Flex LNG posts higher quarterly net income

Norway-based shipping firm Flex LNG reported a net income of $3.8 million in the third quarter as it continued to grow its fleet.

This net income represents a rise looking at $0.5 million the firm earned in the same period last year but also compared to a net loss of $6.7 million in the previous quarter.

Vessel operating revenues of $33.1 million also increased year-on-year and compared to the previous quarter.

Furthermore, Flex LNG reported an average time charter equivalent rate of $46,569 per day for the July-September period. This compares to $46,588 per day in the second quarter.

“We have been able to trade our vessels at cash break-even levels during very challenging market conditions, despite significant spot exposure and operational restrictions caused by Covid-19,” Flex LNG’s chief Øystein Kalleklev said.

“During the autumn, both gas and freight markets have recovered, and we are thus expecting our TCE to increase to $70-75,000 per day for the fourth quarter,” he said.

The CEO also added that improved trading results coupled with a strong financial position enabled Flex LNG to reinstate its dividend.

Newbuild program nearing completion

The firm controlled by billionaire John Fredriksen currently has ten LNG carriers on water and expects to take delivery of three additional newbuildings in 2021.

The 173,400-cbm Flex Freedom, originally scheduled for delivery this month, will join the shipping company’s fleet in January next year.

“We expect to take delivery of Flex Freedom early January and we are now actively marketing her for potential clients,” Kalleklev said.

Kalleklev added that the 174,000-cbm Flex Volunteer has already completed sea and gas trials and the company will take delivery of the vessel end February.

The 174,000-cbm Flex Vigilant is scheduled for delivery end of May. With this vessel, Flex LNG will complete its newbuilding program with thirteen vessels in operation.

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