Welcome back to Flex LNG second quarter 2026 result presentation. Hope you all have a great summer. My name is Marius Foss. I'm the CEO of Flex LNG and today I'm joined by our CFO Knut Traaholt, who will walk you through the financial later in the presentation. Today we will summarize the second quarter results and provide an update on the LNG shipping markets. As always, we will conclude this webcast with a Q&A session.

If you'd like to ask questions, please use the chat function in the webcast or send questions by email to ir at flexlng.com Before we start, we would like to highlight the following. We are using certain non-GAAP measures such as TCE, adjusted EBTA and adjusted net income. These are supplements to the earnings report, reported in accordance with US GAAP. The reconciliations of these non-GAAP measures are available in the earnings report released today. There are also limitations to the completeness of our presentation. Therefore, we encourage you to read the quarterly report together with today's presentation. And with that, back to you, Marius.

Thank you, Knut. Let's begin with the highlights of the quarter. We are happy to present very strong results for the second quarter. We failed in revenues of close to $107 million, or close to $103 million, excluding the EUAs. This is our second best quarter since the fourth quarter of 2021. The fleet average TCE during the quarter ended up at $86,100 per day. Net income for the second quarter came in at $44.9 million, implying an earnings per share of 83 cents. When adjusting for unraised gains and interest rates, swaps and FX, we ended up with adjusted net income of $42.5 million, or adjusted earnings per share at 79 cents. Flex Artemis and Flex Volunteer have traded in a strong spot market in the second quarter and contributed to our solid quarterly results. We continue to see elevated geopolitical uncertainty in the LNG space, as the conflict in Iran causes disruption to the LNG flow from the region. Lastly, with the dry docking of Flex Vigilant in June, we have completed all scheduled five-year special service for our fleets. We maintain our full year guidance from last quarter and expect revenues to come in between 345 and 370 million dollars. Similarly, we expect the TCE to come in somewhere between 73 and 78 thousand dollars per day. We expect adjusted EBITDA to come in between 255 and 280 million dollars. With our strong quarter, contract coverage, and solid balance sheets, the Board has declared another dividend of 75 cents per share. This is the 20th consecutive dividend of 75 cents per share, and we have now distributed around $850 million since 2021, including special dividends. Our last 12 months dividend is $3 per share, implying a dividend yield of around 9.7%. Flex Vigeland completed her dry docking in Denmark in June, and this was the third and final dry docking for 2026. The average cost per dry docking came in around $6 million per vessel, as guided, and we spent averagely 17 days in dry dock per vessel. Flex Wiglen marks the final five-year special survey in our fleet of 13 vessels. Looking ahead, we have no dry dockings coming up in 2027, and we will commence our first 10-year docking in 2028. Let's have a look at our contract backlog. Looking at our total contract coverage, we have 51 years of minimum firm backlog, which may grow to 78 years if all options are declared. In the near term, we have close to 89% coverage for remaining available days in 2026. Flex Artemis and Flex Volunteer have both been trading in the spot market in the second quarter and will come open at the end of the third quarter. We are now marketing the vessel both for spot and new term contracts. With our good contract coverage for the remainder of the year, we maintain our guiding with the upgraded last quarter. This means that we expect full year revenues to come in between 345 to 370 million dollars. Similarly, we expect TCE to come in somewhere between 73 and 78 thousand dollars per day. Lastly, we expect the adjusted EBITDA to come in between 255 and 280 million dollars. We are pleased to announce that the Board have declared a dividend of 75 cents per share. Let us briefly revisit the decision factors for the dividends. We maintain the orange level for market outlook. This reflects a softer spot market and heavy schedule of new building deliveries. Looking ahead, we note that low European storage levels going into the cold winter season. Confidence in the long-term structural demand story remains intact, supported by the third wave of US LNG export capacity currently under construction. To keep all the considerations in orange, given the continued elevated geopolitical risk, there is still uncertainty around the duration of the Iran conflict and the timing of normalization of the Qatari supply. Taking all factors into account, the Board has declared another quarterly dividend of 75 cents per share. This brings dividend paid over the last 12 months to $3 per share. The dividend will be paid on about 17th of September to shareholders of record as of 3rd of September. And with that, I hand it over to you Knut for final financial updates.

