Flex LNG Secures Long-Term Time Charter for Flex Constellation
Flex LNG Ltd (NYSE: FLNG) is excited to announce a significant new Time Charter Agreement (TC) for its LNG carrier, the Flex Constellation. The contract spans an impressive 15 years, set to commence between the first and second quarters of 2026, with the option to extend the agreement until 2043. This partnership reinforces Flex LNG's strategy for long-term operational stability.
Details of the Charter Agreement
The Flex Constellation, launched in 2019, is a state-of-the-art LNG carrier, capable of carrying 173,400 cubic meters of LNG. It is equipped with ME-GI two-stroke propulsion technology and a partial reliquefaction system, making it exceptionally suitable for current market demands. Prior to this new agreement, the vessel is engaged in a 10-month charter with a large Asian utility, which will conclude at the end of the first quarter of 2025.
Future Prospects and Market Positioning
According to Øystein Kalleklev, CEO of Flex LNG Management, the addition of this long-term charter is a testament to the company's commitment to quality service and operational excellence. He emphasized that this agreement not only adds to Flex LNG’s backlog but also aligns with the existing charter rate of the vessel. After confirming this agreement, Flex LNG now boasts 64 years of firm backlog, which could grow to 98 years if charterers exercise their extension options.
Strategic Insights from Flex LNG Management
Kalleklev further stated, "Flex LNG is strategically positioned to weather any near-term market fluctuations, with 11.2 out of 13 of our ships on firm Time Charter for the next year, maintaining an average charter rate of approximately $80,000 per day." He highlighted the company's solid financial foundation with nearly 90% of its income days for 2025 secured through existing charters. This robust position underscores Flex LNG’s capability to manage future market dynamics effectively.
About Flex LNG
Flex LNG is dedicated to enhancing its fleet with cutting-edge technology to meet the evolving needs of the LNG transportation market. The company’s commitment extends beyond just long-term contracts; it continually adapts to market conditions to maintain operational efficiency and shareholder value.
Company Contacts
For media inquiries, please reach out to Mr. Øystein Kalleklev, Chief Executive Officer of Flex LNG Management. For investor relations, contact Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management. You can contact them via telephone at +47 23 11 40 00.
Frequently Asked Questions
What is the duration of the new Time Charter Agreement for Flex Constellation?
The new Time Charter Agreement is for 15 years, starting in 2026, with options to extend until 2043.
How many years of backlog does Flex LNG have after this agreement?
After this agreement, Flex LNG has a total of 64 years of firm backlog, with the potential to increase it to 98 years through extension options.
What is the current charter rate for the Flex Constellation?
The charter rate for the new period aligns with the existing rate at approximately $80,000 per day.
How many ships of Flex LNG are currently on Time Charter?
Flex LNG currently has 11.2 out of 13 ships on firm Time Charter agreements for the upcoming year.
Who can be contacted for further information about Flex LNG?
Media inquiries can be directed to the CEO, Øystein Kalleklev, or to CFO, Knut Traaholt for investor-related questions.
