350 1450 300 1250 250 1050 Billion Ton-miles 200 MT 850 150 650 100 450 50 - 250 World Seaborne LNG Trade MT World Seaborne LNG Trade (Billion Tonne Miles) 99 | | 2017 2019 Source: Clarkson
Slide 10: Major LNG Flows in 2018
Major LNG Flows in 2018 Top 10 LNG Exporters Top 10 LNG Importers Qatar Japan Australia China Malaysia South Korea United States India Nigeria Taiwan Russian Federation Spain Indonesia France Trinidad and Tobago Turkey Algeria Pakistan Oman Italy 0 20 40 60 80 100 80 60 40 20 0 MT/year 10 || 2017 10
Slide 11: Glut of LNG coming to the market
Glut of LNG coming to the market Year on Year Change LNG Export Volumes Post FID AND Likely LNG Export Projects Mmtpa-Post FID Mmtpa 40 600 35 Other 500 30 North America Russia 25 400 Africa 20 Indonesia 300 15 Malaysia 10 200 Australia 5 Qatar 100 - (5) 0 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 12: LNG rates and regional prices
LNG rates and regional prices Estimated weekly average LNGC spot rates Natural Gas Prices by Region and Arbitrage US -> Asia Spot $/Day $ / Mmbtu 250 000 20 200 000 16 150 000 12 100 000 8 50 000 4 - 0 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18
Slide 13: El Nino conditions affected Asian winter demand
El Nino conditions affected Asian winter demand Imports (Mt) 20 18 16 14 12 10 8 6 4 2 0 Jul-16 Jul-17 Jul-18 Jan-16 Apr-16 Oct-16 Jan-17 Apr-17 Oct-17 Jan-18 Apr-18 Oct-18 Jan-19 China Japan South Korea 13 || 2017 13 2019 Source: NOAA, KPLER
Slide 14: Fleet Supply
Fleet Supply 14 || 2017 14 2019
Slide 15: Few available vessels before 2020
Few available vessels before 2020 Order book for large LNG carriers Average sailing distances (laden) Committed Open 16 4 800 14 4 600 12 1 Nautical Miles 10 4 400 9 # Vessels 6 2 8 4 200 4 2 6 9 12 4 000 4 6 8 5 4 5 5 6 6 1 2 3 800 3 1 1 1 2 0 3 600 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
Slide 16: Tonnage demand by key LNG export areas
Tonnage demand by key LNG export areas ~2,2 x Vsl ~2,2 x Vsl ~1,5 x Vsl ~1,4 x Vsl US LNG destination ~0,8 x Vsl 74% 54% ~1,2 x Vsl 35% 15% 11% 10% Americas Asia/Middle East Europe Q4-17 Q4-18 2018 2019E New % split Country / Region % of Supply Multiplier New Export MT Vessel Demand Supply Africa 10
Slide 17: Appendix
Appendix 17 | 2019 A rvex une
Slide 18: Income Statement
Income Statement Unaudited Figures in USD, 000 Q4 2018 Q3 2018 YTD 2018 Voyage revenues 36 101 19 008 77 209 Voyage related costs -5 977 -5 167 -26 161 Administrative expenses -1 781 -1 132 -4 639 EBITDA 28 343 12 709 46 409 Depreciation -6 872 -5 477 -17 412 EBIT 21 471 7 232 28 997 Finance income
Slide 19: Balance Sheet
Balance Sheet Unaudited Figures in USD, 000 YE 2018 YE 2017 YE 2018 YE 2017 Newbuildings and capitalized costs 0 594 937 Share capital 5 410 3 680 Vessel purchase prepayment 421 472 72 000 Share premium 1 189 665 885 323 Vessels 812 489 3 Other equity -367 751 -368 902 Total non-current assets 1 233
Slide 20: Cashflow
Cashflow • Positive operational cashflow of about $23m and $ 34m for the fourth quarter Unaudited Figures in USD, 000 Q4 2018 YTD 2018 and 2018 respectively Net Income (loss) 15 226 11 769 • About $ 234m of newbuilding capex in connection with deliveries during 2018 Working capital adjustments 1 320
Slide 21: Well capitalized for remaining newbuildings
Well capitalized for remaining newbuildings $m $325m of available liquidity $m $421m of capex pre-paid 350 1 800 1 600 300 275 1 400 250 146 1 200 918 200 270 1 000 150 325 800 600 1 225 100 400 728 50 200 55 0 0 Cash 31.12.18 Sterna RCF availability Available liquidity Newbuilding capex Pre-paid ca
Slide 22: Key LNG Trades
Key LNG Trades Year on Year Change (growth) in Global LNG Exports China LNG Imports 6,00 8,00 4,83 5,00 7,00 6,00 4,00 MMt 5,00 MMt 3,00 4,00 2,00 3,00 2,00 1,00 1,00 - 0,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YoY 2017 YoY 2018 YoY 2019 5 Yr Average US LNG Exports Russian LNG Exports 4,0
Slide 23: Stay Cool !
Stay Cool ! 23 || 2017 23 2019