[Financial & Operational Highlights](index=2&type=section&id=Financial%20%26%20Operational%20Highlights) [Q2 2023 Key Highlights](index=2&type=section&id=Q2%202023%20Key%20Highlights) The company reported Q2 2023 revenues of $86.7 million and net income of $39.0 million, completed scheduled drydockings, and declared a $0.75 dividend per share Q2 2023 Financial Highlights vs Q1 2023 | Metric | Q2 2023 | Q1 2023 | | :--- | :--- | :--- | | Vessel Operating Revenues | $86.7 million | $92.5 million | | Net Income | $39.0 million | $16.5 million | | Basic Earnings Per Share | $0.73 | $0.31 | | Average TCE Rate | $77,218/day | $80,175/day | | Adjusted EBITDA | $66.2 million | $72.5 million | | Adjusted Net Income | $28.2 million | $35.2 million | | Adjusted Basic EPS | $0.53 | $0.66 | - Successfully completed all scheduled drydockings for vessels delivered in 2018: Flex Endeavour, Flex Enterprise, Flex Ranger, and Flex Rainbow[5](index=5&type=chunk) - In August 2023, **Cheniere exercised its first option for Flex Vigilant**, extending the firm charter period by an additional 200 days[5](index=5&type=chunk) - The company declared a **dividend of $0.75 per share** for the second quarter of 2023[5](index=5&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The CEO confirmed Q2 revenues of $86.7 million were in line with guidance and reaffirmed H2 growth expectations, supported by a strong balance sheet and hedging strategy - Q2 revenues were **$86.7 million**, within the guided range of $85-90 million, and higher than Q2 2022 despite three ships being off-hire for drydocking[8](index=8&type=chunk) - Revenue guidance for **Q3 ($90-95M)** and **Q4 ($90-100M)** is reiterated, with expected full-year revenues of approximately $370 million[9](index=9&type=chunk) - The company benefits from a strong balance sheet with **$450 million in cash**, no debt maturities before 2028, and a significant earnings backlog of a minimum of 54 firm years[11](index=11&type=chunk) - Interest rate hedging strategy on an aggregate of $820 million resulted in **gains of $17 million** for the quarter, with $6.2 million realized[10](index=10&type=chunk) [Business and Market Overview](index=4&type=section&id=Business%20and%20Market%20Overview) [Business Update and Fleet Overview](index=4&type=section&id=Business%20Update%20and%20Fleet%20Overview) The company has 100% contract coverage for 2023 and a firm backlog of 54 years after successfully completing all scheduled drydockings for the year - Contract coverage is **100% for 2023** and **95% for 2024**, with a firm contract backlog of 54 years, potentially extending to 80 years with charterer's options[13](index=13&type=chunk) - Four drydockings were completed in H1 2023, with the future schedule including two in 2024, four in 2025, and three in 2026[14](index=14&type=chunk) Fleet Overview as of August 16, 2023 | Vessel Name | Year Built | Propulsion | Charter Expiration (Firm) | Expiration with Options | | :--- | :--- | :--- | :--- | :--- | | Flex Endeavour | 2018 | MEGI+PRS | Q3 2030 | Q1 2033 | | Flex Enterprise | 2018 | MEGI+PRS | Q2 2029 | NA | | Flex Ranger | 2018 | MEGI | Q1 2027 | NA | | Flex Rainbow | 2018 | MEGI | Q1 2033 | NA | | Flex Constellation | 2019 | MEGI+PRS | Q2 2024 | Q2 2027 | | Flex Courageous | 2019 | MEGI+PRS | Q1 2025 | Q1 2029 | | Flex Aurora | 2020 | X-DF | Q2 2026 | Q2 2028 | | Flex Amber | 2020 | X-DF | Q2 2029 | NA | | Flex Artemis | 2020 | MEGI+FRS | Q3 2025 | Q3 2030 | | Flex Resolute | 2020 | MEGI+FRS | Q1 2025 | Q1 2029 | | Flex Freedom | 2021 | MEGI+FRS | Q1 2027 | Q1 2029 | | Flex Volunteer | 2021 | X-DF | Q1 2026 | Q1 2028 | | Flex Vigilant | 2021 | X-DF | Q2 2031 | Q2 2033 | [LNG Market Update](index=11&type=section&id=LNG%20Market%20Update) The LNG market softened in Q2 2023 with lower charter rates, though global trade volumes grew 2.5% and newbuilding activity has declined from 2022 levels - Q2 2023 saw a soft decline in gas prices and charter rates, with spot rates for modern tonnage climbing toward **$100,000/day** by the end of June[58](index=58&type=chunk) - Global LNG trade volumes reached **202.5 million metric tons in H1 2023**, a 2.5% increase from H1 2022, with Europe being a key driver of demand growth[59](index=59&type=chunk) - Newbuilding contracting activity has significantly declined in 2023, with **36 ships ordered year-to-date** versus 66 in the same period in 2022[63](index=63&type=chunk) [Financial Results](index=5&type=section&id=Financial%20Results) [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) Q2 2023 net income was boosted by derivative gains, while H1 2023 net income declined from the prior year due to smaller gains and higher interest expenses [Quarterly Performance (Q2 2023 vs Q1 2023)](index=5&type=section&id=Quarterly%20Performance%20(Q2%202023%20vs%20Q1%202023)) Q2 revenues decreased due to drydocking off-hire days, but net income rose sharply to $39.0 million, driven by a $17.1 million gain on derivatives Q2 2023 vs Q1 2023 Performance | Item | Q2 2023 ($M) | Q1 2023 ($M) | Change Driver | | :--- | :--- | :--- | :--- | | Vessel Operating Revenues | 86.7 | 92.5 | More off-hire days for drydocking in Q2 | | Vessel Operating Expenses | 17.3 | 15.7 | Increase in technical expenditure | | Administrative Expenses | 2.2 | 3.9 | Decrease due to performance bonuses in Q1 | | Gain/(Loss) on Derivatives | 17.1 | (2.8) | Favorable movement in long-term interest rates | | Net Income | 39.0 | 16.5 | Primarily driven by the gain on derivatives | [Half-Year Performance (H1 2023 vs H1 2022)](index=7&type=section&id=Half-Year%20Performance%20(H1%202023%20vs%20H1%202022)) H1 2023 revenues increased to $179.2 million, but net income fell to $55.5 million due to smaller derivative gains and higher interest expenses than in H1 2022 H1 2023 vs H1 2022 Performance | Item | H1 2023 ($M) | H1 2022 ($M) | Change Driver | | :--- | :--- | :--- | :--- | | Vessel Operating Revenues | 179.2 | 158.7 | Higher proportion of fleet on improved fixed-rate contracts | | Interest Expenses | 53.5 | 30.5 | Increase in floating interest rates | | Gain on Derivatives | 14.3 | 46.4 | Smaller unrealized gain in 2023 compared to 2022 | | Net Income | 55.5 | 100.0 | Lower gain on derivatives and higher interest expense | | Adjusted EBITDA | 138.7 | 122.4 | Reflects stronger core operational performance | [Financial Position (Balance Sheet)](index=5&type=section&id=Financial%20Position%20(Balance%20Sheet)) As of June 30, 2023, the company maintained a strong liquidity position with $449.9 million in cash, while total equity stood at $869.7 million Balance Sheet Summary | Item | June 30, 2023 ($M) | Dec 31, 2022 ($M) | | :--- | :--- | :--- | | Cash, Cash Equivalents & Restricted Cash | 449.9 | 332.4 | | Vessels and Equipment, net | 2,254.7 | 2,269.9 | | Total Long-term Debt | 1,863.9 | 1,714.7 | | Total Equity | 869.7 | 907.1 | - To mitigate interest rate risk, the company has interest rate swaps on an aggregate notional principal of **$820.0 million** as of June 30, 2023[19](index=19&type=chunk) [Cash Flow Analysis](index=9&type=section&id=Cash%20Flow%20Analysis) Net cash from operations was $40.9 million in Q2 2023, while financing activities used $66.3 million, primarily for debt repayment and dividends Q2 2023 vs Q1 2023 Cash Flow Summary ($M) | Activity | Q2 2023 | Q1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 40.9 | 33.7 | | Net Cash from Investing Activities | 0.0 | 0.0 | | Net Cash from Financing Activities | (66.3) | 109.9 | - Key cash outflows in Q2 2023 included **$16.1 million for drydocking** and **$40.3 million for dividend payments**[47](index=47&type=chunk)[49](index=49&type=chunk) [Unaudited Interim Financial Statements](index=17&type=section&id=Unaudited%20Interim%20Financial%20Statements) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) The company reported Q2 2023 net income of $39.0 million on revenues of $86.7 million, driven by operating performance and a significant gain on derivatives Condensed Consolidated Statements of Operations (in thousands of $) | Metric | Q2 2023 | Q1 2023 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Vessel operating revenues | 86,727 | 92,477 | 179,204 | 158,728 | | Operating income | 48,223 | 55,010 | 103,233 | 86,811 | | Gain/(loss) on derivatives | 17,110 | (2,846) | 14,264 | 46,358 | | Net income | 39,016 | 16,531 | 55,547 | 100,021 | | Basic Earnings per share | 0.73 | 0.31 | 1.03 | 1.88 | [Condensed Consolidated Balance Sheet](index=18&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2023, the company reported total assets of $2.80 billion, total liabilities of $1.93 billion, and total equity of $869.7 million Condensed Consolidated Balance Sheet (in thousands of $) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | 449,830 | 332,329 | | Vessels and equipment, net | 2,254,727 | 2,269,946 | | **Total Assets** | **2,795,903** | **2,679,512** | | Current portion of long-term debt | 103,461 | 95,507 | | Long-term debt | 1,760,455 | 1,619,224 | | **Total Liabilities** | **1,926,177** | **1,772,422** | | **Total Equity** | **869,726** | **907,090** | [Condensed Consolidated Statements of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2023, the company generated $74.6 million in operating cash flow and increased its cash balance by $117.5 million after financing activities Condensed Consolidated Statements of Cash Flows - H1 2023 (in thousands of $) | Activity | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 74,616 | 94,595 | | Net cash used in investing activities | (2) | (4) | | Net cash provided by/(used in) financing activities | 43,604 | (12,116) | | Net increase in cash | 117,520 | 82,535 | | Cash at end of period | 449,921 | 283,705 | [Notes to the Interim Consolidated Accounts](index=22&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Accounts) [Long-term Debt and Financial Instruments](index=26&type=section&id=Long-term%20Debt%20and%20Financial%20Instruments) The company managed its $1.86 billion long-term debt with interest rate swaps on a notional $820.0 million, resulting in a $14.3 million gain in H1 2023 - Total net long-term debt outstanding was **$1,863.9 million** as of June 30, 2023[123](index=123&type=chunk) - The company has interest rate swap agreements on an aggregate notional principal of **$820.0 million** to reduce risk from interest rate fluctuations[107](index=107&type=chunk) Gain on Derivatives - H1 2023 (in thousands of $) | Component | H1 2023 | | :--- | :--- | | Change in fair value (unrealized) | 3,032 | | Realized gain on derivatives | 11,232 | | **Total Gain on Derivatives** | **14,264** | [Subsequent Events](index=31&type=section&id=Subsequent%20Events) Post-quarter, the Board declared a $0.75 per share dividend, and Cheniere exercised a charter option for the Flex Vigilant - On August 15, 2023, the Board declared a Q2 2023 cash dividend of **$0.75 per share**, payable around September 5, 2023[154](index=154&type=chunk) - On August 14, 2023, **Cheniere declared its option to extend the charter for Flex Vigilant** by 200 days, with the charter now scheduled to expire in Q2 2031[136](index=136&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=32&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) For Q2 2023, Net Income of $39.0 million was reconciled to an Adjusted EBITDA of $66.2 million by excluding non-core items like derivative gains Reconciliation to Adjusted EBITDA (in thousands of $) | Metric | Q2 2023 | Q1 2023 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income | 39,016 | 16,531 | 55,547 | 100,021 | | EBITDA | 83,191 | 67,625 | 150,816 | 167,787 | | **Adjusted EBITDA** | **66,194** | **72,491** | **138,685** | **122,403** | [Reconciliation of Net Income to Adjusted Net Income](index=33&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Q2 2023 Net Income of $39.0 million was reconciled to an Adjusted Net Income of $28.2 million, resulting in an Adjusted Basic EPS of $0.53 Reconciliation to Adjusted Net Income (in thousands of $) | Metric | Q2 2023 | Q1 2023 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income | 39,016 | 16,531 | 55,547 | 100,021 | | **Adjusted net income** | **28,220** | **35,233** | **63,453** | **56,361** | | Adjusted basic EPS ($) | 0.53 | 0.66 | 1.18 | 1.06 | [Reconciliation to Time Charter Equivalent (TCE) Rate](index=34&type=section&id=Reconciliation%20to%20Time%20Charter%20Equivalent%20(TCE)%20Rate) The company's TCE rate for Q2 2023 was calculated at $77,218 per day based on TCE income of $86.0 million and 1,113 on-hire days TCE Rate Calculation | Metric | Q2 2023 | Q1 2023 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Time charter equivalent income (k$) | 85,965 | 92,204 | 178,169 | 156,862 | | Fleet onhire days | 1,113 | 1,150 | 2,263 | 2,352 | | **Time charter equivalent rate ($)** | **77,218** | **80,175** | **78,720** | **66,691** |

