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Flex LNG Ltd. (âFlex LNGâ or the âCompanyâ) today announced its unaudited
financial results for the three months ended March 31, 2025.
Highlights:
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Vessel operating revenues of $88.4 million for the first quarter 2025,
compared to $90.9 million for the fourth quarter 2024.
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Net income of $18.7 million and basic earnings per share of $0.35 for the
first quarter 2025, compared to net income of $45.2 million and basic earnings
per share of $0.84 for the fourth quarter 2024.
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Average Time Charter Equivalent (âTCEâ) rate of $73,891 per day for the first
quarter 2025, compared to $75,319 per day for the fourth quarter 2024.
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Adjusted EBITDA of $65.6 million for the first quarter 2025, compared to $68.7
million for the fourth quarter 2024.
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Adjusted net income of $29.4 million for the first quarter 2025, compared to
$30.8 million for the fourth quarter 2024.
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Adjusted basic earnings per share of $0.54 for the first quarter 2025,
compared to $0.57 for the fourth quarter 2024.
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In March 2025, Flex Constellation was re-delivered from the existing time
charter contract and was employed in the short-term market, until the
commencement of a 15-year time charter contract during the first or second
quarter of 2026.
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In April 2025, the charterer of Flex Artemis elected not to exercise the
option under the time charter. The vessel is expected to be re-delivered from
the original 5-year variable hire contract in the third quarter of 2025.
Following the re-delivery, Flex Artemis will perform her scheduled dry-docking
and subsequently will be marketed for short and long-term contracts.
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In May 2025, we received a credit approved term sheet for a $175.0 million, 10
-year sale and leaseback with an Asian-based lease provider for Flex Courageous.
The refinancing will repay the outstanding amount relevant to Flex Courageous,
under the $330 Million Sale and Leaseback.
-
In May 2025, the Company announces that it has initiated the process of
refinancing the vessels Flex Resolute and Flex Constellation, aiming to free up
liquidity, reduce the cost of debt and extend the debt maturities. The Company
aims to secure commitments and conclude the new financings during the second
half of 2025
-
In May 2025, at the 2025 Annual General Meeting of Shareholders (AGM), the
Companyâs shareholders approved the delisting of the Companyâs common shares
from the Oslo Stock Exchange (OSE) and authorised the Board of Directors to take
steps to implement the delisting including filing an application to the OSE on
behalf of the Company.
-
In May 2025, the Company published its ESG report for 2024, its seventh
comprehensive and stand-alone sustainability report, which provides an
opportunity to reflect on the Companyâs ESG journey thus far.
-
The Company declared a dividend for the first quarter 2025 of $0.75 per share.
The dividend is payable on or about June 20, 2025 to shareholders, on record as
of June 6, 2025.
Marius Foss, Interim CEO of Flex LNG Management AS, commented:
"Flex LNG delivered solid results for the first quarter, with revenues of $88.4
million, or $86.8 million excluding EUAs. Net income came in at $18.7 million,
translating to earnings per share (EPS) of $0.35 and adjusted net income came in
at $29.4 million, or $0.54 per share. As expected, revenue decreased by $3
million compared to Q4 2024 primarily due to lower earnings from Flex Artemis,
operating on a variable index hire. Additionally, Flex Constellation was
redelivered at the end of February and commenced a new spot voyage in late
March. Flex Constellation is expected to remain in the spot market until she
begins a 15-year time charter in H1 2026.
Flex Artemis has been on a 5-year Time Charter and will be redelivered in Q3
-2025, after which she will undergo her 5-year special survey drydocking. With
her full reliquefaction system, she is highly attractive for charterers on long
-term Time Charters.
Late last year, we strengthened our earnings foundation by securing up to 37
years of new contract backlog for Flex Constellation, Flex Courageous and Flex
Resolute. As a result, our total minimum firm backlog now stands at 59 years,
with the potential to expand to 88 years through charterersâ extension options.
This provides strong earnings visibility going forward.
Following these contract additions we see opportunities for attractive
refinancings. Today we announce that we have received a credit approved term
sheet for a $175m sale and leaseback at very attractive terms for the
refinancing of Flex Courageous. We also announce that we have initiated the
process of refinancing the Flex Resolute and Flex Constellation, aiming to free
up liquidity, reduce cost of debt and extend debt maturities.
We see increasing momentum in the US LNG sector, evidenced by Woodsideâs FID on
the Louisiana LNG project. This positive news flow signals a wave of upcoming
liquefaction capacity. These new projects are expected to come on stream just as
some of our vessels conclude their existing charters, creating an ideal
opportunity to re-contract.
Today, we are pleased to release our 2024 ESG Report - the seventh edition since
our inaugural report in 2018. We are proud to report a Lost Time Injury
Frequency (LTIF) of zero, which is a testament to our relentless focus on health
and safety. We encourage readers to explore the report to understand our
continuous commitment to sustainability.
With solid earnings, substantial backlog and our strong balance sheet with $410
million of cash and no debt maturities prior to 2028, the Board is pleased to
announce another quarterly dividend per share of $0.75. This is equal to a
quarterly dividend pay-out of approximately $41 million. Therefore, we have paid
trailing twelve months dividends of $3.0 per share, giving our investors a
running yield of about 12 per cent. This is our fifteenth ordinary quarterly
dividend of $0.75, and when adding the special dividends we will have paid out
approximately $650 million since Q4-2021."
First Quarter 2025 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 watch the webcast, use the following link:
First Quarter 2025 Earnings Presentation (https://flexlng.com/webcasts/2025/q1)
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.
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 âbelieve,â
âexpect,â âforecast,â âanticipate,â âaim,â âcommit,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 restrictions on
trade, including the imposition of new tariffs, port fees and other
import restrictions by the United States on its trading partners and the
imposition of retaliatory tariffs by China and the European Union on the United
States, 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, potential cybersecurity or other privacy threats and data security
breaches, 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
