Flex LNG Ltd. Earlier Announced It Has Received Notice That The Charterer Of Flex Constellation, Has Decided Not To Utilize Its Extension Option; Co Expects To Take Redelivery Of The Ship During Q2 Of 2024

Author: Benzinga Newsdesk | January 08, 2024 04:02pm

https://www.flexlng.com/flex-lng-redelivery-of-flex-constellation-in-2024/#:~:text=Flex%20Constellation%20was%20fixed%20on,the%20second%20quarter%20of%202024.

Flex LNG Ltd. («Flex LNG» or «Company») (NYSE/OSE: FLNG) has received notice that the charterer of Flex Constellation, a trading house, has decided not to utilize its extension option. Flex Constellation was fixed on a three-year Time Charter on May 17, 2021, where the charterer had the option to extend the period by up to three years. Hence, Flex LNG expect to take redelivery of the ship during the second quarter of 2024.

Øystein Kalleklev, CEO of Flex LNG Management AS, commented:
"We note that we will have Flex Constellation back during the second quarter this year which fits well with her scheduled five-years special survey which is due during second or third quarter of 2024. For 2024, we only have two ships scheduled for drydock, in contrast to four ships during 2023.

For 2024, the charter coverage for Flex LNG is 95% following the redelivery of Flex Constellation. The Flex Constellation has been on a Time Charter with a fixed rate of $80,000 per day, in line with the Time Charter Equivalent guidance for our fleet in 2023. The term rates for one to ten years charters are currently being quoted at $90-100,000 per day according to most brokers. Consequently, we believe the vessel is well positioned to be recontracted at more attractive levels than the previous contract.

Once we have completed the special survey of Flex Constellation, we will market her for short- and long-term opportunities ahead of the winter season which we consider a good timing. The Flex Constellation is a large 173,400 cbm LNG carrier equipped with ME-GI main engines with partial reliquefication system. These engines have negligible methane slip guaranteed by the maker to be less than 0.2 gram per KWh which is about twenty times less than the methane slip for dual fuel diesel electric (DFDE/TFDE) LNG carriers which also burn about 30 per cent more fuel with associated carbon emissions and additionally has about 5-10% less cargo space. In the light of the Global Methan Pledge at COP 26, recently repeated at COP28, we are therefore upbeat about the prospects for rechartering the ship at attractive levels given her environmentally friendly specification."

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