FLEX LNG (FLNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $84.7 million, in line with guidance, with net income at $21.8 million and adjusted net income at $30.4 million; adjusted EPS was $0.56 and a $0.75 per share dividend was declared, maintaining a ~12% yield.

• All ships are back in operation after scheduled dry dockings, positioning for higher revenues and earnings in H2 2024.

• Strong contract coverage with 100% for 2024 and a firm backlog of 47 years, potentially extending to 66 years with options.

• $430 million in credit-approved refinancings secured at competitive terms, optimizing the balance sheet and extending debt maturities.

• Flex Constellation secured a new charter with an Asian LNG buyer, firm through Q1 2025 with extension option.

Financial highlights

• Q2 2024 revenue was $84.7 million, down from $90.2 million in Q1 2024 due to seasonal softness and dry dockings.

• Adjusted EBITDA for Q2 2024 was $63.2 million; TCE rate was $72,400/day; vessel OpEx averaged $14,900–$15,055/day.

• Cash balance at quarter-end was $370 million after $40 million in dividends and $27 million in debt repayments.

• Adjusted net income benefited from $5.4 million cash proceeds from swap termination.

• Dividend of $0.75/share for Q2 2024, payable September 12, 2024.

Outlook and guidance

• Revenues and earnings are expected to increase in H2 2024 as all ships return to service and spot market conditions improve.

• Q3 2024 revenues are guided to approximately $90 million, with TCE of $75,000–$77,000/day and adjusted EBITDA of ~$70 million.

• Positive long-term LNG market outlook, with high earnings visibility and strong cash position supporting continued attractive dividends.