Flex LNG secures new charter extension deal

Norwegian pure-play LNG carrier company Flex LNG has secured a new charter deal for the 173,400 cbm Flex Amber.

The company sealed a deal with an undisclosed energy company and the option was declared in August 2021.

The time charter for the 2020-built vessel was originally due to expire in the third quarter of 2021, but the charter period is now prolonged for one more year.

Flex LNG took delivery of Flex Amber in October 2020. The tanker is built by Hyundai Samho Heavy Industries in South Korea and equipped with a dual-fuel slow-speed two-stroke engine (XDF).

Since April 2021, the company has secured long-term time charter contracts for six vessels with aggregate firm periods of 20 years with charterer’s options which could extend this to 40 years.

In May, the firm secured charter deals for its LNG carriers Flex Constellation and Flex Freedom.

The company revealed the new deal in its financial report for the second quarter of 2021.

The company’s revenue for Q2 was down to $65.8 million compared to $81.3 million for the first quarter of 2021.

Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined to $46.8 million for the second quarter of 2021 against $64.0 million for the first quarter of 2021.

“As the market and outlook have significantly improved recently due to strong LNG demand, we have acted on opportunities to add substantial length to our charter backlog,” Øystein M Kalleklev, CEO of Flex LNG Management AS, commented.

“As of today, we have booked 96 per cent of the available days for the year but remain exposed to the general market through one ship trading spot and three ships on variable hire. As ships are rolling onto new contracts, we do expect revenues to grow steadily in the second half of the year.”