FLEX LNG said that, during the fourth quarter of 2011, work continued on a potential LNG Producer unit as the front-end engineering and design (FEED) work on the Gulf LNG project in Papua New Guinea was substantially completed.
The cash balances at 31 December were $14.8m ($9.9m) with $2.1m net outflow ($3.3m net outflow) in the quarter and $4.9m net inflow ($15.8m net outflow) year to date. In the twelve months in 2011 the operating cash inflow was $0.5m (principally the operating loss, working capital movements and a short term loan of $10.0m, repayable in Q1 2012); investing activities outflow $23.5m (FEED costs); and financing activities inflow $27.9m (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 $4.6m ($100.2m) in the quarter and $23.6m ($108.7m) year to date, with a year to date retained net loss of $23.7m ($108.9m). In the year and quarter there have also been additional Gulf LNG Project related costs and the quarter includes a write off of the value of the Minza investment, equal to $2.4m ($0.9m). 2011 has also 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 option and warrant costs were $1.9m in 2011 when compared to 2010. Additionally Q2 2011 includes a financing charge of $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.
[mappress]
LNG World News Staff, February 28, 2012