The following is a summary of the FLEX LNG Ltd. (FLNG) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 revenue of FLEX LNG was reported at $90.5 million, in line with the company's guidance. Adjusted EBITDA for Q3 was $70 million.
Net income reported was $17.4 million, and adjusted net income was $28.7 million, reflecting a strong financial position.
Earnings per share (EPS) was adjusted to $0.53 for the quarter.The company declared a Q3 dividend of $0.75 per share, maintaining a strong yield of 13% with a trailing 12 months total of $3.
A robust cash position of $450 million was reported, approximately 35% of the company's market cap.
Business Progress:
Two new contracts have secured the Flex Resolute and Flex Courageous from 2029 to potentially 2039, enhancing the charter backlog.
Refinancing activities have generated net proceeds of $97 million, strengthening the financial foundation.
FLEX CONSTELLATION was successfully fixed until March 2025 out of the spot market, with significant operational strategic moves expected to impact future revenue positively.
Opportunities:
A strong backlog of charter contracts providing over 50 years of revenue visibility, potentially extended to 82 years.
Recent strategic refinancings and interest rate hedging improve financial resilience and operational flexibility.
Potential positive regulatory shifts with a new U.S. administration could significantly enhance export capacities and demand for LNG shipping.
Risks:
The spot market for LNG transport is showing signs of softness which could impact revenues, especially affecting the ships operating on index-based pricing.
Environmental regulations may impose additional operational costs or require further technological adaptations affecting profitability.
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