FLEX LNG Ltd. (NYSE:FLNG) Q3 2023 Earnings Conference Call November 8, 2023 9:00 AM ET
Company Participants
Oystein Kalleklev - Chief Executive Officer
Knut Traaholt - Chief Financial Officer
Conference Call Participants
Oystein Kalleklev
Hi, everybody. I’m Oystein Kalleklev, CEO of FLEX LNG. Today, we are presenting our third quarter numbers. I will be joined later in the presentation by our CFO, Knut Traaholt, who will walk you through the numbers.
Just to remind you, we also will conclude with a Q&A session. And the best question for today’s question will win a gift, this time the Flex LNG thermos, minimized boil-off, and a beanie, which is nice when the winter season is approaching. This is for the Norwegian brand, Amundsen, named after the Norwegian explorer who was the first guy on South Pole, with a nice Flex logo. So please send in questions on the chat function or by e-mail to ir@flexlng.com, and we will cover as many questions as we can at the end of the presentation.
So before we begin, just let me remind you about our disclaimer. We will be giving some forward-looking statements, limits to how much details we can cover. So I would also recommend you to review the earnings release we presented also today.
So let’s start with the highlights. Revenues came in at $94.6 million for the quarter, in the high end of our guidance $90 million to $95 million. That resulted in strong earnings. Net income, $45.1 million, translating into earnings per share of $0.84. Adjusted numbers, where we are eliminating gains on derivatives, came in at $36.1 million of adjusted net income, translating into $0.67 per share.
During the quarter, we had all 13 LNG carriers back in operation. We completed the dry docking program in the first half of the year with one ship in docking the first quarter, and then we took out three ships during Q2 for their five-year special survey. That means we are done for the year, and we only have two ships for drydocking next year.
So with all the ships back in operation and a stronger spot market positively impacting Flex Artemis, which is on a variable hire, that is the key reason for revenues growing from the second quarter to the third quarter. The overall LNG market, both freight and product, is balanced with high inventories of gas in Europe prior to the winter season.