Flex LNG - Third Quarter 2024 Earnings Release

12 Nov 2024 07:00 CET

November 12, 2024

Hamilton, Bermuda

Flex LNG Ltd. ("Flex LNG" or the "Company") today announced its unaudited
financial results for the nine months ended September 30, 2024.

Highlights:

* Vessel operating revenues of $90.5 million for the third quarter 2024,
compared to $84.7 million for the second quarter 2024.

* Net income of $17.4 million and basic earnings per share of $0.32 for the
third quarter 2024, compared to net income of $21.8 million and basic earnings
per share of $0.41 for the second quarter 2024.

* Average Time Charter Equivalent ("TCE") rate of $75,426 per day for the third
quarter 2024, compared to $72,385 per day for the second quarter 2024.

* Adjusted EBITDA of $70.4 million for the third quarter 2024, compared to $63.2
million for the second quarter 2024.

* Adjusted net income of $28.7 million for the third quarter 2024, compared to
$30.4 million for the second quarter 2024.

* Adjusted basic earnings per share of $0.53 for the third quarter 2024,
compared to $0.56 for the second quarter 2024.

* In September 2024, the new $270 million bank facility financing Flex Aurora
and Flex Ranger was completed, and the previous $375 million bank facility was
repaid in full. Consequently, the Flex Endeavour was unencumbered at end of Q3
-2024.

* In October 2024, we closed the new $160 million JOLCO lease for Flex
Endeavour, and thereby completing the $430 million in new financings according
to plan with net proceeds of about $97 million.
* In November 2024, we signed an amendment under the Flex Enterprise $150
million Facility to convert the non-amortizing term loan tranche of $83.7
million to a non-amortizing revolving credit facility. The Company's revolving
credit facility capacity has therefore increased from $330.0 million as at
September 30, 2024 to $413.7 million.

* In November 2024, the charterer of Flex Courageous and Flex Resolute, agreed
to amend and extend by way of addendum to the existing time charters, to include
a new firm period from 2029 to 2032 following the last two-year option under the
original time charter contract. The addendum includes additional options for the
Charterer to extend each vessel by up to seven years in periods of two years,
two years and three years.

* In November 2024, the charterer of Flex Constellation sent notice that they
will not utilize their extension option under the time charter. The vessel is
expected to be re-delivered from the existing contract late in the first quarter
of 2025. Following the re-delivery, the vessel will be marketed for short and
long-term contracts.

* The Company declared a dividend for the third quarter 2024 of $0.75 per share.
The dividend is payable on or about December 11, 2024 to shareholders, on record
as of November 27, 2024.

Øystein M. Kalleklev, CEO of Flex LNG Management AS, commented:

"Third quarter results came in as expected. Revenues were $90.5 million in line
with guidance of ~$90 million, Adjusted EBITDA was $70.4 million, spot on
guidance of ~$70 million and our average Time Charter Equivalent (TCE) rate was
$75,426 per day, also in line with guidance of $75,000 to 77,000 per day.
Adjusted Net Income, where we only include realized gains and losses on
derivatives, came in at $28.7 million, corresponding to an adjusted Earnings Per
Share (EPS) of $0.53. The slump in interest rates during the third quarter on
the back of the sharp interest rate cut by Fed, adversely affected our ordinary
earnings due to $10.5 million in unrealized losses on interest rate swaps.
However, we utilized this window to significantly increase our hedging duration
at a favourable time and recouped more than the third quarter unrealized loss
just in the month of October alone.

During this winter season, the freight market has come under pressure due to a
combination of high fleet growth, relatively small arbitrage between Europe and
Asia, marginal intra-month arbitrage disincentivizing floating storage while
export volume growth remains lacklustre at about 1%. Hence, we have seen spot
rates behaving totally different from the seasonal norm in the fourth quarter
with spot rates for modern tonnage being pushed down to the $20,000s where you
effectively trade steam tonnage out of the market. As we have 100% charter
coverage for the year and a substantial backlog, our exposure to the spot market
is limited to one ship, Flex Artemis, on a variable Time Charter linked to the
spot market rates. Hence, we expect only marginal changes in the fourth quarter
with revenues expected to come in close to $90.0 million versus $90.5 million in
the third quarter.

