Q2 2021 FLEX LNG Ltd Earnings Call

August 17, 2021

[music].

Good day, and thank for standing by and welcome to about Flex LNG Q2, 2021 earnings presentation Conference call. Currently all participants are in a listen only mode. So to speak in a presentation. There will be a cross and you can answer session. Because that's a question during the session you will need to press part and one on your telephone.

And right now I would like to hand, the conference dollar first speaker today I see Oh like spring color. Please go ahead Sir.

Thank you and welcome to today's webcast.

Webcast, where we will be presenting our second quarter total salt assignment. Thank Alex I have the CEO of flex LNG management, and I will be joined today by our CFO talk.

Who will walk and talk you through the numbers a bit later in the presentation before we conclude with a Q&A session.

If you like to ask a question you can either then I ask via teleconference, I'll use the chat function.

On the cover page today, we have a picture of a recent addition to the fleet flex vigilant wishes to Athene and lost chip for delivery. She was delivered according to plan on May 31st and immediately commenced a time charter with Cheniere with a minimum of three yes, and I really have to answer that shortly so.

Disclaimer before we start the presentation I will remind you of the disclaimer with regards to among all those forward looking statements non-GAAP measures and completeness of detail. We also recommend that the constellation is have together with the earnings report, which we also released today. So let's go slide number three highlights the LNG Mark.

It is booming and if anything we actually think that LNG prices are at the moment a bit to halt the Asian spot LNG pipes J Cam is at about $17 per million Btu. This is the highest seasonal price in nearly a decade and implies oil and energy equivalent price of above $100.

And keep in mind, Brent oil price averaged $99 per barrel back in 2014. When we saw these kind of LNG prices. So LNG prices are currently at a big premium to oil. Meanwhile, the European gas prices are trading at all time high levels with the European gas prices DCF.

<unk> $15, driven by high carbon and coal prices as well as very low gas inventory levels low gas inventories are something we have pointed to in the past would be support or support the driver of the gas market. This year, hence with cargo prices at about $60 million to $70 million.

There is ample room to pay premium rates for crest, which I really have two in the market section.

Second quarter is however, traditionally the weakest quarter NDS and not surprisingly also the case. This year. This is due to a combination that we are coming out of the winter and gas demand is generally at it.

Its lowest level in Q2, when there is less heating demand and it's too early in the season for cooling demand at the same time, we generally see more new billing deliveries at the start of the year as these tend to be skewed towards the south of there which is also the case. This year, we have taken delivery of our last newbuild.

Links and the last new building effective the vigilance.

As I mentioned the leveled on May 31st we just completed all OPEC approximately $2.5 billion investment program and now have 13 state of the art LNG carriers on the water all generating revenues.

As represented in our first quarter presentation in May we have utilized our strong freight market to execute on our strategy of securing a higher degree of employment visibility and thus derisking of the company's press Expo show, we have recently secured attractive term contracts for six possibly seven.

All vessels were about 'twenty, yes of minimum fixed higher employment for that six ships. Despite the challenges imposed by the COVID-19 pandemic. When it comes to crew changes inspection and services. We have continued to operate our ships with excellent safety and operational performance.

The Delta Marianne have created further complication to our operations, particularly in Asia, where vaccination levels lagged U S and Europe and this means could change is still difficult to carry out in this region. However, I am pleased to say we are working diligently on minimizing through which is overdue on the context and we have been able to may.

Maintain 98% of <unk> on time, and with no personnel now being more than 30 days overdue. So a great. Thanks to our seafarers and onshore personnel for a very good job done. Despite these obstacles.

In terms of financial I am pleased to say that we delivered revenues of $65.8 million for the second quarter in line with the guidance of approximately $65 million.

Our time charter equivalent earnings or TCE in Q2 was 57800 and the year to date number is 66300, which translate into healthy earnings.

Q2, adjusted net income this is the number adjusted for the change in value of our interest rate derivatives, which tends to fluctuate.

$15.7 million or 2009.

This brings the adjusted net income for the first half of the up to about $50 million with normal GAAP earnings the numbers actually $10 million higher.

And this is a result, which we are reasonably satisfied with.

Despite raising our dividend to <unk> 40 in Q1.

Taking delivery of.

On your building and buying back some stock in the quarter, our cash pile grew by $5 million to $144 million at quarter end.

$144 million of cash is our liquidity position, which we consider very comfortable particularly given how we have derisked the business through building profitable backlog and if the board has decided to pay a dividend of <unk> 40.

For Q2, this provide an attractive yield of slightly above 11% on an annualized basis as the stock price have traded quite a bit on today for reasons I don't really comprehensive given that we are delivering numbers in line with our guidance.

Stock is continuing to trade below book value and particularly the replacement value of our fleet. Despite all ships being on the wall with attractive financing and considerable backlog, where therefore find it attractive to continue to buyback our stock. So far we have bought back 900000 shares.

The average price of $9.

<unk> per share since we announced the buyback program last November given recent improved outlook and backlog. The board has decided to raise the buyback threshold from 14 to $15 per share.

So let's review our contract portfolio on slide four.

Today, we have three ships on variable higher contracts. This means the earnings are linked to the general spot market earnings. This is flex Artemis, which is on a long term TCP with Gunvor until Q3 2025 with options for another five years than we have flex and the bias in flex Amber.

On variable higher context flex Amber was recently extended by another year with earliest redeliver in all being fourth quarter next year.

Moving on to the ships on the fixed time charters flex Vietnam based on shorter term Tc, which expires in Q1 next year, but where we have fixed the ships on time charter to a portfolio with a minimum period of either three or five years the firm minimum period.

Five yes will be declared shortly.

Flex constellation was books to US later in May on a time charter with a minimum period of three years than we have flex endeavour and flex vigilant and flex Ranger, which have been fixed to China for a minimum period ranging from $3 to $3 eight yes. All these chips have been delivered to Kenya and churn.

<unk> will also take one more ship on a fee and a half year time charter and third quarter next yes. Danielle also has the option of adding one more ship next year, bringing the total to five ships in this overview, we have for illustrative purposes assumed flex constellation.

Co hedges and flex over at Jennie O vessels, four and five but we have.

The option of nominating performing vessels, which provide us with some flexibility in our portfolio.

Flex go hedges was fixed on a 11 month short term time charter in April and we expect to get them back at the end of Q1 next year Flex and flex there's absolute recently extended by six months and the charter hire for these optional periods.

Our substantially higher than the initial firm period.

Which commenced in connection with delivery of these ships last year.

Then we have flex Rainbow, which was fixed on time charter commencing in Q1, this year, where the charter has options to extend this vessel.

Finally, we have flexible antenna, which are trading in the spot market, which is markets, which we think will be very effective as I will explain a bit later in the presentation.

With this one contract portfolio our charter cover for the year is 96%, but as mentioned earnings for four of our ships are tied to the spot market and our earnings in the second half of the year will be determined by a holder spot market develops in this period as you can also see from the graph charter.

Congress is also healthy at the next couple of years, thus, providing us with more stable earnings than in the past.

On slide five as guidance.

Our revenue guidance is very similar to our last presentation, where the valuation is depending on the earnings for the four ships linked to the spot market that's mentioned.

