FLEX LNG today announced third quarter 2011 results.
During the third quarter of 2011 the FLEX LNG group of companies has continued to develop what it expects could be amongst the world’s first floating LNG producers (LNG Producer). In the quarter costs of $10.5m ($2.1m, four units) were capitalised onto the first unit (IOC unit) and year to date $12.4m ($10.9m, four units). The capitalised costs in the current quarter reflect the front-end engineering and design (FEED) work on the Gulf LNG project in Papua New Guinea (PNG) for the IOC unit.
The cash balances at 30 September were $16.9m ($13.1m) with $2.2m net inflow ($3.7m net outflow) in the quarter and $7.0m net inflow ($12.5m net outflow) year to date. In the nine months in 2011 the operating cash inflow was $0.6m (principally the operating loss, working capital movements and a short term loan of $8.0m, repayable in Q1 2012); investing activities outflow $(12.5)m (capitalised asset costs); and financing activities inflow $18.9m (proceeds from a share purchase by InterOil Corporation (IOC) and Pacific LNG Operations (PACLNG), and deferred payments on the FEED costs).
The loss before tax was $3.6m ($3.7m) in the quarter and $19.0m ($8.5m) year to date, with a year to date retained net loss of $19.0m ($8.6m). Q3 2011 has been impacted by the reduction in the strike price and the amended vesting dates for the staff option awards from 2008, following the amendment approved at the 2011 annual shareholders meeting (ASM). The additional cost was $1.0m when compared to the same quarter in 2010. In the year there have also been additional IOC project related costs and FX revaluation losses on non USD denominated liabilities. Additionally Q2 2011 includes a financing charge ($7.8m) from the valuation of the share purchase option provided to IOC and PACLNG. Under the option the two parties were able to subscribe for 11,315,080 shares at an average price of NOK 4.59, against a share price of NOK 8.22 at the time of grant.
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LNG World News Staff, November 25, 2011