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FLEX LNG .(FLNG) - 2025 Q2 - Earnings Call Transcript
2025-08-20 14:00
Financial Data and Key Metrics Changes - Revenues for the quarter were $86 million, or $84 million excluding EUAs, with a TCE of $72,000 per day, reflecting a slight drop compared to the previous quarter due to seasonal market softness [3][13] - Net income for the quarter was $17.7 million, translating to an EPS of $0.33, while adjusted net income was $24.8 million or adjusted EPS of $0.46 [3][15] - The company reaffirmed its full-year 2025 revenue guidance of $350 million to $370 million and adjusted EBITDA guidance of approximately $250 million to $270 million [5][8] Business Line Data and Key Metrics Changes - The company completed two dry dockings in the second quarter, which reduced operational days and impacted revenues [14] - The average docking cost was estimated at $5.7 million per vessel, slightly above previous estimates due to higher costs in Europe compared to Singapore [7] Market Data and Key Metrics Changes - LNG trade from January to July 2025 grew approximately 2% year-over-year, with U.S. LNG exports increasing by over 20% [24][25] - European LNG imports amounted to 74 million tonnes in the January-July period, up 24% from the same period last year [27] - Chinese LNG imports decreased by around 19%, while Indian imports fell by 11% year-over-year due to various market dynamics [28] Company Strategy and Development Direction - The company is committed to maintaining a shareholder-friendly dividend policy and has launched a $50 million share buyback program [4][10] - The company aims to fortify its balance sheet and financial flexibility through refinancing and optimizing its debt maturity profile [17][20] Management Comments on Operating Environment and Future Outlook - Management maintains a cautious short-term outlook on the LNG market but remains bullish on the long-term LNG story, supported by a strong charter backlog and a fortress balance sheet [11][24] - The company expects to benefit from increasing LNG volumes coming onstream in the future, despite current market softness [9][11] Other Important Information - The company is delisting from the Oslo Stock Exchange, with the last day of trading on September 15 [4][21] - The company has a solid contract backlog, providing earnings visibility even with two vessels open for the rest of the year [7][9] Q&A Session Summary Question: What is the likelihood and timing of options for the Flex Aurora and Flex Volunteer? - The first option is due in Q4 2025 and the second in Q1 2026, with further updates to be provided as more information becomes available [40][41] Question: How does the company view reinvestments in new buildings? - The company is exploring opportunities for new buildings but emphasizes the importance of having contracts attached to any new orders due to current market conditions [42] Question: What will the company do with its cash balance? - The company has $413 million in cash and is utilizing a strict capital discipline, including a share buyback program independent of dividend considerations [43]
FLEX LNG .(FLNG) - 2025 Q2 - Earnings Call Presentation
2025-08-20 13:00
Financial Performance - Second quarter revenues reached $84 million with a TCE (Time Charter Equivalent) rate of $72,000 per day[7] - Net income was $17.7 million, and adjusted net income was $24.8 million[7] - Earnings Per Share (EPS) was $0.33, and adjusted EPS was $0.46[7] Guidance and Outlook - The company reconfirmed its 2025 revenue guidance of approximately $340-360 million, with a TCE rate of $72,000-77,000 per day[7] - Adjusted EBITDA for 2025 is reconfirmed at around $250-270 million[7] Balance Sheet and Refinancing - Refinancing of Flex Courageous was completed, yielding net proceeds of approximately $43 million[27, 31] - Three refinancings are expected to generate around $132 million in net proceeds and lower the average pro forma cost of debt to approximately 5.6%[31] - The company's interest rate swap portfolio stood at $850 million (notional) with a weighted average rate of 2.33%[34] Dividends and Share Buy-Back - A dividend of $0.75 per share was declared for the second quarter[7] - The dividend per share for the last twelve months is $3.00[7] - A share buy-back program of up to $15 million has been launched[7, 39] Operational Updates - Two out of four planned drydockings have been completed ahead of schedule[8, 13] - The estimated average cost of all four drydockings is approximately $5.7 million per vessel[13] Market Trends - Global LNG exports YTD-2025 amounted to 244.7 MT, representing a 2% increase[41] - US LNG exports have surged, accompanied by approximately 24% growth in European LNG imports[40, 41]
