Sunday 21st Oct, 2018

FLEX looks to boost its LNG fleet

Photo: Shutterstock
Photo: Shutterstock

FLEX LNG says it is considering acquiring five fifth-generation LNG newbuldings.

The deal, which is set to be bankrolled by a share offering, would comprise three high-end LNG carriers currently being built at Daewoo Shipbuilding and Marine Engineering (scheduled for delivery in 2020) and two high-end carriers currently being built at Hyundai Samho Heavy Industries.

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The vessels are to be acquired at a price of USD180m per vessel. In connection with the transaction, the company is considering a private placement of new ordinary shares for gross proceeds of USD 300m.

“In order to facilitate timely delivery of already listed shares, delivery of offer shares allocated in the private placement is expected to be made by delivery of existing shares in the company,” the company said in a statement.

FLEX is a growth owner and operator in LNG shipping with a fleet of next generation LNG carriers.

The FLEX acquisitions are occurring at a time of growth in the global LNG market, with the 2018 World LNG Report noting the latest report indicating 2017 had been another record-breaking year for LNG trade.

“After steady growth in recent years, global LNG trade in 2017 reached 293.1m tonnes – an increase of 12% from 2016, the third consecutive record-breaking year for the industry and the highest annual growth since 2010,” the report authors stated.





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