Flex LNG - Fourth Quarter 2024 Earnings Release
Flex LNG reported strong Q4 2024 financial results with vessel operating revenues of $90.9 million, up from $90.5 million in Q3. Net income significantly increased to $45.2 million ($0.84 per share) from $17.4 million ($0.32 per share) in Q3.
The company maintained a steady Time Charter Equivalent (TCE) rate of $75,319 per day and achieved adjusted EBITDA of $68.7 million. Notable developments include completing $430 million in new financings with $97 million net proceeds and expanding revolving credit facility capacity to $413.7 million.
Key achievements include extending time charters for Flex Courageous and Flex Resolute through 2032, and securing a new 15-year charter for Flex Constellation until 2041. The company declared a quarterly dividend of $0.75 per share, payable March 5, 2025.
Flex LNG ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con entrate operative da navi pari a 90,9 milioni di dollari, in aumento rispetto ai 90,5 milioni di dollari del terzo trimestre. Il reddito netto è aumentato significativamente a 45,2 milioni di dollari (0,84 dollari per azione) rispetto ai 17,4 milioni di dollari (0,32 dollari per azione) del terzo trimestre.
L'azienda ha mantenuto un tasso di Time Charter Equivalent (TCE) costante di 75.319 dollari al giorno e ha raggiunto un EBITDA rettificato di 68,7 milioni di dollari. Tra i principali sviluppi si annovera il completamento di 430 milioni di dollari in nuovi finanziamenti con proventi netti di 97 milioni di dollari e l'espansione della capacità della linea di credito revolving a 413,7 milioni di dollari.
Le principali realizzazioni includono l'estensione dei contratti di noleggio per Flex Courageous e Flex Resolute fino al 2032, e la sicurezza di un nuovo contratto di noleggio di 15 anni per Flex Constellation fino al 2041. L'azienda ha dichiarato un dividendo trimestrale di 0,75 dollari per azione, pagabile il 5 marzo 2025.
Flex LNG reportó resultados financieros sólidos para el cuarto trimestre de 2024, con ingresos operativos de buques de 90,9 millones de dólares, un aumento respecto a los 90,5 millones de dólares en el tercer trimestre. El ingreso neto aumentó significativamente a 45,2 millones de dólares (0,84 dólares por acción) desde 17,4 millones de dólares (0,32 dólares por acción) en el tercer trimestre.
La compañía mantuvo una tasa de Time Charter Equivalent (TCE) estable de 75.319 dólares por día y logró un EBITDA ajustado de 68,7 millones de dólares. Los desarrollos notables incluyen la finalización de 430 millones de dólares en nuevos financiamientos con 97 millones de dólares en ingresos netos y la expansión de la capacidad de la línea de crédito revolving a 413,7 millones de dólares.
Los logros clave incluyen la extensión de los contratos de fletamento para Flex Courageous y Flex Resolute hasta 2032, y la obtención de un nuevo contrato de fletamento de 15 años para Flex Constellation hasta 2041. La empresa declaró un dividendo trimestral de 0,75 dólares por acción, pagadero el 5 de marzo de 2025.
Flex LNG는 2024년 4분기 재무 실적이 강력하다고 보고하며, 선박 운영 수익이 9090만 달러로 Q3의 9050만 달러에서 증가했다고 전했습니다. 순이익은 1740만 달러(주당 0.32달러)에서 4520만 달러(주당 0.84달러)로 크게 증가했습니다.
회사는 하루 75,319달러의 시간 임대 동등액 (TCE) 비율을 유지했고, 조정된 EBITDA는 6870만 달러에 달했습니다. 주요 발전 사항은 4억 3천만 달러 규모의 새로운 금융 조달을 완료하고, 순수익 9700만 달러를 달성하며, 회전 신용 한도를 4억 1370만 달러로 확장한 것입니다.
주요 성과로는 Flex Courageous와 Flex Resolute의 임대를 2032년까지 연장하고, Flex Constellation을 위해 2041년까지의 새로운 15년 임대 계약을 확보한 것입니다. 이 회사는 주당 0.75달러의 분기 배당금을 선언했으며, 이는 2025년 3월 5일에 지급될 예정입니다.
Flex LNG a fait état de résultats financiers solides pour le quatrième trimestre 2024, avec des revenus d'exploitation navale de 90,9 millions de dollars, en hausse par rapport à 90,5 millions de dollars au troisième trimestre. Le bénéfice net a considérablement augmenté pour atteindre 45,2 millions de dollars (0,84 dollar par action), contre 17,4 millions de dollars (0,32 dollar par action) au troisième trimestre.