Flex LNG - Key information relating to the cash distribution for the second quarter 2025
Prnewswire· 2025-08-20 04:57
Company Information - Flex LNG Ltd. is a shipping company focused on the growing market for Liquefied Natural Gas (LNG) [4] - The company operates a fleet of thirteen state-of-the-art LNG carriers equipped with the latest generation two-stroke propulsion systems, which enhance fuel efficiency and reduce carbon footprint compared to older vessels [4] Cash Distribution Details - For the second quarter of 2025, Flex LNG will distribute $0.75 per share to shareholders [3] - The distribution will be made from the Company's Contributed Surplus Account [1] - Key dates for the distribution include: - Last day including right for NYSE shareholders: September 4, 2025 - Ex-date for NYSE shareholders: September 5, 2025 - Record date for both NYSE and OSE shareholders: September 5, 2025 - Payment date for NYSE shareholders: September 18, 2025 - Payment date for OSE shareholders: September 23, 2025 [3]
Flex LNG - Invitation to the 2025 Second Quarter Presentation
Prnewswire· 2025-08-06 05:39
Company Overview - Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG) [2] - The fleet consists of thirteen state-of-the-art LNG carriers equipped with the latest generation two-stroke propulsion systems (MEGI and X-DF) [2] - These modern ships provide significant improvements in fuel efficiency and a reduced carbon footprint compared to older steam and four-stroke propelled ships [2] Financial Results Announcement - Flex LNG will release its unaudited financial results for the second quarter of 2025 on August 20, 2025, at approximately 07:00 CEST (1:00 a.m. EST) [1] - A live video webcast will be held on the same day at 15:00 CEST (9:00 a.m. EST) [1] - The presentation material will be available on the company's website, and a replay of the webcast will also be accessible [2]
BP's GTA Project Hits New Milestone as Gimi FLNG Reaches COD
ZACKS· 2025-06-24 13:40
Core Insights - BP plc has commenced commercial operations for its Greater Tortue Ahmeyim (GTA) project with Golar LNG's floating liquefied natural gas (FLNG) unit [1][9] - The Gimi FLNG unit has achieved a production level of approximately 2.4 million tons per annum (mtpa), which is 90% of its nameplate capacity and aligns with long-term supply contracts [2][9] - The GTA project has successfully exported multiple LNG cargoes, with an estimated total of 3.5 gross cargoes expected by the end of June [3] Project Details - The GTA project is operated by BP with a 56% working interest, alongside partners Kosmos Energy (27%), Petrosen (10%), and SMH (7%) [1] - The project is located offshore Mauritania and Senegal, recognized as one of the deepest offshore developments in Africa, with water depths reaching up to 2,850 meters [4][9] Future Outlook - Golar LNG expresses commitment to collaborating with BP and other stakeholders to ensure reliable operations and value creation within the GTA project [4]
Best Income Stocks to Buy for June 24th
ZACKS· 2025-06-24 13:10
Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 24th:Runway Growth Finance Corp. (RWAY) : This externally managed business development company which is focused on providing flexible capital solutions to late-stage and growth companies, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 13%, compared with the industry average o ...
FLNG Gimi reaches Commercial Operations Date and Golar progresses FLNG growth
GlobeNewswire News Room· 2025-06-23 10:12
Core Viewpoint - Golar LNG Limited has achieved the Commercial Operations Date (COD) for the FLNG Gimi, marking a significant milestone for the Greater Tortue Ahmeyim (GTA) project, which is expected to generate approximately $3 billion in Adjusted EBITDA backlog for the company [1][2]. Group 1 - The COD signifies the commencement of a 20-year Lease and Operate Agreement, establishing Mauritania and Senegal as LNG exporters [1][2]. - Golar LNG is collaborating with GTA operator bp and partners Kosmos, PETROSEN, and SMH, along with local authorities, to ensure safe operations and stakeholder value creation [2]. - Following the COD, Golar is expediting the development of its next FLNG units and is engaged in commercial discussions to guide the design of the fourth FLNG unit [3]. Group 2 - Golar has signed a final engineering study for a 5mtpa MKIII FLNG and is updating pricing and scheduling for an up to 2.7mtpa MKI FLNG, in addition to the existing 3.5mtpa MKII option [3].
