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1 | 2017 1 | 2017 2018 | 1
Company Presentation April 2018
2 | 2017 2 | 2017 2018 | 2
• THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTATION PURPOSES
AND DOES NOT PURPORTE TO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN.
• THE PRESENTATION DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SECURTIEIS. THIS
PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON.
• NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION INCLUDED HEREIN IS GIVEN BY
THE COMPANY, AND THAT NOTHING CONTAINED IN THIS PRESENTATION IS OR CAN BE RELIED UPON AS A PROMISE OR REPRESENTATION BY THE COMPANY,
WHO DISCLAIM ALL AND ANY LIABILITY, WHETHER ARISING IN TORT OR CONTRACT OR OTHERWISE.
• THE PRESENTATION SPEAKS AS OF THE DATE SET OUT ON ITS FRONT PAGE. THE COMPANY DOES NOT INTEND TO, OR WILL ASSUME ANY OBLIGATION TO,
UPDATE THE PRESENTATION OR ANY OF THE INFORMATION INCLUDED HEREIN.
• THE CONTENTS OF THE PRESENTATION ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL ADVICE.
EACH RECIPIENT SHOULD CONSULT WITH ITS OWN PROFESSIONAL ADVISORS FOR ANY SUCH MATTER AND ADVICE.
• AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE
COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY
STATEMENTS AND INFORMATION IN THIS PRESENTATION.
• THE PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE
COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES, SOMETIMES IDENTIFIED BY THE WORDS "BELIEVES”, "EXPECTS”, “INTENDS”, “PLANS”, “ESTIMATES” AND
SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION, INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE
COMPANY OR CITED FROM THIRD PARTY SOURCES, ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. THE COMPANY DOES NOT PROVIDE ANY
ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS NOR DOES THE COMPANY ACCEPT ANY
RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THE PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED
DEVELOPMENTS. NO OBLIGATION IS ASSUMED TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFORM THESE FORWARD-LOOKING STATEMENTS
TO ACTUAL RESULTS.
• THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE
JURISDICTION OF THE NORWEGIAN COURTS.
Disclaimer
3 | 2017 3 | 2017 2018 | 3
05
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04
05
02
03
01
04
05
02
03
01
04
About FLEX LNG
LNG Shipping Review
MEGI Propulsion
FSRU Market Development
Summary
Table of contents
4 | 2017 4 | 2017 2018 | 4
01
2018 | 4
About FLEX LNG
5 | 2017 5 | 2017 2018 | 5
FLEX LNG at a Glance
FLEX LNG: LNG Shipping and Regasification
FLEX LNG aims to become a leading operator in LNG
shipping and floating regasification markets
• FLEX LNG is focused on offering safe, reliable, and cost
effective solutions for the LNG shipping industry
• The Company is listed on Oslo Stock Exchange and
successfully raised over US$ 200m in 2017
FLEX’s fleet will provide Charterers with highly efficient
tonnage to lower fuel consumption and reduce boil off rate
• FLEX took delivery of their first own LNG carriers in January
2018 (FLEX ENDEAVOUR and FLEX ENTERPRISE)
• Another four 174,000 cbm MEGI* newbuildings are under
construction at DSME and SHI for delivery in 2018 and 2019
• All FLEX owned fleet have two-stroke, MEGI propulsion
which has ~30% lower fuel consumption than Tri-Fuel ships
