Flex LNG (NYSE:FLNG) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Flex LNG (NYSE:FLNG) released its quarterly earnings results on Wednesday. The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.01, FiscalAI reports. Flex LNG had a net margin of 34.59% and a return on equity of 16.67%. The company had revenue of $97.38 million during the quarter, compared to analysts’ expectations of $95.34 million.

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 Down 0.3%

NYSE FLNG traded down $0.08 during trading on Friday, hitting $25.75. The stock had a trading volume of 165,551 shares, compared to its average volume of 471,737. The company has a market capitalization of $1.39 billion, a PE ratio of 10.82 and a beta of 0.24. The company’s 50-day moving average price is $29.66 and its two-hundred day moving average price is $29.94. 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 12 month low of $24.14 and a 12 month high of $33.40.

Flex LNG Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 27th will be paid a $0.75 dividend. The ex-dividend date is Friday, November 27th. This represents a $3.00 annualized dividend and a yield of 11.6%. Flex LNG’s payout ratio is presently 157.89%.

Analysts Set New Price Targets

Several research firms recently commented on FLNG. Pareto Securities raised shares of Flex LNG from a “strong sell” rating to a “hold” rating in a research report on Thursday. Wall Street Zen raised shares of Flex LNG from a “sell” rating to a “hold” rating in a research note on Saturday, August 22nd. BTIG Research reiterated a “neutral” rating on shares of Flex LNG in a report on Thursday. Finally, Weiss Ratings downgraded Flex LNG from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Flex LNG presently has an average rating of “Reduce” and an average target price 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.