FLEX LNG said its cash balances at 30 September were $3.2m (2012: $7.7m) with $0.7m net outflow (2012: $1.8m) in the quarter and $3.0m (2012: $7.1m) year to date.
In the nine months in 2013 the operating cash outflow was $3.0m (principally the operating profit after excluding the non cash and working capital movements). The profit before tax was $208.9m (2012: loss – $2.8m) in the quarter and $206.2m (2012: loss – $6.7m) year to date.
In the current quarter there has been the reinstatement of the $210.0m initial LNGC instalments, leading to an impairment writeback. In the period there was also a $0.2m cost on the option and warrant schemes, (2012: $0.9m – credit).
Outlook, Financing and Risks
Given the expected costs in 2013 FLEX LNG believes that, based upon forecast levels of cash utilisation, it will have sufficient working capital to operate throughout 2013 and into 2014.
The company is currently considering how best to finance the Group’s working capital requirements, until the delivery of the two vessels in Q1 2017.
FLEX LNG is also working towards securing employment for the LNG Carriers and to manage the construction process.
Additionally the Board has announced that it has commenced a process to explore the strategic alternatives that are available to the company.
The outcome of such a process may be, inter alia, FLEX LNG being part of a business combination; a full or partial sale of the Company or its assets; or FLEX LNG entering into a strategic partnership with a third party.
The company expects to have reached a resolution to the strategic process within Q1 2014.
LNG World News Staff, November 22, 2013; Image: FLEX