FLEX LNG Ltd. (NYSE:FLNG) Q1 2023 Earnings Conference Call May 16, 2023 9:00 AM ET

Company Participants

Oystein Kalleklev - Chief Executive Officer

Knut Traaholt - Chief Financial Officer

Conference Call Participants

Oystein Kalleklev

Hi, welcome everybody to Flex LNG's First Quarter Results Presentation. I'm Oystein Kalleklev, CEO of Flex LNG Management and will be joined by our CFO, Knut Traaholt, who will walk you through the numbers a bit later in this webcast. As usual, we will conclude with our Q&A session where the best question can win our Flex on the Beach Summer kits which I will be presenting a bit later in the presentation. Please use the chat function to pose a question or you can also send a email to ir@flexlng.com

So, before we start, just a friendly reminder about our disclaimer in the presentation. We will be giving some forward-looking statements and there are also limitation to the completeness of details we can provide in such presentation.

So, with that let's review the highlights for the quarter. Revenues came in at $92.5 million, which was in line with our guidance of $90 million to $93 million. Average time charter equivalent earnings for the ships were slightly above $80,000 per day, also in line with the guidance for the year of about $80,000. This resulted in strong numbers with adjusted net income of $35.2 million for the quarter, translating into $0.66 per share.

During the quarter, we completed the balance sheet optimization program, where we have refinanced all the 13 ships in our fleet with attractive long-term financing. Through this process, we have also released $387 million of cash proceeds in total, and this boosted our cash balance at quarter end to $475 million, an all-time high which translates into about $9 per share in cash.

We have also recently carried out the first two dry dockings of Flex Endeavour and Flex Enterprise, both according to schedule and budget. During Q2, we will do another two dockings, so in total three dry dockings for Q2 and this result in revenues for this quarter being guided at $85 million to $90 million. Once we have completed the dry docking program in June, our quarterly revenues will pick up in Q3 and Q4 with quarterly revenues of around $90 million to $100 million for these two quarters.

So, we are also reaffirming our revenue guidance of $370 million for the year, which should translate into an expected adjusted EBITDA of around $290 million to $295 million.