Flex LNG announced its unaudited financial results for 2Q and 6M ended June 30, 2019
Flex LNG Ltd. has recently announced its unaudited financial results for the second quarter and six months ended June 30, 2019 including reported revenues of $19.0 million for the second quarter 2019, compared to $19.1 million for the first quarter 2019; average TCE rate of $46,266 per day for the second quarter 2019, compared to $42,644 per day for the first quarter 2019; reported net loss of $3.9 million for the second quarter 2019, compared to a net loss of $3.4 million for the first quarter 2019 and Adjusted EBITDA of $11.3 million for the second quarter 2019, compared with $8.7 million for the first quarter 2019.
Øystein M Kalleklev, CEO of Flex LNG Management AS, commented: “The first half of 2019 has been a cold shower for most LNG industry participants with the exception of the end consumers, who have benefited from cheap clean fuel and made significant savings on their utility bills. Low gas prices during the first half of the year have also negatively affected the results of Flex LNG, as excess gas supply has predominantly been absorbed by European consumers, cutting sailing distances and thus affecting shipping demand and rates. Despite this challenging market environment, we do see improved outlook for the second half as the LNG shipping market is expected to become increasingly tight and the likelihood of a repeat of last winter’s El Nino is low. These factors should provide tailwinds into 2020 and we expect the LNG product market to become increasingly tight from next year. Tighter product markets generally result in higher shipping demand due to arbitrage and re-loads. Hence, we think a tighter product market will positively affect the market balance in 2021.”
