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Flex LNG Ltd. (âFlex LNGâ or the âCompanyâ) today announced its unaudited
financial results for the three months and year ended December 31, 2024.
Highlights:
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Vessel operating revenues of $90.9 million for the fourth quarter 2024,
compared to $90.5 million for the third quarter 2024. The fourth quarter 2024
include $1.4 million in EU ETS revenue. An equivalent amount has been recorded
under Voyage Expenses for the period.
-
Net income of $45.2 million and basic earnings per share of $0.84 for the
fourth quarter 2024, compared to net income of $17.4 million and basic earnings
per share of $0.32 for the third quarter 2024.
-
Average Time Charter Equivalent (âTCEâ) rate of $75,319 per day for the fourth
quarter 2024, compared to $75,426 per day for the third quarter 2024.
-
Adjusted EBITDA of $68.7 million for the fourth quarter 2024, compared to
$70.4 million for the third quarter 2024.
-
Adjusted net income of $30.8 million for the fourth quarter 2024, compared to
$28.7 million for the third quarter 2024.
-
Adjusted basic earnings per share of $0.57 for the fourth quarter 2024,
compared to $0.53 for the third quarter 2024.
-
In October 2024, we closed the new $160 million JOLCO lease for Flex
Endeavour, and thereby completing the $430 million in new financings according
to plan with net proceeds of about $97 million.
-
In November 2024, we signed an amendment under the Flex Enterprise $150
million Facility to convert the non-amortizing term loan tranche of $83.7
million to a non-amortizing revolving credit facility. The Companyâs revolving
credit facility capacity therefore increased to $413.7 million in the fourth
quarter of 2024.
-
In November 2024, the charterer of Flex Courageous and Flex Resolute, agreed
to amend and extend by way of addendum to the existing time charters, to include
a new firm period from 2029 to 2032 following the last two-year option under the
original time charter contract. The addendum includes additional options for the
Charterer to extend each vessel by up to seven years in periods of two years,
two years and three years.
-
In November 2024, Flex Constellation signed a new time charter contract with a
large Asian utility and asset backed LNG trader for a period of 15 years. The
charter will commence during the first or second quarter of 2026, and has a firm
period ending in 2041. The contract includes options for the charterer to extend
the vessel by additional two years up to 2043.
-
The Company declared a dividend for the fourth quarter 2024 of $0.75 per
share. The dividend is payable on or about March 5, 2025 to shareholders, on
record as of February 20, 2025.
Ăystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
"We are pleased to deliver stellar financial performance for the fourth quarter
in line with our previous guidance. Our Time Charter Equivalent rate for the
fleet of $75,319/day was slightly ahead of guidance of $73-75,000/day. Adjusted
EBITDA was $68.7 million, also in line with guidance of close to $70 million. We
recorded substantial profits on our portfolio of interest rate swaps as we
increased our interest rate hedging significantly during the interest rate slump
at the beginning of September. During the fourth quarter, interest rates
rallied, and we therefore booked $20.1 million of gains on these derivatives of
which $5.1 million were realized during the quarter. Hence, adjusted net income
for the fourth quarter came in at $30.8 million, corresponding to earnings per
share and adjusted earnings per share of $0.84 and $0.57 respectively.
During 2024, and in the fourth quarter particularly, we were able to secure new
attractive backlog which will insulate us from the current market weakness. In
November, we announced extension of the Time Charters for Flex Courageous and
Flex Resolute where we added up to 10 years of new charter period for each ship
from 2029 onwards, in which the three first years are firm. During the first
quarter of 2024, the charterer also extended these time charters by two years
each from 2025 to 2027 with a further option to extend these two ships from 2027
to 2029, coinciding with the new charter period from 2029. Furthermore, in
December, we announced a new 15-year Time Charter for Flex Constellation from
2026 to 2041 where the charterer has the option to extend the ship up to 2043.
Flex LNG is thus very well positioned with 62 years of minimum charter backlog
equal to about five years of contract backlog per ship, on average. Furthermore,
this backlog may grow to 96 years in the event charterers utilize all their
extension options.
In the latter part of 2024, we also carried out some further optimization of our
balance sheet with two refinancings worth $430 million enabling us to raise net
cash proceeds of $97 million while at the same time both lowering our interest
costs and increasing our debt maturity profile. Additionally, we increased our
non-amortizing revolving credit facilities from $330 million to $414 million
which reduces the cost of having such on-demand credit accessible. As a result,
we closed the year with $437 million of cash-at-hand with first debt maturity in
2028.
The short to medium term outlook for LNG shipping is challenging given the
numerous ship deliveries ahead of ramped up new export capacity. As such, we
think 2024 to 2027 will probably resemble the period 2014 to 2017. There is one
key difference, we will likely see a sharp increase in the demolition of older,
less efficient tonnage, primarily steam tonnage which will prepare the ground
for improved markets, similar to what was experienced in 2017. In any case, Flex
LNG utilized the upturn in 2021 to 2023 well to build both a fortress balance
sheet and charter backlog and we are well prepared for the current weak market.
We are therefore guiding financial performance in 2025 to be in line with what
we achieved in 2024.
Our dividend is also steady with the Board once again declaring an ordinary
quarterly dividend per share of $0.75. This is our fourteenth ordinary quarterly
dividend of $0.75 per share and when adding the special dividends, we will have
paid out $610 million of dividends to our shareholders the last 3.5 years."
Fourth Quarter 2024 Result Presentation
In connection with the earnings release, a video webcast will be held at today
15:00 CET (09:00 a.m. EST).
In order to attend the live video webcast use the following link:
Fourth Quarter 2024 Earnings
Presentation (WN Event
hrQTOvYK)
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 fourth quarter. The video can be accessed through the
following link:
YouTube Link (https://www.youtube.com/watch?v=4kzV2WG11Ow)
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 âbelieve,â
âexpect,â âforecast,â âanticipate,â âestimate,â âintend,â âplan,â âpossible,â
âpotential,â âpending,â âtarget,â âproject,â âlikely,â âmay,â âwill,â âwould,â
âshould,â âcouldâ 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, managementâs examination of historical operating
trends, data contained in the Companyâs 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 Companyâs 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 Companyâs
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
Companyâs 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,
inflationary pressures and central bank policies intended to combat overall
inflation and rising interest rates and foreign exchange rates, 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 Companyâs operating expenses, including bunker prices, drydocking and
insurance costs, the fuel efficiency of the Companyâs vessels, the market for
the Companyâs 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, customersâ increasing
emphasis on environmental and safety concerns, potential liability from pending
or future litigation, global and regional economic and political conditions or
developments, armed conflicts, 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, trade wars, tariffs, embargoes and strikes, the impact of the U.S.
presidential and congressional election results affecting the economic, future
government laws and regulations and trade policy matters, such as the imposition
of tariffs and
other import restrictions, 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 (âOther Reportsâ). For a more
complete discussion of certain of these and other risks and uncertainties
associated with the Company, please refer to the Other Reports.
Kilde