FLEX LNG is selectively pursuing various opportunities in
the FSRU market
• FLEX LNG has a highly experienced commercial and
technical team to succeed in the FSRU market
FLEX ENTERPISE
*MEGI = M-type, Electronically Controlled, Gas Injection
6 | 2017 6 | 2017 2018 | 6
2
1
1
1
6
0
1
2
3
4
5
6
Q1 2018 Q2 2018 Q3 2018 Q2 2019 Q3 2019
# Vessels
6 173,400 173,400
174,000 174,000
2 173,400 170,000
• 2 chartered-in TFDE vessels; sub-charterered on multi-
month basis
• Building market presence, operational experience,
and establishing relationships with key LNG charterers
• 6 LNG MEGI vessels
- 2 vessels delivered in January 2018
- 4 vessels under construction delivering
between May-18 and Aug-19
173,400 173,400
Owned Fleet Deliveries
Owned Fleet Chartered-in Vessels
FLEX LNGC Fleet Development
7 | 2017 7 | 2017 2018 | 7
FLEX LNG Fleet Breakdown – Owned and Chartered-In
Status Vessel Name Builder Prop. Built Capacity Head Owner Employment
1. Owned FLEX ENDEAVOUR DSME MEGI 2018 173,400 m3 FLEX LNG Employed until Q2-19
2. Owned FLEX ENTERPRISE DSME MEGI 2018 173,400 m3 FLEX LNG Spot Market
3. Owned TBN FLEX RANGER SHI MEGI 2018 174,000 m3 FLEX LNG Available May 2018
4. Owned TBN FLEX RAINBOW SHI MEGI 2018 174,000 m3 FLEX LNG Available Jul 2018
5. Owned TBN FLEX CONSTELLATION DSME MEGI 2019 173,400 m3 FLEX LNG Available Jun 2019
6. Owned TBN FLEX COURAGEOUS DSME MEGI 2019 173,400 m3 FLEX LNG Available Aug 2019
7. Chartered-in WOODSIDE REES WITHERS DSME TFDE 2016 174,000 m3 Maran Gas Chartered-out
8. Chartered-in PSKOV STX TFDE 2014 170,000 m3 Sovcomflot Chartered-out
8 | 2017 8 | 2017 2018 | 8
Functional Organizational Chart of FLEX LNG
A highly experienced team is in charge of LNG shipping
LNGC
Owned Fleet
(FLEX LNG)
Technical Mgt
(Frontline Mgt)
Newbuild Supervision
(Seatankers)
Ship Mgt, Crewing
(Bernhard Schulte)
Newbuild Design
(Ship Construction Strategies)
Chartering
(FLEX LNG)
Commercial Operations
(FLEX LNG)
Chartered Fleet
(FLEX LNG)
Chartering
(FLEX LNG)
Commercial Operations
(FLEX LNG)
Finance & Admin
(FLEX LNG)
Finance
(FLEX LNG)
Accounting
(Frontline Mgt)
Insurance
(Frontline Mgt)
FLEX LNG
Shared Services
Third Party
Providing technical management and support
services
• 160 vessels including LNG, tankers, dry
bulk, container, offshore supply
• Vessel construction, project management,
technical management, insurance, etc.
• HSE and Incident Response
Providing newbuild construction supervision
services
• 47 vessels under construction including
LNG, tankers, dry bulk, containers, offshore
Providing ship management and crewing
services
• 600 ships under crewing and/or technical
management
• Dedicated LNG crew for FLEX LNG vessels
Frontline
Management Ltd
Seatankers
Management Ltd
Bernhard Schulte
Shipmanagement
Comparison of LNG Ship Types on UTC Basis*
9 | 2017 9 | 2017 2018 | 9
CEO
Jonathan Cook
Business Development
Thomas Thorkildsen
SVP B.D.
VP B.D.
Kent Paulli
Manager B.D.
FSRU Design
Alan Nierenberg
Commercial
Jonathan Cook
Comm. Analyst
Sara Stahl
Comm. Operator
Andrew Niven
Comm. Operator
Marijan Glavan
Operations
Fleet Manager
Mike O’Rourke
Marine Super.
Jason Ratcliffe
Fleet Personnel
Agnieszka Murawka
Technical
Olav Eikrem
Technical Director
Head of Newbuilding
Björn Westerberg
Project Manager
JS Narayanan
DSME
Site Team (19)
SHI
Site Team (14)
Fleet Manager
Ola-Petter Dahlen
Sr. Tech. Super.
