UK: FLEX LNG Posts Q2 Results

FLEX LNG announced that the Q2 2013 financial report was approved by the Board of Directors on 22 August 2013.The company said its cash balances at 30 June were $3.9m (2012: $9.5m) with $1.0m net outflow (2012: $2.1m) in the quarter and $2.3m (2012: $5.2m) year to date. In the six months in 2013 the operating cash outflow was $2.3m (principally the operating loss excluding non cash and working capital movements).

The loss before tax was $1.1m (2012: $2.2m) in the quarter and $2.7m (2012: $3.9m) year to date. In the current quarter there has been continued legal expenditures and restructuring costs. In the period there was also a $0.1m cost on the option and warrant schemes, (2012: $1.2m – credit).

In 2013 the Company has initiated arbitration proceedings to secure the repayment of the paid-in funds with Samsung Heavy Industries (giving credit for certain work undertaken by Samsung). 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. Commercial settlement discussions have resumed with SHI.

Outlook, Financing and Risks

Given the expected arbitration costs in 2013 the Company said it 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.

About FLEX LNG Ltd.

FLEX LNG was incorporated in 2006 and is listed in Norway under the ticker code FLNG. The Company was incorporated with the objective of commercialising some of the world’s first floating liquefaction units (LNG Producers). FLEX LNG has successfully completed two FEED (Front End Engineering and Design) studies and is able to use these to help fast track future offshore and near shore FLNG developments.

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LNG World News Staff, August 23, 2013; Image: FLEX LNG