Financial Data and Key Metrics Changes - Revenues for Q1 2023 were $92.5 million, aligning with guidance of $90 million to $93 million, with adjusted net income of $35.2 million or $0.66 per share [6][16][61] - The company reaffirmed its revenue guidance for the full year 2023 at $370 million, expecting adjusted EBITDA of around $290 million to $295 million [30][49] - The company maintained a strong cash position of $475 million, an all-time high, translating to about $9 per share in cash [29][38] Business Line Data and Key Metrics Changes - Average time charter equivalent earnings for the fleet were slightly above $80,000 per day, consistent with annual guidance [6][14] - Operational expenses (OpEx) per day were maintained at $13,400, reflecting effective cost control [14] - The company completed dry dockings for Flex Endeavour and Flex Enterprise on schedule and budget, with further dry dockings planned [7][48] Market Data and Key Metrics Changes - LNG exports grew by approximately 5% in the first four months of 2023, with North America being a significant contributor [20] - European gas prices have experienced volatility, with a peak of about $100 per million Btu, but have since declined due to reduced demand [21][22] - The company noted a shift in LNG demand dynamics, with increased imports to Europe and a gradual recovery in Chinese demand [40][43] Company Strategy and Development Direction - The company has a minimum contractual backlog of 57 years, providing strong revenue visibility [11][13] - The strategy focuses on long-term charters to mitigate market volatility, distinguishing it from other shipping companies [54][85] - The company is cautious about newbuilding investments due to high prices and prefers to secure long-term contracts for existing ships [108] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market outlook, citing strong earnings and a robust liquidity position [13][20] - The company anticipates a seasonal uptick in charter rates during Q3 and Q4, with revenues expected to increase to around $90 million to $100 million for those quarters [9][49] - Management highlighted the importance of balancing natural gas prices in the U.S. and their impact on drilling activity and LNG exports [52][66] Other Important Information - The company has successfully completed a balance sheet optimization program, refinancing all 13 ships in its fleet [29][103] - The company has increased its hedging portfolio to $820 million, enhancing financial flexibility [18][19] - The dividend payout of $0.75 per share reflects a yield of approximately 11% over the past 12 months [2][32] Q&A Session Summary Question: How does the low natural gas prices in the US impact Flex LNG? - Management indicated that while low prices could affect new drilling activity in the long term, current U.S. gas production remains strong [52] Question: What differentiates Flex from other shipping companies? - Management noted that Flex has long-term charters that provide stable revenues, unlike many commodity shipping companies that face volatility [54] Question: What is the outlook for LNG transport out of the US for 2023 and 2024? - Management expects muted export growth in 2024 but anticipates significant growth from 2025 onwards as new projects come online [72] Question: Is Europe an important market for Flex? - Management confirmed that Europe remains a key market, with increased imports to replace lost volumes from Russian gas [73] Question: What are the plans for growth and use of cash? - The primary focus is on dividends, with a disciplined approach to newbuilding investments, preferring to secure long-term contracts for existing ships [108]

Financial Performance & Dividends - Q1 2023 revenues were $92.5 million, aligning with the guidance of $90-93 million[17, 96] - The company's adjusted net income for Q1 2023 was $35.2 million, with an adjusted EPS of $0.66[17, 96] - Flex LNG is declaring an ordinary quarterly dividend of $0.75 per share for Q1[5, 96] - The dividend per share for the last twelve months is $3.75, implying a yield of approximately 11%[5, 96] Guidance & Outlook - Flex LNG reaffirms its 2023 revenue guidance of approximately $370 million, with adjusted EBITDA of about $290-295 million[6, 17] - Q2 2023 revenues are expected to be $85-90 million due to three dry-dockings and a softer spot market[17] - Quarterly revenues are projected to increase to $90-100 million in Q3/Q4 as the dry-docking program concludes[17] Balance Sheet & Operations - The company completed balance sheet optimization in Q1 2023, resulting in net proceeds of $387 million[5, 106] - The cash balance at the end of Q1 2023 was $475 million, which is approximately $9 per share[5, 86, 106] - The average TCE (Time Charter Equivalent) was $80,175 per day, consistent with the 2023 guidance of approximately $80,000 per day[17, 106]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38904 Par-La-Ville Place Hamilton Bermuda (Address of principal executive offices) INFORMATION CONTAINED IN THIS FORM 6-K REPORT This Report on Form 6-K is hereby incorporated by reference into the Company's Registration Statement on Form F-3 (File No. 333- 268367) that was declared effective December ...

