Slide 1: Third Quarter 2018 Results Presentation
Third Quarter 2018 Results Presentation 27 November 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: Company Highlights
Company Highlights • Flex LNG became the largest owner/operator of 5th generation LNGC with the acquisition of five additional LNGCs in October • Sister vessels Flex Ranger and Flex Rainbow operationally during Q3 after delivery from SHI on 22 June and 9 July respectively • Burgeoning LNGC market wi
Slide 4: Q4 guidance: Revenue guidance for fourth quarter
Q4 guidance: Q3 Q4 Q1 Sep Oct Nov Dec Jan Feb Mar Endeavour TCP with Uniper Enterprise SEA->US->SEA Asia Asia Open Ranger Maiden SEA->US->EUR Open Rainbow TCP with Total 3 month option Revenue guidance for fourth quarter¹: $ ≈35m vs. $ 19m in third quarter ¹ Revenue guidance subject to regular opera
Slide 5: Unique fleet comprising of modern 5th generation LNGCs
Unique fleet comprising of 13 modern 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 Reliquefaction System X-DF Ranger (2018) Rainbow (2018) Resolute (2020
Slide 6: The leading owner of 5th generation LNGCs
The leading owner of 5th generation LNGCs Flex LNG is the largest owner of 5 th gen LNG vessels Unit transportation costs (round trip US gulf to China) 14 On Order $/MMBtu Trading 3,5 12 3,0 10 2 2,5 9 8 2,0 7 6 9 1,5 9 4 8 4 3 3 1,0 4 2 3 2 4 4 0,5 3 2 2 2 2 1 1 1 0 0,0 1st 145k ST 155k ST 160-165k
Slide 7: Income Statement
Income Statement Unaudited Figures in USD, 000 Q3 2018 Q2 2018 YTD 2018 Voyage revenues 19 008 7 048 41 108 Voyage related costs -5 167 -3 108 -20 183 Administrative expenses -1 132 -929 -2 858 EBITDA 12 709 3 011 18 067 Depreciation -5 477 -2 753 -10 541 EBIT 7 232 258 7 526 Finance income 72 79 32
Slide 8: Balance Sheet
Balance Sheet Unaudited Figures in USD, 000 YTD 2018 YE 2017 YTD 2018 YE 2017 Newbuildings and capitalized costs 0 594 937 Share capital 3 680 3 680 Vessel purchase prepayment 146 073 72 000 Share premium 885 453 885 323 Vessels 820 371 3 Other equity -372 382 -368 902 Total non-current assets 966 4
Slide 9: Cashflow
Cashflow Unaudited Figures in USD, 000 Q3 2018 YTD 2018 • Positive operational cashflow of about $ 5.2m and $ 10.7m for Q3 and YTD respectively Net Income (loss) 1 179 -3 457 Working capital adjustments -1 378 3 600 Other non-cash items 5 440 10 553 • About $ 235m of newbuilding capex in Net cash fl
Slide 10: Well capitalized for growth
Well capitalized for growth $m >$300m of available liquidity $m $421m of capex funded 350 1 800 300 1 600 275 1 400 250 146 1 200 918 200 1 000 275 270 150 307 800 600 1 225 100 400 728 50 20 200 0 17 0 Cash 30.09.18 Net proceeds Sterna RCF Available Newbuilding capex Pre-paid capex Remaning capex e
Slide 11: All time high LNGC rates
All time high LNGC rates Estimated weekly average LNGC spot rates Natural Gas Prices by Region and Arbitrage US -> Asia Spot $/Day $ / Mmbtu 250 000 25 200 000 20 150 000 15 100 000 10 50 000 5 0 0 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-
Slide 12: And the market is sold out
And the market is sold out Spot Market; Daily Rates ($) Type of vessel Atlantic Middle East Pacific Average 174 cmb 2-stroke 185 000 190 000 195 000 190 000 160 cmb TFDE 170 000 175 000 175 000 173 333 145 cmb ST 95 000 100 000 100 000 98 333 Ballast Bouns RT+POS RT+POS RT+POS RT+POS Available spot
Slide 13: 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 North 600 40 America Russia 35 500 Africa 30 Indonesia 400 25 Malaysia 20 300 Australia 15 Qatar 10 200 Other 5 100 - (5) 0 2018 2029 2008 2009 2010 2011 2012 2013 201
Slide 14: Flex LNG controls a quarter of the open LNGCs in order book
Flex LNG controls a quarter of the open LNGCs in order book Order book for large LNG carriers Average sailing distances (laden) 16 4 800 Committed Open 14 4 600 12 7 4 400 10 Nautical Miles 6 8 4 200 15 1 4 6 8 4 000 4 3 7 7 4 6 5 3 800 2 3 2 2 2 1 1 1 0 3 600 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
Slide 15: Air pollution: a glocal problem
Air pollution: a glocal problem • 9 out of 10 people breathe unhealthy air. • 6.5 million pre-mature deaths every year caused by outdoor and household air pollution. 15 || 2017 15 2018 Source: WHO/FT
Slide 16: Switching to LNG is as much health policy as energy and/or environmental policy
Switching to LNG is as much health policy as energy and/or environmental policy • In South Asia, air pollution larger health risk than tobacco, cancer, water sanitation and on par with dietary risk • If the air pollution improves from China's level to the American EPA standard level, that means that
Slide 17: Summary and outlook
Summary and outlook • Significantly improved financial performance in Q3 with black numbers reported • Tight market with all-time high spot rates • Fourth quarter already covered implying revenue guidance of $ ≈35m vs. $ 19m in third quarter • Very favorable near term and long-term fundamentals for
Slide 18: Q&A
Q&A 18 || 2017 18 2018 2018