La société a maintenu un taux de Time Charter Equivalent (TCE) stable de 75 319 dollars par jour et a atteint un EBITDA ajusté de 68,7 millions de dollars. Les développements notables comprennent l'achèvement de financements d'un montant de 430 millions de dollars avec un produit net de 97 millions de dollars et l'augmentation de la capacité de la facilité de crédit revolving à 413,7 millions de dollars.
Les réalisations clés incluent l'extension des baux à temps pour Flex Courageous et Flex Resolute jusqu'en 2032, et la sécurisation d'un nouveau contrat de 15 ans pour Flex Constellation jusqu'en 2041. L'entreprise a déclaré un dividende trimestriel de 0,75 dollar par action, payable le 5 mars 2025.
Flex LNG hat starke finanzielle Ergebnisse für das vierte Quartal 2024 gemeldet, mit Schiffsumsätzen von 90,9 Millionen Dollar, ein Anstieg von 90,5 Millionen Dollar im dritten Quartal. Der Nettogewinn stieg signifikant auf 45,2 Millionen Dollar (0,84 Dollar pro Aktie) von 17,4 Millionen Dollar (0,32 Dollar pro Aktie) im dritten Quartal.
Das Unternehmen hielt eine stabile Time Charter Equivalent (TCE) Rate von 75.319 Dollar pro Tag und erzielte ein bereinigtes EBITDA von 68,7 Millionen Dollar. Zu den bemerkenswerten Entwicklungen zählt der Abschluss von 430 Millionen Dollar an neuen Finanzierungen mit einem Nettoerlös von 97 Millionen Dollar sowie die Erhöhung des revolvierenden Kreditrahmens auf 413,7 Millionen Dollar.
Zu den wichtigsten Errungenschaften gehört die Verlängerung der Zeitcharter für Flex Courageous und Flex Resolute bis 2032 sowie die Sicherung eines neuen 15-Jahres-Charters für Flex Constellation bis 2041. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,75 Dollar pro Aktie, die am 5. März 2025 zahlbar ist.
- Net income increased 160% QoQ to $45.2 million
- Secured new 15-year time charter contract for Flex Constellation until 2041
- Extended time charters for two vessels through 2032 with additional extension options
- Completed $430 million refinancing with $97 million net proceeds
- Maintained stable quarterly dividend of $0.75 per share
- Strong cash position of $437 million with no debt maturities until 2028
- Slight decrease in Adjusted EBITDA from $70.4M to $68.7M QoQ
- Management expects challenging market conditions from 2024 to 2027
- Minor decline in TCE rate from $75,426 to $75,319 per day QoQ
Insights
Flex LNG's Q4 2024 results demonstrate remarkable financial resilience and strategic foresight in a challenging market environment. The company achieved vessel operating revenues of
The strategic moves in Q4 2024 were exceptionally well-timed. The company secured substantial long-term charter commitments, extending its minimum charter backlog to 62 years (potentially 96 years with options), effectively providing approximately 5 years of contract coverage per vessel. This positions Flex LNG advantageously during the anticipated market weakness through 2027, similar to the 2014-2017 cycle.
The balance sheet optimization through
The maintained quarterly dividend of
Looking ahead, management's cautious outlook for 2024-2027 is balanced by strategic positioning through long-term contracts and strong liquidity. The potential increase in demolition of older steam vessels could accelerate market recovery, similar to 2017's improvement cycle.
Highlights:
- Vessel operating revenues of
$90.9 million $90.5 million $1.4 million - Net income of
$45.2 million $0.84 $17.4 million $0.32 - Average Time Charter Equivalent ("TCE") rate of
$75,319 $75,426 - Adjusted EBITDA of
$68.7 million $70.4 million - Adjusted net income of
$30.8 million $28.7 million - Adjusted basic earnings per share of
$0.57 $0.53 - In October 2024, we closed the new
$160 million $430 million $97 million - In November 2024, we signed an amendment under the Flex Enterprise
$150 million $83.7 million $413.7 million - 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
Øystein 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
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
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
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
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:
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, 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 Company's operating expenses, including bunker prices, drydocking 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, global and regional economic and political conditions or developments, armed conflicts, including the war between
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
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SOURCE Flex LNG
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