Calum Hickman
Technical Officer
Frank Shaw
Technical Officer
Adrienne Snowdon
Technical Officer
Vicky Gatherar
Electrical Super.
Finance/Admin/IR
Oystein Kalleklev
CFO
Thorolf Aurstad
VP Finance
Accounting/Tax
Tom Pryor (4)
Corp. Secretary
Georgina Sousa (2)
Insurance
Chris Walker
FLEX LNG - Organizational Chart
10 | 2017 10 | 2017 2018 | 10
Jonathan Cook (54) – Chief Executive Officer
• Previously Chief Marketing Officer for Cardiff LNG, where he managed the LNG commercial activities
• Mr. Cook was founding partner of Excelerate Energy from 2003 onwards, Mr. Cook was part of the leadership team that
pioneered new frontiers in LNG shipping and transportation, by developing and marketing floating storage and
regasification technologies to address the logistical challenges of importing and exporting LNG worldwide
• Mr. Cook has 30 years in the maritime and energy sectors with the last 16 years in the LNG sector
Øystein Kalleklev (38) - Chief Financial Officer
• Mr. Kalleklev joined FLEX LNG in October 2017, after serving as CFO of Knutsen NYK Offshore Tankers since 2013 and
Chairman of the General Partner of the MLP KNOT Offshore Partners from 2015-2017
• Previous roles include CFO of industrial investment company Umoe Group, Managing Director of Umoe Invest, Partner of
investment bank Clarksons Platou and Business Consultant at Accenture
• Mr. Kalleklev holds a MSc in Business and Administration from Norwegian School of Economics and a Bachelor in
Business and Finance from Heriot-Watt University
Thomas Thorkildsen (45) - SVP Business Development
• Previously Mr. Thorkildsen was the former head of business development at Höegh LNG. Furthermore, he was
responsible for various commercial roles such as commercial management, chartering etc.
• Mr. Thorkildsen has 20 years experience in the maritime industry with the last 14 years in LNG business development
• Prior to joining Höegh LNG he was employed by the Norwegian Ro-Ro specialist Wilh. Wilhelmsen Group. Mr.
Thorkildsen holds an MSc from Cass Business School, London
Executive Management Team
11 | 2017 11 | 2017 2018 | 11
Board of Directors
David McManus (64) – Chairman
• Mr. McManus has served on the Board since August 2011, and was elected as chairperson in September 2011
• David’s background as an international business leader in the energy industry brings exceptional experience and strong technical
and commercial skills with 39 years of at BG Group, ARCO, Ultramar, Shell and Fluor Corporation
• Mr. McManus is currently a non-executive director for a number of listed companies including Hess Corporation, Rockhopper
Exploration plc, Costain plc, and Caza Oil & Gas
Marius Hermansen (38) – Director
• Mr. Hermansen joined the Board in December 2015. Marius works for Frontline Management and is involved in S&P activities for
Frontline and all related companies
• Previously Mr. Hermansen worked for over 10 years at Fearnleys
• Mr. Hermansen was educated at the Norwegian School of Economics (NHH) in Bergen
Ola Lorentzon (68) – Director
• Mr. Lorentzon has been a Director on the Board since June 2017
• Ola served as Principal Executive Officer of Golden Ocean Group from 2010 to 2015 and held the role as Chief Executive Officer
of Frontline Management from April 2000 to 2003. He is currently a Director of Frontline Ltd.
• Mr. Lorentzon is also a Director and Chairman of Golden Ocean Group, Director of Erik Thun AB and Dir. of Laurin Shipping AB
Georgina Souza (67) – Director
• Mrs. Sousa has been a Director of the Company since June 2017
• Mrs. Sousa has served as Secretary of Golden Ocean Group Limited since March 2007.
