The following is a summary of the FLEX LNG Ltd. (FLNG) Q2 2024 Earnings Call Transcript:
Financial Performance:
FLEX LNG reported Q2 revenue of $84.7 million, meeting previous guidance of close to $85 million.
Net income for Q2 was $21.8 million with adjusted net income reaching $30.4 million considering only realized gains and losses on derivatives.
Earnings per share were $0.41, and $0.56 on an adjusted basis.The company completed successful drydockings as per plan and budget, spending $5 million on each ship with total duration being less than expected at 17 days each.
Declared a quarterly dividend of $0.75 per share, maintaining a robust dividend yield of approximately 12% based on the last 12 months.
Business Progress:
FLEX Constellation was successfully chartered for 10 months to a large Asian LNG buyer, enhancing fleet utilization.
Achieved significant financing milestones with a total of $430 million of new financing, enhancing financial flexibility.
Management expects higher revenues and earnings in Q3 following the return of all ships to operation and improvement in spot market conditions.
Opportunities:
Market outlook remains positive with significant backlog providing high visibility of future revenues.
Continued focus on capitalizing on term rate improvements and substantial contracted backlog to secure financial stability and growth.
Operational return of all ships in Q3 expected to significantly bolster revenues and operational efficiency.
Risks:
The softness in Q2 represents a perennial challenge, although planned drydockings and strategic shipping operations help mitigate revenue dips.
Potential volatility in future spot market conditions despite positive current trends could impact revenue projections.
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