Flex LNG - Second Quarter 2023 Earnings Release

August 16, 2023
Hamilton, Bermuda

Flex LNG Ltd. ("Flex LNG" or the “Company”) today announced its unaudited financial results for the three months and six months ended June 30, 2023.

Highlights:

* Vessel operating revenues of $86.7 million for the second quarter 2023, compared to $92.5 million for the first quarter 2023.
* Net income of $39.0 million and basic earnings per share of $0.73 for the second quarter 2023, compared to net income of $16.5 million and basic earnings per share of $0.31 for the first quarter 2023.
* Average Time Charter Equivalent¹ ("TCE") rate of $77,218 per day for the second quarter 2023, compared to $80,175 per day for the first quarter 2023.
* Adjusted EBITDA¹ of $66.2 million for the second quarter 2023, compared to $72.5 million for the first quarter 2023.
* Adjusted net income¹ of $28.2 million for the second quarter 2023, compared to $35.2 million for the first quarter 2023.
* Adjusted basic earnings per share¹ of $0.53 for the second quarter 2023, compared to $0.66 for the first quarter 2023.
* We successfully completed all of our scheduled drydockings for the vessels delivered in 2018, namely Flex Endeavour (during first quarter 2023), Flex Enterprise, Flex Ranger and Flex Rainbow.
* In August 2023, Cheniere declared their first option period for Flex Vigilant, which extended the firm charter period by additional 200 days.
* The Company declared a dividend for the second quarter 2023 of $0.75 per share.

Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
“Today we are presenting our second quarter results and we are pleased to announce quarterly revenues of $86.7m in line with our guidance of $85-90m. Revenues thus came in $2.5m higher than the second quarter last year despite us having three ships off-hire during the quarter for their scheduled 5-year special survey in dry-dock. The increase in revenues is driven by re-pricing of our portfolio of time charters during the last year with Time Charter Equivalent Rate of $77,000/day for the quarter compared to $71,000/day in second quarter last year.

With the three drydocking’s completed in the second quarter we have thus completed the drydocking schedule for the year as we drydocked Flex Enterprise in the first quarter of the year. The four dry dockings have all been carried out according to time and budget and the ships are back in operation. Hence, in the second half of the year we expect our revenues to grow as we will have all thirteen ships on water and will benefit from a stronger spot market which should boost the earnings from the variable hire time charter for Flex Artemis. Consequently, we are reiterating the revenue guidance provided in February where we guided revenues of $90-95 million for the third quarter and $90-100m for the fourth quarter. In sum this is expected to add up to approximately $370 million of revenues for the year, also in line with our guidance.