FLEX LNG (FLNG) Q3 2025 Earnings Call Transcript

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Wednesday, November 12, 2025 astatine 9 a.m. ET

• Chief Executive Officer — H. Foss

• Chief Financial Officer — Knut Traaholt

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H. Foss: Thank you. Let's statesman the highlights of the quarter. During the quarter, we said successful $86 cardinal oregon $84 million, excluding the EUAs related to the EU emanation trading system. The fleet mean TCE during the 4th ended up astatine $70,900 per day. Net income for the 4th came successful astatine $16.8 million, implying an EPS of $0.31 per share. Adjusting for unrealized losses connected involvement rates, derivates and write-off financing costs. We extremity up with an adjusted nett income of $23.5 cardinal oregon adjusted net per stock astatine $0.43. During the 3rd quarter, we finalized the refinancing of Flex Resolute and Flex Constellation, resulting successful an all-time precocious currency equilibrium of $479 million.

We received a announcement from 1 of our charters that they volition not state the 1-year enactment connected the bully vas Flex Volunteer, leaving her unfastened from mid-January 2026. Flex Constellation is present afloat booked successful the 4th fourth and archetypal 4th adjacent twelvemonth erstwhile she commenced her 15-year clip charter successful nonstop continuation. We expect the afloat twelvemonth revenues for 2025 to travel successful astir $340 million, and we expected TCE for the twelvemonth astir $71,000 to $72,000 per day. Adjusted EBITDA is expected to travel successful astir $250 cardinal for the afloat year. We are each clip precocious currency balance, nary indebtedness maturity anterior 2029 and a coagulated declaration backlog.

The Board has declared different dividend of $0.75 per share. This is past our 17th consecutive dividend of $0.75. Our 12-month trailing dividend is past $3 per share, implying a dividend output of 11%. We person distributed adjacent to $730 cardinal to our shareholders since the 4th fourth of 2021. Looking astatine our declaration coverage. We person 53 years of minimum steadfast backlog, which whitethorn turn to 80 years if the charters state each the options. As mentioned during the highlights, Flex Volunteer volition beryllium relevered from america from existent charter successful December, and she volition spell consecutive into adust dock successful Singapore for her 5-year peculiar survey.

We are archetypal selling the vas for adjacent employment ex adust dock Singapore mid-January. The Flex Artemis has completed her 5-year peculiar survey successful September and has since traded successful the spot markets. We person fixed our bully vas Flex constellation, and she is present afloat employed until 2041. In sum, we person a coagulated declaration backlog with 80% of disposable days covered adjacent year. This protects america from a softener word market. As we volition spot aboriginal successful the presentation, our declaration illustration is good positioned to payment the expanding LNG volumes coming connected stream. Looking astatine our guidance for the afloat fiscal twelvemonth of 2025, we expect 2025 revenues to travel successful astir $340 million.