We have accommodated them lists and adding guidelines to take off as it seems some of them fulfill this rather than using a ruler to estimate the range in the revenue guidance. So we do hope this good lines makes analysts job a bit easier even if the visual expression is somewhat adversely impacted.

As we mentioned in the Q1 presentation in May we expect revenues of about we expected revenues of about $65 million down from $81.3 million in the first quarter and the accurate number we ended up with was $65.8 million time charter equivalent income of $64.9 million after that.

<unk> 980000 invoice related expenses.

As mentioned in the highlights and you can see from the graph second quarter tends to be it is tough this quarter and we expect revenues to bounce back in third quarter with revenues expected to be around similar levels as in Q1 around $80 million.

Q4 revenues have slightly higher variability as it is difficult to accurately predict.

Spot rates will go one way or getting into the winter market.

In any case, we do expect Q4 to be the strongest quarter, which tend to be the case in LNG shipping except for Q1. This year, we had a long and cold winter resulted in us generating slightly higher TCE numbers in Q1 than Q4 and Q4, one we also benefited from having more ships on the water.

So that's something in our jump in revenue side. So you can see.

Keep in mind, our costs are fixed with the industry low cash breakeven level of around $45000 per day with all ships on the water now a dollar increase in revenue is basically a dollar increase in our free cash flow and thus our dividend capacity given our ample liquidity position as a back of envelop.

<unk> thousand dollars increase in charter rates increased our annual cash flow by close to $5 million.

Slide number six the dividend speaking of it.

And let's discuss our dividend philosophy as mentioned our investment program is now completed we might invest in new ships in the future, but at the moment, we have no plans to do so during the last three and a half year, we have been in an investment phase taking delivery of Turing Alpha modern large LNG carriers.

This has been a major investment of close to $2.5 billion and our focus in this period have primarily been to secure financing for ships and attractive context for our ships while building the software in.

Experienced top management and in our technical management for all our ships as we are now moving into the next phase we have incrementally increased our dividend in line with our cash flow generation last November we became increasingly upbeat about the prospects given less COVID-19 concerns and a rebound in the LNG.

The amount, we therefore decided to reinstate our 10th dividend, while also announcing a share buyback scheme Oss.

Our assessment of the outlook, Tom I'll quit accurate and regenerate that set of cash flow in Q4 with 45 of adjusted EPS.

Thus, enabling us to hike the dividend too early.

In Q1, we generated 64 of adjusted apps and we hiked the dividend again to 40. This is a level we have decided to maintain for Q2.

Hence the dividend coupled with the buyback.

Payout ratio of 96% in this 12 month period keep.

Keep in mind that during these four quarters have taken delivery of seven new buildings with associated Capex in connection with delivery. Despite this our cash balance has kept ongoing throughout this period and today stands at $144 million, which is an all time high cash balance for us as we have guided revenue.

<unk> are expected to go in the second half of the year and Thats all costs are more or less fixed this really increases our free cash flow considerably and thus dividend capacity as I explained on the previous slide we do not have a formal dividend policy with for example, 50% of apps to be paid as dividend or some sort of minimum level of dip.

And our dividend philosophy is similar to what we have in our affiliated shipping companies frontline Golden Ocean, Nsfl, which have a very good track record in the capital markets. Let me explain it a bit in more detail. How we think about this when we consider the dividend level.

Several factors, we consider when we determine the appropriate level earnings. This of course, the most self explanatory factor and our adjusted earnings.

Very good proxy on free cash flow, although that can be a working capital adjustment from quarter to quarter.

However that said in general our working capital needs our limited our charters paid charter hire in advance as we said on the time charter and this actually result in us having negative working capital, which is different from what our shipping company, which played it ships on voyage charters typically have.

As mentioned in relation to Q3 of last year market outlook also influenced our dividend level. This relates to how we assess the outlook and our confidence level with this assessment, having a higher level of backlog makes predictions about the future easier.

As we currently have 96% of the books and a significant backlog for the next couple of years. This also pay some major path when considering our dividend.

First thing the dividend level, we also take into consideration all financial positions assess liquidity position, which I have already mentioned is at all time high and more than twice the requirement under the financial Covenant in our bank loans in general our financial covenants are easy to compound we are required to maintain book equity.

The level of above 25% of total assets and this is currently about 34% and our bank loans, we need to have a liquidity position of about $25 million and 5% of net debt while under our lease.

Leases cash requirement is no higher than $25 million, hence, we are passing liquidity and covenant test with flying colors. Given the fact, we have taken delivery of all our new buildings and we have secured long term debt fall or ships debt maturities and Capex is no concern for us, particularly since we havent issued no.

Bonds.

Other consideration is a bucket list of item for big events, which can create risk uncertainty think black Monday at 911, Lehman borders and COVID-19, the Delta and all the possible mutation of COVID-19 is the main reason for this light not being dark green at the moment, So just like Metro <unk>.

Again, why it's in his new book you realized.

By the way are surprisingly available book, we're also chasing realized nearly all our lives have been altered.

Green and we do expect that improve the revenues and earnings in the second half of their coupled with further rollout of vaccine will turn all Palomar darkly in.

All our vaccine all of our out of our hands.

So that's for sure we have a well thought approach to dividends and we are fully aligned with shareholders and all of you. The free cash flow belongs to our shareholders and we will certainly not be might be used by management in Empire building with that I think it is a convenient time for you to discuss the financials in more detail.

And I will revert with a short market update afterwards.

Thank you <unk>, let's turn to slide seven.

In the second quarter last year or since second quarter last year, we have more than doubled the fleet with the new building program, which is now completed.

Flex vigilant was delivered in May she had 30 days available during the second quarter. So we had earnings from 12 <unk> vessels in Q2.

Therefore, Q3 will be the first quarter, where we will have the earnings capacity from deferred 13 vessel fleet.

Turning to slide eight.

Us.

<unk> already has mentioned our TCE earnings for Q2 was $57800 per day. This is down from the $75400 per day in Q2, Q1, and the lower TCE is explained by the normal seasonality, where Q2 is a low quarter.

This impacts our earnings from the vessels trading spots on the vessels on variable higher contracts.

As we from.

Q3, and onwards will face in more of the long term contracts that grid in Q2. This seasonality effect that is experienced in Q2 will be reduced going forward.

The TCE for the first half of the.

The year was solid at $66340 per day, a substantial increase compared to the same period last year.

Our operating expenses were impacted by extra costs related to COVID-19, and in particular related to changes in Asia.

If we look at the first six months with an opex of $13600 per day in Opex.

About $500 per day.

Which is related to COVID-19.

Hence the underlying operating expenses remains within the guided level of $13000 per day.

As mentioned by <unk>, we do continue to face challenging crude changes and particularly in Asia.

Lube oil prices in general supply chain challenges for delivery of spare parts.

We expect that the operating expenses continued to be a bit bumpy in the coming quarters as long as the travel restrictions and current parents are affecting our operations.

Gross revenues for the quarter came in at 65.

Point $8 million in line with our guidance for the quarter of 65.

Adjusted EBITDA was $47 million and adjusted net income of $15.7 million and adjusted earnings per share at 29 per share.

The numbers are just before at $2.8 million loss in interest.

Interest rates derivatives, which includes an unrealized loss of $1.1 million.

