John Fredriksen-backed Flex LNG has sealed a charter extension for one of its LNG carriers with Cheniere Marketing International – one of the highlights of the company’s Q2 results
In November 2022, Cheniere extended the vessel’s charter to Q4 2030 having previously chartered the 2021-built 174,000m3 capacity vessel for between three and three and a half years.
The Texan LNG exporter has now declared the option period for Flex Vigilant, which extends the firm charter by an additional 200 days to 2031. Five of Flex LNG’s 13 LNG carriers are on charter with Cheniere.
The company recorded US$39M in Q2 profits this year, declaring a dividend of US$0.75 per share. Flex Management chief executive Øystein M Kalleklev said revenues came in US$2.5M higher the corresponding second quarter in 2022, despite the company having three ships off-hire for their scheduled 5-year special survey in drydock.
He credited improving time charter equivalent (TCE) rates for driving revenues. TCE rates stood at US$77,000/day for Q2 2023 compared with US$71,000/day in Q2 2022.
Mr Kalleklev said, “Today, we are presenting our second quarter results and we are pleased to announce quarterly revenues of US$87M in line with our guidance of US$85-90M.”
Four vessels have been drydocked, with three completed in Q2. The company said it has completed the drydocking schedule for the year.
In the second half of the year, Flex LNG expects revenues to grow with all 13 vessels on water, benefiting from a stronger spot market which should boost the earnings from the variable hire time charter for Flex Artemis.
The company said it is reiterating the revenue guidance provided in February with guided revenues of US$90-95M for Q3 and US$90-100M in Q4.
Flex LNG said “This is expected to add up to approximately US$370M of revenues for the year, also in line with our guidance.”
Riviera Maritime Media’s LNG Shipping & Terminals Conference will be held 14-15 November 2023 in London, UK. Use this link for further information and to register your interest
© 2023 Riviera Maritime Media Ltd.