Flex LNG' Reported Early Monday Flex Constellation Ship to Return in Q2 2024 as Charterer Skips Extension Option
Portfolio Pulse from Benzinga Newsdesk
Flex LNG Ltd. (FLNG) announced that the charterer of its Flex Constellation ship has not exercised the extension option. The ship was on a three-year Time Charter since May 17, 2021, with an option to extend up to three years. Flex LNG expects to take redelivery of the ship in Q2 2024. The company has a 95% charter coverage for 2024 and anticipates recontracting the vessel at higher rates than the current $80,000 per day, as market rates are quoted at $90-100,000 per day.
January 09, 2024 | 10:44 am
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Flex LNG's Flex Constellation ship will be redelivered in Q2 2024 as the charterer declined the extension. The company expects to recharter the vessel at higher rates than the current $80,000 per day, with market rates at $90-100,000 per day.
The redelivery of Flex Constellation could lead to increased revenues for Flex LNG if the vessel is recontracted at the higher market rates of $90-100,000 per day. This positive outlook is based on the current market rates provided by brokers, suggesting a potential uplift in earnings from the vessel. However, the actual impact will depend on the market conditions at the time of recontracting and the company's ability to secure a new charter at the anticipated rates.
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