We are also pleased to announce additional backlog with the extension of Flex
Courageous and Flex Resolute. These two LNG carriers commenced a 3+2+2 year time
charter with a supermajor during first quarter of 2022, where the charterer
during the first quarter utilized its first extension option from 2025 to 2027.
We have now agreed an amendment of the time charter where we have added a firm
three-year period from 2029 to 2032 and where the charterer has the right to
extend the time charter for additional periods until 2039. Since reporting in
August, we have executed the announced $430 million refinancing where we have
improved our overall financing terms while at the same time raising net cash
proceeds of $97 million. As we closed the last JOLCO financing of Flex Endeavour
on October 3, our pro-forma cash following this refinancing subsequent to
quarter-end was $450 million.

The Board has decided to declare once again an ordinary dividend per share of
$0.75. This is the thirteenth consecutive time we have paid an ordinary dividend
of $0.75 per share. We have also during this period paid special dividends on
three separate occasions underlining the stability of our business. This
dividend corresponds to an annualized dividend yield of approximately 13% which
we do hope will make it attractive for our investors to stay invested in Flex
LNG. Our dividend continues to be supported by strong financial performance, a
solid financial position coupled with a substantial backlog with minimum charter
backlog of 50 years which may grow to 82 years in the event charterers utilized
all their extension options."

Third Quarter 2024 Result Presentation

In connection with the earnings release, a video webcast will be held at today
15:00 CET (09:00 a.m. EST).

In order to attend the live video webcast use the following link:

Third Quarter 2024 Earnings
Presentation (https://events.webcast.no/flexlng/IqCHF6PFRyOkoOhpdu6c/sGMWGL0jqIH
t
ED3vySfb)

A Q&A session will be held after the webcast. Information on how to submit
questions will be given at the beginning of the session.

In conjunction with the quarterly results, we have published a short teaser with
the highlights of the third quarter. The video can be accessed through the
following link:

YouTube Link (https://www.youtube.com/watch?v=mnPBgDes3ok)

The presentation material which will be used in the live video webcast can be
downloaded on www.flexlng.com and replay details will also be available at this
website.

For further information, please contact:

Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS

Telephone: +47 23 11 40 00

Email: ir@flexlng.com

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbour protections for forward-looking statements in order to encourage
companies to provide prospective information about their business. Forward
-looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts. The Company
desires to take advantage of the safe harbour provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in

connection with this safe harbour legislation. The words "believe," "expect,"
"forecast," "anticipate," "estimate," "intend," "plan," "possible," "potential,"
"pending," "target," "project," "likely," "may," "will," "would," "should,"
"could" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in the Company's records and other data available from
third parties. Although management believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible to
predict and are beyond the Company's control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or projections.
As such, these forward-looking statements are not guarantees of the Company's
future performance, and actual results and future developments may vary
materially from those projected in the forward-looking statements. The Company
undertakes no obligation, and specifically declines any

obligation, except as required by applicable law or regulation, to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all of these factors. Further,
the Company cannot assess the effect of each such factor on its business or the
extent to which any factor, or combination of factors, may cause actual results
to be materially different from those contained in any forward-looking
statement.

In addition to these important factors, other important factors that, in the
Company's view, could cause actual results to differ materially from those
discussed in the forward-looking statements include: unforeseen liabilities,
future capital expenditures, the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates and vessel
values, changes in demand in the LNG tanker market, the impact of public health
threats, changes in the Company's operating expenses, including bunker prices,
dry-docking and insurance costs, the fuel efficiency of the Company's vessels,
the market for the Company's vessels, availability of financing and refinancing,
ability to comply with covenants in such financing arrangements, failure of
counterparties to fully

perform their contracts with the Company, changes in governmental rules and
regulations or actions taken by regulatory authorities, including those that may
limit the commercial useful lives of LNG tankers, customers' increasing emphasis
on environmental and safety concerns, potential liability from pending or future
litigation, general domestic and international political conditions or events,
including the war between Russia and Ukraine, as well as the developments in the
Middle East, including continued conflicts between Israel and Hamas and the
conflict regarding the Houthi attack in the Red Sea, business disruptions,
including supply chain disruption and congestion, due to natural or other
disasters or otherwise, potential physical disruption of shipping routes due to
accidents, climate-related incidents, or political events, vessel breakdowns and
instances of off-hire, and other factors, including those that may be described
from time to time in the reports and other documents that the

Company files with or furnishes to the U.S. Securities and Exchange Commission
("Other Reports"). For a more complete discussion of certain of these and other
risks and uncertainties associated with the Company, please refer to the Other
Reports.

More information:
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