• Prior to joining Golden Ocean, Mrs. Sousa held the role as Vice President Corporate Services of Consolidated Services, a
Bermuda management company having joined that firm in 1993. From 1982 to 1993 she served as Senior Company Secretary
at the law firm Cox & Wilkinson
Nikolai Grigoriev (43) – Director
• Mr. Grigoriev joined the Board in September 2017
• From 2008 to 2016 Nikolai served as Managing Director of Shipping and Logistics at Gazprom Marketing & Trading. Prior to
Gazprom, Mr. Grigoriev worked for BG Group in senior LNG shipping, commercial and corporate finance roles. Nikolai holds a
B.Sc. in Navigation from Admiral Makarov State Maritime Academy in St. Petersburg, Russia and an MBA from INSEAD
12 | 2017 12 | 2017 2018 | 12
02
2018 | 12
LNG Shipping Review
13 | 2017 13 | 2017 2018 | 13
Key Trends in the LNG Shipping Market
Natural Gas becoming
fuel of choice
Strong growth expected
in the LNG market
• Over the next years LNG annual supply is projected to rise by at least 130 million tonnes (mt)
to ~420 mt in 2021, coming from both new liquefaction plants and existing projects ramping
up capacity
• IEA predicts global energy demand will increase by 30% by 2040. Natural gas represents
25% of the world’s energy mix
• LNG is currently growing seven times faster than pipeline gas trade and is expected to
account for 50% of globally traded gas in 2035 (up from 32% today)
• Both total consumption and the number of countries importing LNG are expected to increase
significantly over the next 10-15 years from 39 to 80+ countries
LNGC fleet
development
• The LNG shipping market is expected to tighten significantly from end 2018 as new LNG
export projects from primarily US, Australia and Russia becomes operational
• ~90% of the LNGC newbuildings on the orderbook are committed on long-term charters
• Modern two-stroke tonnage (MEGI and X-DF vessels) bring significant advantages to
Charterers in form of fuel savings and reduced boil off rates
Activity in the LNG spot
shipping market
continues to grow
• The LNG shipping market has transitioned from traditional long-term chartering contracts to
an increasingly liquid spot market led by portfolio trading and more destination flexibility in
LNG supply contracts
• The level of spot chartering in LNG topped 300 fixtures in 2017 (up from 230 in 2016), which
corresponded to ~25% of all LNG produced globally
1
2
3
14 | 2017 14 | 2017 2018 | 14
LNG Shipping Market Balance
COMPANY SNAPSHOT
Source: Affinity
(150)
(100)
(50)
-
50
100
150
200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019 2020
# Vessels Vessel Demand Vessel Supply Shipping Balance
Note: All vessel figures normalized to 165K m3, 35 years useful life, excludes vessels in layup and FSRU/FLNG/FSU
Underfunded LNG NB Orderbook Shipping market begins to tighten
The LNG shipping market is expected to gradually tighten from the end of 2018, with Australia, the U.S. and Russia being the
driving forces for soaking up tonnage
• During Q2-Q3 2018 shipping balance is forecasted to increase due to delivery of newbuildings ahead of project start-up. On the
other hand, new volumes from e.g. Cove Point and Yamal LNG may counter this effect
• Late 2018 / Early 2019 the shipping balance starts to tighten as new export capacity comes to the market and outdated tonnage
comes off charter and will result in vessel replacement
• In 2020, additional export projects starts producing, triggering vessel demand against a thin orderbook
15 | 2017 15 | 2017 2018 | 15
Right Ships at the Right Time
MEGI/XDF Available for Long-Term Chartering
Source: FLEX LNG
