FLNGo - FLEX LNG News Story

NOK99.2 1.4  1.4%

Last Trade - 07/05/21

Mid Cap
Market Cap £459.6m
Enterprise Value £1.37bn
Revenue £117.7m
Position in Universe 504th / 1838

Flex LNG sees a tight LNG shipping market in coming years

Tue 27th November, 2018 10:30am
OSLO, Nov 27 (Reuters) - LNG shipper Flex LNG  FLNG.OL ,
controlled by Norwegian-born billionaire John Fredriksen,
expects a tight LNG shipping market in the years ahead driven by
strong demand and new LNG supply coming on stream.
    The Olso-listed shipper, whose shares jumped 11 percent on a
bullish outlook and after it swung to a third quarter profit
after a loss in the prior quarter, has four liquefied natural
gas carriers (LNGC) on the water and nine under construction for
delivery in the period 2019 to 2021. 
    Driven by nearly 50 percent year-on-year growth imports to
China in the third quarter, LNGC rates have spiked to a new all
time high. 
    "Rates have more than doubled and are now hovering around
$200,000 per day for modern fifth generation tonnage," CEO
Oeystein M. Kalleklev said during a call on the firm's results.
    "We expect the LNG market to be tight in the years to come,
there are a lot of LNG entering the market the next years," he
    Kalleklev said the four vessels on the water were sold out
for the fourth quarter and revenues were expected to increase to
$35 million from $19 million in the third quarter.
    "Rates on our vessels in the spot market have risen from 
$50,000 in the third quarter to $130,000 in the fourth quarter,"
Kalleklev said, this compared with a cash break even of $50,000
per day.
    "We are very bullish, we are in an early phase of a recovery
 after four challenging years," he said.
    New volumes from Australia, Qatar and North America will
support supply, while South and South-east Asia will drive
    Flex LNG reported a third quarter net profit of $1.2 million
from a loss of $2.9 million in the second quarter.

 (Reporting By Ole Petter Skonnord; Editing by Emelia
 ((olepetter.skonnord@thomsonreuters.com; 0047 23 31 65 97;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.