Flex LNG Ltd. · NYSE:FLNG
Flex LNG — Pareto Securities Oil and Offshore Conference 2008
24 slides from Flex LNG's conference presentation, Sep 10, 2008
Slide 1: Building the Leading LNG FPSO Company
Building the Leading LNG FPSO Company Pareto Securities: Oil and Offshore Conference Oslo, 10 September 2008
Slide 2: Disclaimer
PRIVATE AND CONFIDENTIAL Disclaimer This presentation and its appendices (jointly the “presentation”) have been prepared by FLEX LNG (“ the Company”) in connection with the private placing of new shares. It is provided on a confidential basis for information purposes only and is not an offer to sell
Slide 3: FLEX LNG – The Elevator Speech
FLEX LNG – The Elevator Speech FLEX LNG LTD was founded in 2006 with the objective of commercialising the world’s first floating liquefaction unit Heads of Agreement with Mitsubishi Corporation and Peak Petroleum for the world’s first floating liquefaction project signed on 09 June 2008 Heads of Agr
Slide 4: Company Overview
Company Overview Registered on the Norwegian OTC market since April 2007. K-Line is the largest shareholder with a 15% equity stake A market capitalisation of approximately USD 0.8 billion. The company is currently debt free. Equity has been raised in three transactions: USD 50 million in March 2007
Slide 5: Share Price and Top Shareholder
Share Price and Top 20 Shareholder Share price since April 2008 Top 20 shareholders Account 75.0 1,400,000 Rank type Shareholder Number of shares (%) FLNG.OTC 1 NOM MORGAN STANLEY & CO. INC. 16,046,676 15.7 1,200,000 2 KAWASAKI KISEN KASHAI LTD 15,353,744 15.0 65.0 3 NOM UBS AG, LONDON BRANCH 10,413
Slide 6: Market Potential – Floating LNG Solutions
Market Potential – Floating LNG Solutions Realising the World’s First Floating LNG Producers Summary
Slide 7: FLEX LNG Provides the LNG Industry With What it Needs
FLEX LNG Provides the LNG Industry With What it Needs - LNG shipping and regasification will suffer until more LNG supply is brought online LNGLNG VALUE CHAIN Value chain Gas Supply Liquefaction LNG Shipping Regasification The world is running out Construction costs for The LNG industry is long Worl
Slide 8: LNG Supply is Key Industry Bottleneck
LNG Supply is Key Industry Bottleneck - Increased costs and the financial turmoil has resulted in FIDs have ground to a halt New paradigm for the LNG industry Number of FIDs have ground to halt since 2005 2000 30% 1800 Gladstone- Santos city (2014) 25% 1600 Angola action capac 2001-2008 (2013) 1400
Slide 9: China and India - Emerging Giants in the Global LNG Market
China and India - Emerging Giants in the Global LNG Market China and India will together account for 45% of Projected Gas Demand the increase in world energy demand through to 9000 2030 8000 China and India may have 19 and 10 operating LNG 7000 import terminals respectively by 2013 6000 5000 Bcf Chi
Slide 10: But Enormous Gas Resources Left Stranded
But Enormous Gas Resources Left Stranded - Target markets (Asia-Pacific/Africa) with 150 tcf resource base (~2,000 vessel years) Stranded gas fields with resources between 0.3Tcf and 1.5Tcf FLEX LNG target regions Note: Including fields between 0.3 and 1.5 Tcf - Not all of these fields addressable f
Slide 11: Realising the World’s First Floating LNG Producers
Market Potential – Floating LNG Solutions Realising the World’s First Floating LNG Producers Summary
Slide 12: FLEX LNG in Pole Position
FLEX LNG in Pole Position - Proven technology, early delivery and low cost are key success factors Technical Commercial 4 firm turn key SBCs secured 2 to 3 years Well developed business model Further optional units available ahead of emphasised on attracting financing LOI for turn key EPCIC signed c
Slide 13: The Only Player With FLNG Orders Placed
The Only Player With FLNG Orders Placed - 2 to 3 years ahead of competition FLEX LNG is the only company with firm orders for FLNG units Firm SBCs for FLEX Producer Hulls Turn key EPCIC contract expected very shortly (LOI signed in July 2008) Secured longest lead items If firm construction contracts
Slide 14: Firm Contract for Turn Key EPCIC Expected Shortly
Firm Contract for Turn Key EPCIC Expected Shortly - Very confident on previously communicated CAPEX of USD 550 – 700 / tonne per year General arrangements Generic and field specific topside modules 14
Slide 15: Extensive Development Work
Extensive Development Work Main studies executed / ongoing Pre-engineering work undertaken for increased capacity topside design (1.7 mtpa), including field specific topside equipment Pre-engineering work conducted by Topsides bidders 2 parallel FEED studies until EPCIC contract awarded in June 2008
Slide 16: Addressing the Industry’s Main Concerns
Addressing the Industry’s Main Concerns - Extensive side-by-side offloading development work completed and ongoing Preliminary numerical modelling at Marintek: Completed Mooring line material selection report: Completed Side by Side mooring arrangement drawings: Completed DRAFT Berthing Procedures:
Slide 17: Comprehensive Side-By-Side Model Testing Campaign Completed
Comprehensive Side – By – Side Model Testing Campaign Completed 17
Slide 18: Strong Commercial Progress
Strong Commercial Progress Current status 1 HoA signed 9 June 2008 2 HoA signed 11 June 2008 (Mitsubishi Corporation and Peak Petroleum) (Rift Oil Plc) FLEX LNG, Mitsubishi and Peak Petroleum sign HoA to HoA with Rift Oil for a floating liquefaction project jointly develop and market one of the worl
Slide 19: Strong Financial Backing and Continuous Focus on Debt Financeability
Strong Financial Backing and Continuous Focus on Debt Financeability Financing an LNG liquefaction project (offshore or onshore) is not the same as financing a crude carrier or even an oil FPSO The company has raised a total of USD 570 million in equity over the last 18 months and is currently debt
Slide 20: Developing a World Class FLNG Organisation
Developing a World Class FLNG Organisation Recent organisational changes and hires Organisational overview Newbuilding team headed by Patrick Janssens (former Executive CTO of Exmar) management Concept development headed by Fredrik Savio 3 persons (former FPSO project interface manager for Chevron a
Slide 21: Project Execution has the Highest Priority
Project Execution has the Highest Priority A dedicated project execution team established for the ongoing newbuilding programme FLEX LNG HSE, HR and support functions Bernhard Schulte Ship Management Project Steering committee Head of Project Management Support •Senior Management in Newbuilding FLEX
Slide 22: Summary
Market Potential – Floating LNG Solutions Realising the World’s First Floating LNG Producers Summary
Slide 23: Summary
Summary First project is on-track for first LNG in 2011 Earmarked for West Africa in partnership with Peak Petroleum Off-taker selected: HOA with Mitsubish Corp. as an integrated partner Topsides EPC(IC) awarded Thorough assessment of LNG Producer design > 25 companies visited our data-room, includi
Slide 24: Summary (Cont’d)
Summary (Cont’d) FLEXible LNG supply solution Redeployment / second life Economic threshold at 500 BCF vs 6-8 TCF for onshore liquefaction projects Easily adapted to field specifics Utilisation of existing construction and operation experiences Shipbuilding procedures and experiences Topsides constr
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