Oystein Kalleklev, CEO of Flex LNG Company, quoted the data of us energy information administration (eia) in the recent third quarter earnings conference call, saying that the output of LNG in the United States may increase by1.60 billion tons next year.
He said that for shipping, it is "crucial" for the United States to cancel the reduction of LNG orders, because when these goods are pulled to Asia, it usually means a long distance. Kalleklev said that about 180 batches of American LNG were cancelled this year.
Kalleklev said, "202 1 will be an exciting year for LNG transportation." Although about 50 new ships are expected to be delivered next year, new LNG may offset the expected surge in new LNG shipbuilding delivery next year.
He said that considering the new liquefaction and the liquefaction project to be restarted next year, Flex expects that the LNG will increase by about 26 million tons in 20021year.
Kalleklev said that the key factors driving spot freight will be winter weather and the mode of economic recovery.
He said that the signal from the futures market is that the price of natural gas will remain firm in the first quarter of 20021,which means that there should be no economic incentive to cancel a large number of freight orders this year.
"In view of the high inventory level (liquefied natural gas) and the huge ship orders delivered next year, we don't think 202 1 will be an easy task." But we are confident that our current situation is also very good, "he said, stressing that the company's fleet is very modern.
Kalleklev said that the company expects the total time charter rate to be $60,000 per day in 2020, which is much higher than the company's cash break-even point of $47,000 per day. He also said that Flex has booked about two-thirds of the available trading days in the first quarter of 202 1.
However, he added that it is too early to give guidance to TCE in this period.
Flex, led by John frederickson and John fredriksen, will complete the last three deliveries of its 13 new LNG ships in May 20021year.
Kalleklev said that the company originally planned to take over its new ship Flex Freedom with the volume of 1 1 at the end of this month, but now it has postponed the handover date to165438+ at the beginning of October. The CEO also said that the company is currently "actively promoting" Flex Freedom round to potential customers.
He said that Flex volunteers with 1.74 million cubic meters of coalbed methane have completed the sea trial and gas test, and can also be put into use at the same time, but it is planned to be handed over in February.
Kalleklev said that the delivery of Flex Warning Wheel 1.74 million cubic meters at the end of May will mean the completion of the company's new shipbuilding plan.
At present, there are six Flex ships operating on a regular basis, and the other four are operating in the spot market.
Talking about the shift change of seafarers under the epidemic situation, Kalkilev said that the crew was trapped as a "humanitarian crisis". He said that the company has launched a management plan to control isolation, detection and outbreak, and regularly holds video conferences with senior officials on board.
The CEO said that the company has achieved "impressive results". During May to 10, 93% of employees left their jobs on time according to the contract. He said that of the 7% overdue contracts, 20% were less than 30 days and the rest were less than 60 days.
Kalleklev said that Flex has implemented the Remote Ship Inspection Report Procedure (SIRE) twice to keep the certificate updated, because travel restrictions related to the epidemic situation make it difficult to achieve these. The company also carried out remote two-level inspection and management changes on two ships.