Flex LNG - Third Quarter 2024 Earnings Release
Flex LNG reported Q3 2024 financial results with vessel operating revenues of $90.5 million, up from $84.7 million in Q2. Net income was $17.4 million with EPS of $0.32, down from $21.8 million and $0.41 in Q2. The company achieved an average TCE rate of $75,426 per day and Adjusted EBITDA of $70.4 million. Key developments include completion of $270 million bank facility for two vessels, $160 million JOLCO lease closure, and time charter extensions for Flex Courageous and Flex Resolute until 2032. The company declared a quarterly dividend of $0.75 per share. Management noted pressure on freight market due to high fleet growth and small arbitrage between Europe and Asia.
Flex LNG ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi operativi delle navi di 90,5 milioni di dollari, in aumento rispetto a 84,7 milioni di dollari nel secondo trimestre. Il reddito netto è stato di 17,4 milioni di dollari con un EPS di 0,32, in calo rispetto a 21,8 milioni di dollari e 0,41 nel secondo trimestre. L'azienda ha raggiunto un tasso medio TCE di 75.426 dollari al giorno e un EBITDA rettificato di 70,4 milioni di dollari. Sviluppi chiave includono il completamento di una linea di credito da 270 milioni di dollari per due navi, la chiusura di un leasing JOLCO da 160 milioni di dollari e le estensioni dei contratti di time charter per Flex Courageous e Flex Resolute fino al 2032. L'azienda ha dichiarato un dividendo trimestrale di 0,75 dollari per azione. La gestione ha notato pressioni sul mercato dei trasporti a causa dell'elevata crescita della flotta e del piccolo arbitraggio tra Europa e Asia.
Flex LNG reportó los resultados financieros del tercer trimestre de 2024 con ingresos operativos de buques de 90.5 millones de dólares, un aumento con respecto a los 84.7 millones de dólares del segundo trimestre. La ganancia neta fue de 17.4 millones de dólares con un EPS de 0.32, en comparación con 21.8 millones de dólares y 0.41 en el segundo trimestre. La compañía logró una tasa TCE promedio de 75,426 dólares por día y un EBITDA ajustado de 70.4 millones de dólares. Los desarrollos clave incluyen la finalización de una línea de crédito bancaria de 270 millones de dólares para dos buques, el cierre de un leasing JOLCO de 160 millones de dólares y extensiones de tiempo de alquiler para Flex Courageous y Flex Resolute hasta 2032. La compañía declaró un dividendo trimestral de 0.75 dólares por acción. La dirección destacó la presión en el mercado de fletes debido al alto crecimiento de la flota y al pequeño arbitraje entre Europa y Asia.
Flex LNG는 2024년 3분기 재무 실적을 보고하며, 선박 운영 수익이 9,050만 달러로, 2분기의 8,470만 달러에서 증가했습니다. 순이익은 1,740만 달러이며, 주당 순이익(EPS)은 0.32로, 2분기의 2,180만 달러와 0.41에서 감소했습니다. 회사는 하루 평균 TCE 요금이 75,426 달러였고, 조정 EBITDA는 7,040만 달러에 달했습니다. 주요 개발 사항으로는 두 척의 선박을 위한 2억 7,000만 달러 규모의 은행 시설 완공, 1억 6,000만 달러 JOLCO 리스 종료, Flex Courageous와 Flex Resolute의 기간 차터 연장이 2032년까지입니다. 회사는 주당 0.75 달러의 분기 배당금을 선언했습니다. 경영진은 높은 선대 성장과 유럽과 아시아 간의 적은 차익거래로 인한 화물 시장의 압박을 언급했습니다.
Flex LNG a annoncé les résultats financiers du troisième trimestre 2024 avec des revenus d'exploitation des navires de 90,5 millions de dollars, en hausse par rapport à 84,7 millions de dollars au deuxième trimestre. Le résultat net s'est élevé à 17,4 millions de dollars avec un BPA de 0,32, en baisse par rapport à 21,8 millions de dollars et 0,41 au deuxième trimestre. L'entreprise a atteint un taux TCE moyen de 75,426 dollars par jour et un EBITDA ajusté de 70,4 millions de dollars. Les développements clés incluent l'achèvement d'une facilité bancaire de 270 millions de dollars pour deux navires, la clôture d'un bail JOLCO de 160 millions de dollars, et des prolongations de charte à temps pour Flex Courageous et Flex Resolute jusqu'en 2032. L'entreprise a déclaré un dividende trimestriel de 0,75 dollar par action. La direction a noté la pression sur le marché du fret en raison de la forte croissance de la flotte et du faible arbitrage entre l'Europe et l'Asie.
