FLEX LNG .(US:FLNG)2025-11-12 15:00Financial Data and Key Metrics Changes - The company reported revenues of $86 million for Q3 2025, or $84 million excluding EUAs related to the EU Emission Trading System, with a fleet average TCE of $70,900 per day [3] - Net income for the quarter was $16.8 million, translating to an EPS of $0.31, while adjusted net income was $23.5 million, or adjusted EPS of $0.43 [3][12] - The company achieved an all-time high cash balance of $479 million after refinancing FLEX Resolute and FLEX Constellation, with no debt maturity prior to 2029 [4][12] Business Line Data and Key Metrics Changes - FLEX Constellation is fully booked for Q4 2025 and Q1 2026, starting a 15-year time charter [4] - The company has a minimum firm backlog of 53 years, which could grow to 80 years if all options are declared [5][6] - Operating expenses for the quarter were $18.8 million, or approximately $15,700 per day, aligning with the full-year guidance of $15,500 [9][10] Market Data and Key Metrics Changes - Global LNG trading volumes increased by 3% year-on-year, reaching 350 million tons from January to October 2025, with the US leading the growth [15] - LNG exports from the US surged to 87 million tons, a 22% increase year-on-year, while European imports grew by 26% [15][16] - The spot market for LNG has shown signs of improvement, with current rates for modern two-stroke vessels around $70,000 per day [14] Company Strategy and Development Direction - The company is committed to maintaining a shareholder-friendly dividend policy, with a declared dividend of $0.75 per share, marking the 17th consecutive dividend [4][7] - The company aims to leverage its solid contract backlog and financial flexibility to navigate the current LNG shipping market [13] - The outlook for LNG shipping remains positive, with expectations of increased LNG volumes and a strong contract pipeline [20][22] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in the spot market, driven by record LNG volumes and strong demand from regions like Egypt [14][15] - The company is optimistic about the next few years, anticipating more term market opportunities and a high wave of scrapping in the LNG fleet [25] - The management highlighted the importance of maintaining a solid balance sheet and available liquidity to ensure commercial flexibility [26] Other Important Information - The company has distributed nearly $730 million to shareholders since Q4 2021 [4] - The average cost of drydocking was $5.6 million, with all scheduled drydockings completed safely and efficiently [8] - The company has seen a significant reduction in interest expenses, down $10 million compared to the previous year, due to improved financing terms [10][11] Q&A Session Summary Question: What is the likelihood of the FLEX Aurora option being declared? - Management expressed optimism regarding the FLEX Aurora option, noting the current momentum in the spot market may influence decisions [23][24] Question: What are the opportunities in the term market? - Management indicated that FLEX Artemis is covered throughout 2025 and expects more term requirements for prompt deliveries and beyond [24][25] Question: How is the company managing its cash balance? - The company emphasized a strict capital discipline, prioritizing returns to shareholders while maintaining liquidity for market opportunities [26] Question: What is the status of the delisting from the Oslo Stock Exchange? - Management confirmed the delisting occurred on September 16, 2025, and encouraged remaining shareholders to transfer their shares to the New York Stock Exchange [27]