Author: Petter Eng
August 14, 2024
Hamilton, Bermuda
Flex LNG Ltd. (“Flex LNG” or the “Company”) today announced its unaudited financial results for the six months ended June 30, 2024.
Highlights:
* Vessel operating revenues of $84.7 million for the second quarter 2024, compared to $90.2 million for the first quarter 2024.
* Net income of $21.8 million and basic earnings per share of $0.41 for the second quarter 2024, compared to net income of $33.2 million and basic earnings per share of $0.62 for the first quarter 2024.
* Average Time Charter Equivalent (“TCE”) rate of $72,385 per day for the second quarter 2024, compared to $76,539 per day for the first quarter 2024.
* Adjusted EBITDA of $63.2 million for the second quarter 2024, compared to $70.6 million for the first quarter 2024.
* Adjusted net income of $30.4 million for the second quarter 2024, compared to $37.9 million for the first quarter 2024.
* Adjusted basic earnings per share of $0.56 for the second quarter 2024, compared to $0.70 for the first quarter 2024.
* In April 2024 and May 2024, we successfully completed our scheduled drydocking for Flex Constellation and Flex Courageous, respectively, on-time and on-budget.
* In April 2024, the charterer of Flex Endeavour exercised an option to extend the time charter by 500 days from the Q3 2030 to Q1 2032.
* In May 2024, Flex Constellation commenced a time charter with a large Asian utility and asset backed LNG trader. The charter has a firm period ending at the end of Q1 2025 and the charterer has the option to extend by an additional one year to the end of Q1 2026.
* In July 2024, we received credit-approved term sheets for a six-year $270 million term and revolving credit facility. The refinancing will repay the full amount outstanding under the existing tranches of the $375 Million Facility, in respect of Flex Aurora and Flex Ranger.
* In July 2024, we also received credit-approved term sheets for a $160 million, ten-year sale and leaseback with an Asian-based lease provider for Flex Endeavour. Following the refinancing, the $375 Million Facility will be fully repaid.
* The Company declared a dividend for the second quarter 2024 of $0.75 per share. The dividend is payable on or about September 12, 2024 to shareholders, on record as of August 29, 2024.
Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
“Flex LNG’s second quarter came in as guided with revenues of $84.7 million, which was in line with our guidance of “close to $85 million”. The second quarter is generally the weakest quarter of the year, and this was also the case this year with spot earnings bottoming out during the first half of the quarter in line with the normal seasonal pattern. Seasonally low spot rates affected the quarterly earnings for Flex Artemis, our only ship on variable hire linked to the spot market, as well as Flex Constellation, which traded spot for a short period during April and May before she commenced a 10-month fixed hire Time Charter in May. This new Time Charter is this fixed until end of first quarter 2025 with the charterer having an option to extend her by one year until end of first quarter 2026. On the bottom line we delivered net income and adjusted net income of $21.8 million and $30.4 million respectively.
The seasonal slowdown in the market during the second quarter is also the reason why we put two ships in drydock during the quarter. During the quarter, we completed the five-year special survey of the sister ships Flex Constellation and Flex Courageous according to plan and budget. Both ships were back in operation during the quarter, and we have no more drydocking stays planned for the rest of the year. We expect our revenues to increase in the second half of the year due a new fixed hire contract for Flex Constellation, higher earnings for the ship with variable hire as spot rates have been picking up and the fact that we have no more scheduled off-hire for the year. For the third quarter, we therefore expect revenues to increase to approximately $90 million.
While we recently carried out a balance sheet optimization program, we haven’t stopped exploring ways to further optimize our balance sheet. Hence, we are today pleased to announce two new financing facilities. On the back of the recent charter extension of Flex Endeavour, we have secured an attractive $160 million sale and leaseback maturing in 2034. Additionally, we have secured a new $270 million bank loan for Flex Aurora and Flex Ranger which will mature in 2030. These two new facilities will refinance an existing $375m bank facility, subject to final documentation and customary closing conditions. The $375 million facility is our first scheduled debt maturity in Q2-2028. Hence, by refinancing this facility we have not only addressed our first debt maturity, but we have achieved lower cost of financing, extended debt maturity and repayment profile while at the same time raising net
cash proceeds of approximately $97 million.