Thank you, Marius. And the second quarter was significantly improved, quarter over quarter, mainly driven by higher revenues. Revenues were 106.8 million or 102.7 million excluding E-Race. The higher revenues were driven by high spot earnings for Flex Voluntär and Flex Artemis, while both Flex Constellation and Flex Aurora contributed by having a full quarter of earnings under the new contracts that commenced in March. On the cost side, vessel OPEX was higher quarter over quarter as the second quarter was impacted by higher crew travel costs related to the disruptions in the Middle East. The average OPEX per day in the second quarter were 16,260, while the average OPEX for the first six months of the year was around 16,100 per day. We maintain our OPEX guidance of 16,000 per day for the full year. Interest expense continued to improve reflecting lower loan margins and active management of our RCF facilities. We booked 4.7 million in gains on our interest rate derivatives of which 2.3 million was realized gains and 2.4 million was unrealized gains. Net income came in at 44.9 million or 83 cents per share. and adjusting for non-cash items like unrealized gains from their interest derivative portfolio. The adjusted net income was 42.5 million, or equivalent to adjusted earnings per share of 79 cents. This is more than a double than of the first quarter. So overall, this was a very strong quarter, impacted by improved revenues from the spot market, New contracts, completion of dry docking, and continued cost-controlled and improved financial efficiency. On the cash flow during the quarter, we generated strong cash flow from operations of 63 million, up from 37 million in the first quarter. The increase was mainly driven by higher revenues, as explained on the previous slide. This includes 19 million in positive change in working capital and 5 million of capex related to the dry dockings this year. And the reduction in receivables during the quarter was related to timing of advanced charter higher receipts. We repaid 28 million in scheduled debt installments and distributed 41 million to our shareholders and then in sum our net cash flow was 8 million in the quarter and that resulted in a cash position of 397 million at the end of the quarter. So looking at our balance sheet, we maintain a clean balance sheet with mainly chips and close to 400 million dollars in cash. Our debt financing comprises a combination of bank loans, which gives us flexibility and attractive long-term leases. Our first debt maturity is in the first quarter of 2029. And if we look at the book equity ratio, it's robust at 27.4%. And as noted before, our book values reflect the historical costs adjusted with regular depreciations. Our interest rate subportfolio is unchanged and was valued at 22 million at the end of the second quarter. The notional value of the portfolio is 775 million with an average fixed rate of 2.46%. We expect to maintain a hedge ratio of around 70% into mid next year. And with that, I hand it back to you, Marius, for the market outlook.

Thank you, Knut. Let's have a look at the LNG trade. Global LNG trade volumes are broadly flat year to date, down less than 1% compared with the same period last year. On the supply side, the key development has been significant reduction in the Qatari exports, down around 29 million tonnes. This shortfall has to a large extent been offset by strong growth from the US, where exports are up 23% or close to 40 million tonnes. We have also seen continued growth from Australia and Russia. Other exporters have contributed strongly and are up 6 million tonnes from last year. These include LNG Canada, but also West Africa exporters, including Nigeria and Senegal. Industry sources report that global export capacity ran at 96% utilization in July, excluding Qatar. This is above 90% utilization seen last year and a 5-year average of 86%. On the demand side, imports into JKT remain resilient while Europe and China are down compared to last year. At the same time, India and other importing markets have continued to grow. The key takeaway is that despite a significant disruption from one of the world's largest LNG exporters, Qatar, global trade volumes have remained resilient. And more importantly, for shipping, the growing share of US supply means more LNG coming into the Atlantic Basin. This will likely have a positive ton-mile effect when those volumes move into Asia. Let's have a look a bit closer to the supply side. The reduction in Middle East LNG volumes have been significant. Combined exports from Qatar and UAE are currently down around 63% compared to the normal levels. As you can see from the left-hand side, exports dropped very sharply earlier in the year, and while volumes have started to recover, they remain below historical levels. At the same time, the US has continued to ramp up LNG exports. US liquefaction capacity is up around Jannicke Eilertsen, Jannicke Eilertsen, Jannicke Eilertsen, Jannicke Eilertsen, and that shift is positive for the shipping demand. Let us have a look at the demand side on the competition between Europe and Asia for the LNG. Europe entered the year with relatively low gas inventories. Inventories are today 61% full, the lowest level in over 15 years and below the 73% seen last year. This means Europe still has a substantial requirement to rebuild inventories ahead of the winter season. At the same time, US LNG is highly flexible and can move between Europe and Asia depending on their relative pricing. Looking at the chart on the left hand side, there has historically been significant swings in the US LNG flows between the two regions. So far this year, both Europe and Asia have attached Additional U.S. LNG volumes, although the balance has shifted through the air. Looking forward, this sets up a continued tug-of-war of U.S. LNG exports. If European storage remains low, Europe will need to keep bidding on Atlantic cargoes, while lack of Qatari volumes could pull more of those volumes into Asia. If you are looking at the new buildings we stand out on this slide ordering activity remains very strong. Even the new building prices holding around 250 million dollars and the term rates remain more moderate levels. We have already seen around 60 new buildings orders so far this year. A number of these are made without any employment contracts. This year orders are well above last year figures of 35 vessels. That tells us the specific There is still significant confidence in the long-term LNG shipping market. At the same time, elevated new building prices continue to provide support for the value of modern existing tonnage, including our fleet. The order book remains substantial, with around 285 vessels to be delivered going forward, equivalent to roughly 38% of the existing fleet. However, the majority of these vessels are already tied up with Qatar or other long-term employment, and the number of open vessels remain fairly limited. Contracting activity remains very high levels. LNG SBA volumes signed in the first half of 2026 are already about 30 million tons per year. This continued appetite for long-term LNG supply is important because it provides the commercial basis required for new projects to reach FID. We have already seen around 28 million tons of projects that reached FID so far this year, including Venture Global's expansion of the CP2, Commonwealth and Delfin. And there are additional projects that could reach FID later this year, up to 39 million tons. These potential projects include LNG Canada Phase 2, Sealismis in Canada, and Delfin Phase 2 and the Brownsville in the US. This would take the potential FIDs in 2026 up to around 67 million tonnes. A key takeaway is that the next wave of LNG supply continues to gain momentum, supported by strong customer contracting and a healthy pipeline of projects moving forward to FID. Let's have a look at the spot market for the modern two-strokes. We have seen increasingly vessel availability both west and east of Suez, and that continues to put a weight on the spot rates. It is worth mentioning that the number of vessels available today is in line with the five-year historical averages. This comes at the time when the LNG fleet is growing. It tells that the new buildings are being absorbed by going straight into the program after being delivered from the shipyards. We did see a sharp spike in the rates earlier this year, but since then, rates have normalized and we have seen some pressure on the spot rates over the last few weeks. As we move into the second half of the year, we would normally expect some historical seasonal tightening. We have two vessels coming open in the end of the third quarter, well positioned for a potential strong winter market. With that, let's turn into a QA session.

