Norwegian LNG shipping company Flex LNG expects a tight LNG shipping market in the years to come, driven by strong demand and new LNG supply coming on stream. The Olso-based shipper has four LNG carriers on the water and nine under construction for delivery from 2019 to 2021, Reuters reported.
Flex’s LNG shares showed an increase by 11% on a favourable outlook and after it waved from a Q3 profit after a loss in the prior quarter, today owns 4 LNG carriers and 9 under construction.
After achieving a nearly 50% year-on-year growth imports to China during the third quarter, LNGC rates have reached a peak. According to Oeystein M. Kalleklev, CEO, the company’s rates are twice their amount and are gathering approximately $200,000 per day for modern fifth generation tonnage.
According to Reuters, Oeystein M. Kalleklev addressed that the company expects the LNG market to be tight in the future. That will most probably happen because the LNG entering the market are increasing at an unprecedented rate. He continued highlighting that four on-the-water vessels were sold out for the Q4 and revenues were expected to increase to $35 million from $19 million in the third quarter.
Moreover, the company’s rates have increased from $50,000 in the third quarter to $130,000 in the fourth quarter. New volumes coming from Australia, Qatar and North America are to support supply, while South and South-east Asia will drive demand.
Finally, Flex LNG pointed out a net profit of $1.2 million in the third quarter in comparison to a loss of $2.9 million in the second quarter.