Flex LNG Announces Fourth Quarter Financial Performance
Flex LNG Ltd. (NASDAQ: FLNG) is excited to share its unaudited financial results for the fourth quarter of 2024 and the full year. The company has demonstrated robust financial performance, reflecting consistent growth and strategic financial planning.
Strong Revenue Growth
In the fourth quarter of 2024, Flex LNG recorded vessel operating revenues of $90.9 million, marking an increase from $90.5 million in the third quarter. Notably, this quarter included $1.4 million in revenue from the EU ETS, which was recorded under Voyage Expenses for the same period.
Net Income and Earnings Per Share
The net income for the fourth quarter reached an impressive $45.2 million, translating to basic earnings per share of $0.84. This is a substantial rise from the $17.4 million net income and $0.32 earnings per share recorded in the third quarter of the same year.
Charter Rates and Adjusted EBITDA
Flex LNG achieved an average Time Charter Equivalent (TCE) rate of $75,319 per day during the fourth quarter, slightly lower than the $75,426 per day reported in the previous quarter. Adjusted EBITDA for the fourth quarter stood at $68.7 million, compared to $70.4 million in the third quarter, showing resilience amidst market fluctuations.
Significant Financial Maneuvers
During October, the company successfully closed a new $160 million JOLCO lease for the Flex Endeavour, contributing to the completion of $430 million in new financing. This move resulted in net proceeds of approximately $97 million, strengthening the company's balance sheet.
Revolving Credit Facilities
In November, Flex LNG amended terms under the Flex Enterprise $150 million facility, converting an $83.7 million non-amortizing term loan into a revolving credit facility. The company’s total revolving credit capacity now stands at $413.7 million, providing enhanced financial flexibility.
Long-term Charter Agreements
Flex LNG also secured significant charter extensions during the fourth quarter. The charterer of Flex Courageous and Flex Resolute agreed to extend their contracts to include a new firm period from 2029 to 2032, with options for further extensions. Additionally, Flex Constellation signed a 15-year time charter with a major Asian utility, commencing in 2026.
Consistent Dividend Distribution
The company declared a fourth quarter dividend of $0.75 per share, payable around early March. This marks Flex LNG's fourteenth consistent quarterly dividend of $0.75, demonstrating the company's commitment to returning value to shareholders amid its impressive financial results.
Outlook for LNG Market
Looking ahead, the LNG shipping market presents challenges due to numerous upcoming ship deliveries and increasing export capacities. However, Flex LNG is well-prepared, as it has constructed a solid balance sheet and extensive charter backlog to buffer against potential market weaknesses.
Future Market Positioning
The company anticipates steady financial performance moving into 2025, consistent with its results from 2024. Flex LNG remains optimistic about the potential for market improvement as older, less efficient vessels are phased out, creating opportunities for more efficient tonnage.
Frequently Asked Questions
What were Flex LNG's revenues for the fourth quarter of 2024?
Flex LNG reported vessel operating revenues of $90.9 million for the fourth quarter of 2024.
How much net income did Flex LNG achieve in Q4 2024?
The company achieved a net income of $45.2 million in the fourth quarter of 2024.
What is the adjusted EBITDA for the fourth quarter?
The adjusted EBITDA for Flex LNG in the fourth quarter of 2024 was $68.7 million.
What new charters did Flex LNG secure?
Flex LNG secured a 15-year time charter for Flex Constellation and extended contracts for Flex Courageous and Flex Resolute.
What was the declared dividend for Q4 2024?
The board declared a fourth-quarter dividend of $0.75 per share, payable in early March 2025.
