Company Presentation. April 2018

Transcription

1 Company Presentation April

2 Disclaimer THIS PRESENTATION (THE PRESENTATION ) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY ), SOLELY FOR PRESENTATION PURPOSES AND DOES NOT PURPORTE TO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN. THE PRESENTATION DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SECURTIEIS. THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION INCLUDED HEREIN IS GIVEN BY THE COMPANY, AND THAT NOTHING CONTAINED IN THIS PRESENTATION IS OR CAN BE RELIED UPON AS A PROMISE OR REPRESENTATION BY THE COMPANY, WHO DISCLAIM ALL AND ANY LIABILITY, WHETHER ARISING IN TORT OR CONTRACT OR OTHERWISE. THE PRESENTATION SPEAKS AS OF THE DATE SET OUT ON ITS FRONT PAGE. THE COMPANY DOES NOT INTEND TO, OR WILL ASSUME ANY OBLIGATION TO, UPDATE THE PRESENTATION OR ANY OF THE INFORMATION INCLUDED HEREIN. THE CONTENTS OF THE PRESENTATION ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN PROFESSIONAL ADVISORS FOR ANY SUCH MATTER AND ADVICE. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. THE PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES, SOMETIMES IDENTIFIED BY THE WORDS "BELIEVES, "EXPECTS, INTENDS, PLANS, ESTIMATES AND SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION, INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR CITED FROM THIRD PARTY SOURCES, ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. THE COMPANY DOES NOT PROVIDE ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS NOR DOES THE COMPANY ACCEPT ANY RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THE PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED DEVELOPMENTS. NO OBLIGATION IS ASSUMED TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFORM THESE FORWARD-LOOKING STATEMENTS TO ACTUAL RESULTS. THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE NORWEGIAN COURTS. 2

3 Table of contents About FLEX LNG LNG Shipping Review MEGI Propulsion FSRU Market Development Summary 3

4 01 About FLEX LNG

5 FLEX LNG at a Glance FLEX LNG: LNG Shipping and Regasification FLEX LNG aims to become a leading operator in LNG shipping and floating regasification markets FLEX LNG is focused on offering safe, reliable, and cost effective solutions for the LNG shipping industry The Company is listed on Oslo Stock Exchange and successfully raised over US$ 200m in 2017 FLEX s fleet will provide Charterers with highly efficient tonnage to lower fuel consumption and reduce boil off rate FLEX took delivery of their first own LNG carriers in January 2018 (FLEX ENDEAVOUR and FLEX ENTERPRISE) Another four 174,000 cbm MEGI* newbuildings are under construction at DSME and SHI for delivery in 2018 and 2019 FLEX ENTERPISE All FLEX owned fleet have two-stroke, MEGI propulsion which has ~30% lower fuel consumption than Tri-Fuel ships FLEX LNG is selectively pursuing various opportunities in the FSRU market FLEX LNG has a highly experienced commercial and technical team to succeed in the FSRU market *MEGI = M-type, Electronically Controlled, Gas Injection 5

6 FLEX LNGC Fleet Development Owned Fleet Chartered-in Vessels 6 173, , , , , , , ,000 6 LNG MEGI vessels - 2 vessels delivered in January vessels under construction delivering between May-18 and Aug-19 2 chartered-in TFDE vessels; sub-charterered on multimonth basis Building market presence, operational experience, and establishing relationships with key LNG charterers Owned Fleet Deliveries # Vessels Q Q Q Q Q

7 FLEX LNG Fleet Breakdown Owned and Chartered-In Status Vessel Name Builder Prop. Built Capacity Head Owner Employment 1. Owned FLEX ENDEAVOUR DSME MEGI ,400 m3 FLEX LNG Employed until Q Owned FLEX ENTERPRISE DSME MEGI ,400 m3 FLEX LNG Spot Market 3. Owned TBN FLEX RANGER SHI MEGI ,000 m3 FLEX LNG Available May Owned TBN FLEX RAINBOW SHI MEGI ,000 m3 FLEX LNG Available Jul Owned TBN FLEX CONSTELLATION DSME MEGI ,400 m3 FLEX LNG Available Jun Owned TBN FLEX COURAGEOUS DSME MEGI ,400 m3 FLEX LNG Available Aug Chartered-in WOODSIDE REES WITHERS DSME TFDE ,000 m3 Maran Gas Chartered-out 8. Chartered-in PSKOV STX TFDE ,000 m3 Sovcomflot Chartered-out 7