• loan covenant defaults; and This and future epidemics may affect personnel operating payment systems through which we receive revenues from the chartering of our vessels or pay for our expenses, resulting in delays in payments. We continue to focus on our employees' well-being, whilst making sure that our operations continue undisrupted and at the same time, adapting to the new ways of operating. As such employees are encouraged and in certain cases required to operate remotely which significantly increas ...

[Q4 2022 Financial & Operational Highlights](index=2&type=section&id=Q4%202022%20Financial%20%26%20Operational%20Highlights) [Key Financial Results](index=2&type=section&id=Key%20Financial%20Results) Flex LNG reported strong Q4 2022 financial results, with vessel operating revenues of $97.9 million, net income of $41.4 million, and an average TCE rate of $81,699 per day, declaring a $1.00 total dividend per share Q4 2022 Key Financial Metrics | Metric | Q4 2022 | Q3 2022 | | :--- | :--- | :--- | | Vessel Operating Revenues | $97.9 million | $91.3 million | | Net Income | $41.4 million | $46.6 million | | Basic Earnings Per Share | $0.78 | $0.88 | | Average TCE Rate per day | $81,699 | $75,941 | | Adjusted EBITDA | $79.1 million | $70.9 million | | Adjusted Net Income | $54.5 million | $42.2 million | | Adjusted EPS (Basic & Diluted) | $1.02 | $0.79 | - The company declared a total dividend of **$1.00 per share** for Q4 2022, which includes a regular quarterly dividend of **$0.75** and a special dividend of **$0.25**[112](index=112&type=chunk) - In December 2022, the company issued **409,741 ordinary shares** under its at-the-market (ATM) program, raising net proceeds of **$14.5 million**[109](index=109&type=chunk) - Subsequent to the quarter end, the company secured significant new financing, including 12-year sale and leaseback agreements for Flex Amber and Flex Artemis in January 2023, and term sheets for a **$290 million** facility in February 2023[109](index=109&type=chunk)[110](index=110&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The CEO highlighted strong Q4 performance, balance sheet optimization securing over $2 billion in new financing, and a significant charter backlog, supporting a special dividend - The company finalized its balance sheet optimization program, securing over **$2 billion** in new financing, which is expected to release a total of **$387 million** in net cash proceeds[121](index=121&type=chunk) - With a de-risked chartering profile and strong liquidity, the Board approved a special dividend of **$0.25 per share** on top of the **$0.75 quarterly dividend**, totaling **$1.00** for Q4[121](index=121&type=chunk) - The company added a minimum of **38 years** of charter backlog during 2022, with the first two fully open vessel positions now not until 2027, aligning with the next wave of LNG supply[114](index=114&type=chunk) - Financial performance is expected to improve in 2023, with projected revenues of around **$370 million** and an average TCE of approximately **$80,000 per day**, despite scheduled off-hire for special surveys on four ships[115](index=115&type=chunk) [Business Update and Fleet Overview](index=4&type=section&id=Business%20Update%20and%20Fleet%20Overview) The company significantly extended its contract backlog to 60 firm years, with 100% fleet coverage for 2023 and 95% for 2024, despite four vessels scheduled for drydocking - Signed extension options with Cheniere Marketing International LLP ("CMI") for Flex Endeavour, Flex Ranger, and Flex Vigilant, securing long-term employment for these vessels[123](index=123&type=chunk) - The firm contract backlog is **60 years**, with a potential to increase to **87 years** if all charterer's options are exercised, and the fleet is fully contracted for 2023 and has **95% coverage** for 2024[125](index=125&type=chunk) - Four vessels are scheduled for their mandatory five-year drydocking in 2023, with an additional two scheduled for 2024[118](index=118&type=chunk) [Finance Update](index=5&type=section&id=Finance%20Update) As of December 31, 2022, Flex LNG held $332.4 million in cash and $1.71 billion in long-term debt, actively managing interest rate risk and completing significant refinancing activities Financial Position as of Dec 31, 2022 | Item | Amount (USD) | | :--- | :--- | | Cash, cash equivalents and restricted cash | $332.4 million | | Total long-term debt | $1,714.7 million | | Current portion of long-term debt | $95.5 million | | Non-current portion of long-term debt | $1,619.2 million | - The company utilizes interest rate swaps to hedge against interest rate fluctuations, with an aggregate notional principal of **$691.0 million** as of year-end 2022[129](index=129&type=chunk) - In Q4 2022, the company terminated three interest rate swaps, generating cash proceeds of **$14.4 million**[131](index=131&type=chunk) - The company established an at-the-market (ATM) offering of up to **$100 million** and a Dividend Reinvestment Plan (DRIP) to enhance financial flexibility and shareholder returns[132](index=132&type=chunk)[133](index=133&type=chunk) - Multiple refinancing deals were signed or initiated post-quarter end, including sale and leasebacks for Flex Rainbow, Flex Amber, and Flex Artemis, and a new **$290 million** credit facility for Flex Freedom and Flex Vigilant, all aimed at improving terms and liquidity[134](index=134&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) [Quarterly Performance Comparison (Q4'22 vs Q3'22)](index=7&type=section&id=Quarterly%20Performance%20Comparison%20(Q4%2722%20vs%20Q3%2722)) Q4 2022 saw increased vessel operating revenues to $97.9 million and lower expenses, but net income decreased to $41.4 million due to