Flex LNG Ltd, the liquefied natural gas shipping company based in Bermuda, is expected to see revenue increase by more than 6 per cent year-over-year in 2023.

Oystein M Kalleklev, chief executive of Flex LNG Management AS, made the comment as the company released its first-quarter results.

In March, Flex LNG completed a balance sheet optimisation programme that resulted in the refinancing of all ships in its fleet over a 16-month period, which has increased the company’s cash balance by approximately $382.4 million after all fees and expenses, extended the maturity profiles to the earliest in 2028 and reduced interest margins.

Mr Kalleklev said: “As we completed the balance sheet optimisation programme during the first quarter, we had some additional financing costs in our accounts for the first quarter. However, we have now put in place new attractive long-term financing for all our 13 ships, boosting our cash balance to $475 million at quarter-end or about $9 per share.

“We have now also completed our two first scheduled dry-docking of the LNG carriers Flex Enterprise and Flex Endeavour being docked during March and April, respectively. We are pleased to say that these dry-docking have been carried out according to both time and costs while minimising off-hire periods.

“During the second quarter we will carry out the two last dry-docking for the year. Revenues are therefore expected to pick up in the second half of the year when the dry-docking programme for the year is expected to be completed by end of June.”

He added: “We also reaffirm our guidance for the year. Despite off-hire in connection with four ships carrying out dry-docking, we do expect revenues to increase from $348 million in 2022 to about $370 million for 2023.

“The average time charter equivalent rate for the fleet is expected to come in at about $80,000 per day for 2023 in line with the $80,175 per day we delivered in the first quarter.”

CoolCo time-charter deal

Bermudian-based Cool Company Ltd, the liquefied natural gas shipping company, has entered into a new time-charter agreement for one of its tri-fuel diesel electric vessels starting early next year.

The multiyear charter is with an energy major and starts upon redelivery from the vessel’s existing charter. It will add backlog through to 2027.

"We are delighted to have secured this attractive time charter, locking in cover at a rate that reflects the continued strength of the LNG carrier market," said Richard Tyrrell, CEO of CoolCo.

"The forward nature of this contract demonstrates the desire of LNG producers, off-takers and portfolio players to secure modern tonnage to transport the dramatically increasing volumes of LNG coming online through the middle and latter parts of the decade.

“With vessel availability coinciding with seasonal peaks for chartering, CoolCo stands to benefit from the ongoing LNG carrier repricing cycle.”