8 Functional Organizational Chart of FLEX LNG A highly experienced team is in charge of LNG shipping LNGC Comparison of LNG Ship Types on UTC Basis* Providing technical management and support services Owned Fleet (FLEX LNG) Chartered Fleet (FLEX LNG) Finance & Admin (FLEX LNG) Frontline Management Ltd 160 vessels including LNG, tankers, dry bulk, container, offshore supply Vessel construction, project management, technical management, insurance, etc. Technical Mgt (Frontline Mgt) Chartering (FLEX LNG) Chartering (FLEX LNG) Finance (FLEX LNG) HSE and Incident Response Newbuild Supervision (Seatankers) Commercial Operations (FLEX LNG) Commercial Operations (FLEX LNG) Accounting (Frontline Mgt) Seatankers Management Ltd Providing newbuild construction supervision services 47 vessels under construction including LNG, tankers, dry bulk, containers, offshore Ship Mgt, Crewing (Bernhard Schulte) Insurance (Frontline Mgt) Providing ship management and crewing services Newbuild Design (Ship Construction Strategies) FLEX LNG Shared Services Third Party Bernhard Schulte Shipmanagement 600 ships under crewing and/or technical management Dedicated LNG crew for FLEX LNG vessels 8

9 FLEX LNG - Organizational Chart CEO Jonathan Cook Business Development Thomas Thorkildsen SVP B.D. Commercial Jonathan Cook Operations Technical Olav Eikrem Technical Director Finance/Admin/IR Oystein Kalleklev CFO VP B.D. Kent Paulli Comm. Analyst Sara Stahl Fleet Manager Mike O Rourke Head of Newbuilding Björn Westerberg Fleet Manager Ola-Petter Dahlen Thorolf Aurstad VP Finance Manager B.D. Comm. Operator Andrew Niven Marine Super. Jason Ratcliffe Project Manager JS Narayanan Sr. Tech. Super. Calum Hickman Accounting/Tax Tom Pryor (4) FSRU Design Alan Nierenberg Comm. Operator Marijan Glavan Fleet Personnel Agnieszka Murawka DSME Site Team (19) Technical Officer Frank Shaw Corp. Secretary Georgina Sousa (2) SHI Site Team (14) Technical Officer Adrienne Snowdon Insurance Chris Walker Technical Officer Vicky Gatherar Electrical Super. 9

10 Executive Management Team Jonathan Cook (54) Chief Executive Officer Previously Chief Marketing Officer for Cardiff LNG, where he managed the LNG commercial activities Mr. Cook was founding partner of Excelerate Energy from 2003 onwards, Mr. Cook was part of the leadership team that pioneered new frontiers in LNG shipping and transportation, by developing and marketing floating storage and regasification technologies to address the logistical challenges of importing and exporting LNG worldwide Mr. Cook has 30 years in the maritime and energy sectors with the last 16 years in the LNG sector Øystein Kalleklev (38) - Chief Financial Officer Mr. Kalleklev joined FLEX LNG in October 2017, after serving as CFO of Knutsen NYK Offshore Tankers since 2013 and Chairman of the General Partner of the MLP KNOT Offshore Partners from Previous roles include CFO of industrial investment company Umoe Group, Managing Director of Umoe Invest, Partner of investment bank Clarksons Platou and Business Consultant at Accenture Mr. Kalleklev holds a MSc in Business and Administration from Norwegian School of Economics and a Bachelor in Business and Finance from Heriot-Watt University Thomas Thorkildsen (45) - SVP Business Development Previously Mr. Thorkildsen was the former head of business development at Höegh LNG. Furthermore, he was responsible for various commercial roles such as commercial management, chartering etc. Mr. Thorkildsen has 20 years experience in the maritime industry with the last 14 years in LNG business development Prior to joining Höegh LNG he was employed by the Norwegian Ro-Ro specialist Wilh. Wilhelmsen Group. Mr. Thorkildsen holds an MSc from Cass Business School, London 10