derivative gains, while adjusted net income rose to $54.5 million Q4 2022 vs Q3 2022 Performance | Metric | Q4 2022 | Q3 2022 | | :--- | :--- | :--- | | Vessel Operating Revenues | $97.9 million | $91.3 million | | Vessel Operating Expenses | $16.2 million | $17.5 million | | Interest Expense | $24.5 million | $21.6 million | | Gain on Derivatives | $4.9 million | $28.4 million | | Net Income | $41.4 million | $46.6 million | | Adjusted Net Income | $54.5 million | $42.2 million | - The increase in revenues was principally due to improved market rates, which increased revenues on the company's existing variable rate hire contract[138](index=138&type=chunk) - The decrease in vessel operating expenses was primarily due to lower crew costs (fewer COVID-related expenses and crew changes) and reduced technical expenses for spares and services[140](index=140&type=chunk) - The significant drop in the gain on derivatives was due to a decrease in the long-term forward interest rate curve in Q4, compared to a steep increase in Q3 which had boosted the value of interest rate swaps[170](index=170&type=chunk) [Annual Performance Comparison (FY2022 vs FY2021)](index=9&type=section&id=Annual%20Performance%20Comparison%20(FY2022%20vs%20FY2021)) FY2022 vessel operating revenues slightly increased to $347.9 million, with net income significantly growing to $188.0 million, primarily driven by a substantial $79.7 million gain on derivatives FY2022 vs FY2021 Performance | Metric | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Vessel Operating Revenues | $347.9 million | $343.4 million | | Vessel Operating Expenses | $63.4 million | $61.2 million | | Interest Expense | $76.6 million | $56.2 million | | Extinguishment costs of long-term debt | $16.1 million | $1.2 million | | Gain on Derivatives | $79.7 million | $18.4 million | | Net Income | $188.0 million | $162.2 million | | Basic Earnings Per Share | $3.53 | $3.04 | - The increase in net income was primarily due to a significant unrealized gain of **$78.2 million** on interest rate swap derivatives, reflecting the positive development of interest rates during the year[182](index=182&type=chunk) - Administrative expenses rose to **$9.1 million** from **$7.9 million** due to increased audit fees, registrar fees, legal costs for the ATM program, and higher share-based compensation amortization[178](index=178&type=chunk) [Cash Flow Analysis](index=11&type=section&id=Cash%20Flow%20Analysis) Q4 2022 saw $53.4 million in operating cash flow and a positive $6.8 million from financing activities, increasing total cash to $332.4 million Cash Flow Summary (Q4 2022 vs Q3 2022) | Cash Flow Activity | Q4 2022 | Q3 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $53.4 million | $71.9 million | | Net cash used in investing activities | $0 | $0 | | Net cash provided by/(used in) financing activities | $6.8 million | ($83.5 million) | | **Ending Cash and Cash Equivalents** | **$332.4 million** | **$271.2 million** | - Key financing activities in Q4 included a **$150 million** drawdown under the Resolute facility, **$14.5 million** net proceeds from the ATM program, and **$14.4 million** from terminating derivatives, partially offset by **$113.8 million** in debt prepayment and **$40.0 million** in dividend payments[189](index=189&type=chunk)[70](index=70&type=chunk) [Balance Sheet Analysis](index=12&type=section&id=Balance%20Sheet%20Analysis) As of December 31, 2022, total equity increased to $907.1 million, while total long-term debt rose to $1.71 billion due to significant refinancing activities Balance Sheet Comparison (Year-End) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Long-Term Debt | $1,714.7 million | $1,633.4 million | | Net Book Value of Vessels | $2,269.9 million | $2,342.2 million | | Total Equity | $907.1 million | $889.4 million | - The increase in long-term debt during 2022 was driven by several new financing facilities, including the **$375 million** Facility, the **$320 million** Sale and Leaseback, and two separate **$150 million** facilities[193](index=193&type=chunk)[72](index=72&type=chunk) - Major debt decreases resulted from prepayments related to the Hyundai Glovis Sale and Charterback (**$263.1 million**), the **$250 million** Facility (**$217.2 million**), and other facilities as part of the refinancing program[144](index=144&type=chunk)[145](index=145&type=chunk) [Market Outlook & Corporate Information](index=14&type=section&id=Market%20Outlook%20%26%20Corporate%20Information) [LNG Market Update](index=14&type=section&id=LNG%20Market%20Update) The LNG shipping market was tight in Q4 2022 due to high demand, but softened in early 2023 amid a large newbuild order book and unwinding floating storage - Europe's LNG imports increased by **54%** in 2022, reaching nearly **130 million tonnes**, as it replaced Russian pipeline gas[149](index=149&type=chunk) - China's LNG imports fell by over **20%** in 2022, which freed up cargoes for Europe, though a reversal of China's zero-COVID policies is expected to increase competition for LNG in 2023[150](index=150&type=chunk)[152](index=152&type=chunk) - A record **169 newbuild LNG vessels** were ordered in 2022, with a large number of deliveries scheduled for 2024 (**64 vessels**) and 2025 (**85 vessels**), potentially loosening the market balance before new liquefaction projects start up in 2025[156](index=156&type=chunk) - The unwinding of floating storage, which peaked at around **50 vessels** in late October 2022, has released significant fleet capacity back into the market in early 2023[153](index=153&type=chunk) [Forward-Looking Statements](index=17&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to risks and uncertainties, including market conditions, operating