Norwegian owner Flex LNG has signalled a focus on long-term time charters for its next newbuildings.
CEO Oystein Kalleklev said on a conference call on Wednesday: "We have seen the market grow very rapidly, and an under-investment in ships from 2016 to the first half of 2018 due to poor freight markets in 2014, 15, and 16.
"So we could get good slots and good prices and there was demand for these ships when they delivered. We are in a bit of a different situation to most shipowners; we have the ability to find the right contracts."
He added: "We need to build an incremental backlog."
The company has four LNG carriers operational, with five 174,000-cbm ships due from DSME and Hyundai Samho in South Korea next year, then two more in 2021.
He explained that three of the five newbuildings due next year have features that make them attractive for long-term charters.
The goal is to build more coverage. "We are willing to charter out all the 2020 ships long-term," he said.
But this would depend on finding the right structure, charters and rates, he added.
"It's definitely our ambition not to have all 11 ships in the spot market."
Financing means dividends
The John Fredriksen-backed owner sealed a huge new vessel financing deal as it announced its first dividend on Wednesday.
It said it had received firm commitments from a syndicate of 11 banks and the Export-Import Bank of Korea (Kexim) for a $629m facility to fund the five 2020 vessels.
The interest equates to about 4%, with Kexim providing $329m for up to 12 years.
The company is paying a dividend of $0.10 per share for the quarter.
Kalleklev said the company also had fantastic results at the end of 2018, but decided not to hand back money to investors at that point for two reasons.
The first was a softening market which led to concerns over the first half of 2019, and the second was "a lot of unfunded capex," he added.
"Trying to pay dividends when you have not secured financing is not really prudent. It is now comfortable to reward shareholders."
The CEO finished with a seasonal message of goodwill: "They can decide whether to spend it on Christmas gifts or on more Flex LNG shares."
