FLNG Stock Recent News

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.

US natural gas exports are expected to increase from 14 BCF/d to over 26.5 BCF/day by 2030, alongside similar projects in Qatar and Australia. Natural Gas carriers FLEX LNG and Cool Company offer high cash flows and dividends thanks to rising shipping rates. The LNG shipping market will dramatically expand over the next three years as 270 new vessels and multiple export terminals enter service during that time.

The most oversold stocks in the energy sector presents an opportunity to buy into undervalued companies.

FLEX LNG offers a 10% yield, fully covered by its free cash flow. Its extensive contract backlog supports dividend payouts in the coming years. Its most interesting peer, Cool Company, may offer more growth potential due to spot market exposure, and other peers fall short for various reasons.

FLEX LNG Ltd. has solid visibility into future revenue and cash flows due to its contracts. The company's steady performance is supported by its young, modern fleet and limited exposure to the spot market. FLEX LNG stock offers a solid dividend and has nice price appreciation potential.

The Russian invasion of Ukraine disrupted the LNG industry, leading Europe to seek alternative suppliers like the US. FLEX LNG Ltd. benefited from the increased demand for LNG vessels and locked in high long-term charter rates. The company's fleet is relatively young and has a significant contract backlog, contributing to its positive earnings performance.

FLEX LNG Ltd. (NYSE:FLNG ) Q2 2023 Earnings Conference Call August 16, 2023 9:00 AM ET Company Participants Oystein Kalleklev - CEO Knut Traaholt - CFO Conference Call Participants Oystein Kalleklev Hi, everybody.