FLEX LNG Ltd. (NYSE:FLNG) Q4 2022 Earnings Conference Call February 14, 2023 9:00 AM ET

Company Participants

Oystein Kalleklev - Chief Executive Officer

Knut Traaholt - Chief Financial Officer

Oystein Kalleklev

Hi, everybody, and welcome to fourth quarter results presentation for Flex LNG. It's February 14, Valentine's Day. So, I'm Oystein Kalleklev. I'm the CEO of Flex LNG Management. And will be joined by our CFO, Knut Traaholt, who will give you some more details on the numbers a bit later in the presentation. The presentation will be concluded with a Q&A session. And as you might recall, best question this round will get an original [Flexington] [Ph] bed linen set for two people. So, I hope you can provide some questions either by sending us an email on ir@flexlng.com or just use the Q&A button in the webcast.

So, before we being, just want to remind you about our disclaimer related to forward-looking statements. We do provide some non-GAAP measures and, of course, the detail level we can provide here is limited given the time.

So, with that let's review the highlights. Revenues for the quarter came in at $98 million, in line with previous revenues guidance of $95 million to $98 million, where our numbers this quarter was boosted by our [index ship] [Ph] in a booming spot market. Net income and adjusted net income came in at $41 million and $55 million, respectively, where the main difference is we realized gains of $14 million on derivatives during Q4. Earnings per share and adjusted earnings per share was $780,000 and $1.02 respectively. In November last year, we announced the extension of three ships with Cheniere, where we added a minimum of 14 years of contractual backlog to an already, rather sizable backlog.

Knut will tell you today that we have finalized our balance sheet optimization program. He is presenting a refinancing of three last ships in our fleet. And altogether, the balance sheet optimization program will have released $387 million of cash. For next quarter, Q1, we expect revenues to be in the region of $90 million to $93 million as we are doing our first scheduled dry-docking of Flex Enterprise at the end of Q1. And altogether, this year we will dry-dock four of our ships. Nevertheless, we do expect revenues to increase regardless of that off-hire. Revenues are expected to be in the region of $370 million for the year driven by higher time charter equivalent earnings, where we expect average time charter equivalent earnings to be about $80,000, compared to $72,800 for 2022.