FLEX LNG (FLNG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues were $90.5 million, matching guidance, with adjusted EBITDA of $70.4 million and adjusted net income of $28.7 million.

• Adjusted EPS was $0.53, and basic EPS was $0.32; a $0.75 per share dividend was declared, maintaining a 13% annualized yield.

• Strong contract backlog with a minimum of 50 years, potentially up to 82 years, supporting dividend stability and earnings visibility.

• Charter extensions for Flex Resolute and Flex Courageous secure firm periods from 2029–2032, with options to 2039; Flex Constellation to be redelivered in 2025.

• $430 million refinancing completed, netting $97 million in proceeds and boosting cash position to $450 million.

Financial highlights

• Q3 2024 revenues: $90.5 million; nine-month revenues: $265.4 million.

• Adjusted EBITDA: $70.4 million for Q3 2024, $204.2 million for nine months.

• Net income: $17.4 million; adjusted net income: $28.7 million.

• Cash position: $450 million post-refinancing; cash and cash equivalents at Sep 30, 2024: $289.5 million.

• TCE rate for Q3 2024: $75,426/day; OpEx at $14,913 per day.

Outlook and guidance

• Q4 2024 revenues expected to be close to $90 million, with TCE earnings projected at ~$73,000–$75,000/day.

• Full-year 2024 guidance: revenues $353–$355 million, adjusted EBITDA $271–$274 million.

• Market expected to tighten from 2027 as older steam ships are scrapped and new export projects come online.