Flex LNG Ltd. («Flex LNG» or «Company») (NYSE/OSE: FLNG) has received notice that the charterer of Flex Constellation, a trading house, has decided not to utilize its extension option. Flex Constellation was fixed on a three-year Time Charter on May 17, 2021, where the charterer had the option to extend the period by up to three years. Hence, Flex LNG expect to take redelivery of the ship during the second quarter of 2024.
Øystein Kalleklev, CEO of Flex LNG Management AS, commented:
“We note that we will have Flex Constellation back during the second quarter this year which fits well with her scheduled five-years special survey which is due during second or third quarter of 2024. For 2024, we only have two ships scheduled for drydock, in contrast to four ships during 2023.
For 2024, the charter coverage for Flex LNG is 95% following the redelivery of Flex Constellation. The Flex Constellation has been on a Time Charter with a fixed rate of $80,000 per day, in line with the Time Charter Equivalent guidance for our fleet in 2023. The term rates for one to ten years charters are currently being quoted at $90-100,000 per day according to most brokers. Consequently, we believe the vessel is well positioned to be recontracted at more attractive levels than the previous contract.
