Flex LNG’s carrier will be available for charter later this year

Flex LNG’s 2019-built 173,400-cbm, Flex Constellation, will be available for charter later this year after a trading house decided not to utilize its extension option.

In May 2021, the shipping firm controlled by billionaire John Fredriksen announced a three-year charter for this ME-GI LNG carrier with the trading house, said to be Trafigura, with an option for three more years.

However, the charterer has decided not to utilize its extension option, and Flex LNG expects to take redelivery of the ship during the second quarter of 2024.

Flex LNG’s chief executive, Øystein Kalleklev, said the redelivery of the vessel “fits well” with its scheduled five-years special survey which is due during second or third quarter of 2024.

For 2024, Flex LNG has two ships scheduled for drydock, in contrast to four ships during 2023, and the charter coverage for the company is 95 percent following the redelivery of Flex Constellation.

Flex LNG expects to earn more from new charter

Kalleklev said that Flex Constellation has been on a time charter with a fixed rate of $80,000 per day, in line with the time charter equivalent guidance for the company’s fleet in 2023.

“The term rates for one to ten years charters are currently being quoted at $90-100,000 per day according to most brokers. Consequently, we believe the vessel is well positioned to be recontracted at more attractive levels than the previous contract,” he said.

“Once we have completed the special survey of Flex Constellation, we will market her for short- and long-term opportunities ahead of the winter season which we consider a good timing,” Kalleklev said.

Flex LNG owns 13 LNG carriers, and 12 of these vessels are on fixed hire time charters, including to US LNG exporter Cheniere, while one ship, Flex Artemis, is on a variable time charter.

The firm reported higher revenue and lower net income in the third quarter compared to the same period last year, and it expects a further increase in revenue in the fourth quarter.

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