11 Board of Directors David McManus (64) Chairman Mr. McManus has served on the Board since August 2011, and was elected as chairperson in September 2011 David s background as an international business leader in the energy industry brings exceptional experience and strong technical and commercial skills with 39 years of at BG Group, ARCO, Ultramar, Shell and Fluor Corporation Mr. McManus is currently a non-executive director for a number of listed companies including Hess Corporation, Rockhopper Exploration plc, Costain plc, and Caza Oil & Gas Marius Hermansen (38) Director Mr. Hermansen joined the Board in December Marius works for Frontline Management and is involved in S&P activities for Frontline and all related companies Previously Mr. Hermansen worked for over 10 years at Fearnleys Mr. Hermansen was educated at the Norwegian School of Economics (NHH) in Bergen Ola Lorentzon (68) Director Mr. Lorentzon has been a Director on the Board since June 2017 Ola served as Principal Executive Officer of Golden Ocean Group from 2010 to 2015 and held the role as Chief Executive Officer of Frontline Management from April 2000 to He is currently a Director of Frontline Ltd. Mr. Lorentzon is also a Director and Chairman of Golden Ocean Group, Director of Erik Thun AB and Dir. of Laurin Shipping AB Georgina Souza (67) Director Mrs. Sousa has been a Director of the Company since June 2017 Mrs. Sousa has served as Secretary of Golden Ocean Group Limited since March Prior to joining Golden Ocean, Mrs. Sousa held the role as Vice President Corporate Services of Consolidated Services, a Bermuda management company having joined that firm in From 1982 to 1993 she served as Senior Company Secretary at the law firm Cox & Wilkinson Nikolai Grigoriev (43) Director Mr. Grigoriev joined the Board in September 2017 From 2008 to 2016 Nikolai served as Managing Director of Shipping and Logistics at Gazprom Marketing & Trading. Prior to Gazprom, Mr. Grigoriev worked for BG Group in senior LNG shipping, commercial and corporate finance roles. Nikolai holds a B.Sc. in Navigation from Admiral Makarov State Maritime Academy in St. Petersburg, Russia and an MBA from INSEAD 11

12 02 LNG Shipping Review

13 Key Trends in the LNG Shipping Market 1 Natural Gas becoming fuel of choice Strong growth expected in the LNG market Over the next years LNG annual supply is projected to rise by at least 130 million tonnes (mt) to ~420 mt in 2021, coming from both new liquefaction plants and existing projects ramping up capacity IEA predicts global energy demand will increase by 30% by Natural gas represents 25% of the world s energy mix LNG is currently growing seven times faster than pipeline gas trade and is expected to account for 50% of globally traded gas in 2035 (up from 32% today) Both total consumption and the number of countries importing LNG are expected to increase significantly over the next years from 39 to 80+ countries 2 LNGC fleet development 3 Activity in the LNG spot shipping market continues to grow The LNG shipping market is expected to tighten significantly from end 2018 as new LNG export projects from primarily US, Australia and Russia becomes operational ~90% of the LNGC newbuildings on the orderbook are committed on long-term charters Modern two-stroke tonnage (MEGI and X-DF vessels) bring significant advantages to Charterers in form of fuel savings and reduced boil off rates The LNG shipping market has transitioned from traditional long-term chartering contracts to an increasingly liquid spot market led by portfolio trading and more destination flexibility in LNG supply contracts The level of spot chartering in LNG topped 300 fixtures in 2017 (up from 230 in 2016), which corresponded to ~25% of all LNG produced globally 13

14 LNG Shipping Market Balance COMPANY SNAPSHOT The LNG shipping market is expected to gradually tighten from the end of 2018, with Australia, the U.S. and Russia being the driving forces for soaking up tonnage During Q2-Q shipping balance is forecasted to increase due to delivery of newbuildings ahead of project start-up. On the other hand, new volumes from e.g. Cove Point and Yamal LNG may counter this effect Late 2018 / Early 2019 the shipping balance starts to tighten as new export capacity comes to the market and outdated tonnage comes off charter and will result in vessel replacement In 2020, additional export projects starts producing, triggering vessel demand against a thin orderbook # Vessels 200 Vessel Demand Vessel Supply Shipping Balance (50) (100) Shipping market begins to tighten Underfunded LNG NB Orderbook (150) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Note: All vessel figures normalized to 165K m 3, 35 years useful life, excludes vessels in layup and FSRU/FLNG/FSU Source: Affinity 14

15 Right Ships at the Right Time MEGI/XDF Available for Long-Term Chartering # Vessels Long Term Employment Uncommitted Existing Vast majority of LNGC orderbook is committed to long term charters Currently, there are 94 LNGC under construction ~90% of the LNGC newbuildings on order have long-term employment to dedicated projects or portfolios FLEX LNG owns 6 out of the 15 LNG vessels available for long-term chartering from H Limited ordering only 20 LNGC contracted over the last two years, record-low NB prices have not triggered speculative orders Ramp up of global LNG volumes is expected to drive strong demand for modern tonnage Incremental LNGC demand vessels by 2020 Fleet renewals likely to add to demand for modern efficient LNGCs Charterers prefer larger & more efficient LNGCs Most of the recent long-term charters have been MEGI or X-DF vessels Source: FLEX LNG 15

