FLNG - FLEX LNG: Steady Amid Market Uncertainty But Not A Buy

2024-05-23 07:41:24 ET

Summary

• FLEX LNG reported Q1 earnings in line with guidance, and guides a slightly weaker next quarter.
• It declared a dividend of $0.75, implying a yield of about 11 percent.
• FLNG's staggered contract backlog limits effects from fluctuation charter rates.

Investment Thesis

FLEX LNG (FLNG) recently reported Q1 revenues of $90.2 million (down 2.5% compared to Q1 23) and adj. EPS of 70 cents (up 6% compared to Q1 23). It declared its usual dividend of $0.75 and now yields about 11 percent annually.

This quarter continues Flex's solid cash flows, stable dividends, and sensible capital allocation decisions. It sports a new fleet acquired at lower prices than buyers face today and has no significant debt repayments coming up....

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