FLEX LNG Ltd. (NYSE:FLNG) Q3 2024 Earnings Conference Call November 12, 2024 9:00 AM ET
Company Participants
Oystein Kalleklev - Chief Executive Officer
Knut Traaholt - Chief Financial Officer
Conference Call Participants
Oystein Kalleklev
… Third Quarter Results Presentation. I’m CEO Oystein Kalleklev, and I will be joined later in the presentation as usual by our CFO, Knut Traaholt, who will walk you through the financials.
Before we begin, just want to remind you that we will be providing some forward-looking statements, some non-GAAP measures and of course there are limits to the completeness of detail. Before we kickoff the presentation, just remind you that you can send in questions for the Q&A session either by using the chat function or send an email to ir@flexlng.com. And as usual, we have a gift for the best question. This time we do actually have two gifts. We have our FLEX LNG perfume. We have the two versions, His and Her Money. So it's a perfume with the scent of dividends, which I believe everybody likes. So let's try it out. Yes, that's a good start. So send in a question to who will be the lucky winner of this perfume.
So let's kick off with the highlights. No big surprises on the revenue numbers. Adjusted EBITDA revenues came in at $90.5 million in line with guidance of approximately $90 million. This resulted in net income and adjusted net income of $17.4 and $28.7 million, respectively. Just to remind you, adjusted net income numbers, we only take in the realized gain and losses on derivatives.
During this quarter, interest rate fell a lot until early September when Fed cut 50 basis points, and we utilized that opportunity to increase our hedging portfolio significantly. So the $10.7 million we had in unrealized losses in Q3. We gained more than that just in October month alone. This gave an adjusted earnings per share of $0.53 for the quarter.
Recent events, we announced last Thursday that we are already starting the fixing season for 2029 with new contracts for both Flex Resolute and Flex Courageous, where the charter takes these ships firm for 2029 to 2032, but where they have option to keep the ships all the way to 2039. And I will give some more details on this. We also have one ship being re-delivered, not a big surprise given where the market is, which I will cover later in the presentation. So we will have her back -- expecting her to have her back in March next year.