Flex Lng Ltd. · NYSE:FLNG
Flex Lng — Investor Presentation (October 2024)
17 slides from Flex Lng's investor presentation, October 2024
Slide 1: Company Presentation
Company Presentation October 2024 1
Slide 2: Disclaimer
DISCLAIMER MATTERS DISCUSSED IN THIS PRESS RELEASE 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 THEIR BUSINESS.
Slide 3: Flex LNG Investment Highlights
FLEX LNG INVESTMENT HIGHLIGHTS Modern LNGC fleet High earnings visibility Fortress balance sheet Shareholder focus Attractive capital returns • 13x modern LNGCs; • 45 years of minimum • No debt maturities • Dual listed on New • Paid out $528m in 4 X-DFs and 9 MEGIs charter backlog, may prior 2028 wi
Slide 4: High Earnings Visibility
HIGH EARNINGS VISIBILITY 45 years of min charter backlog which may grow to 64 years with charterer’s extension options e Rain o NA e En ea o r e i i ant e A er NA e Enterprise NA e ree o e Reso te Extended to 2027 e Co ra eo s e o nteer e A rora e Ran er NA e Conste a on e Arte is i e hire aria e hi
Slide 5: Demonstrated Track Record of Performance
DEMONSTRATED TRACK RECORD OF PERFORMANCE Quarterly adjusted EBITDA, $m Ramp-up phase and Weak spot market in All 13x vessels on the Build contract backlog, Execute on long-term contracts, and spot oriented, H1-20 due to COVID, water and capitalize on capitalize on strong distribute to shareholders d
Slide 6: Financial Stronghold – Stable Cash Flows and Access to Capital
FINANCIAL STRONGHOLD – STABLE CASH FLOWS AND ACCESS TO CAPITAL STABLE CASH FLOWS Sustainable cash flow from long term contracts CAPITAL AVAILABLE PF cash position of $467m as per Q2-2024 CAPACITY WITH LOW Cash management by using the ~$414m structured as RCF, with a COST OF CARRY cost of ~0.7% p.a.
Slide 7: Attractive Capital Returns
ATTRACTIVE CAPITAL RETURNS Quarterly dividend, $m $ in i i en s ast three ears an co ntin … 7
Slide 8: Earnings Belong to Shareholders
EARNINGS BELONG TO SHAREHOLDERS Note: 1) Adjusted EPS is non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the earnings report 8
Slide 9: Newbuilding Prices Stabilized, Long-Term Rates at ~$90,000/Day
NEWBUILDING PRICES STABILIZED, LONG-TERM RATES AT ~$90,000/DAY Source: Fearnleys, Clarksons, SSY 9
Slide 10: Contract Coverage Insulate Us from Fleet Growth
CONTRACT COVERAGE INSULATE US FROM FLEET GROWTH LNGC newbuild delivery, # of vessels Uncommitted vessels nco i e represent less than 7% of the total orderbook Non atar atar e i ere Includes QatarEnergy’s 24 QC-Max-size LNG vessels with delivery between 2028 and 2031 Source: Fearnley 10
Slide 11: Future Growth Propelled by North American LNG
FUTURE GROWTH PROPELLED BY NORTH AMERICAN LNG Capacity in operation & under construction, MTPA Projects close to FID, MTPA 180 Port Arthur, T2: 6.8 MTPA CP 160 Rio Grande 17.6 MTPA e n NG Corpus Christi Stage 3, T5-7: 4.5 MTPA Port Arthur, T1: 6.8 MTPA 140 Plaquemines, T21-36: Corpus Christi Stage 3
Slide 12: Third Wave of LNG Will Add >200 MTPA in New Capacity
THIRD WAVE OF LNG WILL ADD >200 MTPA IN NEW CAPACITY Liquefaction supply, MTPA 800 1st wave: 2nd LNG wave: 3rd LNG wave: 2006-’10 2015-’20 2026-’30 700 Qatar adds ~50 Australia adds ~40 MT, MT and US add >60 MT 600 500 USA 400 Australia 300 Qatar 200 Other 100 0 2005 2010 2015 2020 2025 2030 Source:
Slide 13: China and Emerging Asia Continue to Drive LNG Demand
CHINA AND EMERGING ASIA CONTINUE TO DRIVE LNG DEMAND Top LNG exporters, YT-2024, MT -0% +1% +3% Top LNG importers, YTD-2024, MT -0.5 MT +2.0 MT +2.6 MT % = Percentage change YTD-2024 from YTD-2023 + MT = Absolute change YTD-2024 from YTD-2023 102 +5% -21% -1% +1.1 MT -19.3 MT -0.5 MT 74 +11% +0% +6.
Slide 14: Europe Continue to Rely on Russia While Filling Up Its Storage
EUROPE CONTINUE TO RELY ON RUSSIA WHILE FILLING UP ITS STORAGE Top LNG exporters to Europe, % of total European LNG imports, YTD-2024 EU natural gas storage inventory, % of full 60% 15 100 90 50% 12 80 70 40% 9 60 30% 50 6 40 20% 30 3 20 10% 10 0% 0 0 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan Fe
Slide 15: Robust Demand Surge in China and Emerging Asia...
ROBUST DEMAND SURGE IN CHINA AND EMERGING ASIA... YTD-2024 vs. YTD-2023 LNG imports to key Asian countries, MT Asian LNG imports, YTD-2024, MT 30 % China 27 % apan 24 % So th orea 21 % n ia 18 % Tai an 15 % Thai an Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 - YTD-'24 range 2023 2024 Source
Slide 16: ...With Attractive Long-Term Growth Prospects
…W TH ATTRACT LONG-TERM GROWTH PROSPECTS LNG import in key Asian regions 2025e-27e, MT Japan, South Korea and Taiwan (JKT) China India, Pakistan, Bangladesh, Thailand % % Tai an So th orea % apan e e e e e e • Resilient demand in the combined JKT region, • The single most important LNG importer • So
Slide 17: Thank you!
Ww Thank you! a