#financial results #Flex LNG #Bermuda #Hamilton #LNG Shipping

Flex LNG Reports Strong Financial Results for Fourth Quarter 2024

Flex LNG Ltd., a key player in the LNG shipping sector, has unveiled its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company's financial performance reflects robust operational metrics, signaling resilience despite the prevailing market challenges.

Financial Performance Highlights

For the final quarter of 2024, Flex LNG reported vessel operating revenues totaling $90.9 million, a slight increase from $90.5 million in Q3. This uplift includes $1.4 million in revenue from the European Union Emissions Trading System (EU ETS), which has been appropriately accounted for under Voyage Expenses.

The company achieved a net income of $45.2 million, translating to a basic earnings per share of $0.84, marking a significant rise compared to $17.4 million net income and earnings per share of $0.32 in the preceding quarter. The average Time Charter Equivalent (TCE) rate for the fleet was $75,319 per day, slightly below the previous quarter's $75,426.

In terms of adjusted EBITDA, Flex LNG generated $68.7 million, down from $70.4 million in Q3, while adjusted net income increased to $30.8 million, up from $28.7 million, showcasing continued profitability. The adjusted earnings per share also improved to $0.57 from $0.53.

Strategic Financial Maneuvers

Flex LNG executed several strategic financial maneuvers during 2024. Notably, the company finalized a new $160 million JOLCO lease for the Flex Endeavour, part of a larger financing strategy that raised net proceeds of approximately $97 million. Additionally, an amendment to the Flex Enterprise facility converted a substantial loan tranche into a revolving credit facility, enhancing the company's financial agility with an increased revolving credit capacity of $413.7 million.

The company also secured extended time charters for Flex Courageous and Flex Resolute, adding a possible 10-year charter extension from 2029, alongside a new 15-year charter agreement for Flex Constellation set to commence in mid-2026.

Dividend Declaration

In alignment with its strong financial results, Flex LNG has declared a quarterly dividend of $0.75 per share, set to be paid by March 5, 2025, to shareholders on record by February 20, 2025. This marks the fourteenth consecutive quarter of maintaining this dividend rate, demonstrating the company's commitment to return capital to its investors amidst fluctuating market conditions.

Outlook and Preparing for Challenges

Looking ahead, the LNG shipping market faces challenges due to anticipated ship deliveries and increased export capacity. However, Flex LNG is well-positioned with a secured charter backlog of 62 years, which could extend further if all options are exercised. The management believes that current market conditions may resemble the period of 2014 to 2017, but with key differences, including an expected surge in the demolition of older vessels.

CEO Øystein M. Kalleklev expressed confidence in the company's financial outlook for 2025, projecting it to align closely with 2024's performance due to proactive management strategies and a fortress balance sheet built during the market's upturn from 2021 to 2023.

Flex LNG’s ability to navigate through market fluctuations while securing long-term charters underscores its strategic planning and operational efficiency. The management remains optimistic about sustaining strong financial metrics despite the complex dynamics of LNG shipping that are anticipated in the years to come, underscoring a blend of operational strength and strategic foresight.

For further details or inquiries, please refer to the official release or visit Flex LNG's website.