Flex LNG Report Strong Charter Backlog and Expect Increased 2023 Revenues

Photo credit: Flex LNG

Hamilton-based Flex LNG shipowner expects an increased revenue in the year 2023. The shipowner whose fleet portfolio consists of modern LNG ships built at leading Korean shipyards forecasts its revenues to grow from $348 million in 2022 to around $370 million for 2023, driven by higher time charter equivalent earnings, which Flex expects to be around $80,000 per day in 2023, an improvement from the $72,800 per day delivered in 2022.

Commenting on results Flex LNG CEO Øystein M Kalleklev said “Revenues are expected to increase despite us carrying out our first five-year special surveys for four ships with associated off-hire during 2023.”

The New York-listed and Oslo listed company has built in the last quarter of 2022 a strong charter backlog though time charter deals with Cheniere. The two parties have sealed a deal for a minimum of 14 years to extend three ships which they already had on time charter. This agreement added additional earnings visibility to the company.

In total the company added a minimum 38 years of backlog during 2022 through extension of time charters with existing customers.

Flex LNG next two vessels are set to fall open four years from now in 2027. As the shipowner highlights “our first two fully open positions are now in 2027 which coincide nicely with the next wave of LNG volumes coming to the market in that period.”

“As of the date of this report, the firm contract backlog for our time charters is 60 years, which may increase to 87 years with declaration of charterer’s options,” in accordance with the interim financial report of Flex for the fourth quarter 2022.

The LNG carrier has four vessels scheduled for drydock in 2023, and a further two vessels scheduled for drydock in 2024.

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