Flex LNG Secures New Multi-Year Charter for Flex Aurora with Supermajor
FLNG sits 59% above its 52-week low of $19.46.
Summary
Flex LNG announced a new minimum two-year time charter agreement for its vessel Flex Aurora with a Supermajor, with options to extend the contract up to eight years, further strengthening its contract backlog.
Key Events · M&A and Partnerships · FLNG
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New Charter Agreement for Flex Aurora
Flex LNG has secured a new time charter agreement for its 2020-built LNG carrier, Flex Aurora, which was recently redelivered from a previous charter.
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Long-Term Contract with Supermajor
The new contract is with a 'Supermajor' for a minimum firm period of two years, with options for the charterer to extend for an additional 2+2+2 years, potentially committing the vessel until 2034.
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Increased Contract Backlog
Following this agreement, Flex LNG's total minimum contract backlog has increased to 55 years, with a potential to reach 82 years if all options are exercised.
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Positive Impact on Q2 Earnings
The new contract, combined with the company's remaining spot exposure, is expected to contribute positively to earnings in the second quarter of 2026.
Analysis · FLNG · Energy & Transportation
Flex LNG has successfully secured a new time charter agreement for its vessel, Flex Aurora, with a major energy company. This contract provides a minimum of two years of firm employment, with options that could extend it up to eight years, significantly enhancing the company's revenue visibility and contract backlog. This follows a recent announcement of contract extensions for other vessels, indicating strong demand for Flex LNG's modern fleet and a positive market environment for LNG shipping. The new charter is expected to contribute positively to second-quarter earnings, although the company noted that full-year guidance might be revised due to ongoing market volatility.
At the time of this filing, FLNG was trading at $30.86 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $19.46 to $31.99. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.