Quarter by quarter numbers due to the explained and seasonality in the second quarter compared with the very strong first quarter.

The first figures shows the financial impacts of the increase in the fleet size as shown in the previous slide.

The earnings potential in the fleet.

On the financing interest expenses are slightly up reflecting a third quarter on interest.

Interest on the desk drawn for flex freedom, and a drawdown of the loan related to delivery of flex vigilant.

Then moving to our balance sheet, which is quite straightforward after delivery of the last new building.

On the asset side, we have cash of $144 million and Russell just shy of $2.4 billion.

Development and cash will be explained on the next slide.

The increase in book value is explained by the delivery of vigilant in May.

On the liability side, we have about $1.6 billion of long term debt from international banks and financial institutions. The.

The increase in debt is related to the aforementioned drawdown of the bank loan related to delivery of flex vigilance.

And then we have book equity of $152 million.

Which is about $100 million higher than the market GAAP.

Despite us having to ship at much lower prices than the new building prices today.

Let's turn to slide nine.

Despite a seasonal low quarter, we ended up with a positive cash flow of 5 million during the quarter.

This is driven by approximately $30 million from operations and $17.6 million for working capital adjustments.

We are mainly trade mainly operating on time charter basis only.

Received charter.

Bonds, which is advantageous from a working capital perspective.

Amortizations were $13.2 and you will see that Q2 and Q4.

Lower amortizations.

Our ECA funding financing semi annual repayment profile.

During the quarter, we paid 21 point.

$3 million in dividends and spent about 400000 on buybacks of our share under share buyback.

Buyback program.

In total we bought back 27.344 shares during second quarter.

That leaves us with a solid cash position of $144 million at the end of the quarter.

Then we turn to slide 10.

And this is.

Familiar slide, which we have shown several quarters, but it's still relevant.

As we have finance our vessels with attractive long term financing and we have no maturity before two.

2024.

The depth.

<unk> mix of bank loans.

Revolving credit facilities and leases, which leaves us in a very comfortable funding position.

And with that 100, the word back to <unk>, who will give an update on the market.

Thanks, Chris for the financial review, hopefully life and shipping feels better than and banking.

So.

Slide number 11, Chimera catch America overlays, our restaurants to U S and China and I think it was coined by.

Harvard Professor Niall Ferguson, so in Q.

Q1 presentation back in May we started off with an overview of the LNG market with Asia was pooling cargoes away from Europe.

Our shift from European two Asian demand is positive for the freight market assets in cases, the sailing distances as the incremental cargos are typically sourced from the Atlantic basin, while I often flexible U S. Cargoes. This trend continue in the second quarter U S was the main driver of export.

While the three largest import nations, China, Japan, and South Korea was the main goal with reagents on the demand side.

Also note that growth from South America predominately in Brazil, and Argentina have been remarkably strong in 2021 wireless mentioned European imports are down compared to last year. It's fair to say that European imports were high last year due to European buyers buying a lot of cargos for storage at the cheap.

Following the slump in demand due to COVID-19, all in all export volumes were up by about 4% in first half of 2021 compared to last year.

We do however expect growth to accelerate in the second half of 2021.

Due to the COVID-19, fallout last year gas prices hit bottom and we saw about 188 U S cargo counts.

Those being cancelled and most of them in the third quarter of 2020, hence the export volumes in the first half of 'twenty, 'twenty, one or 8% higher than the volumes in the second half of 2020, given the high gas prices, which I will cover shortly there have been no cargo cancellation. This summer and we do not expect any.

Either we therefore expect.

Export volumes to grow by around 10% or more in the second half of the year, bringing the goal for the <unk> to around 25 million tons or about 7% annual growth.

The steady growth of the LNG market. This year have taken many by surprise volumes are actually very much in line with our market projection in our Q3 report last November. We then argued that significantly higher gas prices, both spot and future prices. We would result in high volume growth for 2021.

<unk> would be.

Any incentive to repeat the cargo cancellation seen last year at the same time, we also expected Egypt to return as a large LNG export in Egypt have so far exported 4 million tons. This year compared to only one 5 million tons in 2020.

Slide 12 European inventory, you'll see European England gas.

<unk> inventories have easily become a permanent part of our slide deck as we started to highlight this.

Remember <unk> presentation, the strong demand from Asia at end of 2020 into 2021 was pooling cargoes away from the Atlantic Basin and away from European bias with rapid depletion of gas inventories in Europe as a consequence.

As illustrated on last slide this Asian demand pool has continue into 2021 and thus solving.

From natural gas at the time when gas demand in Europe has been strong due to a long and cold winter, while high coal prices and even higher carbon prices have incentivized switching from coal to gas.

At the same time GAAP form has elected to not increase pipeline flows to crane.

Above the minimum aggregate volumes and Norwegian gas flows have been also been on the soft side due to maintain maintenance deferrals last year due to the COVID-19 situations, hence the European gas inventories remains low and Europe will probably answer the winter with significantly lower storage levels on the.

Previous two winters in the last couple of months, we have seen fierce global competition for gas during this period.

And gas prices has acted as the global benchmark price where correlation between gas prices in Europe, and Asia have been remarkably high with Asian prices at a slightly higher level, reflecting the higher shipping costs lower gas inventories also in case, the probability of high volatility in gas prices.

As another cold winter in Europe, Canada cell and rapid depletion of gas inventories with a 70% chance of another large nino winter. According to the U S National Oceanic and atmospheric administration or new work, we could therefore be in fall or winter with sharp movement in gas prices.

Turning to slide 30, the spot market for freight.

The French market boomed at the start of the year with all time high freight rates and LNG prices with the winter in Asia, turning a bit hotter in February and a lot of new building deliveries at the start of.

The market softened from the elevated levels seen at the start of their <unk>.

As you can see from the graph on the right hand side vessel availability short top in February, particularly in the Pacific region, but also to some extent in the Atlantic due to the big fees in U S, which resulted in temporary export curtailments for some LNG export ban style.

However, the season seasonal downturn was fairly shallow with the market bouncing back by end of April.

We started to see green shoots in March with ballast bonus sentiment bottoming out in week nine while rates started to pick up in week 11.

Since reporting and may affect rates have moved like a snake between 70 to $90000 per day for modern tonnage big charters have generally been long tonnage. After a flurry of term business is playing in some so most of fixtures have been re lets however, these relapse, which is tonnage controlled by charters are.

The only available for shorter duration as the charter typically want to control. These ships during the peak winter season, we are now approaching the time of the air where spot rates tend to move across and the market expectation is for much higher rents as we can infer from the one year time charter rates, which I will cover on the next slide.

Slide number 14, the one year time charter market.

One year time charter rate, which is the best proxy for the future earnings in the spot market has been on up here. The last four months for most of 2021 year Tc rate was around $60000 per day and this was also the case at the start of 2021 until the market sentiment a block later on.

Positive in April since then the one year time charter rates has nearly doubled the one year time charter rate for modern tonnage quoted by phone list is currently $115000 per day.

Illustrate that market participants expect spot rates to move across as far as willingness to pay premium to spot rates for one year periods and even more so for six month periods.

As LNG have become picea advantage of having large fuel efficient ships is also becoming more advantageous the spread between Mega X DF ships with approximately 174000 cubic meter of cargo capacity and a stand up 160000 cubic type youll ship.

