Oslo-based Flex LNG reported vessel operating revenue of $84.2 mill in the second quarter of 2022, compared to $74.6 mill in the previous quarter.
Net income of $44.3 mill and basic earnings per share of $0.83 for 2Q22, compared to $55.8 mill and $1.05, respectively for the first quarter.
Average 2Q22 timecharter equivalent (TCE) rate of $70,707 per day was higher than the $62,627 per day recorded in 1Q22.
Adjusted EBITDA of $66.1 mill, compared to $56.3 mill for the first quarter, while adjusted net income for 2Q22 was $32.5 mill versus $23.8 mill for the previous quarter.
In June, 2022, Flex LNG replaced its existing variable rate timecharter with the new seven-year timecharter for ‘Flex Enterprise’ and ‘Flex Amber’, which began in the third quarter.
The company also signed a 10-year fixed-rate timecharter for ‘Flex Rainbow’, which is due to start in the first quarter of 2023.
Subsequently, last month, the company exercised a $137 mill call option to buy back ‘Flex Enterprise’ under a sale and leaseback agreement. As a result, the ship is currently in ballast.
Refinancing
Also in August, 2022, Flex LNG declared a call option to redeem ‘Flex Endeavor’, which will be refinanced under a $375 mill loan this month.
Flex LNG declared a 2Q22 dividend of $1.25 per share, consisting of a quarterly dividend of $0.75 per share and a special one-time dividend of $0.5 per share.
Oystein Kalleklev, Flex LNG Management CEO, commented: “At Flex LNG, we are pleased to publish solid results for the second quarter. We are in the midst of a global gas crisis in which buyers, especially in Europe, are trying to get LNG loads to ensure adequate energy supplies before winter.
“Accordingly, we are seeing increased interest in LNG, and several new export projects are currently underway. New LNG export projects will create future freight demand, further strengthening the very solid long-term foundations of our industry.
“In the second quarter, we achieved revenues of $84.2 mill. This is approximately $10 mill more than in the first quarter, and is in line with our prior revenue forecast. Net income for the quarter was a healthy $44.3 mill, or 83 cents a share.
“We recently announced three attractive new long-term contracts. ‘Flex Enterprise’ and ‘Flex Amber’s’ two seven-year charters began on 1st July, while ‘Flex Rainbow’ will commence a 10-year contract early next year. In total, these three contracts added 24 years of backlog that are expected to generate approximately $750 mill in total revenue. As a consequence, our arrears have increased to a minimum of 54 years, which ensures a very high level of visibility of earnings in the future.
“Therefore, we reiterate our revenue forecast of approximately $90 mill in the third quarter and somewhere between $90 mill and $100 mill in the fourth quarter,” he said.
