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.

• Net income for the quarter was $17.4 million; adjusted EPS was $0.53, and basic EPS was $0.32.

• Declared the 13th consecutive ordinary dividend of $0.75 per share, maintaining a 13% annualized yield.

• Contract backlog stands at a minimum of 50 years, potentially up to 82 years with options, providing strong earnings visibility.

• Major refinancing and sale-leaseback transactions completed, resulting in $97 million net proceeds and improved liquidity.

Financial highlights

• Q3 2024 TCE rate was $75,426/day, up from $72,385/day in Q2 2024.

• Adjusted EBITDA margin for Q3 2024 was 77.8%.

• Cash position post-refinancing was $450 million; revolving credit facility capacity increased to $414 million.

• Q3 2024 opex per day was $14,900–$14,913, below budget for the nine months.

• Total long-term debt at Sep 30, 2024 was $1,673.1 million, down from $1,812.1 million at Dec 31, 2023.

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 of $353–$355 million and adjusted EBITDA of $271–$274 million.

• Market expected to remain soft short-term, but long-term demand and backlog support dividend sustainability.

• Market tightening anticipated from 2027 as older steam vessels are scrapped and new LNG export projects come online.