Is Flex LNG (FLNG) Stock Outpacing Its Transportation Peers This Year?
ZACKS· 2025-06-19 14:41
Company Overview - Flex LNG (FLNG) is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating strong analyst sentiment and an improving earnings outlook [3] - The Zacks Consensus Estimate for FLNG's full-year earnings has increased by 12.1% over the past three months, reflecting positive revisions in earnings estimates [3] Performance Comparison - Year-to-date, Flex LNG has gained approximately 6.4%, outperforming the average loss of 7.8% in the Transportation sector [4] - In comparison, LATAM (LTM), another outperforming stock in the Transportation sector, has returned 37.8% year-to-date [4] Industry Context - Flex LNG is part of the Transportation - Shipping industry, which consists of 36 companies and currently holds a Zacks Industry Rank of 186, with an average gain of 0.5% this year [5] - In contrast, LATAM belongs to the Transportation - Airline industry, which has seen a decline of 10.7% this year and is ranked 57 [6]
3 Shipping Stocks Worth Betting on Despite Industry Challenges
ZACKS· 2025-06-09 14:50
Core Viewpoint - The Zacks Transportation - Shipping industry is currently facing significant challenges due to high inflation, tariff-related tensions, and ongoing supply-chain disruptions, compounded by geopolitical and environmental issues [1] Industry Overview - The industry is cyclical and primarily involved in the marine transportation of liquefied natural gas and crude oil under long-term, fixed-rate contracts with major energy and utility companies [3] - The shift in the e-commerce landscape due to COVID-19 has led shippers to increasingly rely on third-party logistics providers, indicating a direct correlation between the industry's health and the overall economy [3] Shipping Industry Trends - Supply-chain disruptions and high operational costs continue to negatively impact shipping stocks, with increased costs expected to persist due to ongoing issues like the Red Sea crisis [4][5] - Tariff uncertainties remain a concern, as the shipping industry is likely to experience a demand slowdown until a long-term trade deal is established, leading to potential disruptions in trade routes [6] - Environmental challenges are significant, with the shipping industry being a major contributor to greenhouse gas emissions. The International Maritime Organization aims for a 20% reduction by 2030, but current disruptions may hinder progress [7] Industry Performance - The Zacks Transportation - Shipping industry ranks 171 within the broader Zacks Transportation sector, placing it in the bottom 30% of 244 Zacks industries, indicating poor near-term prospects [8][9] - The industry's earnings estimates for 2025 have decreased by 26.6% year-over-year, reflecting analyst pessimism regarding earnings growth [10] - Over the past year, the industry has underperformed the S&P 500, declining by 33% compared to the S&P 500's increase of 11.9% [11] Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 6.37X, significantly lower than the S&P 500's 21.94X and the sector's 14.09X [14] Investment Opportunities - FLEX LNG Ltd. (FLNG) is highlighted for its strong demand for LNG and commitment to shareholder dividends, with a Zacks Rank of 1 and a projected 8% increase in 2026 earnings [17] - Euroseas Limited (ESEA) benefits from profitable contracts and maintains a time charter equivalent rate exceeding $30,000 per day, currently holding a Zacks Rank of 2 with a 2.1% increase in 2025 earnings estimates [20] - KNOT Offshore Partners (KNOP) specializes in shuttle tankers for crude oil transport and has consistently surpassed earnings estimates, currently holding a Zacks Rank of 2 [23]
Flex LNG - Ex Date Q1 2025
Prnewswire· 2025-06-05 05:22
Group 1 - Flex LNG Ltd. shares will trade ex-dividend of USD 0.75 per share on June 5, 2025, for Oslo Stock Exchange and on June 6, 2025, for New York Stock Exchange [1][2] - The dividend payment is scheduled for approximately June 25, 2025, for Oslo Stock Exchange and June 20, 2025, for New York Stock Exchange [1][2] - Flex LNG operates a fleet of thirteen state-of-the-art LNG carriers, utilizing the latest generation two-stroke propulsion technology, which enhances fuel efficiency and reduces carbon footprint compared to older vessels [2]