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
Portfolio Pulse from Benzinga Newsdesk
Flex LNG Ltd. (FLNG) has been informed that the charterer of Flex Constellation will not extend their charter option. The ship was on a three-year Time Charter since May 17, 2021, with an extension option of up to three years. Flex LNG expects to take redelivery of the ship in Q2 2024. The current charter rate is $80,000 per day, but market rates for new charters are quoted at $90-100,000 per day. The company plans to market the ship for new opportunities after a special survey, highlighting its environmentally friendly features in line with the Global Methane Pledge.

January 08, 2024 | 8:02 pm
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Flex LNG Ltd. will regain control of Flex Constellation in Q2 2024 after the charterer declined the extension. With higher market charter rates, the company anticipates better contract terms post-redelivery.
The redelivery of Flex Constellation could be positive for FLNG as the current market rates for charters are higher than the ship's previous rate. This suggests potential for increased revenue. The company's focus on environmentally friendly features may also attract new charterers, especially with the emphasis on reducing methane emissions in the shipping industry.
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