Flex LNG Ltd, the Bermudian-based liquefied natural gas shipping company, has reported net income of $45.2 million in the fourth quarter of 2024, which compares with net income of $17.4 million in the third quarter of the year.

Vessel operating revenues were $90.9 million in the quarter, which compares with $90.5 million in the prior quarter.

The company declared a dividend for the quarter of $0.75 per share, payable on or about March 5 to shareholders on record as of February 20.

Oystein M. Kalleklev, chief executive of Flex LNG Management AS, said: “We are pleased to deliver stellar financial performance for the fourth quarter in line with our previous guidance.

“We recorded substantial profits on our portfolio of interest rate swaps as we increased our interest rate hedging significantly during the interest rate slump at the beginning of September.

“During the fourth quarter, interest rates rallied, and we therefore booked $20.1 million of gains on these derivatives of which $5.1 million were realised during the quarter.

“Hence, adjusted net income for the fourth quarter came in at $30.8 million, corresponding to earnings per share and adjusted earnings per share of $0.84 and $0.57, respectively.”

He added: “The short to medium term outlook for LNG shipping is challenging given the numerous ship deliveries ahead of ramped up new export capacity.

“As such, we think 2024 to 2027 will probably resemble the period 2014 to 2017. There is one key difference, we will likely see a sharp increase in the demolition of older, less efficient tonnage, primarily steam tonnage which will prepare the ground for improved markets, similar to what was experienced in 2017.

“In any case, Flex LNG utilised the upturn in 2021 to 2023 well to build both a fortress balance sheet and charter backlog and we are well prepared for the current weak market. We are therefore guiding financial performance in 2025 to be in line with what we achieved in 2024.”