Flex LNG is well positioned to take advantage of increasing LNG production when its newbuildings hit the water, the company said in its second quarter report.
The John Fredriksen-controlled company said bigger LNG capacity coming to the market between 2017 and 2020 will coincide with the delivery of two MEGI LNG carriers, currently being built at Samsung Heavy Industries.
Flex added it is still working on strategies to add value to the company, such as industry consolidation, short and long-term charters and FSRU opportunities.
It expects to complete the plan approval for the two ships and will start steel cutting in the second half this year.
Flex noted a recent strengthening in the market sentiment and spot rates for LNG carriers.
"We believe that the market will prefer the substantial improvement in unit freight cost of these larger and more fuel-efficient vessels," it said.
Having already paid $210m to cover the first vessel instalments and with increased liquidity thanks to an amended loan, Flex said it will need to raise additional funds prior to the delivery of the ships in 2018.
The company posted a net loss of $0.67 in the second quarter, compared to red ink of $0.75 a year earlier.
