Presentation

Flex LNG was established in 2006, originally to own vessels equipped for both liquefaction and regasification. This concept was later abandoned, and Flex is currently the LNGC owner and operator with the youngest fleet. The company is dual listed in Oslo and New York with a market capitalization of USD 320m and net debt of USD 650m as of Q2’20. Flex is part of the Fredriksen Group and Geveran Trading is the largest shareholder with a 45% stake.

The fleet will eventually consist of 13 state-of-the-art ~174,000 bcm LNGCs built between 2018 and 2021 at the “big three” yards in South Korea. Eight vessels are currently on the water, with four more guided for H2’20 and the last two in H1’21. The company recently completed a USD 156.4m sale-leaseback for Flex Amber and secured a USD 125m bank facility for Flex Volunteer, showing its strong standing in the capital markets and the power of a reputable sponsor.

Flex has booked 94% of vessel days in Q3 at USD 47,000/day and will increasingly be able to take advantage of a stronger winter market as new vessels hit the water. While we do not expect anything like last year’s rally, rates have just hit USD 65,000/day and demand in Asia is looking up facilitating a stronger spot market in Q4-Q1. Once Flex the fleet is complete in H2’21 we see potential for USD 1/share of dividends in a USD 60,000/day market (ROE of ~9%).