expenses, and geopolitical events - The report includes forward-looking statements concerning plans, objectives, and future events, which are protected under the Private Securities Litigation Reform Act of 1995[55](index=55&type=chunk) - Key risk factors that could affect future results include fluctuations in charter rates, changes in LNG demand, operating expenses, geopolitical events, and other factors disclosed in SEC filings[56](index=56&type=chunk)[57](index=57&type=chunk) [Unaudited Interim Financial Statements](index=20&type=section&id=Unaudited%20Interim%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statement of operations shows a net income of $41.4 million for Q4 2022 and $188.0 million for the full year, driven by revenues and derivative gains Condensed Consolidated Statements of Operations (Year Ended) | (in thousands of $) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Vessel operating revenues | 347,917 | 343,448 | | Total operating expenses | (144,788) | (138,957) | | **Operating income** | **200,615** | **201,157** | | Interest expense | (76,596) | (56,221) | | Gain on derivatives | 79,682 | 18,399 | | Extinguishment costs of long-term debt | (16,102) | (1,209) | | **Net income** | **188,042** | **162,205** | [Condensed Consolidated Balance Sheets](index=21&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2022, total assets were $2.68 billion, with total liabilities at $1.77 billion and total equity increasing to $907.1 million Condensed Consolidated Balance Sheet Highlights | (in thousands of $) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | 332,329 | 200,652 | | Vessels and equipment, net | 2,269,946 | 2,342,165 | | **Total Assets** | **2,679,512** | **2,572,921** | | Current portion of long-term debt | 95,507 | 81,472 | | Long-term debt (non-current) | 1,619,224 | 1,551,947 | | **Total Liabilities** | **1,772,422** | **1,683,534** | | **Total Equity** | **907,090** | **889,387** | [Condensed Consolidated Interim Statements of Cash Flows](index=22&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For FY2022, operating activities generated $219.9 million in cash, while financing activities resulted in an $88.8 million outflow, increasing cash to $332.4 million Condensed Consolidated Statements of Cash Flows (Year Ended) | (in thousands of $) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | 219,882 | 214,844 | | Net cash used in investing activities | (5) | (265,934) | | Net cash (used in)/provided by financing activities | (88,761) | 123,103 | | **Net increase in cash** | **131,231** | **72,208** | | **Cash at end of period** | **332,401** | **201,170** | [Condensed Consolidated Interim Statement of Changes in Equity](index=24&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) Total equity increased from $889.4 million to $907.1 million in 2022, driven by net income and share issuance, partially offset by dividends paid Changes in Equity for the Year Ended Dec 31, 2022 | (in thousands of $) | Amount | | :--- | :--- | | **Total Equity at Jan 1, 2022** | **889,387** | | Net income | 188,042 | | Dividends paid | (186,094) | | Shares issued | 14,490 | | Share-based payments & other | 1,265 | | **Total Equity at Dec 31, 2022** | **907,090** | [Notes to the Interim Consolidated Accounts](index=26&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Accounts) [Note 1 & 2: General Information and Accounting Principles](index=26&type=section&id=Note%201%20%26%202%3A%20General%20Information%20and%20Accounting%20Principles) Flex LNG, an LNG transportation company, prepares its U.S. GAAP financial statements, including a $2.9 million out-of-period adjustment in 2022 - The company's primary business is the seaborne transportation of liquefied natural gas (LNG)[5](index=5&type=chunk) - The financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP)[6](index=6&type=chunk) - An out-of-period adjustment was made in 2022 to correct a **$2.9 million** overstatement of technical ship management fees from 2020 and 2021, which decreased vessel operating expenses and increased net income for 2022 by **$2.9 million**[7](index=7&type=chunk) [Note 3: Earnings per Share](index=27&type=section&id=Note%203%3A%20Earnings%20per%20Share) This note details EPS calculations, with FY2022 net income of $188.0 million yielding basic EPS of $3.53 and diluted EPS of $3.51, alongside $3.50 in dividends paid per share Earnings Per Share Calculation (Full Year) | (figures in thousands, except per share data) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net income | $188,042 | $162,205 | | Weighted average shares (Basic) | 53,198,015 | 53,319,408 | | Weighted average shares (Diluted) | 53,523,866 | 53,340,292 | | **Basic EPS** | **$3.53** | **$3.04** | | **Diluted EPS** | **$3.51** | **$3.04** | | Dividends paid per share | ($3.50) | ($1.85) | [Note 8 & 9: Capital Commitments and Long-term Debt](index=30&type=section&id=Note%208%20%26%209%3A%20Capital%20Commitments%20and%20Long-term%20Debt) As of December 31, 2022, capital commitments totaled $1.73 billion in long-term debt, with significant 2022 financing activities including new facilities and sale-leasebacks - Total long-term debt obligations as of December 31, 2022, amounted to **$1.73 billion**[22](index=22&type=chunk) - In March 2022, the company signed a **$375 million** term and revolving credit facility[24](index=24&type=chunk)[31](index=31&type=chunk) - In May 2022, the company completed a **$320 million** sale and leaseback for Flex Constellation and Flex Courageous, using proceeds to prepay a **$217.2 million** facility[33](index=33&type=chunk)[27](index=27&type=chunk) - In September and December 2022, the company signed two separate **$150 million** term loan facilities