Flex LNG Ltd, the liquefied natural gas shipping company based in Bermuda, has reported net income of $19.4 million for the fourth quarter of 2023, which compares with net income of $45.1 million in the third quarter of the year.

Vessel operating revenues were $97.2 million in the quarter, compared with $94.6 million in the third quarter.

The average time charter equivalent rate was $81,114 per day for the quarter, compared with $79,207 in the third quarter.

The company declared a dividend for the quarter of $0.75 per share, payable on or around March 5 to shareholders on record as of February 23.

Øystein M Kalleklev, CEO of Flex LNG Management AS, said: “Over the next two years, we do see a somewhat more challenging freight market as there are more ships for delivery compared to the expected new export volumes.

“Hence, we think Flex LNG is very well positioned as we have 94 per cent charter coverage for 2024 and 50 years minimum firm charter backlog, which may increase to 71 years if all charterer's options are extended.

“Additionally, our fleet consists entirely of large LNG carriers fitted with the most modern two-stroke propulsion system resulting in significant fuel savings compared to older generation tonnage.

“Reduced fuel consumption is also good for the environment and with EU Emission Trading System coming into force from 2024, this further enhances the premium which our ships can achieve in the market given the costs associated with such carbon emissions.

“Lastly, we have a very strong balance sheet where all the LNG carriers are financed with attractive long-term debt while our cash balance at year-end was a comfortable $411 million, giving us a high degree of financial flexibility.”