- The stock price of FLEX LNG Ltd (NYSE: FLNG) increased by over 11% pre-market today. This is why.
The stock price of FLEX LNG Ltd (NYSE: FLNG) increased by over 11% pre-market today. Investors responded positively to Flex LNG announcing new Time Charter Agreements for Flex Rainbow, Flex Enterprise, and Flex Amber which are the 3 open positions that the company has been marketing.
Flex LNG and the Charterer of Flex Enterprise and Flex Amber, a supermajor, have agreed to replace the existing variable Time Charters which are due October 2023 and March 2024 with new fixed hire Time Charters. And the duration of each of the new Time Charters is 7 years. The commencement of the new Time Charters will be in the third quarter of 2022 with expiry thus in the third quarter of 2029.
Plus Flex LNG and the Charterer of Flex Rainbow, a large global trading company, have agreed on a new ten-year fixed-rate Time Charter for Flex Rainbow which will commence in direct continuation of the existing Time Charter which expires in January 2023. And the new Time Charter will thus expire in early 2033. The new Time Charter Agreements remain subject to final documentation and customary closing conditions.
“We are today happy to announce that we have agreed three Time Charters for Flex Rainbow, Flex Enterprise and Flex Amber. Altogether this adds about $750 million of fixed backlog, reflecting the strong period market today.”
“Not only are we agreeing long term employment for these three ships, but we are also pleased that we are doing so with the existing charterers which have been repeating customers. This demonstrates the attractiveness of not only of the ships, but also the high service level of professionalism of the entire organization from seafarers to the people onshore.”
With these new contracts we have substantially increased our earnings backlog. After these new contracts, our firm minimum backlog is 54 years with another 28 years of possible extension options. The high degree of earnings backlog will further strengthen our ability to continue to pay attractive dividends, making Flex LNG an attractive investment and a place to work at.”
— Øystein Kalleklev, CEO of Flex LNG Management AS
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