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30, 2021.
Highlights:
- Revenues of $81.8 million for the third quarter 2021, compared to $65.8
million for the second quarter 2021.
- Net income of $32.8 million and earnings per share of $0.62 for the third
quarter 2021, compared to net income of $12.7 million and earnings per share
of $0.24 for the second quarter 2021.
- Average Time Charter Equivalent(1) (“TCE”) rate of $68,341 per day for the
third quarter 2021, compared to $57,780 per day for the second quarter 2021.
- Adjusted EBITDA(1) of $64.5 million for the third quarter 2021, compared to
$46.8 million for the second quarter 2021.
- Adjusted net income(1) of $32.0 million for the third quarter 2021, compared
to $15.7 million for the second quarter 2021.
- Adjusted basic and diluted earnings per share(1) of $0.60 for the third
quarter 2021, compared to $0.29 for the second quarter 2021.
- In November 2021, the Company announced time charter agreements with an
international energy major for the attractive long term fixed rate time
charter for two vessels, Flex Resolute and Flex Courageous, with a firm
period of three years and options for an additional four years on each
vessel. The charters will commence in the first quarter 2021.
- The Company has now secured attractive long-term time charters with a mixed
portfolio of market rate and fixed rate contracts and at the date of this
report, our Fleet has an aggregate of 33 years firm periods and with
charterer’s options this could extend to over 69 years, if declared.
- During the third quarter we purchased 152,656 treasury shares and to date we
have repurchased 980,000 shares at an aggregate cost of $9.4 million, or
$9.64 per share, in accordance with the share buy-back program.
- In November 2021, the Company signed a sale and charterback agreement for
the vessel, Flex Volunteer, resulting in net proceeds to the Company of
approximately $37.7 million.
- The Company declared a dividend for the third quarter of $0.75.
Øystein M Kalleklev, CEO of Flex LNG Management AS, commented:
"We are pleased to announce another strong quarterly report with revenues for
the third quarter of $82 million in line with our guidance of approximately $80
million. In the fourth quarter, we will also be handsomely rewarded for
maintaining a 30 per cent exposure to the spot market as the spot market is
currently on at all time highs. Hence, we are consequently lifting our revenue
estimate for the fourth quarter from previously guided $85 to $100 million to
about $110 million, thus further improving earnings in the near term.
We have also recently secured another two attractive Time Charters which will
further add to our growing backlog while de-risking our portfolio. Since April,
we have secured long term fixed hire employment for eight of our ships, with
charterers option for a ninth vessel next year, in line with our communicated
strategy of securing high margin revenue backlog once the market has improved.
Our firm contract backlog is now about 33 years with a further 36 years of
optional backlog. This highlights the attractiveness of owning and operating
highly efficient ships with significantly lower carbon footprint than the older
generation ships.
Given our healthy earnings, positive outlook and super-strong financial position
the Board has therefore decided to lift our quarterly dividend level from $0.40
per share to $0.75 per share, which provides our shareholders with a compelling
yield of approximately 14 per cent."
Third Quarter 2021 Result Presentation
In connection with the earnings release, a webcast and conference call will be
held at 15:00 CET (9:00 a.m. EST). In order to attend the webcast and/or
conference call you may do one of the following:
Attend by Webcast:
Use to the follow link prior to the webcast: https://edge.media-
server.com/mmc/p/hp8mpf3s
Attend by Conference Call:
Applicable dial-in telephone numbers are as follows:
Norway: +47 210 33 922
United Kingdom: +44 (0) 203 0095 709
United Kingdom (local): 0844 493 6766
United States, New York: +1 646 787 1226
United States: +1 866 280 1157
Confirmation Code: 8217249
The presentation material which will be used in the teleconference/webcast can
be downloaded on www.flexlng.com (http://www.flexlng.com) and replay details
will also be available at this website.
For further information, please contact:
Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: IR@flexlng.com
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 our 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 length and severity of
the COVID-19 outbreak and its impact on the LNG tanker market, the impact of
public health threats and outbreaks of other highly communicable diseases,
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,
potential liability from pending or future litigation, general domestic and
international political conditions, potential disruption of shipping routes due
to accidents 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.
(1) Time Charter Equivalent rate, Adjusted EBITDA, Adjusted net income/(loss)
and Adjusted earnings/(loss) per share are non-GAAP measures. A reconciliation
to the most directly comparable GAAP measure is included in the end of this
earnings report.
Kilde
