Value Investor's Edge Live #9: Flex LNG's CEO On The State Of The LNG Shipping Market
Oystein Kalleklev, CEO of Flex LNG (FLNG), joined Value Investor's Edge live to discuss the overall LNG shipping markets, US-China potential, and IMO 2020 impacts. We discussed the various types of vessel propulsion technology, reviewed their capital allocation priorities, and pressed their charter vs. spot strategy. This conversation is relevant for anyone with interests in the LNG sector including GasLog (GLOG), GasLog Partners (GLOP), Golar LNG (GLNG), Golar LNG Partners (GMLP), and Teekay LNG Partners (TGP). Some of the US-China information might also be relevant for those interested in LNG export infrastructure including Cheniere Energy (LNG), Energy Transfer (ET), and Tellurian (TELL).
Topics Covered:
0:55 minute mark - Start of discussion- Market review: LNG sentiment now terrible?
3:25 - What market differentials exists between modern and older carriers?
7:15 - Precisely what sort of premium can investors expect to see?
8:45 - Any clear impacts or benefits from the US-China 'Phase 1 Deal'?
12:55 - Do steam propulsion LNG carriers have a future?
16:25 - Any major new technologies on the horizon? 2030 carbon reduction?
21:25 - What about TFDE propulsion? Is there a clear future for these?
25:10 - Are there any direct impacts coming from IMO 2020 regulations?
29:50 - Are you planning to increase your charter coverage into 2020?
34:45 - What are your capital allocation priorities with extra free cash?
39:15 - Will dividends be closely tied to earnings going forward?
Topics Covered:
0:55 minute mark - Start of discussion- Market review: LNG sentiment now terrible?
3:25 - What market differentials exists between modern and older carriers?
7:15 - Precisely what sort of premium can investors expect to see?
8:45 - Any clear impacts or benefits from the US-China 'Phase 1 Deal'?
12:55 - Do steam propulsion LNG carriers have a future?
16:25 - Any major new technologies on the horizon? 2030 carbon reduction?
21:25 - What about TFDE propulsion? Is there a clear future for these?
25:10 - Are there any direct impacts coming from IMO 2020 regulations?
29:50 - Are you planning to increase your charter coverage into 2020?
34:45 - What are your capital allocation priorities with extra free cash?
39:15 - Will dividends be closely tied to earnings going forward?
Activity