Bermudian-based Flex LNG Ltd, the liquefied natural gas shipping company, has reported net income of $16.5 million for the first quarter of 2023, a drop compared with net income of $41.4 million recorded in the fourth quarter of 2022.

Vessel operating revenues were $92.5 million in the quarter, compared with $97.9 million for the fourth quarter of 2022.

The average time charter equivalent rate of $80,175 per day for the quarter compared with $81,699 per day for the fourth quarter of 2022.

The company declared a dividend for the first quarter of 2023 of $0.75 per share.

Øystein M Kalleklev, chief executive of Flex LNG Management AS, said: “While the spot market right now is at a seasonable low, we maintain a positive long-term view.

“Our exposure to the spot market is also limited to one of the 13 ships which is on a variable time charter where earnings are typically higher in the winter season.

“Our first fully open ships are not open before 2027, and with newbuilding prices now exceeding $260 million for ships with deliveries in 2027, this is putting upward pressure on charter rates.

“Hence, we believe Flex LNG continues to be very well positioned for opportunities to recontract our ships for longer periods at higher rates in the near future, like we have evidenced in the past.”