Flex LNG - Third Quarter 2023 Earnings Release

November 8, 2023
Hamilton, Bermuda

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

Highlights:

* Vessel operating revenues of $94.6 million for the third quarter 2023, compared to $86.7 million for the second quarter 2023.
* Net income of $45.1 million and basic earnings per share of $0.84 for the third quarter 2023, compared to net income of $39.0 million and basic earnings per share of $0.73 for the second quarter 2023.
* Average Time Charter Equivalent¹ ("TCE") rate of $79,207 per day for the third quarter 2023, compared to $77,218 per day for the second quarter 2023.
* Adjusted EBITDA¹ of $74.7 million for the third quarter 2023, compared to $66.2 million for the second quarter 2023.
* Adjusted net income¹ of $36.1 million for the third quarter 2023, compared to $28.2 million for the second quarter 2023.
* Adjusted basic earnings per share¹ of $0.67 for the third quarter 2023, compared to $0.53 for the second quarter 2023.
* The Company declared a dividend for the third quarter 2023 of $0.875 per share, consisting of a quarterly dividend of $0.75 per share and a special dividend of $0.125 per share. The dividend is payable to shareholders on record as of November 28, 2023 on or around December 5, 2023.

Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:
“After successfully completing our drydock program for the year during the second quarter when we temporarily took out three ships for five-year special survey in drydock, we had all 13 LNG carriers back in full operation during the third quarter. Higher vessel availability coupled with a stronger spot market, which positively impacted our single ship on a spot-market linked, variable rate time charter, resulted in quarterly revenues increasing by $7.9m from $86.7m in the second quarter to $94.6m in the third quarter. Hence, we delivered quarterly revenues in the top end of our guidance of $90-95m.

Strong freight income also trickles down to healthy earnings with net income for the quarter of $45.1m, equating to quarterly earnings per share of $0.84. Once again, we recorded gains on our portfolio of interest rate swaps which is hedging our cashflow against higher interest rates with gains of $15.7m consisting of $6.7m of realized gains and $9m of unrealized gains. Since we eliminate unrealized gains in our adjusted numbers, adjusted net income and adjusted earnings per share were $36.1m and $0.67 respectively. We have been ahead of the curve, hedging interest rate risk prior to Fed aggressively ramping up rates and since beginning of 2021, we have in total recorded $128m of gains on our interest rate swaps.