# Vessels
Vast majority of LNGC orderbook is committed to long
term charters
• Currently, there are 94 LNGC under construction
• ~90% of the LNGC newbuildings on order have long-term
employment to dedicated projects or portfolios
FLEX LNG owns 6 out of the 15 LNG vessels available
for long-term chartering from H2 2019
• Limited ordering – only 20 LNGC contracted over the last
two years, record-low NB prices have not triggered
speculative orders
• Ramp up of global LNG volumes is expected to drive
strong demand for modern tonnage
• Incremental LNGC demand 30-50 vessels by 2020
• Fleet renewals likely to add to demand for modern
efficient LNGCs
• Charterers prefer larger & more efficient LNGCs
• Most of the recent long-term charters have been
MEGI or X-DF vessels
52
20
10
2
6
4
3
0
10
20
30
40
50
60
2018 2019 2020
Long Term Employment
Uncommitted
Existing
16 | 2017 16 | 2017 2018 | 16
03 03 03
2018 | 16
MEGI Propulsion
17 | 2017 17 | 2017 2018 | 17
A Three Tier Market is Emerging that Favors Modern LNGCs
MEGI and X-DF vessels are the most fuel-efficient and technically advanced LNG ships
USD/day
COMPANY SNAPSHOT Three Tier Broker Assessments
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
ST TFDE MEGI/X-DF Assessment
Introducing Two Stroke Propulsion for LNG Carriers
• For many years steam turbines was the only propulsion
system available for LNG ships, even though its efficiency
was considerably lower than diesel engines
• However, with the introduction of the reliquefaction plant
and gas-driven diesel engines, it is today possible to install
high-efficiency diesel engines as prime movers, and
thereby significantly cut fuel costs
• Owners and Charterers are provided with maximum fuel
flexibility and, depending on the relative price and
availability of gas and fuel oil, are free to choose the most
competitive fuel as the engine operates with the same
efficiency on both gas and fuel.
• The Diesel-cycle ensures stable gas combustion under all
weather conditions, such as heavy weather and high
ambient temperatures, without any risk of misfiring or
knocking.
• For a typical long-haul trade the new and more efficient
twin screw LNGC design with MEGI engines will have an
average daily fuel consumption [gas and fuel oil] of ~30%
less than the TFDE LNG carriers. This corresponds to a
saving of more than 35 tonnes of fuel per day in HFO
equivalents at 16 knots.
18 | 2017 18 | 2017 2018 | 18
-
10
20
30
40
50
'72
'73
'74
'75
'76
'77
'78
'79
'80
'81
'82
'83
'84
'85
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
'17
'18
'19
'20
ST DFDE/TFDE Other XD-F MEGI
0
0.2
0.4
0.6
0.8
1
ST 138k TFDE 160k X-DF 174k MEGI 174k
$ / mmbtu
Ship Fuel Consumption Comparison
Transition Towards Modern Vessels is Visible in the Orderbook
LNGC Existing Fleet and Orderbook by Propulsion
Comparison of LNG Ship Types on UTC Basis*
Tons of FOE / Day (Laden)
Speed (knots) MEGI
174k
X-DF
174k
TFDE
160k
ST
145k
19.5 91.2 106.0 136 190
16.0 52.4 71.1 88 145
13.5 33.6 45.2 68 112
19 | 2017 19 | 2017 2018 | 19
MEGI / X-DF Leads LNG Fleet Evolution on Size and Efficiency
COMPANY SNAPSHOT
Source: Affinity LNG
120
160
200
240
280
- 5 10 15 20 25 30 35 40 45
Siz
e (
‘00
0 c
bm
)
Age (years)
ST TFDE & Other MEGI & X-DF
324
vessels
71 vessels
Existing LNGC Fleet:
450 vessels
20 | 2017 20 | 2017 2018 | 20
U.S. Gulf - Far East via
Panama 9,279 nm
U.S. Gulf -
Northwest Europe
4,961 nm
Arabian Gulf –
East Asia
5,760 nm
Arabian Gulf - Northwest
Europe
via Suez 6,377 nm
US$ / mmbtu
N.B. US$70,000 per day applied as charter hire across vessel classes, LNG boil-off priced at US$5.50 / mmbtu
UTC Breakdown by Trade Route
