Slide 1: Q2-2020 presentation
Q2-2020 presentation August 19, 2020 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: Highlights
HIGHLIGHTS • Weak spot market in Q2/Q3 due to Covid-19 affecting demand Commercial • 100% technical availability of ships despite pandemic • TCE(1) of $47kpdr in Q2 in line with guidance (TCE of $57kpdr in H1-20) • Adj. net loss(1) of $0.7m in Q2 (adj. net income of $8.6m in H1-20) Finance • $920m d
Slide 4: Balanced Contract Portfolio
BALANCED CONTRACT PORTFOLIO Fixed hire TCs Variable hire TCs Spot market Newbuildings • Flex Ranger • Flex Enterprise • Flex Endeavour • Flex Freedom • Flex Aurora • Flex Rainbow • Flex Constellation • Flex Volunteer • Flex Resolute • Flex Artemis • Flex Courageous • Flex Vigilant • Flex Amber 94% o
Slide 5: Income Statement
INCOME STATEMENT (in thousands of $ except per share data) Three months ended Jun 30, 2020 Mar 31, 2020 • Vessel operating revenues of $25.8m vs. $38.2m for Q1-20 Vessel operating revenues 25,753 38,192 Voyage expenses (316) (1,206) • Adjusted EBITDA(1) of $17.4m vs. $27.8m for Vessel operating expe
Slide 6: Balance Sheet
BALANCE SHEET (in thousands of $) Jun 30, 2020 Mar 31, 2020 • Solid liquidity of $116m as per June 30, 2020 Assets • Restricted cash balance of only $0.1m (tax) Current assets Cash, restricted cash and cash equivalents 115,993 120,802 • Increase in working capital of $4.3m main Other current assets
Slide 7: Financing Secured for All Vessels
FINANCING SECURED FOR ALL VESSELS $m (1) $100M Bank Facility $156.4M Sale & Leaseback Flex Ranger (2018) 600 Flex Amber (Q3 2020) $250M Bank Facility Flex Constellation (2019) 500 $300M Sale & Charterback Flex Courageous (2019) Flex Endeavour (2018) 400 Flex Enterprise (2018) (1) $125M Bank Facility
Slide 8: Staggered Debt Maturity Profile
STAGGERED DEBT MATURITY PROFILE $m 400 350 300 250 200 150 100 50 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 $156.4M Sale & Leaseback $300M Sale & Charterback $157.5M Sale & Leaseback $125M Bank Facility $629M ECA Facility $100M Bank Facility $250M Bank Facility • Long fundin
Slide 9: Spot Market Review
SPOT MARKET REVIEW Spot LNGC headline freight rates per day (MEGI/XDF) Ballast bonus conditions 10 250,000 7.5 RT 200,000 5 150,000 FBB 2.5 100,000 0 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 - 2017 2018 2019 2020 Very weak ballast bonus conditions in April- July, but sharp im
Slide 10: Global Gas Prices Recovered from Summer Lows
GLOBAL GAS PRICES RECOVERED FROM SUMMER LOWS $/Mmbtu 12.00 10.00 8.00 6.00 4.00 2.00 - HHI JKM TTF Oil linked (high) Oil linked (low) Oil linked pricing ~70% volumes 1) Source: CME, Energy Aspect, IGU 10 2) Oil linked (high) is 331 formula with 14% Brent slope while oil price (low) is 331 formula wi
Slide 11: European Imports Up by About 9MT (16%)
EUROPEAN IMPORTS UP BY ABOUT 9MT (16%) Monthly European LNG imports (MT) European inventory levels stabilizing 12 Bcm 10 8 6 4 2 0 Rest France Italy Spain Turkey United Kingdom Pipeline gas imports in Europe during H1 was down ~22mt 1) Source: Kpler, IEA and Energy Aspects 11
Slide 12: Asian Imports Up by 3MT (2%)
ASIAN IMPORTS UP BY 3MT (2%) 2019 2020 30.0 • Chinese demand growth after Covid- 19 disruptions in February/March, 25.0 2.0 2.3 but few signs of adherence to the 1.6 1.5 2.2 Phase 1 trade agreement with US 20.0 1.8 2.9 2.2 2.6 2.4 1.4 2.4 1.7 2.9 1.5 2.1 1.0 2.3 2.5 1.6 2.8 2.2 2.3 4.1 1.3 1.7 15.0
Slide 13: US Exports Gradually Recovering
US EXPORTS GRADUALLY RECOVERING US export plants most vulnerable to cargo cancellations Feedgas to LNG export plants have turned the corner Short run marginal cost curve 1) Source: Rystad and Energy Aspects 13
Slide 14: Floating Storage Has Balanced the Market
FLOATING STORAGE HAS BALANCED THE MARKET 1) Source: IEA 14
Slide 15: We Expect ~20MT Lost Exports Due to COVID-19
WE EXPECT ~20MT LOST EXPORTS DUE TO COVID-19 Estimated US Cargo cancellations: 165 2 12 35 45 45 26 ? 25 June: +10mt July: +5mt April: -6mt ~270 cargoes August -2mt ~25 ship years 15 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -5 Month growth 2019 Month growth 2020 Pre-covid expectation Actual
Slide 16: Summary
SUMMARY • Flex LNG is well positioned with a mixed portfolio of fixed and variable TCP as well as spot ships • We expect incrementally tighter shipping market with less cargo cancellations from September • Winter temperatures and economic recovery will decide the length of shipping tightness as well
Slide 17: Bon voyage!
AT = FLEX LNG FLEX ARTEMIS %