FLEX LNG .(FLNG) - 2024 Q3 - Quarterly Report

Financial Performance - Vessel operating revenues for Q3 2024 were $90.5 million, up from$ 84.7 million in Q2 2024, representing a 9% increase[4] - Net income for Q3 2024 was $17.4 million, down from$ 21.8 million in Q2 2024, a decrease of 20%[4] - Adjusted EBITDA for Q3 2024 was $70.4 million, compared to$ 63.2 million in Q2 2024, reflecting an increase of 18%[4] - The Company recorded vessel operating revenues of $90.5 million for Q3 2024, an increase of 8.6% from$ 84.7 million in Q2 2024, attributed to seasonal increases in spot market rates[26] - Adjusted EBITDA for Q3 2024 was $70.4 million, up from$ 63.2 million in Q2 2024, reflecting a positive operational performance[35] - Net income for Q3 2024 was $17.4 million, down from$ 21.8 million in Q2 2024, with basic earnings per share decreasing from $0.41 to$ 0.32[34] - Net income for Flex LNG in Q3-2024 was $17,408,000, down from$ 45,101,000 in Q3-2023[80] - Basic earnings per share for Flex LNG in Q3-2024 were $0.32, compared to$ 0.84 in Q3-2023[79] - The company reported net income of $62,453,000 for the three months ended September 30, 2024, compared to$ 90,468,000 for the same period in 2023, reflecting a decrease of approximately 30.9%[143] - Net income for the three months ended September 30, 2024, was $17,408,000, a decrease of 62.5% compared to$ 45,101,000 for the same period in 2023[146] - Adjusted net income for the three months ended September 30, 2024, was $28,680,000, down 20.7% from$ 36,051,000 in the same period last year[146] Debt and Cash Management - The total long-term debt as of September 30, 2024, was $1,673.1 million, down from$ 1,760.4 million in Q2 2024, a reduction of approximately 5%[4] - As of September 30, 2024, total long-term debt was $1,673.1 million, reduced from$ 1,812.1 million at the end of 2023, due to regular repayments and prepayments[52] - Cash and cash equivalents as of September 30, 2024, were $289.5 million, down from$ 370.2 million in Q2 2024[4] - The company reported a carrying value of cash and cash equivalents as of September 30, 2024, was $289.5 million, a decrease from$ 410.4 million at December 31, 2023[118] - The company incurred extinguishment costs of long-term debt amounting to $637 thousand during the third quarter of 2024[84] - Long-term debt decreased to$ 1,577,692 thousand as of September 30, 2024, down from $1,656,294 thousand in June 30, 2024, a decline of approximately 4.74%[82] Operational Efficiency - The Company achieved a technical uptime of 100% for its vessels in Q3 2024[13] - Vessel operating expenses remained stable at$ 17.8 million in Q3 2024, unchanged from Q2 2024, indicating effective cost management[27] - Operating expenses for the three months ended September 30, 2024, were $17,836,000, an increase of 5.3% compared to$ 16,937,000 for the same period in 2023[153] - Opex per day for the three months ended September 30, 2024, was $14,913, an increase of 5.3% from$ 14,161 in the same period last year[153] Market Conditions - LNG prices have stabilized after a 60% increase since February 2024, with TTF prices reaching $12.6/MMBtu by the end of Q3 2024, driven by strong demand and supply constraints[58] - Global LNG exports for the first ten months of 2024 reached 341 MT, a modest increase of 1.8 MT or 0.5% year-on-year[59] - China remains the largest global LNG importer with 65 MT YTD-2024, reflecting a robust 10.3% year-on-year increase[60] - European LNG imports have decreased by 22% year-on-year, primarily due to a mild winter and reduced industrial demand[60] - Spot rates for modern two-stroke vessels averaged$ 70,900/day in Q3-2024, down from $141,000/day in the same period last year[63] Shareholder Returns - The Company declared a dividend of$ 0.75 per share for Q3 2024, marking the thirteenth consecutive quarter of the same dividend amount[11] - Dividends paid per share for the nine months ended September 30, 2024, was $2.25, compared to$ 2.50 for the same period in 2023[97] - The company declared a cash distribution of $0.75 per share for the third quarter of 2024, to be paid on or around December 11, 2024[138] Future Outlook - The International Energy Agency (IEA) projects supply growth to accelerate to nearly 6% in 2025, requiring 40-50 new ships[61] - Geopolitical factors, including the re-election of Donald Trump, may positively impact the LNG shipping market by lifting the current pause on U.S. LNG export approvals[66]