Slide 1: Fourth Quarter 2022 Results Presentation
Fourth Quarter 2022 Results Presentation February 14, 2023 1
Slide 2: Forward-Looking Statements
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 T
Slide 3: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS 1) Adjusted net income, adjusted EPS and TCE are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the earnings report. 3 2) Annualized dividend yield assuming a share price of $33
Slide 4: High Contract Coverage – Now Marketing 2027 Positions
HIGH CONTRACT COVERAGE – NOW MARKETING 2027 POSITIONS Extended 10 years Extended 5.6 years Extended 6.4 years Extended 7 years Extended 7 years Extended 2 years 4
Slide 5: 2023 Is Fully Booked With Higher Expected Numbers
2023 IS FULLY BOOKED WITH HIGHER EXPECTED NUMBERS $m 400 • We expect Revenues to grow from $348m in 2022 to about $370m in 2023 driven by higher 350 average TCE(1) level of around $80,000/day for 300 2023 vs. $72,800/day in 2022 • We will carry out our first five-year special 250 surveys in 2023. Fo
Slide 6: Earnings Belong to Shareholders
EARNINGS BELONG TO SHAREHOLDERS 1) Adjusted EPS is a non-GAAP measure. A reconciliation to the most directly comparable GAAP measure is included in the earnings report 6
Slide 7: We Deliver Excellent Safety and Quality Performance
WE DELIVER EXCELLENT SAFETY AND QUALITY PERFORMANCE High uptime LTIF under benchmark TRCF under benchmark 7
Slide 8: Key Financial Figures for 2022
KEY FINANCIAL FIGURES FOR 2022 OPERATING DAYS TCE(1) PER DAY OPEX PER DAY 2022: Total available days: 4,745 1) TCE and opex per day are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the Q4-22 earnings report. 8
Slide 9: Strong Contract Backlog Means Stable Returns
STRONG CONTRACT BACKLOG MEANS STABLE RETURNS REVENUES ($m) NET INCOME ($m) ADJUSTED NET INCOME ($)1 1) Adjusted net income is a non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the Q4-22 earnings report 9
Slide 10: Record High Cash Position With More to Come
RECORD HIGH CASH POSITION WITH MORE TO COME Amounts in US$m Note: Amortizations are higher in Q1 and Q3 due to semi annual repayments under the $629m ECA facility 10
Slide 11: Robust and Clean Balance Sheet
ROBUST AND CLEAN BALANCE SHEET • 13 state-of-the art LNGCs • Average fleet age of 3.2 years • The fleet has been acquired at historically attractive prices compared to the newbuilding prices today, but book equity values reflect historical cost adjusted with regular depreciations • Ample cash positi
Slide 12: Interest Rate Risk Managed by Active Hedging Strategy
INTEREST RATE RISK MANAGED BY ACTIVE HEDGING STRATEGY • Overall P&L gain of $5m on derivatives despite termination of $100m 10Y swaps in October returning $14m in cash proceeds. The derivative exposure was positively affected by portfolio adjustments in October at attractive timing where duration wa
Slide 13: Balance Sheet Optimization Finalized
BALANCE SHEET OPTIMIZATION FINALIZED ✓ $387m CASH RELEASE UNDER THE PROGRAM ✓ ALL PRIORITIES MET 1) Age adjusted repayment profile. 2) Proceeds expected net of i) outstanding debt and ii) fees. 3) ~50% of lease fixed at all-in rate of 3.5% and remaining part of lease floating at SOFR + margin of 1.5
Slide 14: Fortress Balance Sheet
FORTRESS BALANCE SHEET A STABLE CASH FLOWS CAPITAL AVAILABLE CAPACITY WITH LOW CARRY SUPPORTS THE FLEX LNG COST JOURNEY — Sustainable cash flows from long $332mincash and more coming Cash management by using the Strong balance sheet provides term contracts from refinancings $400m structured as RCF.
