Norway's Flex LNG is predicting markets to remain tight after record rates in the fourth quarter.
The LNG carrier owner said the strong sector outlook is a combination of a large increase in liquefaction capacity in the near, medium and long-term and limited fleet growth, as well as increased ton/mileage and more focus on improving air quality that favours the ongoing switch from coal to natural gas.
The company made a net profit of $1.2m in the third quarter, against a loss of $4m in the same period of 2017.
Revenue was up at $19m compared to $9.8m a year ago, while EBITDA jumped to $12.7m versus a deficit of $4.1m.
Flex has covered all available days for its ships in the fourth quarter.
It is forecasting revenue in the period of $35m, a big rise.
CEO Oystein Kalleklev said: "Flex LNG has rapidly become the largest owner of modern fifth generation LNG carriers with a fleet expansion from six to 13 vessels since we presented our first quarter results at the end of May.
Rewards coming
"Unlike the vast majority of other LNG shipping companies, we decided to strategically pursue shorter term employment until the shipping market showed signs of rebalancing.
"The market has now rebalanced with current fixtures now being agreed at all-time high rates. Thus, Flex LNG is very well positioned to reap the benefit of our strategy."
The company Flex has four ships on the water while nine LNGCs are currently under construction, five of which were acquired during the third quarter from its main shareholder John Fredriksen.
It said the market improved significantly during the period, with the primary driver being the nearly 50% year-on-year growth in imports to China.
"Additionally there is high demand growth in other more mature markets such as South Korea and Taiwan," it added.
