FLEX LNG .(US:FLNG)2021-05-21 20:16Financial Data and Key Metrics Changes - The company reported revenues of $81.3 million for Q1 2021, up from $67.4 million in the previous quarter, aligning with guidance of $80 million to $90 million [14][44] - Adjusted net income for Q1 was $34.2 million or $0.64 per share, compared to $24 million or $0.45 per share in the previous quarter [16][47] - Operational net income was $47.2 million for the quarter, translating into $0.88 per share, reflecting a significant increase from approximately $28 million or $0.48 per share in the previous quarter [16][46] Business Line Data and Key Metrics Changes - The company secured about 22 years of minimum fixed hire employment since the last reporting, enhancing employment visibility and reducing freight exposure [9][29] - The time charter equivalent (TCE) for the quarter was $75,400 per day, slightly ahead of $73,700 in the previous quarter [16][44] - Operating expenses were $14.3 million in Q1, down from $14.5 million in Q4, resulting in a decrease in operating expenses per day from $15,300 to $12,900 [45] Market Data and Key Metrics Changes - The LNG market experienced a strong recovery, with Asian and European spot LNG prices significantly higher than the previous year, with JKM and TTF prices around $10 and $9 respectively [21][69] - LNG exports in Q1 2021 were close to 102 million tons, in line with the previous year, despite disruptions [56][57] - European gas inventories were at only 33.5%, significantly lower than the previous year, indicating a potential for increased gas prices and volatility [73] Company Strategy and Development Direction - The company aims to secure long-term contracts to enhance revenue stability, having fixed several ships on term charters with major trading houses [25][26] - The strategy includes maintaining a strong liquidity position and utilizing cash for dividends and stock buybacks, with a recent increase in dividend from $0.30 to $0.40 per share [18][20] - The company is focused on expanding its fleet management capabilities in-house to improve operational control and performance [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the LNG market's recovery, expecting 7% to 8% growth in LNG demand in 2021, supported by a healthy global economy [11][59] - The company anticipates a strong Q4 2021, with revenues expected to approach $100 million, driven by high booking levels and a favorable market environment [39][76] - Management highlighted the importance of maintaining a flexible approach to fleet management, allowing for strategic decisions based on market conditions [66][75] Other Important Information - The company has a robust cash position of $139 million at the end of Q1, providing ample liquidity for future investments and shareholder returns [17][49] - The company has initiated a share buyback program, purchasing 593,000 shares in Q1, with plans to increase the buyback capital [20][53] - The company has hedged interest rate risks with swaps for a nominal amount of $674 million, ensuring a comfortable debt maturity profile [55] Q&A Session Summary - There were no questions during the Q&A session, indicating a clear presentation and understanding of the company's current status and future outlook [77]