Flex LNG upbeat despite rough Q2
Bermuda-headquartered Flex LNG reported a dip during the second quarter, but was optimistic about prospects for market recovery in its August 17 financial statement.
Flex LNG reported total Q2 revenues of $65.8mn, compared with $81.3mn during the first quarter. Net income of $12.7mn compared with $47.2mn during the first quarter, while Ebitda was down from the $64mn in Q1 to $46.8mn.
Commenting on the performance, CEO Oystein Kalleklev said the company should see improvements with increased demand for LNG.
“As ships are rolling onto new contracts, we do expect revenues to grow steadily in the second half of the year,” he said. “With a very healthy cash position, industry low cash break-even levels and high earnings visibility we thus remain well positioned.”
First quarter performance, meanwhile, was the best performance to date for Flex LNG.
In April, the company entered into a series of time-charter agreements with the international marketing arm of US LNG producer Cheniere Energy.
Flex LNG's tankers all have capacities of around 174,000 m3 and are fitted with dual-fuel, two-stroke propulsion, making them "particularly ideal for large parcel, long-haul transportation with the industry's lowest carbon footprint and unit transportation cost," Flex LNG said. Cheniere operates the Corpus Christi and Sabine Pass LNG terminals and has reserved some of the long-term capacity for its own use.