FLEX LNG Ltd. Q1 FY2025 earnings call

• Financial highlights: Headline revenues $88.4M, excluding EUAs $86.8M; operating expenses $18.1M; interest expense $22.2M, reduced from previous quarter. - Balance sheet optimization: Initiated balance sheet optimization program 3.0, secured attractive JOLCO financing for Flex Courageous, targeting similar for others. - Dividend declaration: Board declared $0.75 per share dividend, trailing 12-month dividend $3 per share with 12% yield. - ESG: Released 2024 ESG report, achieved zero lost time injury frequency in 2024, CDP B score. - Delisting: Submitted application for delisting to Oslo Stock Exchange, expected conclusion in second quarter, last trading day in second half of 2025. - LNG market updates: LNG trade trends, newbuilding prices, term rates, delivery profile, and market outlook for future supply.

In the first quarter, headline revenues were $88.4 million, and excluding EUAs related to the EU's emission trading systems, revenues were $86.8 million, equivalent to a time charter per day of $73,900. Operating expenses were $18.1 million, around $15,500 per day. Interest expense was $22.2 million, a reduction of $3.3 million from the fourth quarter. The net income was $18.7 million, with adjusted net income of $29.4 million implying $0.54 in adjusted earnings per share. Cash flow from operations was $49 million, with $41 million distributed as dividends, ending the quarter with $410 million in cash.

• Reconfirmed full year 2025 revenues range $340M to $360M, TCE between $72,000 and $77,000 per day, EBITDA approx $250M to $270M. - Maintained OpEx guidance of $15,500 per day. - Dividend declared based on earnings, cash flow, contract backlog, etc.

• Market volatility: Interest rate markets experienced significant volatility, affecting financials. - Vessel delivery slippage: Potential for newbuilding deliveries to slip into later periods. - Spot market rate fluctuations: Impact on revenues due to seasonal lower spot market affecting variable hire contracts.

Q: How do you view the summer market and the winter market, and the prospects for Flex Constellation and Flex Artemis?

A: Artemis will be redelivered later in the year. Flex Constellation is trading in spot market until first quarter 2026. Spot market has high activity but low rates; hopeful to secure term employment for Artemis in autumn.

Q: What can you say about the number of fixtures or activity tenders in long-term contracts?

A: Charters are not in rush to secure long-term contracts with spot market low; seeing signs of interest for Artemis in autumn and Q1 2026 but early yet.

Q: Details on delisting from Oslo Stock Exchange?

A: Recommend visiting website for delisting Q&A; Oslo Stock Exchange to conclude application in second quarter, last trading day in second half of 2025; encourage transferring shares to NYSE if wanting to continue journey.