The Zacks Transportation - Shipping industry faces challenges due to high inflation, uncertainty surrounding the Federal Reserve’s future rate cut plans, and tariff-related tensions. and lingering supply-chain disruptions. Geopolitical and environmental woes represent further challenges.Despite the uncertainty concerning demand, the industry demonstrates resilience, especially for companies prioritizing growth and operational efficiency. Companies like Frontline (FRO) , FLEX LNG Ltd. (FLNG) and Golden Ocean ...

Company Overview - Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG) [2] - The fleet consists of thirteen LNG carriers, all equipped with state-of-the-art ships featuring the latest generation two-stroke propulsion systems (MEGI and X-DF) [2] - These modern ships provide significant improvements in fuel efficiency and a reduced carbon footprint compared to older steam and four-stroke propelled ships [2] Recent Activities - Flex LNG participated in one-on-one investor meetings at the Deutsche Bank 2025 Virtual Shipping Seminar [1] - The company will host additional investor meetings at DNB's Energy & Shipping Conference 2025 [1] - A presentation used during these meetings is available on the company's web page [1]

LNG Market Dynamics - The LNG shipping industry experienced a demand increase of approximately 0.2% in 2024, reaching about 414 million tons[42]. - China is projected to import approximately 78.4 million tons of LNG in 2024, making it a dominant player in LNG import growth[59]. - Economic downturns in major LNG import regions, particularly China and Europe, could hinder the company's future prospects for re-contracting its fleet[60]. - The LNG shipping industry is capital intensive and highly dependent on the availability of financial markets, making it vulnerable to declines in available credit facilities[56]. - The LNG spot freight market has historically been volatile, with weak global economic trends potentially reducing demand for LNG transportation, materially affecting revenues and cash flows[65]. Financial Risks and Performance - The company has exposure to the cyclical nature and volatility of the LNG charter market, with charter hire rates being unpredictable and potentially declining[43]. - A significant decrease in charter rates could adversely affect the company's profitability, cash flows, and ability to pay dividends[45]. - Macroeconomic factors such as rising inflation and high interest rates may negatively impact the company's operating costs and cost of borrowing[50]. - The company faces intense competition in the LNG shipping industry, which may adversely affect its ability to secure charters at favorable rates[149]. - The company is highly leveraged, which significantly limits its ability to execute its business strategy and increases the risk of default under its debt obligations[134]. Geopolitical and Regulatory Risks - The ongoing geopolitical tensions, including the war in Ukraine and trade tensions with China, pose risks to global economic conditions and LNG demand[51][62]. - The U.S. has implemented a price cap policy on Russian petroleum, which restricts various services related to maritime transport, potentially impacting the company's operations[76]. - The company has been in compliance with all applicable sanctions and embargo laws in 2024, but any future violations could severely impact its ability to access capital markets[82]. - Changes in laws and regulations in China could adversely affect vessels chartered to Chinese customers or calling at Chinese ports, impacting the company's financial performance[85]. Environmental Regulations and Compliance - The LNG shipping industry faces substantial environmental regulations that may increase operational costs and limit business capabilities[93]. - The IMO has mandated a reduction in sulfur emissions from 3.5% to 0.5% starting January 1, 2020, impacting operational costs for shipowners[98]. - The EU ETS will apply to maritime shipping from January 1, 2024, requiring shipowners to purchase emission allowances for carbon emissions[100]. - Compliance with environmental laws may lead to increased maintenance and inspection costs, affecting overall financial performance[97]. - Climate change regulations may adversely impact demand for services and increase operational costs due to compliance requirements[107]. Operational and Counterparty Risks - The company faces counterparty risks, as the ability of counterparties to fulfill obligations depends on various factors, including economic conditions and the financial health of the counterparties[67]. - The company may incur losses if any of its charters are terminated, impacting its revenue and cash flows[148]. - The company operates a fleet of thirteen LNG vessels, and any limitation in their availability could materially adversely affect its business and financial condition[140]. - The company relies on information systems for operations, and failures or security breaches in these systems could harm business operations and results[172]. Shareholder and Corporate Governance - The largest shareholder, Geveran, owns approximately 42.7% of the company's outstanding shares, potentially influencing corporate decisions and strategies[166]. - The company is incorporated under Bermuda law and follows certain home country corporate governance practices, which may provide less protection to investors compared to U.S. domestic issuers[205]. - The company has been subject to economic substance requirements under Bermuda law since December 31, 2018, which mandates maintaining a substantial economic presence in Bermuda[201]. Dividend and Capital Management - The company declared a cash dividend of $0.75 per share for the fourth quarter of 2023, paid on March 5, 2024, to shareholders on record as of February 23, 2024[188]. - The company has declared a consistent cash dividend of $0.75 per share for each quarter in 2024, with payments made in June, September, and December[189][190]. - Future dividends will be evaluated based on profits and cash flows, but the timing and amount will depend on various factors including earnings and capital expenditure commitments[192]. - The company may require additional capital in the future, which may not be available on favorable terms, potentially hindering growth and impacting cash flows[133]. Market and Share Price Volatility - The trading price of the company's ordinary shares was $22.94 per share as of December 31, 2024, and decreased to $21.87 per share by February 27, 2025, indicating market volatility[187]. - The average gross sales price per share was $36.09, while the average net sales price was $35.36, resulting in net proceeds of $14.5 million after commission[225].