16 03 MEGI Propulsion

17 A Three Tier Market is Emerging that Favors Modern LNGCs MEGI and X-DF vessels are the most fuel-efficient and technically advanced LNG ships COMPANY SNAPSHOT Three Tier Broker Assessments USD/day 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - ST TFDE MEGI/X-DF Assessment Introducing Two Stroke Propulsion for LNG Carriers For many years steam turbines was the only propulsion system available for LNG ships, even though its efficiency was considerably lower than diesel engines However, with the introduction of the reliquefaction plant and gas-driven diesel engines, it is today possible to install high-efficiency diesel engines as prime movers, and thereby significantly cut fuel costs Owners and Charterers are provided with maximum fuel flexibility and, depending on the relative price and availability of gas and fuel oil, are free to choose the most competitive fuel as the engine operates with the same efficiency on both gas and fuel. The Diesel-cycle ensures stable gas combustion under all weather conditions, such as heavy weather and high ambient temperatures, without any risk of misfiring or knocking. For a typical long-haul trade the new and more efficient twin screw LNGC design with MEGI engines will have an average daily fuel consumption [gas and fuel oil] of ~30% less than the TFDE LNG carriers. This corresponds to a saving of more than 35 tonnes of fuel per day in HFO equivalents at 16 knots. 17

18 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Transition Towards Modern Vessels is Visible in the Orderbook LNGC Existing Fleet and Orderbook by Propulsion ST DFDE/TFDE Other XD-F MEGI $ / mmbtu Comparison of LNG Ship Types on UTC Basis* 10 0 ST 138k TFDE 160k X-DF 174k MEGI 174k - Ship Fuel Consumption Comparison Tons of FOE / Day (Laden) Speed (knots) MEGI 174k X-DF 174k TFDE 160k ST 145k

19 Size ( 000 cbm) MEGI / X-DF Leads LNG Fleet Evolution on Size and Efficiency COMPANY SNAPSHOT vessels ST TFDE & Other MEGI & X-DF 240 Existing LNGC Fleet: 450 vessels vessels Age (years) Source: Affinity LNG 19

20 Unit Transportation Cost (UTC) Analysis - Critical Trade Route Summary Critical Trade Routes Summary U.S. Gulf - Far East via Panama 9,279 nm U.S. Gulf - Northwest Europe 4,961 nm Arabian Gulf - Northwest Europe via Suez 6,377 nm Arabian Gulf East Asia 5,760 nm UTC Breakdown by Trade Route US$ / mmbtu Boil Off Port Charges Charter Hire Fuel Canal Fees k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF U.S. Gulf - Far East via Panama U.S. Gulf - NW Europe Arabian Gulf - Northwest Europe via Suez Arabian Gulf - East Asia N.B. US$70,000 per day applied as charter hire across vessel classes, LNG boil-off priced at US$5.50 / mmbtu Source: Poten & Partners 20

21 04 FSRU Market Development

22 FSRU Gaining Market Share Over Traditional Import Terminals The FSRU market is poised to grow substantially over the next five years Growth of LNG supply, low LNG prices, energy deficits, security of supply issues and fuel switching due to mandated emissions reductions are prime drivers NB FSRU are flexible, efficient and cost competitive compared to conversions (with current yard prices) Based on the current supply-demand outlook, there is potential for new FSRU projects contracted by 2021 LNG Imports: FSRUs vs. Land-Based Terminals Market Share: FSRU vs. Onshore Terminals Mtpa 1,100 17% 19% 20% % 14% 14% 10% 13% % 10% 10% 500 FLEX LNG has a highly experienced commercial and technical team to succeed in the FSRU market FLEX LNG is actively pursuing FSRU opportunities and plan to establish a presence in the FSRU market FLEX LNG will consider placing orders for NB FSRU to meet the demand of fast track projects FSRU newbuildings can be delivered in months (100) 2010 '11 '12 '13 '14 '15 '16 '17 (E) '18 (E) '19 (E) '20 (E) Onshore Regas Capacity Floating Regas Capacity FLEX FSRU newbuildings will have state of the art design incorporating latest technologies and lessons learned Newbuilding prices of FSRUs have fallen and compete favourably with conversion economics Sources: Reuters, Affinity Shipping 22

