FLEX LNG Ltd. (NYSE:FLNG) Q2 2024 Earnings Conference Call August 14, 2024 9:00 AM ET

Company Participants

Oystein Kalleklev - Chief Executive Officer
Knut Traaholt - Chief Financial Officer

Oystein Kalleklev

Hi, everybody, and welcome to FLEX LNG's Second Quarter Result Presentation. It's August 14. And I'm Oystein Kalleklev, CEO of FLEX LNG management. And I will be joined here as usual by our CFO, Knut Traaholt, who will run you through the numbers a bit later in the presentation.

Before we begin, just want to highlight, we will do our presentation, and followed by our Q&A session, where the best question today can win a summer pack, consisting of the Just Flex It T-shirt. We are already preparing for Oslo Marathon in September. I might be on Gastech and not able to attend this year, but Knut will run this year, he promised me. FLEX on the beach sandals, and then of course the FLEX cap. So, before we then start the presentation, I just remind you that we will be providing some forward-looking statements. So, there are limited details, and we will be using some non-GAAP measures. So, please also read the earning support together with the presentation.

Yes. Let's kick off with the highlights, revenues for the quarter $84.7 million, which was in line with what we said, close to $85 million was our guidance. This resulted in net income and adjusted net income of $21.8 million and $30.4 million respectively. Just a reminder, the difference here is in adjusted net income, we only include the realized gains and losses on derivatives, while in the net income figure we are also including unrealized numbers. So, earnings per share came in at a healthy $0.41 or $0.56 on adjusted basis.

Of the major recent events, we also touched upon this in our earnings report back in May. We have fixed one ship on our 10 months charter. So, we had, as some of you might recall, we had Flex Constellation being redelivered back from our three-year firm charter, end of Q1 last year. And we then decided to take it in dock early, as this is our low period of the market. We completed the dock here according to plan and budget, and took it back in the market in the middle of April, where we traded spot for a while. We managed to get our cool down slots, so we could get the ship back in cool condition, and then after our spot voyage, we fixed on this 10 months charter with a large Asian LNG buyer. Redelivery then is end of Q1 2025, but where the charter has the option to extend this time charter by one year to 2026. So, that means we are fully covered, 100% charter cover for the remainder of the year, also a very high coverage going forward, as I also will touch upon a bit later in the presentation.