Slide 1: Fourth Quarter 2024 Result Presentation
Fourth Quarter 2024 Result Presentation February 4, 2025 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 HARBOUR PROTECTIONS FOR FORWARD-LOOKING STATEMENTS IN ORDER TO ENCOURAGE COMPANIES TO PROVIDE PROSPECTIVE INFORMATION ABOUT THEIR BUSINESS.
Slide 3: Q4 Highlights
Q4 HIGHLIGHTS Note: 1) Revenue figures excludes $1.4m in EU ETS income in Q4-2024. Vessel Operating Revenues were thus $90.9m; 2) Adjusted EBITDA, adjusted net income, adjusted EPS and TCE are non-GAAP measures. A reconciliation to the most directly comparable 3 GAAP measure is included in the earni
Slide 4: 2024 Figures Smack on Guidance
2024 FIGURES SMACK ON GUIDANCE TCE ($/day) Revenues1 ($m) Adj. EBITDA2 ($m) Summary of 2024 Flex Constellation redelivered Q1-2024 $76.5’/day from charterer in March Drydocking of Constellation and Q2-2024 $72.4’/day Courageous on time & budget All ships back in operation, Q3-2024 $75.4’/day subdued
Slide 5: High Contract Coverage and Earnings Visibility
HIGH CONTRACT COVERAGE AND EARNINGS VISIBILITY 62 years of minimum firm backlog which may grow to 96 years with charterers’ extension options C R NA R C E A NA E NA A R NA A O O 5
Slide 6: We Expect 2025 to Be a Repeat of 2024, Despite Soft Market
WE EXPECT 2025 TO BE A REPEAT OF 2024, DESPITE SOFT MARKET We will carry out five-year special surveys of Guiding for FY2025 four ships in 2025, total of ~80 days off-hire: Flex Aurora in Q2, Flex Resolute in Q2/Q3, Flex Artemis and Flex Amber in Q3. We Key metrics Expectations budget $5.5m in CAPEX
Slide 7: Stable & Attractive Dividend
STABLE & ATTRACTIVE DIVIDEND Quarterly dividend, $m 14th consecutive ordinary dividends of $0.75 per share, totalling $610m when including the special dividends 7
Slide 8: Earnings Belong to Shareholders
EARNINGS BELONG TO SHAREHOLDERS Short-term outlook: Current spot market at record lows Next 12-18 months: Too many newbuilds and new LNG volume lagging Longer-term outlook: Structural demand story remains intact Note: 1) Adjusted EPS is non-GAAP measures. A reconciliation to the most directly compar
Slide 9: Key Operational Figures in 2024
KEY OPERATIONAL FIGURES IN 2024 33 days in dry-docking and 99.7% in technical Operating days utilization TCE per day, ’ OPEX per day, ’ Y Y Y Y Note: TCE and OPEX per day are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included in the earnings report 9
Slide 10: Key Financial Figures for 2024
KEY FINANCIAL FIGURES FOR 2024 Revenues1, $m Adjusted EBITDA2, $m Adjusted net income2, $m ( ) ( ) ( ) Y Y Y Y Y Y Note: 1) Revenue figures includes $1.4m in EU ETS income in Q4-2024; 2) Adjusted EBITDA and adjusted net income are non-GAAP measures. A reconciliation to the most directly comparable G
Slide 11: Flush with Cash After Completion of Refinancings
FLUSH WITH CASH AFTER COMPLETION OF REFINANCINGS Cash flow from Q3-2024 to Q4-2024, $m Closing of Flex Endeavour JOLCO October 3, 2024, the vessel was unencumbered by end of Q3-2024 11
Slide 12: Robust and Clean Balance Sheet
ROBUST AND CLEAN BALANCE SHEET • 13 modern LNGCs (9x MEGIs, 4x X-DFs) • Average fleet age of ~5 years per year-end 2024 • Ample cash position of $437m • Book equity ratio of 30% although the fleet was acquired at historical low prices compared to ’ c k q thus reflect historical cost adjusted with re
Slide 13: Flexible and Low-Cost Funding Portfolio
FLEXIBLE AND LOW-COST FUNDING PORTFOLIO Total gross debt1 per Q4-24 Net debt as per Q4-20241 Debt maturity profile, $m of $1,810m: - Lease financing $1,019m - Bank debt of $792m, of which $414m in RCF and term loan of $378m All-in interest cost 1 of ~6.0% N H Note: Fixed rate debt = Fixed rate eleme
Slide 14: Swap Portfolio: Well Covered at Attractive Levels
SWAP PORTFOLIO: WELL COVERED AT ATTRACTIVE LEVELS Hedge ratio1 Q4-24, $m S H • As of Q4-2024, our interest rate swap portfolio stood at $635m (notional) with a weighted avg. rate of 1.96% and a weighted average duration of 3.8 years • Additionally, we have $231m in long-term fixed rate leases with w
Slide 15: Fortress Balance Sheet
FORTRESS BALANCE SHEET A STABLE CASH FLOWS CAPITAL AVAILABLE WITH LIMITED CAPEX LIABILITIES SUPPORTS THE FLEX LNG LOW CARRY COST AND FIRST DEBT MATURITY JOURNEY IN 2028 l ~ VY Sustainable cash flows from long $437m in available cash. 2025 capex liability limited to Strong balance sheet with term fix
