Flex LNG (AO) | Hold | Q1: EBITDA declined on softer spot rates, contract coverage increased

Research evidence excerpt

Flex LNG (AO) | Hold | Q1: EBITDA declined on softer spot rates, contract coverage increased

Flex LNG Hold | Target Price: USD28.50

Company description Management

Flex LNG is a pure-play owner of LNG carriers (LNGC). The fleet consists of 13 fully Marius Foss, Interim CEO

owned LNG carriers, delivered between 2018 and 2021. All LNG carriers have the Knut Traaholt, CFO

modern MEGI/X-DF propulsion system, and the company currently has low to Key shareholders

moderate exposure to changes in spot rates. The company is listed on NYSE. Free float 55.58%

Geveran Trading Co Ltd 44.42%

Donald Smith & Co Inc 3.04%

Blackrock Inc 2.65%

Investment case Valuation methodology

We expect liquefaction capacity to grow strongly during the next We value Flex LNG using a NAV approach.

five years, supporting demand for LNG Carriers. When estimating NAV, we apply broker quotes for newbuild

Owing to a state-of-the art vessels, we expect Flex LNG's fleet to prices and our future rate expectations.

be preferred by charterers and command premium rates. Our target price is based on NAV, supported by dividend yield.

Flex LNG has contract coverage of c. 78% in 2026 when the Risks to our rating

market is expected to stay soft. Increased spot exposure in a weak rate environment.

Catalysts Postponement in new liquefaction capacity expected to come

FIDs of new liquefaction capacity, in particular in the US. on stream in 2027.

Sharp increase in demand both in Europe and in Asia. If the Strait of Hormuz is closed for six months or longer,

A continued focus on the carbon emisson improvements from unemployed vessels will compete in other markets and push

coal to gas switching. down rates.

Key data charts

Price performance Sales split by region Sales split by division

SWOT analysis

Strengths Weaknesses