At quarter-end, we had a healthy cash balance of $370m. Our pro-forma cash balance adjusted for this refinancing thus increase to a solid $467 million. The combination of a solid cash position, high degree of earnings visibility with minimum 47 years of firm backlog which may grow to 66 years if charterers utilize their extension options, improved earnings outlook for the second half of the year and the positive long-term outlook for the LNG market all contribute to Flex LNG being well positioned and this is reflected in our dividend. For the second quarter, the Board has declared a dividend of $0.75 per share. The trailing twelve months dividend is thus $3.125 per share which gives our investors an attractive dividend yield of approximately 12 per cent per annum.”
Second Quarter 2024 Result Presentation
In connection with the earnings release, a video webcast will be held at today 15:00 CEST (09:00 a.m. EST).
In order to attend the live video webcast use the following link:
Second Quarter 2024 Earnings Presentation
A Q&A session will be held after the webcast. Information on how to submit questions will be given at the beginning of the session.
In conjunction with the quarterly results, we have published a short teaser with the highlights of the second quarter. The video can be accessed through the following link:
The presentation material which will be used in the live video webcast can be downloaded on www.flexlng.com and replay details will also be available at this website.
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbour protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbour provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in
connection with this safe harbour legislation. The words “believe,” “expect,” “forecast,” “anticipate,” “estimate,” “intend,” “plan,” “possible,” “potential,” “pending,” “target,” “project,” “likely,” “may,” “will,” “would,” “should,” “could” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. As such, these forward-looking statements are not guarantees of the Company’s future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. The Company undertakes no obligation, and specifically declines any
obligation, except as required by applicable law or regulation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the effect of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include: unforeseen liabilities, future capital expenditures, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the LNG tanker market, the impact of public health threats, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, the fuel efficiency of the Company’s vessels, the market for the Company’s vessels, availability of financing and refinancing, ability to comply with covenants in such financing arrangements, failure of counterparties to fully
perform their contracts with the Company, changes in governmental rules and regulations or actions taken by regulatory authorities, including those that may limit the commercial useful lives of LNG tankers, customers’ increasing emphasis on environmental and safety concerns, potential liability from pending or future litigation, general domestic and international political conditions or events, including the war between Russia and Ukraine, as well as the developments in the Middle East, including continued conflicts between Israel and Hamas and the conflict regarding the Houthi attack in the Red Sea, business disruptions, including supply chain disruption and congestion, due to natural or other disasters or otherwise, potential physical disruption of shipping routes due to accidents, climate-related incidents, or political events, vessel breakdowns and instances of off-hire, and other factors, including those that may be described from time to time in the reports and other documents that the
Company files with or furnishes to the U.S. Securities and Exchange Commission (“Other Reports”). For a more complete discussion of certain of these and other risks and uncertainties associated with the Company, please refer to the Other Reports.
Hamilton, Bermuda
August 5, 2024
Flex LNG Ltd (“Flex LNG” or the “Company”) will release its unaudited financial results for the second quarter of 2024 on Wednesday August 14, 2024, on or about 07:00 CEST (1:00 a.m. EST).
In connection with the earnings release, a live video webcast will be held at 15:00 CEST (9:00 a.m. EST) on the same day. In order to attend, use the following link to register and watch the webcast:
Link to register and watch webcast
We encourage listeners to register for the webcast 5-10 minutes prior to start. A Q&A session will be held after the presentation. Information on how to submit questions will be given at the beginning of the presentation. You can also submit questions by sending an email to ir@flexlng.com.
The presentation material which will be used will be made available on www.flexlng.com and a replay of the webcast will also be made available at this website, as well as on the Flex LNG YouTube channel.
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
About Flex LNG
Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG). Our fleet consists of thirteen LNG carriers on the water and all of our vessels are state-of-the-art ships with the latest generation two-stroke propulsion (MEGI and X-DF). These modern ships offer significant improvements in fuel efficiency and thus also carbon footprint compared to the older steam and four-stroke propelled ships. Flex LNG is listed on the New York Stock Exchange as well as Oslo Stock Exchange under the ticker FLNG. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
May 23, 2024
Hamilton, Bermuda
Flex LNG Ltd. (“Flex LNG” or the “Company”) today announced its unaudited financial results for the three months ended March 31, 2024.
