FLEX LNG Ltd. (NYSE:FLNG) Q2 2023 Earnings Conference Call August 16, 2023 9:00 AM ET

Company Participants

Oystein Kalleklev - CEO

Knut Traaholt - CFO

Conference Call Participants

Oystein Kalleklev

Hi, everybody. I'm Oystein Kalleklev, CEO of Flex LNG and today we are presenting our second quarter numbers. I will be joined today by our CFO, Knut Traaholt, who will walk you through the financials a bit later in the presentation.

Before we begin, I would just also mention we do have our Q&A session at the end of the presentation where you can send in your questions either using the chat function or sending an email to ir@flexlng.com, and if you have the best question for today, we do have some gifts for you. So gift number one is our Flex LNG boiler suit. We just completed the docking of four of our ships. So -- and these are very nice when you do some improvements or maintenance. So, you can have it while doing some home improvements.

We also have, then your Just Flex It, Running T-Shirt, which we will be using in Oslo Marathon next month. And lastly, we have a new addition of Flex LNG sunglasses. So I hope you do send in some good questions. It's always the most fun part of these presentations.

So before I begin, I will also highlight our disclaimer. We will be providing some forward-looking statements in this presentation. We will be using some non-GAAP measures as TCE and adjusted numbers and of course, we cannot cover everything in detail during this short presentation. So we would also like you to highlight the fact you can read our earnings release, which we also presented today.

So, let's kick off with the highlights. So let's begin with the highlights. Revenues for the quarter came in at $86.7 million, in line with our guidance of $85 million to $90 million. This resulted in strong earnings, $39 million translating into $0.73 per share. Adjusted net income where we only include the realized gains on other derivatives, not the unrealized gains, came in at $28.2 million or $0.53 per share.

During the quarter, we carried out drydocking of three ships according to time and budget and that means we have completed the drydocking schedule for the year with four ships being drydocked in the first half of the year. These three drydockings in the second quarter was then the main reason why we have lower revenues in Q2 compared to Q1, but with all ships back in operation from the second half of the year, we are reaffirming our revenue guidance of $90 million to $95 million in the third quarter and somewhat higher expectation in Q4, $90 million to $100 million, depending a bit on how strong the spot market will be for a ship we have on variable higher time charter.