Slide 16: 0.2% LNG Growth in 2024 – Lowest in Recent History
0.2% LNG GROWTH IN 2024 – LOWEST IN RECENT HISTORY LNG export by largest origin country/region FY2024 LNG import by largest destination country/region FY2024 Q4-24 vs. FY24 vs. Q4-24 vs. FY24 vs. Q4-23: FY23: Q4-23: FY23: -2% +1% E -9% -18% +1% +1% -7% +6% +3% 0% -1% +1% +1% +4% 0% +3% +11% +4% -6%
Slide 17: Plunge in EU Storage Levels Drives Spot LNG Demand
PLUNGE IN EU STORAGE LEVELS DRIVES SPOT LNG DEMAND Y/Y European LNG imports from origination continent, MT EU natural gas storage inventory, % of full 100 FY2021 import: FY2022 import: FY2023 import: FY2024 import: ~83 MT ~127 MT ~125 MT ~103 MT 90 80 70 60 50 53 40 30 20 A c A c E A 10 0 YY YY YY Y
Slide 18: JKM & TTF Now at ~$15/MMBtu, Up ~80% from Q1-2024 Lows
JKM & TTF NOW AT ~$15/MMBTU, UP ~80% FROM Q1-2024 LOWS $/MMBtu 30 25 20 15 10 5 0 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 JKM Henry Hub TTF Source: Bloomberg 18
Slide 19: LNG Imports Shift in Q4-24 as Europe Outbids Asian Importers
LNG IMPORTS SHIFT IN Q4-24 AS EUROPE OUTBIDS ASIAN IMPORTERS Asian total LNG imports in 2024, MT JKT total LNG imports YTD-2024, MT 30 16 2019-2024 range 2023 2024 2019 - 2024 range 2023 2024 13 10 27 7 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec China total LNG imports YTD-2024, MT 9 24 7 5 3 2
Slide 20: New Sanctions Target Russian Liquefaction Capacity
NEW SANCTIONS TARGET RUSSIAN LIQUEFACTION CAPACITY Russian LNG exports by destination continent, MT Russian liquefaction capacity1 in operation, MTPA A E O • The US Treasury introduced new sanctions targeting existing Russian liquefaction capacity, and comes in addition to the already sanctioned Arc
Slide 21: Executive Order to Unleash New Liquefaction Capacity
EXECUTIVE ORDER TO UNLEASH NEW LIQUEFACTION CAPACITY LNG capacity being commissioned or under construction, MTPA G v ~ MTPA… Large North American projects O c (N E S Golden Pass O N A c c O c Rio Grande CCS3 Midscale1 S … wh h wU j ~ MTPA Port Arthur L Plaquemines1 L k C CP LNG A k LNG S P LNG Canad
Slide 22: High Vessel Availability Weigh on Spot Rates
HIGH VESSEL AVAILABILITY WEIGH ON SPOT RATES Vessel availability, # of vessels per week Spot charter rates modern tonnage (2-stroke), ’ 40 Atlantic Middle East 250 Pacific 5 yr Average 30 2024 20 2025 200 Average 2020-24 10 Sparks 0 150 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45
Slide 23: Weak Outlook for Older Steam Tonnage Accelerates Scrapping
WEAK OUTLOOK FOR OLDER STEAM TONNAGE ACCELERATES SCRAPPING Spot charter rates for steam vessels, $/day LNG vessels retired, # of vessels Older steam turbine ships are redelivered from long-term TCs 80,000 into a weak market. YTD-2025, one vessel is removed from the 2023 active fleet 70,000 2024 60,0
Slide 24: Newbuilding Prices Stabilized, Long-Term Rates at ~$85,000/Day
NEWBUILDING PRICES STABILIZED, LONG-TERM RATES AT ~$85,000/DAY Source: SSY, Clarksons 24
Slide 25: Our Backlog Insulates Us from Near Term Fleet Growth
OUR BACKLOG INSULATES US FROM NEAR TERM FLEET GROWTH LNGC newbuild delivery, # of vessels Available NBs c (% of orderbook) N c C High newbuild prices discourage speculative ordering Orderbook by propulsion MEGA MEG T E A Source: Fearnleys, SSY 25
Slide 26: 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 27: EU Regulatory Insanity
EU REGULATORY INSANITY Estimated daily EU-ETS & FuelEU maritime cost 2025-29, €’ E M E ETS The nine most terrifying words in the English language in 2025: “ I'm from the EU, and I'm here to help” EU ETS implemented in 2024 is supposed to incentivize the ships with the lowest carbon emissions. As par
Slide 28: Proposal to De-list from Oslo Stock Exchange
PROPOSAL TO DE-LIST FROM OSLO STOCK EXCHANGE • We are contemplating a voluntary delisting of Flex LNG stock from the Oslo Stock Exchange (OSE), while maintaining our listing on the New York Stock Exchange (NYSE) • The decision is driven by the relatively high costs of maintaining a dual listing give
Slide 29: Q4 Highlights
Q4 HIGHLIGHTS Note: 1) Revenue figures excludes $1.4m in EU ETS income in Q4-2024. Vessel Operating Revenues were thus $90.9m; 2) Adjusted EBITDA, adjusted net income, adjusted EPS and TCE are non-GAAP measures. A reconciliation to the most directly comparable 29 GAAP measure is included in the earn
Slide 30: Thank you! Q&A
Ww Thank you! S Q&A