Slide 1: Q2-2021 Presentation
Q2-2021 Presentation August 17, 2021 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: Highlights
HIGHLIGHTS Unseasonably strong LNG product and freight market 13 state-of-the art large LNGC on the water with average age <2 years Commercial Substantial attractive backlog secured in Q2 providing increased visibility Excellent operational performance despite Covid-19 challenges Revenues of $65.8m
Slide 4: We have added significant backlog in Q2
WE HAVE ADDED SIGNIFICANT BACKLOG IN Q2 Ships: Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Flex Artemis Flex Enterprise Flex Amber Flex Freedom Flex Constellation Flex Endeavour Flex Vigilant Flex Ranger Flex Courageous₁ Flex Aurora₁ Flex Resolute Flex R
Slide 5: Robust backlog means steady increasing revenues in H2
ROBUST BACKLOG MEANS STEADY INCREASING REVENUES IN H2 Expected revenues in $m 120 100 80 60 40 20 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21E Q4-21E 1) Subject normal operations and up-time on vessels. Variations in Revenues reflects spot market exposure to spot ships and sh
Slide 6: We aim to pay out free cashflow over the cycle
WE AIM TO PAY OUT FREE CASHFLOW OVER THE CYCLE We have distributed ~96% of earnings the last twelve months notwithstanding delivery of remaining seven newbuildings with associated capex while growing our cash balance to $144m 6
Slide 7: All vessels delivered, full earnings capacity from Q3
ALL VESSELS DELIVERED, FULL EARNINGS CAPACITY FROM Q3 Number of vessels available per quarter1 1) Total available vessel days divided by number of days in the quarter 7
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS 1) TCE, adjusted EBITDA, adjusted net income and adjusted EPS are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the Q2-21 earnings report 8
Slide 9: We increased our cash position to all-time high
WE INCREASED OUR CASH POSITION TO ALL-TIME HIGH 9
Slide 10: Fully financed with diversified sources of long-term funding
FULLY FINANCED WITH DIVERSIFIED SOURCES OF LONG-TERM FUNDING $566m $852m $461m $627m Lease financing Bank financing ECA financing Common equity • ~$1.65 billion in diversified funding split between lease, bank and ECA financing at attractive terms • Long funding secured with first loan maturity in J
Slide 11: Chimerica dominate H1-21, growth set to accelerate H2-21
CHIMERICA DOMINATE H1-21, GROWTH SET TO ACCELERATE H2-21 Incremental LNG Exports by Region: Incremental LNG Imports by Region: H1 21 vs H1 & H2 2020 H1 2021 vs H1 & H2 2020 +4% +4% +8% +8% 1) Source: Affinity and Kpler 11
Slide 12: Restocking demand still key driver for tight market
RESTOCKING DEMAND STILL KEY DRIVER FOR TIGHT MARKET 100 European gas inventories (% of capacity) 90 80 70 60 50 40 30 20 10 0 1 100 109 118 127 136 145 154 163 172 181 190 199 208 217 226 235 244 253 262 271 280 289 298 307 316 325 334 343 352 361 37 10 19 28 46 55 64 73 82 91 Day # 5-year range 202
Slide 13: Spot Market Review
SPOT MARKET REVIEW Headline spot rates (MEGI/XDF) Prompt available vessels vs. Headline spot rates 250,000 35 250,000 30 200,000 200,000 25 TC rate $/day TC rate $/day #Vessels 150,000 150,000 20 100,000 15 100,000 10 50,000 50,000 5 - - - 2017 2018 2019 2020 2021 Atlantic Middle East Pacific Headli
Slide 14: Tighter market pushing up year time charter rates
TIGHTER MARKET PUSHING UP 1 YEAR TIME CHARTER RATES 140,000 120,000 100,000 TC rate $/day 80,000 60,000 40,000 20,000 - 33 37 41 45 49 53 4 8 12 16 20 24 28 32 2020 2021 Week number 1 yr TC MEGI/XDF 1 yr TC 155-165k TFDE 1) Source: Fearnleys 14
Slide 15: From LNG glut to LNG scarce
FROM LNG GLUT TO LNG SCARCE 20.0 18.0 16.0 14.0 Winter 21/22 $/MMBtu 12.0 scarce 10.0 Winter 20/21 scarce 8.0 6.0 Covid-19 glut 4.0 2.0 0.0 HHI JKM TTF Brent 13% 1) Source: CME and Platts. Historical TTF price defined as Platts DES NWE 15 2) Brent is 331 contract type
Slide 16: Few uncommitted newbuildings
FEW UNCOMMITTED NEWBUILDINGS # vessels LNG orderbook 18 16 14 1 5 12 10 8 1 2 14 6 1 1 11 4 2 2 4 9 3 8 8 7 3 6 6 2 5 4 4 3 3 3 3 2 2 0 1 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-21 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Committed NBs Uncommitted NBs 1) Source: Affinity 16 2
Slide 17: Covid-19 still making life at sea challenging
COVID-19 STILL MAKING LIFE AT SEA CHALLENGING Crew overdue status: Nov-20 Feb-21 7% 4% 93% 96% May-21 Aug-21 2% 2% 98% 98% On August 4, 19 crew members on Flex Rainbow calling Freeport LNG export terminal in US received Covid-19 vaccine 1) Source: Company 17
Slide 18: Summary
SUMMARY Revenues of $65.8m in line with guidance Secured substantial backlog with 96% of 2021 already booked Dividend of $0.4 per share with potential upside in H2 All 13 ships on the water and generating income Positive outlook both shorter and longer term Fully financed fleet with solid cash posit
Slide 19: Q&A
Q&A 19