Highlights:
* Vessel operating revenues of $90.2 million for the first quarter 2024, compared to $97.2 million for the fourth quarter 2023.
* Net income of $33.2 million and basic earnings per share of $0.62 for the first quarter 2024, compared to net income of $19.4 million and basic earnings per share of $0.36 for the fourth quarter 2023.
* Average Time Charter Equivalent (“TCE”) rate of $76,539 per day for the first quarter 2024, compared to $81,114 per day for the fourth quarter 2023.
* Adjusted EBITDA of $70.6 million for the first quarter 2024, compared to $76.2 million for the fourth quarter 2023.
* Adjusted net income of $37.9 million for the first quarter 2024, compared to $37.8 million for the fourth quarter 2023.
* Adjusted basic earnings per share of $0.70 for the first quarter 2024, compared to $0.70 for the fourth quarter 2024.
* In January and February 2024, the charterer of Flex Resolute and Flex Courageous declared their first options, under the time charters, to extend the firm period of each by an additional two years to Q1 2027. The charterer has one further option on each vessel, which would extend the firm contract period to Q1 2029.
* In April 2024, we successfully completed our scheduled drydocking for Flex Constellation on-time and on-budget. Flex Courageous is scheduled to complete her drydocking on-time and on-budget by end of May 2024.
* In April 2024, the charterer of Flex Endeavour exercised an option to extend the time charter by 500 days from the third quarter of 2030 to the first quarter of 2032.
* In May 2024, Flex Constellation commenced a time charter with a large Asian utility and asset backed LNG trader. The charter has a firm period ending in end of Q1 2025 and an option to extend by an additional one year to end of Q1 2026.
* The Company declared a dividend for the first quarter 2024 of $0.75 per share. The dividend is payable on or about June 21, 2024 to shareholders, on record as of June 10, 2024.
Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
“Flex LNG’s first quarter results came in as expected with Revenues of $90.2 million in line with guidance of approximately $90 million. Hence, we are delivering a Net Income of $33.2 million and Earnings per Share of $0.62. Our adjusted numbers, where we primarily adjust for unrealized gains and/or losses on derivatives, were higher with adjusted Net Income of $37.9 million equal to an adjusted Earnings per Share of $0.70.
Revenues came in $7 million lower than during the fourth quarter of 2023, but this was as expected as we recorded lower earnings on the single ship, Flex Artemis, on a variable hire rate, Flex Artemis. The fourth quarter is typically the peak of the LNG freight market, so we tend to generate higher earnings for this ship during this quarter compared to first quarter. Additionally, we took one ship, Flex Constellation, out of service for scheduled drydocking. That said, the Revenues were in line with the Revenues achieved in the first quarter of 2023 for very much the same reasons.
During the year we are pleased to have added substantial backlog through three different charter extensions. The Time Charter agreements for Flex Resolute and Flex Courageous have both been extended from first quarter of 2025 to the first quarter of 2027. The charterer, which is a supermajor, also has an additional option to extend both ships by another two-year period until first quarter of 2029. We also added 500 days to the existing Time Charter for Flex Endeavour with Cheniere, extending the firm period from third quarter of 2030 to first quarter of 2032.
On top of that, we secured a 10 months’ Time Charter for Flex Constellation until end of first quarter 2025 where the charterer has the option to extend this ship by one additional year until end of first quarter 2026. Flex Constellation was redelivered from a Time Charter to us in March and we then elected to carry out the five-year special survey of the ship before putting her into the spot market. However, as communicated in our fourth quarter report in February, we expected somewhat more challenging freight market near term due to the glut of newbuilding deliveries. Hence, we deemed it more attractive for us to charter-out the ship until 2025 possibly to 2026 rather than trading her in the spot market given the numerous ships currently engaged in this trade.
In total we have thus added 6.2 years of new backlog so far this year while we have consumed slightly less than five years from existing contracts which means we have continued to add incremental backlog with the firm backlog currently at 50 years which may increase to 69 years in the event the charterers are utilizing all of their extension options. This attractive backlog gives us a very high level of earnings visibility and also insulate us against any near-term market weakness. Given our backlog of an average of four years per ship, our ships will come open in a window where we consider the market balance to be significantly more favorable as the third wave of LNG is coming on stream from end of 2025 onwards. Furthermore, we also expect a substantial uptick in scrapping of older steam tonnage, which are becoming commercially obsolete, and this will further improve market fundamentals.
