Flex LNG Posts Increased Q4 Net Income but Revenue Declines

Flex LNG Ltd. shows a positive trend in net income with $45.2 million for Q4, despite a drop in vessel revenues to $90.9 million. The company maintains a cautious outlook on LNG shipping for 2024-2027 amid anticipated challenges.

Date: 04-02-2025

AI Rating: 6

Net Income and Earnings Per Share (EPS)
Flex LNG reported a net income of $45.2 million or $0.84 per share in Q4, a significant increase from $19.39 million or $0.36 per share a year prior. However, adjusted net income decreased to $30.8 million or $0.57 per share from $37.8 million or $0.70 per share last year. This indicates a positive net income figure despite the decline in adjusted earnings.

Revenue Growth
The company's vessel operating revenues decreased to $90.9 million from $97.2 million in the previous-year quarter. Although they slightly surpassed analyst expectations of $89.9 million, the decline in revenue may raise concerns among investors regarding future performance.

Dividend Declaration
Flex LNG declared a dividend of $0.75 per share for Q4, which remains a positive signal for shareholders and shows the company's commitment to returning value to its investors.

Future Outlook
Looking ahead, the company anticipates a challenging short to medium-term outlook for LNG shipping, drawing parallels to the performance period of 2014 to 2017 due to anticipated ship deliveries and new export capacity. The guidance for financial performance in 2025 to align with 2024's results suggests a cautious approach.

Stocks: FLNG