FLEX LNG Q4 2012 Financial Report

Road Town, Tortola, 25 February 2013. FLEX LNG (Oslo
Axess: FLNG) is pleased to announce that the Q4 2012
financial report was approved by the Board of
Directors on 22 February 2013.

In December 2012 the Company announced that it had
not reached agreement on the amount of capital to be
redeployed with Samsung. Given this the Company
requested that the remaining capital be refunded. The
refund amount requested was after credit being given
for costs properly and reasonably incurred by Samsung
on the Company's behalf. To date no refund has been
made, with Samsung disputing the Company's position
and arguing that no refund is due. Following the
completion of certain contractual requirements for
meetings between the parties' representatives prior
to the commencement of arbitration proceedings, the
Company has commenced the steps required to initiate
arbitration proceedings to secure the repayment of
the paid-in funds. The Company has appointed the
leading international law firm Pinsent Masons LLP to
assist in this regard.

In the 2011 statutory accounts, the Group recognised
an impairment write-down on the new build assets
under IAS 36 (Impairment of Assets), of $112.3m. IAS
37 (Provisions, Contingent Liabilities and Contingent
Assets) covers the recognition criteria and
measurement applied to contingent assets. It is the
view of the Company that the valuation basis for the
new building assets now falls within the definition
of a contingent asset, given the initiation of the
arbitration proceedings. Contingent assets are only
recognised where realisation is virtually certain.
Where the realisation of the asset is probable the
asset should not be recognised in the statement of
financial position. In Q4 2012 the new building
assets have therefore been written down by $285.0m.
The final valuation will either depend on the
arbitration process or a possible agreement between
the parties. Once the outcome of the position with
Samsung is virtually certain the resultant asset
value will be reinstated in the financial statements.
In addition a calculation of the recoverable amount
for the Topside capitalised costs has been completed
under IAS 36 and a further $16.4m impairment write
down has been incurred. Given the above the loss
before tax was $292.0m in the quarter and $298.7m
year to date, which includes the 2012 impairment
adjustment of $301.4m. Additional details are
contained in the Q4 report.