Dispute Overview - Eni SpA has rejected Exmar's claim for a bonus payment related to the floating liquefied natural gas (FLNG) unit sale agreement, citing that the conditions for such an adjustment have not been met [1][4] - The disagreement centers around the performance of the FLNG Tango, which has reportedly exceeded production expectations [2][3] Financial Details - Exmar claims a potential negative price adjustment of $78 million and a maximum bonus of $44 million based on performance metrics outlined in their agreement with Eni [2] - The exact amount of the bonus that Exmar believes it is entitled to remains undetermined [3] Project Development - Eni acquired the FLNG Tango in 2022, which is crucial for the Congo LNG project, with a capacity of 0.6 million tons per year (mtpa) [5] - The project aims to develop the Marine XII gas resources, utilizing two FLNG units, with a second unit, Nguya, expected to begin operations by the end of 2025, increasing total capacity to 3 mtpa, equivalent to approximately 4.5 billion cubic meters per year [6] Ongoing Operations - Despite the financial dispute, development work on the Congo LNG project continues, with key contracts awarded for transport, installation, and marine services [7] - The outcome of discussions between Eni and Exmar remains uncertain, with the potential for escalation into formal legal proceedings [7]

Fourth Quarter 2024 Result Presentation February 4, 2025 1 DISCLAIMER 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 ...

Interim Financial Information Flex LNG Ltd. Fourth Quarter 2024 February 4, 2025 February 4, 2025 - Hamilton, Bermuda Flex LNG Ltd. ("we", "us", "our", "Flex LNG", or the "Company") today announced its unaudited financial results for the year ended December 31, 2024. Highlights: A summary of our financial highlights for the quarter are below: | | Q4 2024 | Q3 2024 | | --- | --- | --- | | Vessel operating revenues | $90.9m | $90.5m | | Net income | $45.2m | $17.4m | | Earnings per share (basic) | $0.84 | $0. ...

BP plc (BP) , the UK-based energy major, has reached a milestone in its ambitious Greater Tortue Ahmeyim (“GTA”) liquefied natural gas (LNG) project, located off the coasts of Mauritania and Senegal. This achievement marks a critical step in the commissioning of Golar LNG’s floating liquefied natural gas (FLNG) vessel, Gimi, as it receives feed gas from the project’s FPSO.The GTA Phase 1 project, considered BP’s largest and most complex undertaking, commenced the first gas flow from its subsea wells to the ...