to refinance the vessels Flex Enterprise and Flex Resolute, respectively[29](index=29&type=chunk)[37](index=37&type=chunk) [Note 10: Financial Instruments (Derivatives)](index=32&type=section&id=Note%2010%3A%20Financial%20Instruments%20(Derivatives)) Flex LNG uses interest rate swaps to manage risk, with $691.0 million notional principal as of year-end 2022, generating a $79.7 million gain on derivatives for the year - The company holds interest rate swap agreements on an aggregate notional principal of **$691.0 million** as of December 31, 2022[38](index=38&type=chunk) - In October 2022, the company terminated five interest rate swap agreements, some of which generated cash proceeds and others were utilized to enter into a new, more favorable swap agreement[39](index=39&type=chunk)[40](index=40&type=chunk) Gain on Derivatives (Full Year) | (in thousands of $) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Change in fair value of derivative instruments | 78,207 | 24,423 | | Realized gain/(loss) on derivative instruments | 1,475 | (6,024) | | **Total Gain on derivatives** | **79,682** | **18,399** | [Note 13, 14, 15: Share Capital, Treasury Shares, and Share-based Compensation](index=37&type=section&id=Note%2013%2C%2014%2C%2015%3A%20Share%20Capital%2C%20Treasury%20Shares%2C%20and%20Share-based%20Compensation) In 2022, the company issued 409,741 shares via an ATM program for $14.5 million, held 838,185 treasury shares, and managed share options - In December 2022, **409,741 ordinary shares** were issued under the at-the-market (ATM) program for net proceeds of **$14.5 million**[67](index=67&type=chunk)[73](index=73&type=chunk) - As of December 31, 2022, the company held **838,185 treasury shares** at a cost of **$8.1 million**[75](index=75&type=chunk) - During 2022, a total of **161,250 share options** were exercised by holders and settled by the company through the transfer of treasury shares[76](index=76&type=chunk)[79](index=79&type=chunk) - As of year-end 2022, there were **488,750 outstanding non-vested share options** with a weighted average remaining contractual term of **3.7 years**[80](index=80&type=chunk) [Note 16: Subsequent Events](index=38&type=section&id=Note%2016%3A%20Subsequent%20Events) Subsequent events include new financing deals for Flex Amber and Artemis, a $290 million credit facility, and a declared Q4 2022 dividend of $1.00 per share - In January 2023, signed sale and leaseback agreements to refinance Flex Amber and Flex Artemis, securing net consideration of **$170 million** and **$160 million**, respectively[82](index=82&type=chunk) - In February 2023, received credit approved term sheets for a **$290 million** term and revolving credit facility to refinance Flex Freedom and Flex Vigilant[83](index=83&type=chunk) - On February 13, 2023, the Board declared a total cash dividend of **$1.00 per share** for Q4 2022 (**$0.75 regular** + **$0.25 special**), payable in March 2023[84](index=84&type=chunk)[85](index=85&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=40&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=40&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section reconciles FY2022 Net Income of $188.0 million to EBITDA of $339.9 million and Adjusted EBITDA of $272.3 million, adjusting for non-operating items EBITDA and Adjusted EBITDA Reconciliation (Full Year) | (in thousands of $) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net income/(loss) | 188,042 | 162,205 | | Interest, Tax, Depreciation, etc. | 151,890 | 127,321 | | **EBITDA** | **339,932** | **289,526** | | Adjustments (Derivatives, FX, etc.) | (67,590) | (18,706) | | **Adjusted EBITDA** | **272,342** | **270,820** | [Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS](index=41&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS) Net Income is reconciled to Adjusted Net Income of $150.7 million for FY2022, yielding an adjusted basic EPS of $2.83, by excluding non-core items Adjusted Net Income and EPS Reconciliation (Full Year) | (in thousands of $, except per share data) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net income | 188,042 | 162,205 | | Extinguishment costs of long-term debt | 16,102 | 1,209 | | Change in assets/liabilities of derivatives | (54,417) | (24,423) | | Foreign exchange (gain)/loss | 967 | (307) | | **Adjusted net income** | **150,694** | **138,684** | | **Adjusted basic earnings per share** | **$2.83** | **$2.60** | [Reconciliation of Total Operating Revenues to Time Charter Equivalent (TCE) Income and Rate](index=42&type=section&id=Reconciliation%20of%20Total%20Operating%20Revenues%20to%20Time%20Charter%20Equivalent%20(TCE)%20Income%20and%20Rate) This section reconciles FY2022 vessel operating revenues of $347.9 million to TCE income of $345.4 million, resulting in an average TCE rate of $72,806 per day TCE Income and Rate (Full Year) | (Unaudited figures) | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :--- | :--- | :--- | | Vessel operating revenues ($'000) | 347,917 | 343,448 | | Voyage expenses ($'000) | (2,517) | (3,334) | | **Time charter equivalent income ($'000)** | **345,400** | **340,114** | | Fleet onhire days | 4,744 | 4,563 | | **Time charter equivalent rate ($/day)** | **72,806** | **74,536** |

1 Fourth Quarter 2022 Results Presentation FORWARD-LOOKING STATEMENTS FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY") DESIRES TO TAKE ADVANTAGE OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND IS INCLUDING THIS CAUTIONARY STATEMENT IN CONNECTION WITH THIS SAFE HARBOR LEGISLATION. THE WORDS "BELIEVE," "EXPECT," "FORECAST," "ANTICIPATE," "ESTIMATE," "INTEND," "PLAN," "POSSIBLE, " "POTENTIAL, " "PENDING, " "TARGET," "PROJECT," "LIKELY," "MAY," "WILL," "WOULD, " "SHOULD, " " ...

