Flex LNG has reported revenues of $36.1 mill for the fourth quarter 2018, compared to $7.9 mill for 4Q17, while revenues were $77.2 mill for the full year, compared to $27.3 mill for 2017.
Operating income before depreciation of $28.3 mill for 4Q18, compared to $1.2 mill for 4Q17. For the full year, this figure was $46.4 mill, compared to an operating loss before depreciation of $12.6 mill for 2017.
Flex LNG also reported a net profit of $15.2 mill for 4Q18, compared to $1.3 mill for the same period of 2017. Reported net profit of $11.8 mill for the full year, compared to a net loss of $10.4 mill for 2017.
In October, 2018, Flex LNG successfully conducted a private placement, raising gross proceeds of around $300 mill. As a result, Flex LNG signed a contract to acquire five LNGC newbuildings.
Subsequently, the company secured $250 mill from a syndicate of banks for the financing of the two newbuildings delivering this year.
As the market has softened in the first quarter of this year, compared to 4Q18, Flex LNG said it expects the results for 1Q19 to be more in line with 3Q18, due to lower headline rates and lower utilisation level.
CEO Øystein Kalleklev, commented: "We are pleased to deliver strong results for the fourth quarter in line with our guidance. During the fourth quarter we capitalised on a strong market and clearly demonstrated the earnings potential of our new fifth generation LNG carriers.
“While the market is currently soft, due to weaker shipping demand, we remain upbeat about the outlook for LNG shipping as a glut of new liquefaction capacity is coming on line both near and long term,” he said.
Following agreements to acquire seven vessels in 2018, Flex LNG now controls a fleet of 13 fifth generation LNGCs, including four vessels on the water and nine newbuildings.
Two of the newbuildings are scheduled for delivery this year, five in 2020 and the remaining two in 2021.
The two LNGCs acquired in May, 2018 have an acquisition cost of $184 mill per vessel, with a 20% down payment at signing of the agreements and the remaining 80% at their delivery. The five vessels acquired in 4Q18 cost $180 mill each, with a 30% payment at signing of the agreements and the remaining 70% at delivery.
Three will be fitted with full re-liquefaction systems at an additional cost of $6 mill each. These re-liquefaction systems reduce the boil-off rate to 0.035%, which makes the vessels particularly attractive for longer term charter parties, as fuel and boil-off cost are for the charterer's account, the company said.