Financial Data and Key Metrics Changes - Adjusted EBITDA revenues for Q3 2024 were $90.5 million, aligning with guidance of approximately $90 million, resulting in net income of $17.4 million and adjusted net income of $28.7 million [3][19] - Adjusted earnings per share for the quarter was $0.53, with a pro forma cash position of $450 million, representing about 35% of the company's market cap [4][8][60] - For the full year, revenue guidance is set between $353 million to $355 million, with adjusted EBITDA expected to be between $271 million to $274 million [10] Business Line Data and Key Metrics Changes - The company reported 100% technical utilization of its fleet during the quarter, with operational expenses at $14,900 per day, slightly improved from the previous quarter [19][20] - The time charter equivalent (TCE) rate for the quarter was $75,400, compared to guidance of $75,000 to $77,000 [9] Market Data and Key Metrics Changes - The LNG market is experiencing 1% growth historically, with a projected increase to around 6% growth next year due to new projects coming online [28][29] - European LNG import levels are below last year due to high storage levels, currently around 93% full, which has affected sourcing [32] Company Strategy and Development Direction - The company has a significant backlog of contracts, totaling over 50 years minimum, which may grow to 82 years with option declarations, providing strong earnings visibility [8][60] - Recent contracts for Flex Resolute and Flex Courageous have been fixed for longer periods at higher rates than the prevailing market, indicating a strategic focus on securing long-term revenue [5][12] Management's Comments on Operating Environment and Future Outlook - Management noted a soft spot market affecting one ship on index, leading to expectations of revenues close to $90 million in Q4, slightly lower than Q3 [7][60] - The company remains optimistic about long-term demand despite current market softness, citing a healthy backlog and cash position [17][60] Other Important Information - The company declared its 13th consecutive ordinary dividend of $0.75 per share, despite a decrease from $3.125 to $3 in trailing 12 months dividends [8][15] - The company has completed two refinancings totaling $430 million, resulting in net proceeds of $97 million [6][22] Q&A Session Summary Question: What is the expected timeline for U.S projects to start ordering long-term contracts? - Management indicated that many U.S projects are close to export, and with 90 million tons of new volumes expected from 2028 to 2030, significant shipping requirements will arise [62] Question: What motivates the charterer to fix ships far in advance? - The motivation is not project-specific but portfolio-related, as super majors are satisfied with the service and are looking to secure ships due to new environmental regulations [63][65] Question: What is the strategy for the CONSTELLATION vessel? - The strategy involves assessing market conditions and potentially trading the ship in the spot market until the market improves, with a focus on maximizing shareholder value [67] Question: What is the outlook for the options on Aurora and Volunteer? - Management believes the market will tighten by 2027, and if options are not declared, the ships will return in 2026, which is expected to be a favorable time for term rates [69][70] Question: How does the company view the MEGI and XTF technologies? - Management highlighted that MEGI ships are more efficient and have a better environmental profile, leading to a resurgence in interest despite their higher costs [71][74] Question: What is the company's stance on dividend sustainability and share buybacks? - The company maintains a strong cash position and believes it can sustain dividends despite market fluctuations, while share buybacks are not ruled out but are approached cautiously due to ownership structure [76][81]

Third Quarter Result Presentation November 12, 2024 1 DISCLAIMER MATTERS DISCUSSED IN THIS PRESS RELEASE MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES SAFE HARBOR 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 OT ...