Given the solid earnings, the substantial backlog and our strong balance sheet with $383 million of cash and no debt maturities prior 2028, the Board is pleased to announce another quarterly dividend per share of $0.75 equal to a quarterly dividend pay-out of approximately $40 million. This means that we have paid trailing twelve months dividends of $3.125 per share which gives our investors a running yield of about 11 per cent. During the last three years, the total dividend declared and paid has thus grown to $510 million.”
First Quarter 2024 Result Presentation
In connection with the earnings release, a video webcast will be held at today 15:00 CEST (09:00 a.m. EST).
In order to attend the live video webcast use the following link:
First Quarter 2024 Earnings Presentation
A Q&A session will be held after the webcast. Information on how to submit questions will be given at the beginning of the session.
In conjunction with the quarterly results, we have published a short teaser with the highlights of the first quarter. The video can be accessed through the following link:
The presentation material which will be used in the live video webcast can be downloaded on www.flexlng.com and replay details will also be available at this website.
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “expect,” “forecast,” “anticipate,” “estimate,” “intend,” “plan,” “possible,” “potential,” “pending,” “target,” “project,” “likely,” “may,” “will,” “would,” “should,” “could” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. As such, these forward-looking statements are not guarantees of the Company’s future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. The Company undertakes no obligation, and specifically declines any obligation, except as required by applicable law or regulation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the effect of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include: unforeseen liabilities, future capital expenditures, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the LNG tanker market, the impact of public health threats, changes in the Company’s operating expenses, including bunker prices, dry-docking and insurance costs, the fuel efficiency of the Company’s vessels, the market for the Company’s vessels, availability of financing and refinancing, ability to comply with covenants in such financing arrangements, failure of counterparties to fully perform their contracts with the Company, changes in governmental rules and regulations or actions taken by regulatory authorities, including those that may limit the commercial useful lives of LNG tankers, customers’ increasing emphasis on environmental and safety concerns, potential liability from pending or future litigation, general domestic and international political conditions or events, including the war between Russia and Ukraine, as well as the developments in the Middle East, including continued conflicts between Israel and Hamas and the conflict regarding the Houthi attack in the Red Sea, business disruptions, including supply chain disruption and congestion, due to natural or other disasters or otherwise, potential physical disruption of shipping routes due to accidents, climate-related incidents, or political events, vessel breakdowns and instances of off-hire, and other factors, including those that may be described from time to time in the reports and other documents that the Company files with or furnishes to the U.S. Securities and Exchange Commission (“Other Reports”). For a more complete discussion of certain of these and other risks and uncertainties associated with the Company, please refer to the Other Reports.
Hamilton, Bermuda
October 25, 2023
Flex LNG Ltd (“Flex LNG” or the “Company”) will release its unaudited financial results for the third quarter of 2023 on Wednesday November 8, 2023, on or about 07:00 CET (1:00 a.m. EST).
In connection with the earnings release, a live video webcast will be held at 15:00 CET (9:00 a.m. EST) on the same day. In order to attend, use the following link to register and watch the webcast:
Link to register and watch webcast
We encourage listeners to register for the webcast 5-10 minutes prior to start. A Q&A session will be held after the presentation. Information on how to submit questions will be given at the beginning of the presentation. You can also submit questions by sending an email to ir@flexlng.com.
The presentation material which will be used will be made available on www.flexlng.com and a replay of the webcast will also be made available at this website, as well as on the Flex LNG YouTube channel.
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
About Flex LNG
Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG). Our fleet consists of thirteen LNG carriers on the water and all of our vessels are state-of-the-art ships with the latest generation two-stroke propulsion (MEGI and X-DF). These modern ships offer significant improvements in fuel efficiency and thus also carbon footprint compared to the older steam and four-stroke propelled ships. We have built up a significant contract backlog, having fixed 12 of our 13 vessels on long term fixed-rate charter contracts and one vessel on variable hire time charter. Flex LNG is listed both on the New York Stock Exchange (NYSE) and Oslo Stock Exchange (OSE) under the ticker “FLNG”. For more information, go to: www.flexlng.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.