Flex LNG Adds $750M to Backlog with New Long-term LNG Carrier Charters

Flex LNG has secured charters for for Flex Rainbow, Flex Enterprise and Flex Amber LNG carrires, adding $750 million of fixed backlog in total.

Flex LNG and the charterer of Flex Enterprise and Flex Amber, an unnamed "supermajor", have agreed to replace the existing variable time charters which are due October 2023 and March 2024 with new fixed hire time charters. 

The duration of each of the new time charters is seven years. The new time charters will start in the third quarter of 2022, end expire in the third quarter of 2029.

Additionally, Flex LNG and the charterer of Flex Rainbow, which Flex LNG said was a "large global trading company", have agreed a new ten-year fixed rate time charter for Flex Rainbow LNG carrier, which will start in direct continuation of the existing time charter which expires in January 2023. The new time charter will thus expire in early 2033.

Øystein Kalleklev, CEO of Flex LNG Management AS said: “We are today happy to announce that we have agreed three time charters for Flex Rainbow, Flex Enterprise and Flex Amber. Altogether this adds about $750 million of fixed backlog, reflecting the strong period market today.

Not only are we agreeing long term employment for these three ships, but we are also pleased that we are doing so with the existing charterers which have been repeating customers. This demonstrates the attractiveness of not only of the ships, but also the high service level of professionalism of the entire organization from seafarers to the people onshore.

With these new contracts we have substantially increased our earnings backlog. After these new contracts, our firm minimum backlog is 54 years with another 28 years of possible extension options. The high degree of earnings backlog will further strengthen our ability to continue to pay attractive dividends, making Flex LNG an attractive investment and a place to work at.”