Flex LNG (Buy, TP: NOK22.30) - Currently little exposure to spot
Based on the current contract portfolio and options granted, FLEX LNG would only have two of four vessels in the spot market in Q1 2019e, out of a total of four delivered and 13 in total including ships on order. It would not have three vessels in the spot market until Q2 2019e, ahead of two further deliveries in H2 2019e. So while spot rates have appreciated considerably, its cash generation would not (yet) follow this path; thus long-term contracts (at new highs) should be catalysts for the stock price. BUY and NOK22.3 target price reiterated.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.