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Flex LNG said in its first-quarter report on Wendesday that in April 2025, the charterer of Flex Artemis elected not to exercise the option under the time charter.
The vessel has been on a five-year charter, which included an option for an additional five years until the end of the third quarter of 2030.
Flex LNG did not reveal the name of the charterer of the 2020-built 173,400-cbm, Flex Artemis. It has been previously reported that the charterer is energy trader Gunvor.
The owner of 13 LNG carriers said the vessel is expected to be re-delivered from the original five-year variable hire contract in the third quarter of 2025.
“Following the re-delivery, Flex Artemis will perform her scheduled dry-docking and subsequently will be marketed for short and long-term contracts,” the firm said
Flex LNG also said that in March this year, its 2019-built vessel Flex Constellation was re-delivered from the existing time charter contract and was employed in the short-term market.
“Until the commencement of a 15-year time charter contract during the first or second quarter of 2026, she will be marketed for short-term contracts,” the company said.
In November 2024, Flex LNG revealed that it has secured a 15-year time charter deal for Flex Constellation.
According to VesselsValue data, Japan’s Jera took this LNG carrier on charter.
In addition to these charters, Flex LNG announced that it had initiated the process of refinancing its Flex Resolute and Flex Constellation vessels, aiming to free up liquidity, reduce the cost of debt, and extend the debt.
The company aims to secure commitments and conclude the new financings during the second half of 2025.
“Solid” results
Flex LNG recorded vessel operating revenues of $88.4 million for the first quarter of 2025, compared to $90.9 million in the fourth quarter 2024.
According to the company, the revenue includes income from EUAs under the EU ETS of $1.6 million for the first quarter 2025 and $1.4 million for the fourth quarter 2024.
Flex LNG said the decrease in revenue is due to the decline in spot market rates, which affected the variable rate contract for Flex Artemis as well as a lower rate of hire achieved on the new short-term time charter contract for Flex Constellation that started in March 2025.
Net income for the first quarter of 2025 was $18.7 million and basic earnings per share were $0.35, compared to a net income of $45.2 million and basic earnings per share of $0.84 for the fourth quarter of 2024.
Adjusted Ebitda was $65.6 million for the first quarter, compared to $68.7 million for the fourth quarter of 2024.
Marius Foss, interim CEO of Flex LNG, said the company delivered “solid” results for the first quarter.
“Late last year, we strengthened our earnings foundation by securing up to 37 years of new contract backlog for Flex Constellation, Flex Courageous, and Flex Resolute. As a result, our total minimum firm backlog now stands at 59 years, with the potential to expand to 88 years through charterers’ extension options,” Foss said.
He said this provides “strong” earnings visibility going forward.
“With solid earnings, substantial backlog and our strong balance sheet with $410 million of cash and no debt maturities prior to 2028, the board is pleased to announce another quarterly dividend per share of $0.75. This is equal to a quarterly dividend pay-out of approximately $41 million,” Foss said.