FLNG Q4 2024 report

Announced earlier today (02/04/25)
For a shipping entity, somewhat earlier than normal.

  • Revenue of $89.5M (excludes the benefit of EU ETS credits)
  • Net income of $45.2M (adj NI $30.8M)
  • Declared div of 75c/sh (maintained)
  • Secured a 15-year TC for Flex Constellation that starts in Q1 2026

Lots going on with FLNG. The new long term contract is a plus and a minus. Great for future earnings visibility, but essentially leaves the company with a gap year in 2025. Market has some supply pressure, and FLNG mgmt did touch upon the negative side of the tariff issue. In regards to US lifting the ban on new LNG exports, FLNG did point out two things
a. The time between FID and increased LNG production is at least 30 months.
b. Did mention the Venture Global LNG facility that is ramping up production (the company does have newbuild vessels delivering that address at least some of the facilities output)

FLNG mgmt also discussed the fact that there is a vessel overhang (especially with the older inefficient vessels) that is not expected to clear for at least a few years. FLNG also has 4 fifith year vessel surveys scheduled in 2025. Also, Flex Artemis, the only FLNG vessel on variable rate charter rolls off that charter mid-year. There are 5 one-year fixed rate charter options, but each of those depend on the charterer.

Overall, with vessel refinancings, FLNG has strengthened its cash position, and punted its debt down the road. FLNG also has 62 vessel years of contract coverage to support operations (and some dividend payout, but probably not at the 75c/sh rate).

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