Source: Poten & Partners
Unit Transportation Cost (UTC) Analysis - Critical Trade Route Summary
Critical Trade Routes Summary
0.50 0.30
0.18 0.26 0.16 0.10
0.34 0.20 0.13
0.30 0.18 0.11
0.19
0.17
0.15 0.18
0.16 0.14
0.19 0.16
0.14
0.19
0.16 0.14
1.09
0.95
0.83 0.58
0.52 0.45
0.74
0.66
0.58
0.67
0.59
0.52
0.02
0.01
0.01
0.01
0.01
0.01
0.01
0.01 0.01
0.01
0.01
0.21
0.20
0.20
0.21
0.20
0.19
0.0
0.5
1.0
1.5
2.0
2.5
145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF
U.S. Gulf - Far East via Panama U.S. Gulf - NW Europe Arabian Gulf - Northwest Europe via Suez Arabian Gulf - East Asia
Boil Off Port Charges Charter Hire Fuel Canal Fees2.01
1.63
1.37
1.23
0.85
0.70
1.49
1.17 1.05 1.04
0.79
0.95
21 | 2017 21 | 2017 2018 | 21
04
2018 | 21
FSRU Market Development
22 | 2017 22 | 2017 2018 | 22
The FSRU market is poised to grow substantially over the
next five years
• Growth of LNG supply, low LNG prices, energy deficits,
security of supply issues and fuel switching due to mandated
emissions reductions are prime drivers
• NB FSRU are flexible, efficient and cost competitive
compared to conversions (with current yard prices)
• Based on the current supply-demand outlook, there is
potential for 12-15 new FSRU projects contracted by 2021
FLEX LNG has a highly experienced commercial and
technical team to succeed in the FSRU market
• FLEX LNG is actively pursuing FSRU opportunities and plan
to establish a presence in the FSRU market
• FLEX LNG will consider placing orders for NB FSRU to meet
the demand of fast track projects
• FSRU newbuildings can be delivered in 27-30 months
FLEX FSRU newbuildings will have state of the art design
incorporating latest technologies and lessons learned
• Newbuilding prices of FSRUs have fallen and compete
favourably with conversion economics
LNG Imports: FSRUs vs. Land-Based Terminals
FSRU Gaining Market Share Over Traditional Import Terminals
Sources: Reuters, Affinity Shipping
Market Share: FSRU vs. Onshore Terminals
10% 10% 10%
10% 13% 14%
14% 16%
17% 19% 20%
(100)
100
300
500
700
900
1,100
2010 '11 '12 '13 '14 '15 '16 '17 (E) '18 (E) '19 (E) '20 (E)
Mtpa
Onshore Regas Capacity Floating Regas Capacity
23 | 2017 23 | 2017 2018 | 23
The improved pricing and liquidity of the LNG market keeps
stimulating downstream gas demand and opens new markets
• Recent countries joining the club of LNG imports include
Colombia, Pakistan, Jordan, Dubai, Abu Dhabi, Turkey,
Lithuania, Kuwait
• Key FSRU drivers include security of supply, fuel switching, and
the global energy balance
• Global macro economic outlook remains positive; fundamental
to further growth in both mature and new markets
FLEX LNG selection criteria for FSRU projects:
• Tangible project with strong counterparts/aggregator
• Non-speculative projects based on newbuilding
• Contract tenor of 10+ years
• Right type of contract in terms of risk
• Bankable for project financing
FLEX FSRU Strategy
Image source: Gazprom
24 | 2017 24 | 2017 2018 | 24
Growth of FSRU Regas Capacity by Country
FLEX Collective Team Experience and Expertise in FSRUs
FLEX LNG has a highly experienced commercial and
technical team to succeed in the FSRU market
• Jonathan Cook (founding partner at Excelerate Energy and
ex-Chief Marketing Officer for Cardiff LNG) was appointed
CEO in March 2017
• Thomas Thorkildsen (formerly head of business development
at Höegh LNG, responsible for FSRU opportunities) joined in
February 2017 to lead business development efforts
• Øystein Kalleklev (formerly CFO at Knutsen NYK Offshore
Tankers involved in e.g. financing of FPSOs) joined FLEX in
September 2017
