HAMILTON, Bermuda, May 23, 2024 /PRNewswire/ -- Flex LNG Ltd. ("Flex LNG" or the "Company") today announced its unaudited financial results for the three months ended March 31, 2024.

Highlights:

Vessel operating revenues of $90.2 million for the first quarter 2024, compared to $97.2 million for the fourth quarter 2023.
Net income of $33.2 million and basic earnings per share of $0.62 for the first quarter 2024, compared to net income of $19.4 million and basic earnings per share of $0.36 for the fourth quarter 2023.
Average Time Charter Equivalent ("TCE") rate of $76,539 per day for the first quarter 2024, compared to $81,114 per day for the fourth quarter 2023.
Adjusted EBITDA of $70.6 million for the first quarter 2024, compared to $76.2 million for the fourth quarter 2023.
Adjusted net income of $37.9 million for the first quarter 2024, compared to $37.8 million for the fourth quarter 2023.
Adjusted basic earnings per share of $0.70 for the first quarter 2024, compared to $0.70 for the fourth quarter 2024.
In January and February 2024, the charterer of Flex Resolute and Flex Courageous declared their first options, under the time charters, to extend the firm period of each by an additional two years to Q1 2027. The charterer has one further option on each vessel, which would extend the firm contract period to Q1 2029.
In April 2024, we successfully completed our scheduled drydocking for Flex Constellation on-time and on-budget. Flex Courageous is scheduled to complete her drydocking on-time and on-budget by end of May 2024.
In April 2024, the charterer of Flex Endeavour exercised an option to extend the time charter by 500 days from the third quarter of 2030 to the first quarter of 2032.
In May 2024, Flex Constellation commenced a time charter with a large Asian utility and asset backed LNG trader. The charter has a firm period ending in end of Q1 2025 and an option to extend by an additional one year to end of Q1 2026.
The Company declared a dividend for the first quarter 2024 of $0.75 per share. The dividend is payable on or about June 21, 2024 to shareholders, on record as of June 10, 2024.

Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:

"Flex LNG's first quarter results came in as expected with Revenues of $90.2 million in line with guidance of approximately $90 million. Hence, we are delivering a Net Income of $33.2 million and Earnings per Share of $0.62. Our adjusted numbers, where we primarily adjust for unrealized gains and/or losses on derivatives, were higher with adjusted Net Income of $37.9 million equal to an adjusted Earnings per Share of $0.70.

Revenues came in $7 million lower than during the fourth quarter of 2023, but this was as expected as we recorded lower earnings on the single ship, Flex Artemis, on a variable hire rate, Flex Artemis. The fourth quarter is typically the peak of the LNG freight market, so we tend to generate higher earnings for this ship during this quarter compared to first quarter. Additionally, we took one ship, Flex Constellation, out of service for scheduled drydocking. That said, the Revenues were in line with the Revenues achieved in the first quarter of 2023 for very much the same reasons.

During the year we are pleased to have added substantial backlog through three different charter extensions. The Time Charter agreements for Flex Resolute and Flex Courageous have both been extended from first quarter of 2025 to the first quarter of 2027. The charterer, which is a supermajor, also has an additional option to extend both ships by another two-year period until first quarter of 2029. We also added 500 days to the existing Time Charter for Flex Endeavour with Cheniere, extending the firm period from third quarter of 2030 to first quarter of 2032.

On top of that, we secured a 10 months' Time Charter for Flex Constellation until end of first quarter 2025 where the charterer has the option to extend this ship by one additional year until end of first quarter 2026. Flex Constellation was redelivered from a Time Charter to us in March and we then elected to carry out the five-year special survey of the ship before putting her into the spot market. However, as communicated in our fourth quarter report in February, we expected somewhat more challenging freight market near term due to the glut of newbuilding deliveries. Hence, we deemed it more attractive for us to charter-out the ship until 2025 possibly to 2026 rather than trading her in the spot market given the numerous ships currently engaged in this trade.

In total we have thus added 6.2 years of new backlog so far this year while we have consumed slightly less than five years from existing contracts which means we have continued to add incremental backlog with the firm backlog currently at 50 years which may increase to 69 years in the event the charterers are utilizing all of their extension options. This attractive backlog gives us a very high level of earnings visibility and also insulate us against any near-term market weakness. Given our backlog of an average of four years per ship, our ships will come open in a window where we consider the market balance to be significantly more favorable as the third wave of LNG is coming on stream from end of 2025 onwards. Furthermore, we also expect a substantial uptick in scrapping of older steam tonnage, which are becoming commercially obsolete, and this will further improve market fundamentals.

Given the solid earnings, the substantial backlog and our strong balance sheet with $383 million of cash and no debt maturities prior 2028, the Board is pleased to announce another quarterly dividend per share of $0.75 equal to a quarterly dividend pay-out of approximately $40 million. This means that we have paid trailing twelve months dividends of $3.125 per share which gives our investors a running yield of about 11 per cent. During the last three years, the total dividend declared and paid has thus grown to $510 million."

First Quarter 2024 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 attend the live video webcast use the following link:

First 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 first quarter. The video can be accessed through the following link:

YouTube 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 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 "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 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, 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 U.S. Securities and Exchange Commission ("Other Reports"). For a more complete discussion of certain of these and other risks and uncertainties associated with the Company, please refer to the Other Reports.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/flex-lng/r/flex-lng---first-quarter-2024-earnings-release,c3986473

The following files are available for download:

https://mb.cision.com/Main/22886/3986473/2816004.pdf

Flex LNG - Earnings Results Q1 2024

View original content:https://www.prnewswire.com/news-releases/flex-lng--first-quarter-2024-earnings-release-302153772.html

SOURCE Flex LNG

Flex LNG - First Quarter 2024 Earnings Release