FLNG - FLEX LNG: Bet On Resilient Demand For LNG Carriers
2024-04-17 00:32:20 ET
Summary
- India and China drive global LNG demand growth. On the other hand, LNG exports are increasing across major exporters.
- Despite the high order book, LNG shipping still offers upside potential. 93% of the incoming ships are booked, plus many LNG carriers with steam turbines will be redelivered in 24/25.
- The steamers will slowly go out of service, leaving place for the vessels with last-generation engines.
- FLNG realized adequate revenue and income growth, though disappointing net income and EPS. The company keeps a healthy balance sheet with ample liquidity; the next debt maturity is in 2028.
- Given FLNG fleet quality, robust liquidity position, and attractive dividends, I give a Buy rating.