Flex LNG, Ltd. has announced new time charter agreements for Flex Rainbow, Flex Enterprise, and Flex Amber which are the three open positions the company has been marketing.
Flex LNG and the charterer of Flex Enterprise and Flex Amber 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 commencement of the new time charters will be in 3Q22 with expiry in 3Q29.
Additionally, Flex LNG and the charterer of Flex Rainbow have agreed a new 10-year fixed rate time charter for Flex Rainbow which will commence in direct continuation of the existing time charter which expires in January 2023. The new time charter will expire in early 2033.
The new time charter agreements remain subject to final documentation and customary closing conditions.
Øystein Kalleklev, CEO of Flex LNG Management AS commented:
“We are happy to announce that we have agreed three time charters for Flex Rainbow, Flex Enterprise, and Flex Amber. Altogether this adds approximately US$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 organisation 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.”