Financial Performance - Vessel operating revenues for Q3 2024 were $90.5 million, up from $84.7 million in Q2 2024, representing a 9% increase[4] - Net income for Q3 2024 was $17.4 million, down from $21.8 million in Q2 2024, a decrease of 20%[4] - Adjusted EBITDA for Q3 2024 was $70.4 million, compared to $63.2 million in Q2 2024, reflecting an increase of 18%[4] - The Company recorded vessel operating revenues of $90.5 million for Q3 2024, an increase of 8.6% from $84.7 million in Q2 2024, attributed to seasonal increases in spot market rates[26] - Adjusted EBITDA for Q3 2024 was $70.4 million, up from $63.2 million in Q2 2024, reflecting a positive operational performance[35] - Net income for Q3 2024 was $17.4 million, down from $21.8 million in Q2 2024, with basic earnings per share decreasing from $0.41 to $0.32[34] - Net income for Flex LNG in Q3-2024 was $17,408,000, down from $45,101,000 in Q3-2023[80] - Basic earnings per share for Flex LNG in Q3-2024 were $0.32, compared to $0.84 in Q3-2023[79] - The company reported net income of $62,453,000 for the three months ended September 30, 2024, compared to $90,468,000 for the same period in 2023, reflecting a decrease of approximately 30.9%[143] - Net income for the three months ended September 30, 2024, was $17,408,000, a decrease of 62.5% compared to $45,101,000 for the same period in 2023[146] - Adjusted net income for the three months ended September 30, 2024, was $28,680,000, down 20.7% from $36,051,000 in the same period last year[146] Debt and Cash Management - The total long-term debt as of September 30, 2024, was $1,673.1 million, down from $1,760.4 million in Q2 2024, a reduction of approximately 5%[4] - As of September 30, 2024, total long-term debt was $1,673.1 million, reduced from $1,812.1 million at the end of 2023, due to regular repayments and prepayments[52] - Cash and cash equivalents as of September 30, 2024, were $289.5 million, down from $370.2 million in Q2 2024[4] - The company reported a carrying value of cash and cash equivalents as of September 30, 2024, was $289.5 million, a decrease from $410.4 million at December 31, 2023[118] - The company incurred extinguishment costs of long-term debt amounting to $637 thousand during the third quarter of 2024[84] - Long-term debt decreased to $1,577,692 thousand as of September 30, 2024, down from $1,656,294 thousand in June 30, 2024, a decline of approximately 4.74%[82] Operational Efficiency - The Company achieved a technical uptime of 100% for its vessels in Q3 2024[13] - Vessel operating expenses remained stable at $17.8 million in Q3 2024, unchanged from Q2 2024, indicating effective cost management[27] - Operating expenses for the three months ended September 30, 2024, were $17,836,000, an increase of 5.3% compared to $16,937,000 for the same period in 2023[153] - Opex per day for the three months ended September 30, 2024, was $14,913, an increase of 5.3% from $14,161 in the same period last year[153] Market Conditions - LNG prices have stabilized after a 60% increase since February 2024, with TTF prices reaching $12.6/MMBtu by the end of Q3 2024, driven by strong demand and supply constraints[58] - Global LNG exports for the first ten months of 2024 reached 341 MT, a modest increase of 1.8 MT or 0.5% year-on-year[59] - China remains the largest global LNG importer with 65 MT YTD-2024, reflecting a robust 10.3% year-on-year increase[60] - European LNG imports have decreased by 22% year-on-year, primarily due to a mild winter and reduced industrial demand[60] - Spot rates for modern two-stroke vessels averaged $70,900/day in Q3-2024, down from $141,000/day in the same period last year[63] Shareholder Returns - The Company declared a dividend of $0.75 per share for Q3 2024, marking the thirteenth consecutive quarter of the same dividend amount[11] - Dividends paid per share for the nine months ended September 30, 2024, was $2.25, compared to $2.50 for the same period in 2023[97] - The company declared a cash distribution of $0.75 per share for the third quarter of 2024, to be paid on or around December 11, 2024[138] Future Outlook - The International Energy Agency (IEA) projects supply growth to accelerate to nearly 6% in 2025, requiring 40-50 new ships[61] - Geopolitical factors, including the re-election of Donald Trump, may positively impact the LNG shipping market by lifting the current pause on U.S. LNG export approvals[66]