UK: FLEX LNG Posts Q1 Results

FLEX LNG said its cash balances at 31 March were $ 4.9m (2012: $11.6m) with $1.4m net out flow (2012: $3.2 m) in the quarter.

In the three months in 2013 the operating cash out flow was $1.3m (principally the operating loss excluding non cash and working capital movements ). The loss before tax was $1.6m (2012: $1 .7m) in the quarter .

In the current quarter there has been continued legal expenditures of $0.4m and restructuring costs of $0.2m. In the period there was also a $0.1m cost on the option and warrant schemes, (2012: $1.4m – credit).

In 2013 FLEX LNG has initiated arbitration proceedings to secure the repayment of the paid – in funds with Samsung Heavy Industries. The company has appointed leading international law firm Pinsent Masons LLP to assist in this regard.

It is not possible to predict , with certainty, the outcome of the arbitration proceedings with Samsung , nor the time or costs involved in completing such legal proceedings, FLEX LNG said in a statement.

Outlook , Financing and Risks

Given the expected arbitration costs in 2013 the Company believes that, based upon forecast levels of cash utilisation, it will have sufficient working capital to operate throughout 2013 and into 2014.

There can of course be no assurance that arbitration costs will be as forecast or that any agreement will be reached with Samsung.

In all cases where the company may require additional funding, there can be no assurance that such funds may be raised on terms that are reasonable, if at all, FLEX LNG added.

[mappress]
LNG World News Staff, May 24, 2013; Image: FLEX LNG