23 FLEX FSRU Strategy The improved pricing and liquidity of the LNG market keeps stimulating downstream gas demand and opens new markets Recent countries joining the club of LNG imports include Colombia, Pakistan, Jordan, Dubai, Abu Dhabi, Turkey, Lithuania, Kuwait Key FSRU drivers include security of supply, fuel switching, and the global energy balance Global macro economic outlook remains positive; fundamental to further growth in both mature and new markets FLEX LNG selection criteria for FSRU projects: Tangible project with strong counterparts/aggregator Image source: Gazprom Non-speculative projects based on newbuilding Contract tenor of 10+ years Right type of contract in terms of risk Bankable for project financing 23

24 FLEX Collective Team Experience and Expertise in FSRUs Growth of FSRU Regas Capacity by Country FLEX LNG has a highly experienced commercial and technical team to succeed in the FSRU market Jonathan Cook (founding partner at Excelerate Energy and ex-chief Marketing Officer for Cardiff LNG) was appointed CEO in March 2017 Thomas Thorkildsen (formerly head of business development at Höegh LNG, responsible for FSRU opportunities) joined in February 2017 to lead business development efforts Øystein Kalleklev (formerly CFO at Knutsen NYK Offshore Tankers involved in e.g. financing of FPSOs) joined FLEX in September 2017 The FLEX team can draw on extensive technical FSRU knowledge within the group Management has been involved in 13 of the existing 21 FSRU projects worldwide (19 FSRUs including decommissioned projects) mtpa India Chile Bangladesh Puerto Rico Uruguay Brazil Russia Pakistan Turkey Ghana 2017E 2018E 2019E Source: Reuters Escobar FSRU, Argentina 24

25 Up to 34 FSRU Projects Expected Operational by 2020 There are 21 active FSRU projects globally and 13 awarded projects (expected to begin operations in the next 3 years) Existing & Active: 21 FLEX LNG team has been involved in 13 of the 21 existing FSRU projects globally Awarded FRSU projects: 2017: Russia, Pakistan 2018: Pakistan (2), Bangladesh, Ghana, Uruguay, Puerto Rico 2019: Chile, Turkey, India 2020: Brazil Awarded: 13 Proposed: 50+ Existing Awarded Sources: FLEX LNG, Affinity Shipping 25

26 Strategic Partnership with NextDecade FLEX LNG NextDecade Alliance FLEX LNG and NextDecade signed an HoA in Dec 2016 to create a full value chain solution for LNG to end customers FLEX LNG will provide FSRU and dockside solutions to assist LNG importing customers In July 2017, NextDecade signed a MoU with the Port of Cork for a new FSRU and associated LNG terminal infrastructure As Owners of the FSRU, FLEX LNG would charter out the unit under a long-term contract FLEX LNG will provide FSRU and dockside solutions to assist LNG importing customers About NextDecade NextDecade is a leading US-based development and management company of onshore and floating LNG projects NextDecade s key project is the Rio Grande LNG export project under development in Brownsville, Texas The Rio Grande LNG export project is expected to have a capacity of six liquefaction trains, each with a nominal LNG capacity of 4.5 mtpa, yielding a total capacity of 27 mtpa FERC approval application filed in 2015, FID targeted for Q with first cargo expected in 2022 Port of Cork, Ireland Next Decade s proposed Rio Grande liquefaction terminal, Brownsville, Texas 26

27 05 Summary

28 Summary The LNG market could experience significant shortage of tonnage from the end of 2018 LNG Carriers FLEX LNG has a modern and efficient fleet of LNGCs available from 2018 offering Charterers significant fuel savings and reduced boil-off rate over older vessels FLEX LNG has established proven operational capabilities and developed relationships with key Charterers in the LNG market by chartering in and trading third party LNGCs LNG market has recovered to a 3-year high in TC rates and further tightening is expected on the back of new supply Majority shareholder Geveran Trading has a long history in the LNG industry and is committed to building FLEX LNG into a major provider of LNGCs and FSRUs As part of the Fredriksen Group, FLEX LNG benefits from a wide range of commercial and technical expertise, strong financial backing and access to competitive financing FSRUs The FSRU market is forecasted to grow substantially over the coming years, driven by growth in LNG supply, low LNG prices and fuel switching driven by emission cuts Based on the current LNG supply-demand outlook, there is potential for new FSRU projects contracted by 2021 The FLEX team has significant experience in developing and operating FSRU projects FLEX LNG is actively pursuing opportunities in the FSRU market and is engaged in discussions with multiple counterparties across various projects 28

29 Thank You March