It's now $22000 per day, given today's LNG prices and.

Does that entail savings of utilizing more modern tarnished with higher cargo capacity, we actually think this pad should widen even more.

The firm one year time charter rate is also pushing up longer term.

Term charter rates with both access why an affinity quoting time charter rates at $90000 per day, which is maybe not surprisingly the lead time for LNG carriers today is about three years.

At the same time, new building prices have been moving steadily upwards closer to $210 million, which is which means new building also require higher rates than what was the case 12 months ago. Just as an example, if you ask those application flex LNG today with Newbuild.

You would need to spend about $2.7 billion in capex than the.

$30 million in building supervision, assuming similar debt level as flex about one 5 billion net debt with about $20 million in financing fees.

Would also need to spend more on building up the organization. So let's assume you would have to raise $1.3 billion of equity to finance. This investment if you have a similar share count to flex LNG that would translate into a required equity per share of $24. However, if you did.

This investment in our new reflects at $24 per share you would be getting zero return on the investment before taking delivery of ships, probably in 2024, and 2025 and thus be missing out on a lot of the evidence if you harbor elected to be invested in flex.

So turning to slide 15 gas prices gas prices have been on a bull run since bottoming out last summer and as mentioned in the introduction. They are in our view right now actually a bit too high the market have in one year time turned upside down going from too much LNG two.

Little LNG.

LNG.

Evidence that it.

Was more resilient than other sources of energy last year being the only in the resource except for renewables going with the recent natural gas, which is very complementary to renewables there hasnt been enough of it to go alone and prices have therefore responded upwards currently the Asian spot.

<unk> J Cam is trading at around $17 wireless European past ETF is trading at around $15 per million Btu, the spread between European and Asian prices are also positive which is important for incentivizing cargoes to be pulled to Asia and the spread is expected to widen during the winter.

We do expect congestion to pilot again in Panama consulting and even longer voyages planting cargoes heading to Asia.

As we have communicated in the past future prices have a mixed that golar of predicting future spot prices, but today's future prices in any case suggest.

When a term market the winter JK and prices actually surpassed the level, we saw at the first of.

Tableau, which AKM contracts hit the high.

It's the average of about $800 with a high of 32 and a half dollars, hence expectation of continued high gas prices over the winter with a gradual normalization of gas prices by the middle of 2000 <unk> when they are converging towards the typical oil linked price.

About 25% discount to oil parity. This also makes sense as we do expect considerable new LNG export volumes to be ramped up by 2024 onwards.

What is most important for US is the LNG price is sufficiently high enough with a positive spread between U S and Asian prices are at a premium to European prices and Thats certainly the case today.

Slide 16, the order book at the term market have been work activities and clear the number of available ships is declining and today about 80% of the ships on order is linked to a long term charter and where we expect that more and commit the chips will be tied up on term charter prior to delivery if not all of them.

As such announcements, our Austin delayed new building orders have picked up recently, but with new building prices.

Above $200 million that are very speculative new building orders as illustrated we have discussed in great length in the past implication of new E. Carbonization rules for all ships or <unk> as it's called and there is undoubtedly a lot of new building set for delivery, which will replace older tonnage.

Particularly the older inefficient steam generation of ships.

EU decided to add shipping to its carbon trading scheme will further boost these ships at a disadvantage compared to new modern tonnage as the new generation Mega X DF ships have a carbon footprint per unit of cargo of close to 60% less than the steam generation.

However, keep in mind that Europe is only about 20% of the LNG import demand ACI as the big import region, where we also see more or less all the growth going forward it could be that some of the lessons.

<unk> ships are therefore doing short haul in Asia, and less similar mechanism upward and face in that region. The European Calvin tax will be applicable for ships trading intra Europe. If the ships are bringing imports from outside the European emission trading at half the award, which will be applicable for carbon taxation in Europe.

Carbon taxation will ramp up from 2023, when 20% of applicable emissions will be taxed.

This level in cases to 45% in 2024, 70% in 2025, and finally from transfer 2006 and on what 100% of the applicable emissions will be.

Slide 17, Covid. Despite recent progress on Covid. This remains a big challenge for the shipping industry, while vaccination of all out rapidly encased in Europe with Europe, surpassing U S. In vaccination levels fractionation levels in all the parts of the world remain low and that our questions.

Whether all vaccines have similar efficiency against the Delta.

Only about 20% of LNG cargoes and up in Europe, Best mentioned, while about take waters and up in Asia, So vaccination level and little friction and Asia is dust of more importance to the LNG industry.

Because of the lack of a vaccine all out in Asia through rotation remains very difficult to carry out in this region. We are therefore sale meeting a lot of obstacles scouting out two changes. Nevertheless, we work hard to minimize this share of seafarer, which our overview on the context I think our onshore personnel and crew have done.

Mark will jump in this regard with 98% of Vascepa out us being on time. So once again. Thanks for your hard work vaccination levels of seafarers are also mixed a big share of our to our Philippine us and for them to get access to vaccines are providing more difficult than in the west with the stride two.

Take every advantage of vaccination of <unk> whenever possible and we are glad to see that the U S allows visiting seafarers to be.

Take the vaccine when calling U S ports and terminals and this is something we have done for several of our ships now most recently <unk> where are we on August 4th.

Able to vaccinate 19 of our crew members when we load the cargo at the <unk> Port terminal by doing so our NK cell <unk> estimated 220 out of 26 being fully vaccinated with one crew member being partly vaccinated.

In order to organize vaccinations, we need to call ports, where such vaccines vaccines are available and we do hope more complex can make vaccines available to seafarers as seafarers are key walk yields without shipping about 90% of good transportation will dial and then everybody will feel the pain. So let some.

Today's presentation the revenue.

<unk> of $65.8 million in line with guidance covers for 2021. The next couple of years is great. Although we keep exposure to the spot market for ships as mentioned dividend maintained at 40, but upside here in the second half of the year. When we expect revenues to bounce back after the usual seasonal low point in Q2.

All our ships are on the water and all of our ships on higher we are positive the outlook culture term and long term and finally, our balance sheet is in great shape with a big cash pile, enabling us to do this.

Free cash flow so that's it.

I'm happy to take some questions. So let's open up.

Yes.

Okay, ladies and gentlemen, we will now begin the question and answer session and Thats. A reminder, if you wish to ask a question. Please press <unk>.

And one on your telephone and wait.

Thank you Danielle.

Once again.

If you wish to ask a question.

Stephen will now take our first question and it comes from the line of Randy Gubins from Jefferies. Your line is now open.

Howdy gentlemen, how's it going.

Hi, Randy good you can make it.

Thinking maybe Europe, we're busy with some workouts.

Yeah, Yeah finished those earlier, but long time listener first time caller.

I guess two questions one on the share repurchase a minimum level or maximum level.

The last couple of quarters, you increased it by $2 a share this quarter quarter by $1 kind of what was the thinking of that $2.15, and where do you see your current NAV.

Yes, it's a good question.

I think actually are already more or less also your question about the niv with my kind of back of the envelope calculation of what it would cost to make our new flex LNG and as mentioned it would be.

Probably a $2.7 million of ships then add all the costs then you have to issue as stocks at $24 and missing out on the dividend so.