Financial Data and Key Metrics Changes - Revenues for Q4 2022 were $98 million, aligning with guidance of $95 million to $98 million, boosted by a strong spot market [2][27] - Net income for Q4 was $41 million, with adjusted net income at $55 million, primarily due to realized gains of $14 million on derivatives [2][37] - Earnings per share for Q4 were $0.78, with adjusted earnings per share at $1.02 [2][27] - The company declared a total dividend of $1.00 per share for Q4, resulting in a full-year dividend of $3.75, reflecting an 11% yield based on current share price [6][54] Business Line Data and Key Metrics Changes - Time charter earnings per day reached $82,000 in Q4, compared to $73,000 for the full year [10] - Operating expenses per day improved slightly to $13,500 in Q4, with a full-year average of $13,400 [10] Market Data and Key Metrics Changes - U.S. LNG exports increased by 9% in 2022, despite disruptions from the Freeport outage [16] - Chinese LNG imports fell by 20% in 2022 due to economic downturns, while European imports surged by 54% [17][44] - European gas demand decreased by 12% in 2022, driven by high prices, but there are expectations for recovery [46] Company Strategy and Development Direction - The company aims to build more backlog for existing ships rather than pursuing new builds due to high new building prices [29][57] - A strong balance sheet and a $400 million revolving credit line provide flexibility for future opportunities [29][42] - The focus remains on securing long-term contracts for ships opening in 2027 to enhance backlog and earnings profiles [55] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the LNG market, anticipating growth driven by new projects and increased demand [25][52] - The company highlighted the importance of maintaining a competitive edge through efficient operations and strong customer relationships [36][66] Other Important Information - The company completed a balance sheet optimization program, releasing $387 million in cash [40][72] - A total of four ships are scheduled for dry-docking in 2023, but revenues are still expected to grow by $20 million to $370 million [54][33] Q&A Session Summary Question: What are the key strategic priorities for management? - Management emphasized building backlog and securing long-term contracts for existing ships, while maintaining a strong balance sheet [29] Question: How does the company view new building prices and fleet expansion? - The company is cautious about new builds due to high prices and prefers to focus on existing ships [57] Question: Will the company consider trading LNG in addition to transportation? - Management indicated that trading LNG is complex and requires significant working capital, which is not the current focus [78]

1 FLEX LNG Third Quarter 2022 Results Presentation November 15, 2022 FORWARD-LOOKING STATEMENTS MATTERS DISCUSSED IN THIS PRESENTATION 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 ...

Financial Data and Key Metrics Changes - Revenues for Q3 2022 were $91 million, aligning with previous guidance of $90 million, with net income at $47 million and adjusted net income at $42 million, resulting in earnings per share of $0.88 and adjusted earnings per share of $0.79 [2][12] - Operating expenses for the quarter were $17 million, translating to an OpEx per day of $14,600, which was higher than the guided level of $13,000 due to COVID-related expenses and crew changes [12][36] - The company expects Q4 revenues to be between $95 million and $98 million, also in line with previous guidance [3][25] Business Line Data and Key Metrics Changes - Three ships commenced new Time Charters, contributing positively to revenue, with Flex Artemis benefiting from a variable higher Time Charter [2][12] - The company has a strong contract coverage for 2023 and a minimum coverage of 91% for 2024, with options for charter extensions [3][25] Market Data and Key Metrics Changes - LNG exports from the US grew by 11% despite the Freeport shutdown, while European imports increased by 57% due to high demand and reduced imports from China, which saw a 22% decline [18][19] - The high price of LNG has led to demand destruction in countries like Bangladesh and Pakistan, pushing them to revert to coal [18][19] - European gas consumption decreased by 12% this year, aided by mild weather and high prices stimulating energy savings [19][20] Company Strategy and Development Direction - The company is focused on maintaining a disciplined approach to fleet growth, prioritizing securing employment for existing ships over newbuilding due to high newbuilding prices [32][33] - The company is optimistic about recontracting ships at better rates due to a strong backlog and favorable market conditions [25][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the current financing market, which is favorable for blue-chip companies, allowing for attractive long-term financing options [38] - The company is confident in its ability to sustain dividends, with a declared quarterly dividend of $0.75 per share, reflecting a yield of around 10% [3][25][39] Other Important Information - The company has secured $630 million in refinancing for four ships, surpassing its $100 million cash release target [2][14] - The company is introducing a dividend reinvestment plan for shareholders [5] Q&A Session Summary Question: How are the earnings calculated for the Flex Artemis? - Earnings are tied to the spot market with a ceiling higher than $100,000 and a floor around the cash breakeven level [28][29] Question: What is the interest for vessels coming open in 2026 and 2027? - There is significant interest, with expectations for long-term charters starting at rates around $90,000 [30] Question: How are the rates adjusted for option periods? - Option rates tend to be higher than firm rates, as options are not given away for free [31] Question: What are the plans for fleet growth and newbuilding? - The company aims to be disciplined and secure employment for existing ships rather than rushing into newbuilding due to high costs [32][33] Question: How does the company plan to use the released cash? - The company plans to maintain cash for servicing interest and providing optionality for future investments [38] Question: When will dividends be paid? - Dividends will be paid on or about December 6 for US investors and December 9 for Oslo Stock Exchange investors [39] Question: How involved is the main shareholder in decision-making? - The main shareholder, John Fredriksen, is heavily involved and provides valuable advice based on his extensive experience [41]