Flex LNG posts Q2 results

Flex LNG said that the cash balances at 30 June were $0.4m (2013: $3.9m) with $0.4m net outflow (2013: $1.0m) in the quarter and $1.1m year to date (2013: $2.3m).

In the six months in 2014 the operating cash outflow was $0.9m (principally the operating loss after excluding the non cash and working capital movements) and $0.2m of capitalised costs.

The loss before tax was $0.6m (2013: $1.1m) in the quarter and $1.3m year to date (2013: $2.7m).

In 2014 the company and Samsung Heavy Industries (Samsung) have been working on vendor selection and potential design changes on the two new 174,000 m3 LNG Carriers.

The parties have in addition investigated the use of 2-stroke propulsion engines for the two LNG Carriers. Following a detailed analysis of the new system, the company has concluded that it will not select the 2-stroke propulsion system, given the additional risks that this will generate for the company. In April 2014 Samsung notified the company that it had agreed a sale for the loading arms and in July 2014 the company received the net proceeds of $0.5m.

Press Release, August 29, 2014; Image: Flex LNG