Announced 11/12
- Operating rev of $90.5M
- Net income of $17.4M
- Avg TCE of $75426 (higher than Q2 avg of $72385 daily)
- Declared div of 75c/sh (unchanged)
- Refinancing of three vessels frees up cash.
- A couple of charter extensions mentioned last week, each with multiple options.
- Also, option not declared on one vessel - vessel will free up in Q1 2025.
Overall, not too many surprises. Newbuild pricing of LNG vessels probably does not entice FLNG to choose that route for expansion. Is the Q3 2024 uptick unusual? Not entirely. Maybe, the uptick being from a single vessel is slightly odd.
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11/18
Had a chance to peruse the earning call transcript. A little more color on some issues.
https://seekingalpha.com/article/4736519-flex-lng-ltd-flng-q3-2024-earnings-call-transcript
- The earlier comment on Q3 rate being unusual. Well, FLNG added another aspect to it. This is the first time FLNG mgmt expect Q4 rev to be less than Q3 rev.
- Single vessel trading on index-related charter will be lower than in previous Q4s. While vessel rate will be lower, it won’t be as low as a spot rate.
- The charter extensions mentioned last week were done at higher rates than prior time-charters. FLNG mgmt attribute that to quality of vessels, superior service.
- 50 firm years of charter coverage, 82 if all options are exercised. The firm coverage puts them in a good place. A majority of existing newbuild orders are already contracted. Next likely major demand occurs when US increases LNG exports (likely in 2027 - 2028)