Thank you Marius and thank you to everyone who has submitted questions on our webcast and also to our investor relations email. There's been an active or a lot of things happening during the quarter in particular in the Middle East and with the Strait of Hormuz. We have a number of questions coming in around that and also how that has impacted our operations. So in specific the question is do we have any trade in that area or through the Strait of Hormuz and have we had any ships being stuck inside the Strait of Hormuz?

Thank you. Now I'm pleased to confirm that all vessels in the flex fleet of 13 vessels, none of them have been trading inside since end of February, so our charter's clients are trading elsewhere for time being.

And there's also done a follow-up questions around this as there is a number of additional insurances that are needed to be trading through the Strait of Hormuz. And the question is specifically, Who pays for this insurance and what insurance is needed to be trading here?

It is required to have insurance when you sail into high risk areas. So if and when our ships are ordered to other high risk areas, this extra coverage will be paid for by the charters who are instructing the vessel to such areas.

Sticking to the Strait of Hormuz, it's more the market view and the outlook there for, first of all, the resumption of LNG exports out of Qatar and UAE, but also more on the normalization of the transit to the Strait of Hormuz. What's your view on that?

Well, we believe that the Strait of Hormuz will remain closed throughout 2026, so we could potentially look at an interesting market going forward for LNG and other shipping segments.

Moving on, you mentioned in the presentation that we have seen slightly softer spot market now, so there's questions on what's your expectations of an LNG shipping market for the third quarter and then the fourth quarter?

The Q3 is normally a shoulder month before we head into the winter season, so Q3 has softened up from the spot market has been maybe on $120,000 for roundtrip during the last Q3 and now come down to $30,000. Our next ship coming open in the end of Q3, so we are preparing for the Q4 market, which historically has been So we are hopeful and hoping we can contribute a little bit more there on our Q3 and Q4 results later. But if Hormuz remains closed, I think this will automatically find its way back to where the energy market should be.

Good. Then we have some questions on the financing. First of all, on our interest rate derivative portfolio. As we say, we have 70% coverage until mid next year. And the question relates to when we expect to add more interest rate hedging to our books. In general, we are trading when the markets are favorable. We are very pleased with the coverage we have today. But obviously, when there are opportunities either for adding more in the short-term or longer-term interest rate hedging, that is our aim to do. There is also follow-up questions on our debt maturities in Q1 2029, when we will address that. It's a bit early to address that refinancing now, unless we see an attractive opportunity to add more or better terms to our financings. That is something we are continuously evaluating. And if there are attractive opportunities, we will act on them. And the final question is a recurring question. It's about dividends, sustainability, and the outlook for future dividends. As we have repeatedly said, each dividend are declared by the board by each quarter. We are fairly transparent on the decision factors, which we have also presented today. That is a repeat of the decision factors that we had last quarter, which was basically a downgrade of certain factors. However, with the strong balance sheet and cash position and also the contract backlog, the board was pleased to confirm a dividend for this quarter of 75 cents. Future dividends will be decided by the board and reassess all these factors, including then our backlog for the open vessels. And with that, that concludes the Q&A session.

Thank you for participating in our Q2 presentation. We would like to welcome you back in November for our Q3 presentation. Thank you.