Q3 2024 FLEX LNG Ltd Earnings Call Transcript
Key Points
- Flex LNG Ltd (FLNG) reported revenues of $90.5 million for Q3, aligning with their guidance.
- The company has secured new long-term contracts for Flex Resolute and Flex Courageous, extending their backlog significantly.
- Flex LNG Ltd (FLNG) maintains a strong cash position with $450 million, representing about 35% of their market cap.
- The company declared its 13th consecutive ordinary dividend of $0.75 per share, maintaining an attractive yield of 13%.
- Flex LNG Ltd (FLNG) has a robust financial position with no near-term debt maturities and a large contract backlog ensuring stable cash flow.
- The spot market is currently soft, impacting the revenue potential for one of their ships on an index rate.
- Q4 revenue guidance is slightly lower than Q3 due to the soft spot market conditions.
- The LNG export market is experiencing low growth, with only 1% growth reported, affecting overall market dynamics.
- There is a significant number of ships being delivered, outpacing demand and contributing to lower spot rates.
- The company faces higher operational costs due to increased crew change expenses, particularly in Asia.
(audio in progress) third-quarter results presentation. I'm CEO, Oystein Kalleklev, and I will be joined later in the presentation, as usual, by our CFO, Knut Traaholt, who will walk you through the financials.
Before we begin, I just want to remind you that we will be providing some forward-looking statements, some non-GAAP measures, and of course, there are limit to the completeness of detail.
(Event Instructions)
So let's kick off with the highlights. No big surprises on the revenue numbers. Adjusted EBITDA. Revenues came in at $90.5 million, in line with guidance of approximately $90 million. This resulted in net income and adjusted net income of $17.4 million and $28.7 million, respectively. Just to remind you, adjusted net income numbers, we only take in the realized gain and losses on derivatives.
During this quarter, interest rate fell a lot until early September when Fed cut 50 basis points, and we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