Slide 15: Global LNG Volumes Up by 5% in 2022 Despite Freeport Outage
GLOBAL LNG VOLUMES UP BY 5% IN 2022 DESPITE FREEPORT OUTAGE LNG export change, 2022 vs 2021 LNG import change, 2022 vs 2021 Freeport outage estimated to have removed 112 cargoes in 2022 equal to ~8Mt +9% +9% +11% +2% +54% -20% -1% -32% Source: Kpler, S&P Global 15
Slide 16: Top Import Gainers in 2022 Were All Europeans
TOP 6 IMPORT GAINERS IN 2022 WERE ALL EUROPEANS Just like in 2019, eight of the top 10 LNG import growth markets were European. In 2019 European market acted as a demand sink doubling its LNG imports due to lower global economic growth and the US-China Trade War which suspended Chinese LNG imports f
Slide 17: EU Storage High, Despite Russian Gas 90% Below 2021-Levels
EU STORAGE HIGH, DESPITE RUSSIAN GAS 90% BELOW 2021-LEVELS… EU natural gas storage inventory (% of full) EU pipeline daily flows from Russia (MCM/day) 100 90 80 70 60 % full 50 10Y-range 40 2023 30 2022 20 10Y-avg. 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: GIE AGSI & Bloomberg 17
Slide 18: Enabled by Demand Subversion in Europe
…ENABLED BY DEMAND SUBVERSION IN EUROPE Europe gas consumption down 12% in 2022… …driven by 15% reduction in household and industry …However, European coal consumption was up 14% and 6% in 2021 and 2022 respectively Source: BP, Eurostat, AGSI, The Economist, Bruegel, IEA 18
Slide 19: Europe Rapidly Ramping Up New LNG Import Capacity
EUROPE RAPIDLY RAMPING UP NEW LNG IMPORT CAPACITY Aggregate European LNG import capacity (Mt per annum) Near term ramp-up of FSRU import capacity (Mt per annum) Source: GLE, GIIGNL 19 Europe excluding Turkey
Slide 20: Massive US Arbitrage to Rest of World Despite Recent Slump
MASSIVE US ARBITRAGE TO REST OF WORLD DESPITE RECENT SLUMP Henry Hub Europe – TTF Asia - JKM Arbitrage from US to Rest of World will stay elevated supporting freight market as well as new US export expansion Source: CME, ICE and EIA 20
Slide 21: Tug of War for Marginal Cargo Between Europe and Asia
TUG OF WAR FOR MARGINAL CARGO BETWEEN EUROPE AND ASIA TTF peaks at ~$100/mmBtu on August 26, 2022 Source: CME, ICE and EIA 21
Slide 22: Build Up of LNG on Water Drove the Tight Freight Market
BUILD UP OF LNG ON WATER DROVE THE TIGHT FREIGHT MARKET Increase: Decrease: 72 ship 56 ship equivalent equivalent Source: Kpler 22
Slide 23: Spot Market Boomed in Q4 but Freight Liquidity Dried Up
SPOT MARKET BOOMED IN Q4 BUT FREIGHT LIQUIDITY DRIED UP 000’ $ day Headline (MEGI/XDF) spot rates Number of spot fixtures split by Owners log scale Spot freight rates (logarithmic axis) 45 400 40 35 200 30 25 100 20 15 50 10 5 25 0 1 6 11 16 21 26 31 36 41 46 51 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Ap
Slide 24: Term Rates and Yard Prices Stabilizing at High Levels
TERM RATES AND YARD PRICES STABILIZING AT HIGH LEVELS Source: Clarkson SIN, SSY 24
Slide 25: Estimated Growth of 4% in 2023, but More to Come by 2030
ESTIMATED GROWTH OF 4% IN 2023, BUT MORE TO COME BY 2030 Source: IEA, Energy Aspects, BP, EIA. Affinity. 25
Slide 26: 4 Projects to Watch in the US for Imminent Green Light
4 PROJECTS TO WATCH IN THE US FOR IMMINENT GREEN LIGHT Source: Kpler, Energy Aspects 26
Slide 27: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS 1) Adjusted net income, adjusted EPS and TCE are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the earnings report. 27 2) Annualized dividend yield assuming a share price of $33
Slide 28: Bon Voyage!
Ben Voyage! TA) =~ -_ “LEX COUR