I do think that the.

<unk> well above.

Book value of our stocks, which is around $16.

<unk>.

No.

If you are putting into onward to $210 million on ships.

Should be more than $20, but.

You analysts I guess, you can come up with a lot of different estimates on this but as long as I can see from some of the analysts sending out the both today seems to be in that range.

In terms of the buybacks.

Why why at a certain level.

I think once we have financing in place for all the ships in November and we started to feel very comfortable about the outlook, we initiated a buyback.

Paul Graham because I had been saying for some time that the stock has been on Black Friday prices for some time and so we.

<unk> did that in at that time, I do think that the stockpile was planning at around seven maybe around $8.708. So we've.

Hit the threshold of Tam.

<unk> started to look better on the share price appreciated. So we moved the two trials and then fourth in.

And at least now we are getting into more sensible valuation.

With the stock recently trading at around $14, we increased it to <unk>.

In order to be able to.

We have the opportunity to buy the stock in the in the market.

That said of course, we do have our main principal shareholder John Fredrickson family, which has offtake today of 147%. So so there are some limitations to how aggressive we can be on the buyback.

<unk>.

We felt it sensible to.

Two to increase the threshold to 15, so we can be in the market on days like this when the stock is not performing very well.

And buying back the stock.

But in general of course, we do prefer paying dividends.

But we're trying to do both and by increasing the threshold, we can do do a bit of both.

As I mentioned, where we do also think there is room to increase the dividend and in the second half of them.

Great.

Very thorough answer there and then I guess second and last question just around the Qatari tenders, maybe growth opportunities there or is that something flex is participating in what are your thoughts on those projects.

Now I of course, it is a fantastic project for the category as.

As far as I understand that you will have a very competitive.

Production pipes.

It's a very efficient.

Phil.

You will have the industry lowest call it the <unk>, so kind of the past.

And the FX part terminal.

They will do they stood at 3 million tons first.

Paul will need 45 ships for that they have still 25, steamships, which they probably want to the best of that 70 ships and then they probably an 825.

Maybe even 30 ship for Golden pass and move that you are 100 chips and then of course, they are planning to that $6.4 million tons. So so thats. Another 25.30 ships. So so we are participating in that then we are looking into it.

Aye.

Of course, I think with our current stock price, which is well above now well below.

Kind of replacement Capex, we are not there, but we will pursue growth unless.

It's attractive for us to do so and with the stock price, we have today and the implied valuation per ship.

We focus on the dividend and buybacks and so we will only only pursue it.

If it's accretive to our shareholders.

Yeah.

Got it alright, well, thanks again for having a good catching up.

Good to have a myriad of Ami.

Okay. We will now take our next question comes from the line.

From your guidance is now open.

Hey, Thank you Ina and good afternoon everybody.

Thanks for the presentation I'll always super helpful.

Was hoping for a little more color.

Slide 14.

Clearly there has been a nice uptick in charter rates.

Driven by the counter seasonal spot market.

Realizing you fixed for five years, so I guess a couple of questions here one is.

From a multi year contract.

Competitive with that process I E.

What was it like competing against.

Another another competitor was there.

Kind of curious any color around the competition for that and then just as we think about the one year time charter market clearly rates are higher.

Wade I'll pass along.

Well.

Mark at all.

In say the last couple of months a quarter versus what would be happening in that market.

Last the quarter before previously.

Yes, Okay I will try.

To start.

Giving you some answer.

First.

As you alluded to we have done some.

We have added significantly backlog.

But the last couple of months.

In April we did.

Four possibly five ships, which are in relation to that process.

Of course, all all these passes are competitive.

Charter's always try to do.

To get the best terms and <unk>.

But of course, that's not really that many old notes you can go to to have.

Five.

New modern ships available in the market.

So of course, it's not like it's off.

A big tender with a lot of people because that's.

That's not really nobody else, who could could give them.

Maybe with one or two exceptions, we give them.

That many ships in one go and I don't think antibody could have done it with delayed those kind of delivery slots that we have.

So of course, we have the dialogue with them and we.

I think we find.

Our deal with that works well for us we could add the significant backlog were when we started the year, we had nine of authority and chips linked to the spot market.

So it was a good way for us to Derisk, our portfolio and we got a reasonable or turn them on.

Equity.

And then of course since then.

By us doing that it also.

Kind of improve the sentiment in the term market because suddenly there was less available and also gas prices really rallied palma a low of $5.5.

Starting in March to $17. Today. So that's also increased willingness to pay for them and we added one more time chart now to more time charters in may one for prompt delivery flex constellation.

Well I think we got a very good rate and then.

Since we don't have that many ships last fall.

Our opening in 2021, we weren't able to fix for what our ship for delay.

Delivery.

Q1 next year. So that is also a good position for us.

It's usually a bit of the soft softer period of the air and we're fixing forward our ship for three to five years also on what I think it's a good attractive return also so of course, that's been competition, but.

I think we said all along the way.

One of the recent pause billing Anr ship management was.

In order to be in position to.

To act on these kind of opportunities when they have an item and we thought so that that might be the case in 39 for instance.

I drilled into the in the past that wasn't.

That wasn't possible to achieve those kind of contract in that market, but in 2021, Mark has been firm a lot of term interest and then we have just acted on those opportunities derisking.

Our total position.

Position.

And just having a bit more stable income and thus, enabling us to pay dividends.

When it comes to the one year time charter rate its been fairly liquid I would say.

Recently asked us been considered cyclical to only invest.

And that stuff's been fewer and fewer ships available in and LNG rates had been picking up and more on a monthly basis had that implied <unk> for a one year time charter rate has just picked up and picked up and we all know with a very good levels.

Where which implies that also.

The winter season will be good with.

Rotations now six months six to seven months of 130000 Boes.

Personally I think that guidance.

Yes, we'll be moving higher than that but let's see.

But again I think for US it's been about.

Finding good charters give which gives us a good return derisk, our business and enabling us to to really pay juicy dividends.

Great.

Sure.

Uh huh.

Okay. He got disconnected, Sir David will now take our next question our next.

Next question comes from the line of Keay.

Yeah.

Edge. Your line is now open.

Hey, good afternoon, and congrats on an excellent quarter.

Good to hear from your JV, So what do you think.

Yeah, absolutely well I'm very happy you reported results exactly within your guidance, but apparently the market cannot read your coupon slides, so thats kind of entertaining, but anyways you have an all time record high cash balances you have no capex required you don't really want to bid on the Qatari vessels or at least that's what I read between lines.

So how much cash do you think you need because right now I think it was $144 million how much do you think it is a responsible amount of cash versus how much is available for repurchases or whatnot.

I think we have of course plenty of cash today and.

And.

This is a new all time high you have asked me in the past and as.

As I mentioned during the presentation.

Some of our bank loans they have our R.

Our cash covenant, which would imply a minimum cash of $70 million.

LIFO or leases, but for the the ship finance on the bank loans.

This is the case, so 70 million them and you.

Surely you would like to have some vessel on this.

And I will given how we have derisked.

Our business of course is buffer or question needs to be less than probably in the past. So I think when we have discussed this before and I have alluded to having $100 million of cash.

As away at this factor we are positioned for ethanol we have <unk>.

44% higher than that so so we are sitting with a lot of cash in the.

