FLEX LNG Ltd. Q4 FY2025 earnings call

Dry Docking and Vessel Status - Completed dry dock of Flex Volunteer in January; Flex Aurora expected back in fleet in March. - Spot exposure in 2026 limited to 3 vessels, all marked for long-term contracts. - Full year 2025 had adjusted EBITDA of $251 million, cash balance of $448 million at year-end. - Board declared $0.75 per share dividend, 18th consecutive dividend. - Market overview: LNG export growth in 2025, Europe leading demand, Asia mixed, new building orders in 2026, steam vessels recycling.

In the fourth quarter, revenues excluding EUAs were $85 million, with a fleet average TCE of $70,100 per day. Net income for the quarter was $21.6 million ($0.40 EPS), and adjusted net income was $23.3 million ($0.43 EPS). For the full year 2025, revenues were $340 million, fleet average TCE was $72,000 per day, and adjusted EBITDA was $251 million. Contract backlog in 2026 had 78% of available days fixed on long-term charters. The spot exposure in 2026 includes 3 vessels (Flex Volunteer, Flex Aurora, Flex Artemis) marked for long-term contracts, while the remaining 10 vessels are on time charters.

Full Year 2026 - Revenues expected between $310 million and $340 million. - TCE per day expected around $65,000 to $75,000. - Adjusted EBITDA expected around $225 million to $255 million. - 3 dry dockings planned in 2026 (Flex Freedom in Feb, Flex Vigilant in Q2).

- Volatile spot market conditions. - Geopolitical uncertainties impacting market. - Potential terminal congestions at import/export. - New building deliveries affecting spot rates. - Steam vessels being pushed out of market due to low spot rates.

Q: Can you give more color around the upcoming options on the fleet and the likelihood of being declared?

A: We are waiting for the charters to declare the options during 2026. These options won't affect our 75% fleet coverage in 2026. We'll report back when options are declared.

Q: What are the decision factors for dividend payments and future dividend prospects?

A: Each dividend is decided by the Board at each meeting. We have a solid financial position with high cash and large contract backlog. We monitor spot vessel trading and long-term contract opportunities for future dividend evaluations.

Q: Do you consider new buildings similar to other owners regarding fleet growth?

A: We are disciplined about ordering newbuildings; we won't order without attached contracts. We focus on our existing quality tonnage and are patient to see if charters support new contracts if needed.