FLEX LNG .(US:FLNG)2023-02-14 16:42Financial 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]