Flex LNG posts loss due to weak market

Norway-based Flex LNG logged a net loss of $6.7 million in the second quarter as the Covid-19 pandemic continues to affect the shipping market.

The net loss grew when compared to $3.9 million last year but shrank looking at the previous quarter when the firm logged a $14.9 million loss.

Vessel operating revenues of $25.8 million increased 34 percent year-on-year but they dropped 33 percent compared to the previous quarter.

Flex LNG reported on Wednesday an average time charter equivalent rate of $46,588 per day for the April-June period. This compares to $67,740 per day in the first quarter.

The firm controlled by billionaire John Fredriksen currently has eight LNG carriers on water and expects to take delivery of three additional newbuildings this year and two in 2021.

Flex LNG has three carriers working in the spot market making the firm exposed to weak spot prices hit by Covid-19.

“The Covid-19 pandemic and resulting mobility restrictions posed multifaceted challenges for LNG shipping, which in nature is mobile and woven into global supply chains, ” Flex LNG’s chief Øystein Kalleklev said.

He added that, despite these obstacles, the firm managed to operate its ships with 100 percent up-time and availability delivering cargoes to customers without disruptions or delays.

Looking forward, Kalleklev said the firm expects similar trading result for the third quarter, even with mobilization of three or possibly four newbuildings during this quarter.