That's why we are eager to.

Staff.

Uh huh.

Distributing more to our shareholders through dividends and buybacks.

We have more cash than we need.

Yes, so it certainly seems that way you've got about 40 million extra cash as you kind of alluded to there.

You increased your repurchase authorization to $15 a share right now in the U S markets I know you had a convert Oslo and whatnot, but it trades about $14.20. So I was just curious you have 3 million more shares authorized to repurchase is there any appetite for something like say a $15 tender offer you can do 3 million shares at $15.45.

But that would take care of you our cash balance and it would also add at extreme value to shareholders.

Any thoughts on that.

And it's something we consider in the Boston and we opted for this program.

In November.

A couple of ways you can do it.

I think one with US also did in November where we saw that the volatility in the stock price of oil.

Keeping a lot of investors.

Awake at night and buyers coming into the market then my regulation.

Such a buyback program, we can buy up to 25% of applicable volume. So you can buy 25% of the daily volume, but this is calculated.

Over the last month or so so you can really come in and stabilize the share price to some extent.

And then you also get more information during the road I think in November a lot of analyst with.

Concerned about the 54 ships for delivery in 2021, I think we were a bit more a bit because we were very bullish on volumes.

<unk>.

With 25 million tonnes expected increase in 2021. So I think we started our best we didn't want to scale of people that we were spending too much money on this and we have incrementally use this an incremental increase.

The test all day in order to in our last as we have seen.

Things have been turning either unbiased along the item and we bought <unk>.

So far 900000 stocks.

But there are certain limitation that I mentioned and also to <unk>.

We have our shareholder which is a very big.

And in the company of 47% by GAAP, Ron or George John families and families.

Now.

Some implications if he goes to about 50%, which we would like to avoid.

But so far we have just decided to buy back in the market and all the <unk>.

Pushing the dividends up.

But.

If we do see that disconnect I wouldn't rule out doing something.

More than than just buying in the market, but let's see Nols the stock.

The stockpile in America last night's close at $15.84 or so so it seems to be a very volatile these days.

Yes, it certainly it certainly good explanation of why you're seeing that and I think some new investors, maybe just didn't read previous guidance, but I'm sure there'll be happy with Q3, and they're going to be really happy with Q4 always good talking to you.

Yes, good to talk you through as well.

Okay.

Our next question and it comes from the line of.

No.

We therefore shareholder your line is now open.

Great. Thank you I'm, a private investor with you since the IPO.

Thanks, again for meeting your goals and being very transparent.

A lot of us here are really comparable.

And that consumer trend grid lines on slide five.

Okay, we will keep that in mind for future.

So my question is around your forecast.

Quarter, you gave a three month forecast this quarter to only give them too. So my question is when you look at slide four of your backlog when you look at Q4 and one in Q2.

Let's see.

<unk>.

A quarter further that youre not giving.

Forecast for Q1.

Yeah, It's a good question.

Usually.

Historically, we have we have only provided guidance for the next quarter or so.

When we did all these contracts in April and May.

Add significant length to all.

Backlog, so we've helped them.

In order for people to understand.

Economic rationale of this <unk>.

Financial implications, we decided to do something we have not done in the past, which is actually to do guide for the rest of the <unk>. So we didn't guide just Q2, but also Q3 and Q4, so so when we.

Presenting today, we basically have said that we repeat that guidance.

So we repeat the guidance.

Last time, we have narrow the variability based on the revenues, but more or less they are all the same.

So we haven't really kind of started a new.

Kind of principle of guiding the next three quarters.

But.

I'd say, it's a good point in the.

Once we are reporting again in November.

Of course, we can consider trying to give.

Some more guidance on 2022, but keep in mind.

We do have ships on variable higher contact them.

This as spot rates, which are feeding.

Feeding into these indexes tend to fluctuate quite a lot so.

So.

Once you are getting further down the road the variability in the revenues will of course increase.

And we have some ships coming off charter in during Q1 next year. So how will the market be in Q1 next year. It really depends on how the winter will be will we have a repeat of the last winter will we have.

It seems like the probability of a warm winter.

Fairly low given the 70% of Alon, India, but that's really.

Once youre getting very far into the future on these kind of things that the variability in the revenue guidance become much bigger in and then you kind of the value of providing it might become a bit less but.

We can have a look at it then maybe we can provide.

Provide some numbers on at least the.

The number of days back booked for 2022, but as you can see from the fleet overview there.

The coverage.

For 2022, 23, and even into 'twenty four was pretty high.

So I'm not suggesting that you do three quarters or more every time I was just curious to see what was different and I think you've answered. Thank you.

Okay. Thanks.

Okay. Once again, if you wish to ask a question.

Anyone.

Yeah.

Once again.

If you wish to.

To ask a question.

Okay I got one question by chance it was about the Drydock schedule. So some people were asking when do we have the dry dock on the ships so in general.

The rule is that your drydock. The ship every fifth year. So in 2018, we had delivery of four ships. So they will be due for Drydocking then in 'twenty.

'twenty three.

We have two ships in 2019, which is due for docking.

Talking in 'twenty four.

Four ships in transit and did do for docking in.

25, and then three ships in 'twenty, one which is due for docking in 2026, so typically our drydocking take something between 15 to 20 days in the dark.

Costs at somewhere around two and half to $3 million, depending on based on how well you are maintaining your ships during the operation.

And so that's I hope that answer that question or did you have one more.

Okay.

Okay with that I think we conclude today's presentation I wish you good day and thank you for listening in and we will be better than Q3 numbers as we have guidance, we expect higher revenues in Q3.

Probably presenting those in the middle of November So I hope you will join us. Thank you.

Okay that does conclude our conference for today. Thank you for participating you may all disconnect.

[music].

Okay.

Yeah.

Okay.

Yeah.

[music].

Thank you Ryan and welcome to today's webcast.

Webcast, where we will be presenting all second quarter total salt assignment I think Alex I have the CEO of flex LNG management, and I will be joined today by our CFO.

Who will walk and talk to you. So the numbers a bit later in the presentation before we conclude with a Q&A session.

If you like to ask a question you can either then I ask via Telecom conference I'll use the chat function.

On the cover page today, we have a picture of a recent addition to the fleet flex vigilant wishes all to a fifth and last ship for delivery. She was delivered according to plan on may 31st and immediately commenced a time charter with Cheniere with a minimum of three yes, and I will go on to that shortly.

Disclaimer before we start the presentation I will remind you of the disclaimer with regards to among all those forward looking statements non-GAAP measures and completeness of detail. We also recommend that the constellation is wrapped together with the earnings report, which we also released today. So let's go slide number three highlights the LNG.

Market is booming and if anything we actually think that LNG prices all of that at the moment a bit to halt the Asian spot LNG biased Jae Kim is at about $17 per million Btu. It. This is the highest seasonal price in nearly a decade and implies oil and energy equivalent price of above $100.

European gas prices DCF above $15, driven by high carbon and coal prices as well as very low gas inventory levels low gas inventories are something we have pointed to in the past will be support as part of the driver of the gas market. This year, hence with cargo prices.

It's about $60 million to $70 million, there is ample room to pay premium rates for phase, which I really have two in the market section.

