Is FLEX LNG A Different-Style Shipping Company?

May 24, 2019 2:05 PM ETFLEX LNG Ltd. (FLNG)13 Comments
Tomas Novotny profile picture
Tomas Novotny


  • FLEX LNG is an interesting LNG shipping company with modern vessels.
  • They have four existing tankers.
  • Further nine tankers are under construction, delivery due between 2019 and 2021.
  • All vessels are 5th generation with ME-GI/XDF propulsion and 173 400 m3 capacity.
  • At the moment, Flex LNG is coming to the NYSE listing.

Data by YCharts

About Flex LNG

Flex LNG (OTCPK:FLXNF) is a growing company with nine new vessels that are to be delivered between 2019 and 2021. The company is controlled by the billionaire John Fredriksen via the Geveran Trading Co. Ltd. and has been listed at the Oslo Stock Exchange since July 2017.

Flex LNG shareholders(source: Kepler Cheuvreux)

In total, Flex LNG issued 54,104,390 public-traded shares at the nominal value $0.1 (source: Oslo Stock Exchange). The free float is 47,180,000 shares (source: Financial Times). On the 7th March 2019 the company made a reverse split with ratio 10:1 (10 old shares give 1 new share).

On 7th May Flex LNG has filed a registration statement on Form 20-F with the U.S. Securities and Exchange Commission (the “SEC”) relating to the proposed listing of its ordinary shares on the New York Stock Exchange (the “NYSE”).

Flex LNG started with just two vessels in 2018. In the same year it gained two more vessels, with further two planned to be delivered in 2019. All four newbuilds were ordered in 2017.

(source: VesselsValue)

The first two vessels, Flex Endeavour and Flex Enterprise (Hull 8010 and Hull 8011) are financed via sale-charterback transaction with Hyundai Glovis Co. Ltd. Flex Constellation and Flex Courageous are funded with a bank loan. Cash break-even for all vessels is less than $50,000 on average.

A TCE of $100,000 per day means that each vessel can generate $18 million of free cash flow. This is free cash flow after OpEx, finance expenses and installments as well as general and admin expenses, i.e. money in the bank. Harald Gurvin, CFO (Q4 18 earnings conference call)

Last year they acquired seven vessels. Three with ME-GI and Full Reliquification System and four with XDF propulsion. Five of those vessels will be delivered in 2020 and the

This article was written by

Tomas Novotny profile picture
6/2022 - now: Member of Society of Technical Analysts in UK 9/2016 - now: UP forum s.r.o. 3/2016 - now: LNG shipping investor 7/2009 - now: Private investor at Warsaw Stock Exchange 11/2006 - now: Board Member of Czech National Association of Technical Analysis 2/2011-6/2016: Board Member at Financial Progress Group a.s. 1/2003-4/2013: Head of Sales and Marketing, Theatre Na zábradlí, Prague 2004-2010: Master degree of Arts Management at Academy of Performing Arts, Prague

Disclosure: I am/we are long GMLP, DLNG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I also have small positions for study purposes in each of seven stocks included in UP LNG Shipping indices.

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