The FLEX team can draw on extensive technical FSRU
knowledge within the group
• Management has been involved in 13 of the existing 21
FSRU projects worldwide (19 FSRUs including
decommissioned projects)
Escobar FSRU, Argentina
0
20
40
60
80
100
2017E 2018E 2019E
mtpa India Chile Bangladesh Puerto Rico Uruguay
Brazil Russia Pakistan Turkey Ghana
Source: Reuters
25 | 2017 25 | 2017 2018 | 25
Up to 34 FSRU Projects Expected Operational by 2020
There are 21 active FSRU projects globally and 13 awarded projects (expected to begin operations in the next 3 years)
FLEX LNG team has
been involved in 13 of
the 21 existing FSRU
projects globally
Sources: FLEX LNG, Affinity Shipping
Awarded FRSU projects:
2017: Russia, Pakistan
2018: Pakistan (2), Bangladesh,
Ghana, Uruguay, Puerto Rico
2019: Chile, Turkey, India
2020: Brazil
Existing
Awarded
Existing &
Active:
21
Awarded:
13
Proposed:
50+
26 | 2017 26 | 2017 2018 | 26
FLEX LNG – NextDecade Alliance About NextDecade
Strategic Partnership with NextDecade
FLEX LNG and NextDecade signed an HoA in Dec 2016 to
create a full value chain solution for LNG to end customers
• FLEX LNG will provide FSRU and dockside solutions to assist
LNG importing customers
In July 2017, NextDecade signed a MoU with the Port of
Cork for a new FSRU and associated LNG terminal
infrastructure
• As Owners of the FSRU, FLEX LNG would charter out the unit
under a long-term contract FLEX LNG will provide FSRU and
dockside solutions to assist LNG importing customers
NextDecade is a leading US-based development and
management company of onshore and floating LNG
projects
• NextDecade’s key project is the Rio Grande LNG export
project under development in Brownsville, Texas
• The Rio Grande LNG export project is expected to have a
capacity of six liquefaction trains, each with a nominal LNG
capacity of 4.5 mtpa, yielding a total capacity of 27 mtpa
• FERC approval application filed in 2015, FID targeted for Q2
2018 with first cargo expected in 2022
Next Decade’s proposed Rio Grande liquefaction terminal, Brownsville, Texas Port of Cork, Ireland
27 | 2017 27 | 2017 2018 | 27
05
2018 | 27
Summary
28 | 2017 28 | 2017 2018 | 28
FLEX LNG has a modern and efficient fleet of LNGCs available from 2018 offering
Charterers significant fuel savings and reduced boil-off rate over older vessels
• FLEX LNG has established proven operational capabilities and developed relationships with
key Charterers in the LNG market by chartering in and trading third party LNGCs
• LNG market has recovered to a 3-year high in TC rates and further tightening is expected on
the back of new supply
Majority shareholder Geveran Trading has a long history in the LNG industry and is
committed to building FLEX LNG into a major provider of LNGCs and FSRUs
• As part of the Fredriksen Group, FLEX LNG benefits from a wide range of commercial and
technical expertise, strong financial backing and access to competitive financing
The FSRU market is forecasted to grow substantially over the coming years, driven by
growth in LNG supply, low LNG prices and fuel switching driven by emission cuts
• Based on the current LNG supply-demand outlook, there is potential for 12-15 new FSRU
projects contracted by 2021
The FLEX team has significant experience in developing and operating FSRU projects
• FLEX LNG is actively pursuing opportunities in the FSRU market and is engaged in
discussions with multiple counterparties across various projects
LNG Carriers
FSRUs
Summary
The LNG market could experience significant shortage of tonnage from the end of 2018
29 | 2017 29 | 2017 2018 | 29
Thank You March 2018