Flex LNG inks new charter deal

Norwegian shipping firm Flex LNG said it has signed another charter deal for one of its thirteen LNG carriers.

The 2020-built 174,000-cbm Flex Amber will go on charter to an “international energy major” for an additional one year, according to the firm controlled by billionaire John Fredriksen.

Flex said in its second-quarter report the unnamed firm had declared an option in August to extend the variable rate time charter for the vessel.

It did not provide any additional information.

This is the fourth charter deal Flex has revealed since April following the charter of four carriers to a unit of US exporter Cheniere, and the deals for Flex Constellation and Flex Freedom.

Flex expects revenues to “grow steadily”

Flex reported revenues of $65.8 million for the second quarter, compared to $81.3 million in the prior quarter. The company said net income had reached $12.7 million, compared to $47.2 million in the first quarter.

Moreover, the shipping firm’s average time charter equivalent rate reached $57,780 per day in the second quarter, down compared to $75,399 per day for the first quarter.

Flex currently has 13 LNG carriers on the water following the delivery of the last carrier Flex Vigilant in May.

All Flex LNG ships have a cargo capacity of about 173,400 to 174,000 cubic meters and feature dual-fuel two-stroke propulsion including MEGI and X-DF.

“As of today, we have booked 96 percent of the available days for the year but remain exposed to the general market through one ship trading spot and three ships on variable hire,” Flex LNG’s chief Øystein Kalleklev, said.

“As ships are rolling onto new contracts, we do expect revenues to grow steadily in the second half of the year. With a very healthy cash position, industry low cash break-even levels and high earnings visibility we thus remain well positioned,” he said.

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