In the second quarter is however, traditionally the weakest quarter in the air and not surprisingly also the case. This year. This is due to a combination that we are coming out of the winter and gas demand is generally added.

And the last new building effective the vigilance, whilst as I mentioned the leveled on may 31st.

<unk> completed all OPEC approximately $2.5 billion investment program and all have 13 state of the art LNG carriers on the water all generating revenues as represented in our first quarter presentation. In May we have utilized our strong freight market to execute on our strategy of <unk>.

Securing a higher degree of employment visibility and thus derisking the company's credit exposure. We have recently secured attractive term contracts for six possibly at seven of our vessels. We had about 20, yes of minimum fixed higher employment for that six ships. Despite.

The challenges imposed by the COVID-19 pandemic when it comes to crude changes inspection and services. We have continued to operate our ships with excellent safety and operational performance.

<unk> have created further complication through our operations, particularly in Asia, where vaccination levels lagged U S and Europe and this means could change is still difficult to carryout. In this region. However, I am pleased to say we are working diligently on minimizing food, which is overdue on the context, and we have been able to maintain.

<unk>, 98% of <unk> on time, and with no personnel now being more than 30 days overdue. So a great. Thanks to our CFO and onshore personnel for a very good job done. Despite these obstacles.

In terms of financial I am pleased to say that we delivered revenues of $65.8 million for the second quarter in line with the guidance of approximately $65 million.

Our time charter equivalent earnings or TCE in Q2 was 57 eight ton lift and a year to date number is 66300, which translates into healthy earnings.

And due to our adjusted net income. This is the number adjusted for change in value of our interest rate derivatives, which tends to fluctuate.

$15.7 million or 2009.

This brings the adjusted net income for the first half of the up to about $50 million with normal GAAP earnings the numbers actually $10 million higher.

And this is a self risk we are reasonably satisfied with.

Despite raising our dividend to <unk> 40 in Q1 <unk>.

Taking delivery of.

On your building and buying back some stock in the quarter, our cash pile grew by $5 million to $144 million at quarter end.

$144 million of cash is our liquidity position, which we consider very comfortable particularly given how we have derisked our business through building profitable backlog and if the board has decided to pay a dividend of <unk> 40.

For Q2, this provide an attractive yield of slightly above 11% on an annualized basis as the stockpiles have traded quite a bit on today for reasons I don't really comprehensive given that we are delivering numbers in line with our guidance.

Our stock is continuing to trend below both book value and particularly the replacement value of our fleet. Despite all ships being on the Warsaw with attractive financing and considerable backlog, where therefore find it attractive to continue to buyback our stock. So far we have bought back 900000 shares.

The average price of $9.

Per share since we announced the buyback program last November given recent improved outlook and backlog. The board has decided to raise the buyback threshold from 14 to $15 per share.

So let's review our contract portfolio on slide four.

One variable higher context, where flex Amber was recently extended by another year with early delivery in all being fourth quarter next year.

Moving on to the ships under fixed time charters flexibly it almost on a shorter term Tc, which expires in Q1 next year, but where we have fixed the ships on time charter to a portfolio with a minimum period of either three or five yes, the total minimum period.

Five yes will be declared shortly.

Flex constellation was booked through our scalar in May on a time charter with a minimum period of three years than we have flex endeavour and flex vigilant and flex Ranger, which have been fixed through China for a minimum period ranging from three two to three points Acs. All these chips have all been delivered to China and <unk>.

<unk> will also take one more ship on a pea in the half year time charter in third quarter of next year. <unk> also has the option of adding one more ship next year.

The total to five ships in this overview, we have for illustrative purposes Austrian flex constellation.

Hedges and flex or as Jennie O vessels, four and five but we have.

The option of nominating performing vessels, which provide us with some flexibility in our portfolio.

Flex fuel hedges was fixed on a 11 month short term time charter in April and we expect to get them back at the end of Q1 next year Flagstone, who in fact is absolute we recently extended by six months and the charter hire for these optional periods.

Our substantially higher than the initial firm period.

Which commenced in connection with delivery of these ships last year.

Then we have flex Rainbow, which was fixed on our 12 month time charter commencing in Q1 this year, where the charter has options to extend this vessel <unk>. Finally, we have flexible antenna, which are trading in the spot market, which is a market, which we think will be very effective as I will explain a bit later in the presentation.

With this whole contract portfolio, our charter cover for the year is 96% plus.

As mentioned earnings for four of our ships are tied to the spot market and our earnings in the second half of the air will be <unk> by a holder spot market develops in this period as you can also see from the graph charter Comverse has also helped the next couple of years, thus, providing us with more stable earnings.

In the past.

On slide five as guidance.

Our revenue guidance is rather similar to our last presentation, where the valuation is depending on the earnings for the four ships linked to the spot market. As mentioned however, we have culminated the analysts and adding grid lines through them off as it seems some of them fulfill this rather than using a ruler to estimate the ranger.

The revenue guidance. So we do hope that is geared lines makes analysts job a bit easier even if the visual expression and somewhat adversely impacted as we mentioned in the Q1 presentation. In May we expect revenues of about we expected revenues of about $65 million down from $81.3 million in the third.

First quarter and the accurate number we ended up with was $65.8 million time charter equivalent income of $64.9 million after deducting 980000 voyage related expenses.

As mentioned in the highlights and you can see from the golf second quarter tends to be it is tough this quarter and we expect revenues to bounce back in third quarter with revenues expected to be around similar levels as in Q1, I E around $80 million.

Q4 revenues have slightly higher variability as it is difficult to accurately predict how highest spot rates will go one way or getting into the winter market.

In any case, we do expect Q4 to be the strongest quarter, which tend to be the case in LNG shipping except for Q1. This year, we are a long and cold winter resulted in us generating slightly higher <unk> numbers in Q1 than Q4 and Q4, one we also benefited from having more ships.

The water consulting and I'll jump in revenues as you can see.

Keep in mind, our costs are fixed with the industry low cash breakeven level of around $45000 per day with all ships on the water now a dollar increase in revenue is basically a dollar increase in <unk> cash flow and thus our dividend capacity, given our ample liquidity position as a backup and develop.

Calculation of thousand dollar increase in charter rates increased our annual cash flow by close to $5 million.

Slide number six the dividend speaking of it.

And let's discuss our dividend philosophy as mentioned in our investment program is now completed we might invest in new ships in the future, but at the moment, we have no plans to do so during the last three and a half year, we have been in an investment phase taking delivery of <unk> Alfa modern large LNG carriers.

This has been a major investment of close to $2.5 billion and our focus in this period have primarily been to secure financing for their ships and attractive context for our ships while building the software with an experienced top management and in house Technical management for all our ships as we are now moving into the next phase.

We have incrementally increased our dividend in line with our cash flow generation last November we became increasingly upbeat about the prospects given less COVID-19 concerns and a rebound in the LNG demand, we therefore decided to reinstate our 10th dividend.

And also announcing a share buyback scheme.

Assessment of the outlook total output accurate and regenerate that set of cash flow in Q4 with 45 of adjusted apps do it thus, enabling us to hike the dividend too early.

In Q1, we generated 64 of adjusted apps and we have highest the dividend again to 40. This is a level we have decided to maintain for Q2.

Hence the dividend coupled with the buyback.

