Flex LNG (NYSE:FLNG) Releases Earnings Results

Flex LNG (NYSE:FLNG) issued its earnings results on Wednesday. The company reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.01, FiscalAI reports. The company had revenue of $97.38 million during the quarter, compared to the consensus estimate of $95.34 million. Flex LNG had a return on equity of 14.88% and a net margin of 28.50%.

Here are the key takeaways from Flex LNG’s conference call:

• FLEX LNG reported its strongest third-quarter results ever, with revenue of $97.4 million, average fleet TCE near $79,000 per day, and adjusted net income of $35 million. Strong spot-market earnings and no dry-dock offhire days supported the results.
• The board declared another $0.75-per-share dividend, the 21st consecutive quarterly payment at that level; the company says it has distributed more than $900 million since 2021.
• New financing for Flex Enterprise is expected to release about $34 million in liquidity at a blended cost of SOFR plus 25 basis points, while amended leases for Flex Artemis and Flex Amber reduce margins and quarterly repayments.
• Management expects full-year results near the mid-to-lower end of guidance amid a soft spot market and a large schedule of newbuild deliveries. It also raised full-year operating-cost guidance to $16,200 per day from $16,000 and flagged increased vessel spot-market exposure.
• Management sees long-term support from upcoming LNG export projects, particularly in the U.S., but said the next 12–18 months could be choppy as new vessel supply, geopolitical uncertainty, weather, and the timing of Qatari supply normalization affect shipping demand. The company has 48 years of minimum firm contract backlog, potentially rising to 75 years if options are exercised.

Flex LNG Stock Up 0.9%

Shares of NYSE:FLNG traded up $0.24 during trading on Wednesday, hitting $25.55. The company’s stock had a trading volume of 431,262 shares, compared to its average volume of 469,605. The company has a debt-to-equity ratio of 2.40, a quick ratio of 2.64 and a current ratio of 2.69. Flex LNG has a fifty-two week low of $24.14 and a fifty-two week high of $33.40. The stock’s 50-day moving average price is $29.90 and its two-hundred day moving average price is $29.95. The company has a market capitalization of $1.38 billion, a PE ratio of 13.46 and a beta of 0.24.

Flex LNG Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Thursday, September 3rd were paid a $0.75 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $3.00 annualized dividend and a dividend yield of 11.7%. Flex LNG’s payout ratio is 157.89%.

Wall Street Analysts Forecast Growth

FLNG has been the subject of a number of analyst reports. Wall Street Zen upgraded Flex LNG from a “sell” rating to a “hold” rating in a report on Saturday, August 22nd. Weiss Ratings lowered shares of Flex LNG from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Sell” and an average price target of $25.00.

About Flex LNG

Flex LNG Ltd. is an international shipping company focused on the transportation of liquefied natural gas (LNG). The company owns and operates LNG carriers that move natural gas by sea between producers and customers around the world. Flex LNG charters its vessels to energy companies and other participants in the LNG market. Its fleet includes ships equipped with modern propulsion technologies designed for efficient LNG transportation. Founded in 2006, Flex LNG is incorporated in Bermuda and has operations managed from Oslo, Norway.