Flex LNG gave an update on the market, employment and revenue guidance during a recent presentation at Arctic Securities.
Given the recently announced timecharter agreements for ‘Flex Rainbow’, ‘Flex Enterprise’ and ‘Flex Amber’, which have secured a total of 24 years fixed hire employment, Flex LNG made the following positive adjustments to its revenue guidance for the year:
• Expected revenues in 2Q22: ~$85 mill vs $80 mill.
• Expected revenues in 3Q22: ~$90 mill vs $82-92 mill.
• Expected revenues in 4Q22: ~$90-100 mill vs $85-105 mill.
Flex LNG also forecast higher revenues and TCEs in 2023 than in 2022, due to repricing of its employment portfolio and significantly reduced spot exposure, which dragged down revenues in 1Q22, due to the pull on US cargoes to Europe during the period.
Furthermore, the company has also initiated Phase 2 of its balance sheet optimisation programme with the aim of increasing its available liquidity by a further $100 mill.
This comes on top of the expected free liquidity as of 30th June, 2022, of about $285 mill.
In total, Phase 1 of the programme is expected to have released an aggregate $137 mill when the ‘Flex Endeavour’ refinancing is completed in 3Q22, compared with the forecast of $100 mill when announced in November, 2021.
