FLNG Stock Recent News

FLEX LNG: Bet On Resilient Demand For LNG Carriers

There are multiple reasons dividend stocks are the first choice for many investors. First, these stocks provide regular cash flows that serve as a passive income source.

The article discusses various aspects of a company's profile, fleet, earnings, guidance, new business, industry trends, dividends, taxes, insiders, profitability & leverage, debt & liquidity, performance, analysts' price targets, and valuations. FLNG yields over 11%, but has received a downgrade from Jefferies due to potential future dividend cuts. FLNG's dividend payout ratio was above 100% in 2023 on an Adjusted EPS and an Operating Cash Flow basis.

Recent weeks witnessed a rebase of the company's equity currency to an 11% - 12% dividend yield on the back of shifting LNG market fundamentals. The company's strong liquidity position and FCFE generation are key to the $0.75 per share dividend distribution despite challenges in the LNG spot market. Investors should tread with caution since any prolonged price weakness may prompt management to adjust the distribution strategy to a more sustainable yield.

Today's ‘Halftime Report' Investment Committee, Jenny Harrington, Kari Firestone, Joe Terranova and Steve Weiss give their top picks to watch for the second half.

The LNG market seems oversupplied, considering the record-high order book. Going deeper, however, reveals growth potential. FLEX LNG is one of the best ways to play those dynamics. The company has a young fleet equipped with the last generation of power plants. Having a new fleet pays off. FLNG has superior margins, an 81.1% gross margin, and a 76.2% EBITDA margin. FLNG has leveraged its capital structure due to its intensive capital investments.

FLEX LNG Ltd. (FLNG) Q4 2023 Earnings Call Transcript

With tightening of monetary policies, global GDP growth has decelerated. This has resulted in a correction for oil as demand has declined on a relative basis.

Europe's switch to LNG supply sources from Russia has increased demand for LNG shipping, leading to higher shipping rates. FLEX LNG Ltd. has a strong fleet with long-term charter contracts and has been able to lock in higher charter rates. FLEX LNG has been increasing its dividends and currently offers a base dividend yield of 9.58%, with a total yield of around 10%.

Flex LNG (FLNG) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.79 per share a year ago.