FLEX LNG .(US:FLNG)2022-02-16 22:01Financial Data and Key Metrics Changes - The company reported record results with Q4 2021 revenues of $215 million, exceeding guidance of approximately $110 million [4] - Time charter equivalent (TCE) earnings averaged $95,900 per day in Q4, marking the best performance ever [4][30] - Net income reached an all-time high of $69 million, with adjusted net income of $63 million [8][32] - Earnings per share (EPS) was $1.31, with adjusted EPS of $1.18 [10][33] - The company declared a quarterly dividend of $0.75 per share, resulting in an annualized yield of about 15% [10][27] Business Line Data and Key Metrics Changes - The company secured eight to nine fixed higher contracts with durations between three to five years, enhancing long-term revenue stability [6] - Spot exposure was reduced to about 30% in Q4, down from previous levels, allowing higher revenues to flow directly to the bottom line [8] Market Data and Key Metrics Changes - The company reported that 93% of available days in 2022 are already covered, providing a solid revenue outlook for the year [14][22] - The spot market has been challenging in early 2022, impacting earnings expectations for ships trading in the spot market [19][24] Company Strategy and Development Direction - The company is focused on balance sheet optimization, aiming to unlock $100 million in cash, with $125 million already achieved through refinancing initiatives [11][12] - The strategy includes maintaining a strong liquidity position to capitalize on market opportunities while sustaining attractive dividend levels [13][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the LNG market experienced growth in 2021, with U.S. exports increasing significantly, although growth slowed in the last two months of the year [47][48] - The company expects continued strong demand for LNG in 2022, projecting an increase in export volumes [79] - Management expressed optimism regarding the EU Emission Trading System for shipping, which could enhance the competitiveness of modern, efficient ships [83][84] Other Important Information - The company reported a cash balance of $201 million at year-end, which is expected to increase with new financing [13][34] - The average age of the fleet is 2.2 years, with a book value of approximately $2.4 billion [35] Q&A Session Summary Question: Can you comment on the EU Emission Trading System for shipping? - Management indicated that the system will include shipping from 2023, requiring ships to buy carbon permits for CO2 and methane emissions, which could enhance the competitiveness of efficient ships [83][84]