Flex Lng Ltd. · NYSE:FLNG
Flex Lng — Arctic Securities Webinar (April 2021)
12 slides from Flex Lng's conference presentation, Apr 15, 2021
Slide 1: Shipping – Sailing into a new supercycle?
Shipping – Sailing into a new supercycle? Arctic Securities Webinar April 15, 2021 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: Investment Highlights
INVESTMENT HIGHLIGHTS Great Hardware Fully Financed $~840m paid-in equity $~1.7bn long-term attractive debt secured $~129m cash at hand YE-2020 No unfunded capex Fleet of 13 large LNGCs (MEGI/XDF) built 2018-2021 Right Software Attractive Market Lean and experienced in-house commercial and technical
Slide 4: Flex LNG and Cheniere Enter into Time Charter Party Agreements
FLEX LNG AND CHENIERE ENTER INTO TIME CHARTER PARTY AGREEMENTS Flex LNG and Cheniere Enter into Time Charter Party Agreements April 15, 2021 Hamilton, Bermuda Flex LNG, Ltd. (“Flex LNG” or the “Company”) (OSE/NYSE: FLNG) announced today it has entered into time charterparty agreements with Cheniere
Slide 5: Fleet Structure Post Deal
FLEET STRUCTURE POST DEAL Ships: Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 End firm period Flex Enterprise Q1-22 Flex Amber Q4-21 Flex Artemis Q3-25 Flex Rainbow Q1-22 Flex Aurora Q3-21 Flex Resolute Q4-21 Flex Freedom Q1-22 Flex Courageous Q1-22 Flex Vigilant Q2-24 Fle
Slide 6: Tighter Market Has Pushed Up Spot Rates
TIGHTER MARKET HAS PUSHED UP SPOT RATES Headline rates per day (MEGI/XD) Vessel availability per basin 250,000 35 250,000 Fearnleys LNG freight assessment April 14, 2021 30 200,000 200,000 25 150,000 20 150,000 15 100,000 100,000 10 50,000 50,000 5 - - Jul-20 Aug-20 Feb-20 Sep-20 Feb-21 Dec-20 Jan-2
Slide 7: Tighter Market Is Pushing Up Term Rates
TIGHTER MARKET IS PUSHING UP TERM RATES Fearnleys LNG freight assessment April 14, 2021 75,000 70,000 65,000 60,000 55,000 50,000 15 19 23 27 31 35 39 43 47 51 2 6 10 14 1 yr TC MEGI/XDF 1) Source: Fearnleys 7
Slide 8: Europe in Need of Restocking After Depleting Storage
EUROPE IN NEED OF RESTOCKING AFTER DEPLETING STORAGE European gas inventory levels 100 90 80 70 60 56% 50 40 30 30% 20 10 0 5-year range 2020-2021 2019-2020 Average 2016-2020 1) Source: AGSI GIE 8
Slide 9: Significantly Tighter Product Market Than 19/20
SIGNIFICANTLY TIGHTER PRODUCT MARKET THAN 19/20 JKM $/Mmbtu 20 18 16 14 12 10 8 6 4 2 0 Jan Jan Mar Apr May May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2021 forward 1) Source. CME, Platts and Bloomberg 9
Slide 10: US Exports Bouncing Back After February Freeze
US EXPORTS BOUNCING BACK AFTER FEBRUARY FREEZE US Monthly Exports (Mmtpa) 7 6 ~180 cargoes cancelled due to Covid-19 demand deficit 5 Big freeze 4 3 2 1 0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Sabine Pass Cameron Corpus Christi Freep
Slide 11: Summary
SUMMARY LNG product market strengthen from end March LNG freight market turned in week 11 in line with historical average Commercial 12 ships on the water and the last newbuild set for delivery in May With the Cheniere deal we now have an substantial and attractive backlog Guided Q1 Revenues of $80-
Slide 12: Stay Cool
AX STAY COOL