FLEX LNG Ltd.

Hi and welcome to today's Flex LNG webcast where we will be presenting our second quarter results as well as discussing the latest development in the company and in the LNG market. As always we will conclude with a Q&A session. If you'd like to ask a question in the Q&A session you can either use the chat function in this webcast at any time Or you may alternatively send an email to ir at flexlng.com. And we will try to answer these questions at the end of the presentation. Before we start, I will remind you of the disclaimer as we will provide some forward-looking statements. We will utilize industry-specific non-GAAP measures like TCE and figures like adjusted EBITDA or adjusted debt income. Additionally, there are limits to the completeness of detail that we may provide in these presentations, so we therefore recommend that you also review our earnings report for additional information. So without further ado, I hand over the floor to Øystein Kalleklev, the CEO of Flex LNG Management, who will guide you through today's presentation together with our CFO Knut Tråholt. Go ahead, Øystein. The floor is yours.

Hi everybody and welcome to FlexLNG second quarter result presentation. We are pleased today to deliver strong numbers. Our revenues of 84 million were 10 million higher than in Q1 and aligned with the guidance of approximately 85 million. Net income and adjusted net income came in at 44 and 33 million respectively, where the main difference is the gains we have recorded on our interest rate swaps. Earnings per share and adjusted earnings per share came in at 83 and 61 cents respectively, giving us a strong profit for the quarter.

2.6 year at the quarter end. There's a reminder that this fleet has been acquired and the book value reflects that these were acquired at the historical low prices and is only adjusted by regular depreciations. Our balance sheet, as already mentioned, has a rock solid cash balance of 284 million. And if you look at the equity of 910, that equates to a book equity ratio of 34%. If we look at the cash flow for the quarter, it's mainly affected by the refinancing activity that we did in the second quarter. That is the conclusion of the balance sheet optimization program phase one, where we released 111 million during the quarter. That boosts our cash balance to 284. As a reminder amortization in Q1 and Q3 are higher so it's a bit lower amortization this year due to the semi-annual repayments under the ECA facility. If we then go to the next phase of the balance sheet optimization program, we have completed phase one. We have one vessel left for delivery. That is the Flex Endeavor under the 375 million term loan and RCF facility. She will be delivered back to us and under the financing now during September. For the phase two, we have started this with the Flex Enterprise. We have bought her back on our existing fixed rate sailing leaseback structure, and we have refinanced her with cash. So she is probably the only unencumbered two-stroke LNG vessels in the world for the moment. We have initiated various financing dialogues and we are in advanced stages for a $150 million bank loan facility, which is back to back with the contract, the seven year contract with the supermajor. Then we are considering further refinancing. It's one for optimizing our debt funding, but also to free up an additional $100 million in cash. Our priorities is to extend our repayment profiles, improve the pricing under the facilities that will reflect our credit profile, but also the credit profile under the underlying contracts. And then we are further seeking to push out debt maturities and improve leverage to release the $100 million in cash. We have a number of facilities that we are addressing. After the enterprise, we will consider all of these. It could be an amendment, an extension of existing financing or plain refinancing. But all in all, this is what we will spend time on for the next quarters. We hope to revert shortly with more updates on this. So let's take a look at our interest rate hedge portfolio. We have a combination of fixed rate lease for the Flex Volunteer entered into in December last year at an all-in rate of 4%. In addition, we have a portfolio of interest rate swaps with a notional value of $853 million. Historically, this has been LIBOR swaps, and in Q1, we entered into $200 million in 10-year interest rate swap based on SOFR. During the second and third quarter, we have amended and extended some of our LIBOR swaps of additional $250 million and swapped these for 10-year SOFR-based swaps at attractive levels. If you look at the SOFR portfolio, that is an average remaining duration of 8.9 years at 1.9% fixed rate. That is attractive compared to the 10-year swap rates of 3.1%. and also for our LIBOR swap portfolio, which has a shorter duration of 2.8 years compared with the 2-year swap rates at 3.7. Overall, this gives us a hedge ratio of 63% on the total debt, excluding any utilization of the RCF. This gives us a solid foundation for any further increase in long-term interest rates. And with that, I hand it back to Øystein for an update on the LNG market.