FLEX LNG: When A New Fleet And Appealing Yields Are Not Enough, Rating Downgrade
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FLEX LNG reported a decrease in year-over-year revenue for 3Q24 but an increase in quarter-over-quarter revenue. Despite a high dividend yield, the company's high debt levels and payout ratio have led to a rating downgrade.
November 22, 2024 | 6:30 am
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FLEX LNG's 3Q24 results show a decrease in YoY revenue but an increase in QoQ revenue. The company declared a $0.75/share dividend with an 11.85% yield. However, high debt levels and a 143% payout ratio have led to a rating downgrade.
The rating downgrade is likely to negatively impact FLEX LNG's stock price in the short term. Despite the attractive dividend yield, the high debt levels and payout ratio are significant concerns for investors, overshadowing the positive aspects of the earnings report.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100