[Management View]
FLEX LNG reported Q1 2025 headline revenues of $88.4 million, or $86.8 million excluding EUS emissions trading systems, reflecting seasonal softness in the spot market. Adjusted net income was $29.4 million ($0.54 per share), while GAAP net income stood at $18.7 million. Management reaffirmed 2025 revenue guidance of $340-$360 million and EBITDA guidance of $250-$270 million. The company launched its Balance Sheet Optimization Program 3.0, targeting $120 million in free cash, and announced a quarterly dividend of $0.75 per share, maintaining a 12% yield.

[Outlook]
Management remains optimistic about long-term LNG demand, driven by U.S. and Qatar expansions, with new projects expected to absorb charter tonnage from 2028 onward. The company plans to delist from the Oslo Stock Exchange in the second half of 2025 and migrate shareholders to the NYSE. Four vessels are scheduled for drydock in 2025, and the company is actively pursuing refinancing opportunities for Flex Resolute and Flex Constellation.

[Financial Performance]
- Revenue: $88.4M in Q1 2025, down sequentially due to spot market softness.
- Adjusted Net Income: $29.4M, or $0.54 per share.
- Operating Expenses: $18.1M, aligning with full-year guidance.
- Interest Expense: $22.2M, down $3.3M QoQ due to refinancing.
- Cash Position: $410M, with $414M in RCF capacity.

[Q&A Highlights]

**Question 1:** How do you view the summer and winter markets for Flex Artemis and Flex Constellation?
**Answer:** Flex Artemis will be redelivered in August 2025 and undergo drydock before being marketed for term employment in autumn. Flex Constellation is trading in the spot market until its long-term contract begins in Q1 2026. Spot market rates have been low, ranging from single digits to $35,000-$40,000 per day, but activity has been high. Management is optimistic about securing term employment for Artemis later this year.

**Question 2:** What is the activity level for long-term contracts?
**Answer:** While spot market activity is high, long-term contract activity is currently subdued. However, there are signs of increasing interest, particularly for Flex Artemis in autumn 2025 and into Q1 2026. Management expects more charters to secure tonnage as market conditions improve.

**Question 3:** Can you provide details on the Oslo Stock Exchange delisting process?
**Answer:** The delisting application has been submitted, and the Oslo Stock Exchange will announce the last trading day, expected in the second half of 2025. Shareholders are encouraged to transfer their shares to the NYSE. Detailed guidance is available on the company’s website.

[Sentiment Analysis]
Management maintained a confident tone, emphasizing the company’s strong backlog, robust balance sheet, and long-term LNG demand prospects. Analysts appeared cautious about near-term spot market conditions but acknowledged the company’s strategic positioning for future growth.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 | Change |
|-------------------------|-----------------|-----------------|----------------|
| Revenue | $88.4M | $91.7M | -3.6% |
| Adjusted Net Income | $29.4M | $30.1M | -2.3% |
| Operating Expenses | $18.1M | $17.8M | +1.7% |
| Interest Expense | $22.2M | $25.5M | -12.9% |

[Risks and Concerns]
1. Prolonged softness in the spot market could impact near-term earnings.
2. Execution risks related to the Balance Sheet Optimization Program 3.0 and refinancing plans.
3. Potential delays in vessel drydock schedules or new project developments.
4. Geopolitical and macroeconomic uncertainties affecting LNG demand and pricing.

[Final Takeaway]
FLEX LNG delivered solid Q1 2025 results, supported by a strong contract backlog and disciplined cost management. While near-term spot market conditions remain challenging, the company’s long-term outlook is bolstered by anticipated LNG demand growth from U.S. and Qatar projects. The Balance Sheet Optimization Program and Oslo delisting are strategic moves to enhance financial flexibility and shareholder value. Investors should monitor the execution of refinancing initiatives and market recovery for further upside potential.