Flex LNG hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit Betriebseinnahmen von 90,5 Millionen Dollar, ein Anstieg von 84,7 Millionen Dollar im 2. Quartal. Der Nettogewinn betrug 17,4 Millionen Dollar mit einem EPS von 0,32, verglichen mit 21,8 Millionen Dollar und 0,41 im 2. Quartal. Das Unternehmen erzielte einen durchschnittlichen TCE-Satz von 75.426 Dollar pro Tag und ein bereinigtes EBITDA von 70,4 Millionen Dollar. Zu den wesentlichen Entwicklungen gehören der Abschluss einer 270 Millionen Dollar umfassenden Bankfazilität für zwei Schiffe, der Abschluss eines 160 Millionen Dollar JOLCO-Leasings und die Verlängerung der Zeitcharter für Flex Courageous und Flex Resolute bis 2032. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,75 Dollar pro Aktie. Das Management wies auf den Druck auf den Frachthandel aufgrund des hohen Flottenwachstums und des geringen Arbitrage zwischen Europa und Asien hin.
- Revenue increased to $90.5M in Q3 from $84.7M in Q2 2024
- Average TCE rate improved to $75,426/day from $72,385/day in Q2
- Adjusted EBITDA grew to $70.4M from $63.2M in Q2
- Secured time charter extensions for two vessels until 2032
- Successfully completed $430M refinancing with $97M net proceeds
- Maintains 100% charter coverage with 50-year minimum charter backlog
- Net income decreased to $17.4M from $21.8M in Q2 2024
- Basic EPS declined to $0.32 from $0.41 in Q2
- Adjusted EPS dropped to $0.53 from $0.56 in Q2
- $10.5M unrealized losses on interest rate swaps
- Flex Constellation charter not extended, requiring vessel remarketing in Q1 2025
Insights
The Q3 results show mixed performance with some concerning trends. While vessel operating revenues increased by
Key developments include successful refinancing activities totaling
The contract extensions for Flex Courageous and Flex Resolute provide stable long-term revenue, while the non-renewal of Flex Constellation's charter introduces some near-term uncertainty.
The LNG shipping market is showing signs of weakness heading into winter, traditionally a strong season. The combination of high fleet growth, narrow Europe-Asia price spreads and modest
However, Flex LNG's business model demonstrates resilience with
Highlights:
* Vessel operating revenues of
* Net income of
* Average Time Charter Equivalent ("TCE") rate of
* Adjusted EBITDA of
* Adjusted net income of
* Adjusted basic earnings per share of
* In September 2024, the new
* In October 2024, we closed the new
* In November 2024, we signed an amendment under the Flex Enterprise
* 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, the charterer of Flex Constellation sent notice that they will not utilize their extension option under the time charter. The vessel is expected to be re-delivered from the existing contract late in the first quarter of 2025. Following the re-delivery, the vessel will be marketed for short and long-term contracts.
* The Company declared a dividend for the third quarter 2024 of
Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
"Third quarter results came in as expected. Revenues were
During this winter season, the freight market has come under pressure due to a combination of high fleet growth, relatively small arbitrage between
We are also pleased to announce additional backlog with the extension of Flex Courageous and Flex Resolute. These two LNG carriers commenced a 3+2+2 year time charter with a supermajor during first quarter of 2022, where the charterer during the first quarter utilized its first extension option from 2025 to 2027. We have now agreed an amendment of the time charter where we have added a firm three-year period from 2029 to 2032 and where the charterer has the right to extend the time charter for additional periods until 2039. Since reporting in August, we have executed the announced
The Board has decided to declare once again an ordinary dividend per share of
Third 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:
Third 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 third 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, 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, 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, customers' increasing emphasis on environmental and safety concerns, potential liability from pending or future litigation, general domestic and international political conditions or events, including the war between
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SOURCE Flex LNG
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