Flex LNG reports losses on low newbuild utilization

Flex LNG, the company controlled by billionaire John Fredriksen and an emerging player in the LNG shipping business, reported losses as its newbuild carrier Flex Enterprise saw low utilization. 

The company did, however, tighten its losses compared to the corresponding periods in 2017, as it posted a second-quarter net loss of $2.9 million and a first-half net loss of $4.6 million, compared to net loss of $6.7 million and $7.6 million for the second quarter and first half of 2017, respectively.

Speaking of the results, Flex LNG’s CEO and CFO Øystein Kalleklev, said, “During the first half of 2018, Flex LNG delivered unsatisfactory financial results due to disappointing utilization of Flex Enterprise which has operated in the spot market in this period. As we are in the start-up phase, one idle vessel makes a big impact on our financial accounts.”

Kalleklev did note that the company is making progress on building its fleet, confident that the market will tighten going forward. He said, “we do expect that our financial performance will improve given the fact that we are well positioned with our current fleet of modern LNG carriers.”

The company has four vessels on the water and four additional newbuildings set for delivery in 2019-2020, increasing the fleet to a total of eight high-end LNG carriers.