LNG

May 16 (LNGJ) - Flex LNG, the Norwegian shipping company with a fleet of 13 vessels and several chartered to the largest US exporter Cheniere Energy, reported a fall in first-quarter profits despite a rise in operating revenues. The average time charter equivalent rate declined in the quarter to $80,175 per day compared with $81,699 per day for the fourth quarter of 2022.

   Flex reported vessel operating revenues in the first quarter of $92.47 million compared with $74.57M in the same three months of 2022. Net income dropped to $16.53M from $55.76M in the prior-year quarter. “As we completed the balance sheet optimization program during the first quarter, we had some additional financing costs in our accounts for the first quarter,” explained Øystein M. Kalleklev, Chief Executive of Flex LNG Management AS. “However, we have now put in place new attractive long-term financing for all our 13 ships, boosting our cash balance to $475M at quarter-end, or about $9 per share,” added Kalleklev.

Flex LNG, the Norwegian shipping company with a fleet of 13 vessels and several chartered to the largest US exporter Cheniere Energy, reported lower fourth-quarter net income and revenues from a year ago though expects an increase in revenues for all of 2023 even amid off-hires for four ships undergoing surveys.

Flex LNG, the Norwegian shipping company with a fleet of 13 modern vessels and several chartered to the largest US exporter, reported an 18 percent jump in first-quarter net income even amid spot freight market challenges at the end of the three months as the LNG trade abruptly shifted towards Europe from Asia.

Flex LNG, the Norwegian shipowner with a fleet of 12 modern vessels, has signed charters with Cheniere Energy of the US, for at least four of its carriers, and with all but one of its six current term charters set to expire in 2021-2022.

The new charters, pending any further agreements, are not set to significantly change the proportions of Flex’s fleet that operates on the spot and term charter markets, with the owner previously keeping a large section of its fleet onto the spot market.

“We are very pleased to enter into these agreements with Cheniere. They secure attractive employment for four, possibly five, of our ships with a first-class charterer,” said Øystein M. Kalleklev, Chief Executive of Flex LNG Management.

“Our large and energy efficient ships are particularly well suited for their long-haul trade and align with Cheniere’s efforts to secure required shipping capacity while improving the environmental performance of their overall fleet,” added Kalleklev.

“ Hence, this agreement makes very much sense for both parties, so we look forward to further developing our relationship in the years to come,” he explained.

“Lastly, these contracts add substantial revenue backlog to our company which is in line with our communicated strategy of securing attractive term-employment for our ships when we think the time is right,” stated the CEO.

Flex is scheduled to publish its first-quarter results on the 28th of May 2021.

All existing Flex LNG ships are large LNG carriers with a cargo capacity of approximately 173,400 to 174,000 cubic metre s and fitted with efficient dual-fuel two-stroke propulsion.

Flex LNG has signed the charter agreements with US operator Cheniere, which will receive two carriers from the owner in the third quarter of 2021 and another in the third quarter of 2022, with an option to take a fourth in the third quarter of 2022.

Cheniere will also take Flex LNG's sole remaining undelivered newbuild, the 174,000 cubic metres capacity “Flex Vigilant” when it is delivered by South Korea's Hyundai Samho Heavy Industries in May.

The four firm charters are for 3-3.5 years, with charterer's option to extend each by up to two years.

Flex also has two carriers under long-term charters that are set to expire in the third quarter of 2021, both with Spain's Naturgy Energy.

Flex LNG also has six carriers operating on the spot market, which could potentially be used to fulfil these obligations instead.

Feb 17 (LNGJ) - Flex LNG, the growing Norwegian-listed fleet owner with 13 modern carriers, 10 on the water and three uner construction, posted fourth-quarter net income of $25.8 million compared with $3.8M in the previous quarter. Full-year net profits came to $8.1M. Flex reported an average Time Charter Equivalent rate of $73,712 per day for the fourth quarter versus $46,569 per day for the third quarter.

   “During the last quarter of 2020 and into 2021, the LNG market improved markedly driven by strong demand from Asia due to a combination of cold weather and economic recovery, which resulted in a shortage of both LNG and ships to transport it,” said Oystein M Kalleklev, Chief Executive of Flex LNG Management AS. “LNG prices, which hit synchronized lows following the Covid-19 pandemic, rebounded with an 18-times price increase of Asian LNG from the low in April 2020 to the highs in January 2021, a remarkable turn-around,” added Kalleklev.

Flex LNG, the Oslo-listed shipping and projects company backed by funds controlled by Norwegian shipping magnate John Fredriksen, reported a widened first-quarter loss and the departure of Chief Executive Jonathan Cook.