Announced on 08/14
- Revenue of $84.7M
- Net Income of $21.8M
- Average TCE rate of $72,385 daily
- Two vessels completed their respective first 5-year survey
- Q2 div of 75c/sh
Avg charter rate during Q2 2024 is lower than prior qtr. This suggest the vessel rolling off charter had an above-average rate. Or, the new charter is at a lower rate. That said, I don’t think it is the second option since the short term is usually higher than a multi-year rate. I will note that although FLNG maintained the div, it is not being covered. OTOH, the company has indicated revenue should bump up in Q3. Also, the subsequent refinancing of some vessels frees up cash.
To summarize, FLNG had stuff to deal with (two vessel surveys). But now that is behind them, the company is gearing up for the normally stronger half.
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There are some additional details in the Earnings Call transcript–
https://seekingalpha.com/article/4714502-flex-lng-ltd-flng-q2-2024-earnings-call-transcript
The more significant points being
- Panama Canal authorities working with LNG shippers on a solution for more LNG vessels to utilize the canal as a transit. Because of the boil-off factor with the LNG cargo, waiting delays to transit the PC and delays in unloading in China can have a major impact on delivered volumes. For FLNG the problem is less severe - 7 of their vessels have partial or full liquefaction.
- Emergence of an LNG dark fleet to support Russia’s LNG exports. The likely candidates will be the inefficient older Steam Turbines. Can these vessels handle harsh environments?
- More details on the refinancing packages.
- FLNG strategy on fleet expansion. Price and delivery time-frame (4 years) make the newbuild option less appealing. However, FLNG did have an invitation for owners of private LNG vessels to come and talk with them rather than opt for a Public listing of their company.