HAMILTON, Bermuda, Nov. 7, 2024
/PRNewswire/ -- Flex LNG Ltd ("Flex LNG" or the "Company")
(NYSE: FLNG) (OSE: FLNG) is pleased to announce it has agreed with
the Charterer of Flex Courageous and Flex Resolute, a Supermajor,
to amend the existing Time Charter Agreements ("TC") for the two
LNG carriers where the parties have agreed a new firm period from
2029 to 2032 which may be extended by an additional seven years in
total until 2039.
As communicated by the Company on November 1, 2021, Flex LNG and the Charterer then
agreed TCs for the two ships with commencement during the first
quarter of 2022 where the firm period was three years for each of
the LNG carriers and where the Charterer could extend each ship by
two additional two-year periods. In the event both extension
options are declared, the period would thus increase to seven years
under each of the TCs i.e. the TCs have a contract structure of 3
years firm plus 2+2 optional years.
As further announced on January 18,
2024, and February 23, 2024,
respectively, the Charterer declared the first two-year options to
extend the firm period for the ships from first quarter of 2025
until first quarter of 2027. Hence, the Charterer currently has
remaining options to extend the period for each ship by another
two-year period until first quarter of 2029. These two options are
declarable in the first quarter of 2026.
Under the amended TC for both ships, the Charterer has added a
minimum three-year firm period from 2029 until 2032. At the same
time, the Charterer has the option to extend each TC by three
additional periods consisting of two periods of each two years
while the last period is for three years. Hence, the parties have
agreed to add an additional contract structure of 3-year firm plus
2+2+3-optional years to the existing TCs from 2029 onwards. In the
event, the Charterer utilizes all its new extension options, the
redelivery of the ships will be 2039. The new firm periods, with
associated options, are agreed regardless of whether the Charterer
declares the last existing extension option from 2027 to 2029 for
the two ships. However, we find it likely that this extension
option also will be utilized given the new firm period from
2029.
Øystein Kalleklev, CEO of Flex LNG Management AS commented:
"We are happy to announce another substantial charter extension
for Flex Courageous and Flex Resolute. Customer satisfaction is
paramount to Flex LNG and we therefore focus on delivering not only
advanced vessels, but also a superior service level in everything
we do from shore to sea. Hence, we are very pleased that our
existing Charterer have agreed to continue to work together with us
for a very long period to come. This extension fits with our
communicated strategy of fixing our ships for longer duration at
higher rates."
For further information, please contact:
Mr. Øystein
Kalleklev, CEO of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
About Flex LNG
Flex LNG is a shipping company
focused on the growing market for Liquefied Natural Gas (LNG). Our
fleet consists of thirteen LNG carriers on the water and all of our
vessels are state-of-the-art ships with the latest generation
two-stroke propulsion (MEGI and X-DF). These modern ships offer
significant improvements in fuel efficiency and thus also carbon
footprint compared to the older steam and four-stroke propelled
ships. Flex LNG is listed on the New York Stock Exchange as well as
Oslo Stock Exchange under the ticker FLNG.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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SOURCE Flex LNG