FLEX LNG Ltd. (NYSE:FLNG) Q2 2022 Earnings Conference Call August 24, 2022 9:00 AM ET

Company Participants

Oystein Kalleklev - Chief Executive Officer

Knut Traaholt - Chief Financial Officer

Operator

Hi, and welcome to today's FLEX LNG Webcast, where we will be presenting our Second Quarter Results, as well as discussing the latest development in the Company and in the LNG markets. As always, we will conclude with the Q&A session. If you like to ask a question in the Q&A session, you can either use the chat function in this webcast at any time, or you may alternatively send an email to ir@flexlng.com. And we will try to answer these questions at the end of the presentation.

Before we start, I will remind you of the disclaimer as we will provide some forward-looking statements. We will utilize industry-specific non-GAAP measures like TCE and figures like adjusted EBITDA or adjusted net income. Additionally, there are limits to the completeness of detail that we may provide in these presentations. So we therefore recommend that you also review our earnings report for additional information.

So without further ado, I hand over the floor to Oystein Kalleklev, the CEO of FLEX LNG management, who will guide you through today's presentation together with our CFO, Knut Traaholt. Go ahead, Oystein. The floor is yours.

Oystein Kalleklev

Hi, everybody, and welcome to FLEX LNG's second quarter result presentation. We are pleased today to deliver strong numbers or revenues of $84 million with $10 million higher than in Q1 and in line with the guidance of approximately $85 million. Net income and adjusted net income came in at $44 million and $33 million, respectively, where the main difference is the gains we have recorded on our interest rate swaps. Earnings per share and adjusted earnings per share came in at $0.83 and $0.61, respectively, giving us our strong profit for the quarter.

We, in June, announced three new contracts, two seven-year charters and one-time charter of ten-year with very good counterparties. This added 24 years of backlog and we now have a backlog of minimum 54 years with the new contracts adding about $750 million of new revenue backlog.

With our strong earnings visibility, we are also reiterating our revenue guidance for the second half of the year. Q3 revenues are estimated to around $90 million, while we expect Q4 revenues to be somewhere in the range of $90 million to $100 million, i.e. numbers for the second half of the year will be even better than the first half. The quarterly dividend is $0.75 per share, but in this quarter, we are also adding a $0.50 special dividend. So in total, we end up at a dividend of $1.25 per share.