Our payout ratio of 96% in this 12 month period.

<unk> are expected to go in the second half of that and Thats all costs are more or less fixed this will increase our cafe cash flow considerably and thus dividend capacity as I explained on the previous slide we do not have a formal dividend policy with for example, 50% of apps to be paid as dividend or some sort of minimum level of <unk>.

And our dividend philosophy is similar to what we have in our affiliated shipping companies frontline Golden Ocean, Nsfl, which have a very good track record in the capital markets, Let me explain that a bit in more detail. How we think about this when we consider the dividend level that are several fact dose we can see it.

When we determine the appropriate level earnings. This of course, the most self explanatory factor and our adjusted earnings are well on our way.

Very good proxy on free cash flow, although that can be a working capital adjustment from quarter to quarter.

As we currently have 96% of the books and a significant backlog for the next couple of years. This also based on major path when considering our dividend when assessing the dividend level. We also take into consideration all financial positions SaaS liquidity position, which I have already mentioned is at all time high.

And more than twice the requirement under the financial Covenant in our bank loans in general our financial covenants are easy to comprehend we are required to maintain book equity level of above 25% of total assets and this is currently about 34% and our bank loans, we need to have a liquidity position of about 25.

And 5% of net debt, while under our lease.

Leases cash requirement is no higher than $25 million, hence, we are passing liquidity and covenant test with flying colors. Given the fact, we have taken delivery of all our new billings and we have secured long term debt fall or ships debt maturities and Capex is no concern for us, particularly since we havent issued no.

Bonds other consideration as a bucket list of item for big events, which can create risk and uncertainty think black Monday, a 911 Lehman borders and COVID-19, the Delta and all the possible mutation of COVID-19 is the main reason for this light not being dark green at the moment so.

Just like Matthew Mcconaughey, why it's in his new book, you realized which is by the way are surprisingly available book. We're also chasing realized nearly all our lives have been altered green and we do expect that improve the revenues and earnings in the second half of their coupled with further rollouts of vaccine will turn all powder metals.

Darker in.

All our vaccine all votes out of our hands.

So rest assured we have a well thought approach to dividends and we are fully aligned with shareholders and all of you. The free cash flow belongs to our shareholders and we will certainly not be <unk>.

Used by management in Empire building with that I think it is a convenient time for you to discuss the financials in more details and I will revert with a short market update afterwards.

Yes.

Thank you Ursula and let's turn to slide seven.

In the second quarter last year or since second quarter last year, we have more than doubled the fleets with the new building program, which is now completed.

Slipped vigilant was delivered in May and she had 30 days available during the second quarter. So we had earnings from $12 three vessels in Q2 therefore.

Therefore, Q3 will be the first quarter, where we will have the earnings capacity from the <unk> 13 vessel fleet.

And turning to slide eight.

Us.

Impacts our earnings from the vessels trading spots on the vessels on variable higher contracts.

As we from Q.

Q3 and onwards, when facing more of the long term contracts that grid in Q2. This is analogy.

<unk> experienced in Q2 will be reduced going forward.

The TCE for the first half of the.

The year was solid at $66340 per day, a substantial increase compared to the same period last year.

Our operating expenses were impacted by extra costs related to COVID-19, and in particular related to crude changes in Asia.

If you look at the first six months with an opex of $13600 per day in Opex, that's about $500 per day.

Which is related to COVID-19.

Hence the underlying operating expenses remains within the guided level of $13000 per day.

As mentioned by <unk>, we do continue to face challenging crude changes and particularly in Asia higher lube oil prices in general supply chain challenges for delivery of spare parts. Hence we expect that the operating expenses continued to be a bit bumpy in the coming quarters as long as the travel.

Restrictions in current parents are affecting our operations.

Gross revenues for the quarter came in at 65.

Point $8 million in line with our guidance for the quarter of 65.

Adjusted EBITDA was $47 million and adjusted net income of $15.7 million and adjusted earnings per share at <unk> 90 per share.

<unk>, our adjusted for $2.8 million loss in interest.

Interest rates derivatives, which includes an unrealized loss of $1.1 million.

Quarter by quarter numbers due to the explained and seasonality in the second quarter compared with the very strong first quarter.

The first figures shows the financial impacts of the increase in the fleet size as shown in the previous slide.

The earnings potential in the fleet.

On the financing interest expenses are slightly up reflecting a third quarter on the interest.

Interest on the desk drawn for flex freedom, and a drawdown of the loan related to delivery of flex vigilant.

Then moving to our balance sheet, which is quite straightforward after delivery of the last new building on.

On the asset side, we have cash of $144 million and Russell just shy of $2.4 billion.

Development and cash will be explained on the next slide.

The increase in book value is explained by the delivery of flex vigilant in May.

On the liability side, we have about $1.6 billion of long term debt from international banks and financial institutions then.

The increase in <unk> related to the aforementioned drawdown of the bank loan related to delivery of flex vigilance.

And then we have book equity of $152 million.

Which is about $100 million higher than the market GAAP.

Despite us having to ship at much lower prices than the new building prices today.

Let's turn to slide nine.

Despite a seasonal low quarter, we ended up with a positive cash flow of 5 million during the quarter. This.

This is driven by approximately $30 million from operations and $17.6 million from working capital adjustments.

As we have mainly trade mainly operating on time charter basis, only we've received charter hire in advance which is advantageous from a working capital perspective.

Amortizations were <unk>.

In two dollar and you will see that Q2 and Q4.

Lower amortizations or ECA funding financing semi annual repayment profile.

During the quarter, we paid $21.3 million in dividends and spent about 400000 on buybacks of our share under share buyback.

Buyback program.

In total we bought back 27.344 shares during second quarter.

That leaves us with a solid cash position of $144 million at the end of the quarter.

Then we turn to slide 10.

And this is.

Familiar slide, which we have shown several quarters, but it's still relevant.

As we have finance our vessels with attractive long term financing and we have no maturity before.

2024.

The depth.

Diversified mix of bank loans, ECA revolving credit facilities, and leases, which leaves us in a very comfortable funding position.

And with that I hand, the word back to <unk>, who will give an update on the market.

Thanks, Chris for the financial review, hopefully life and shipping feels better than and banking.

So.

Slide number 11, Chimera Ghansham, Eric avid less.

Our restaurants to U S and China, and I think it was coined by.

Harvard Professor Niall Ferguson, so in Q.

Q1 presentation back in May we started off with an overview of the LNG market with Asia was pooling cargoes away from Europe.

Our shift <unk> to Asian demand is positive for the freight market assets in cases, the sailing distances as the incremental cargos are typically sourced from the Atlantic Basin.

Often flexibility U S. Cargoes. This trend continue in the second quarter U S was the main driver of export goes wireless <unk> largest in both nations, China, Japan, and South Korea, whilst the main Gulf reagents on the demand side.

Also note that as growth from South America predominately in Brazil, and Argentina have been remarkably strong in 2021 wireless mentioned European imports are down compared to last year. It's fair to say that European imports were higher last year due to European bias buying a lot of cargos for storage at the cheap.

Following the slump in demand due to COVID-19.

All in all export volumes were up by about 4% in first half of 2021 compared to last year.

And we do however expect growth to accelerate in the second half of 2021.

Due to the COVID-19, fallout last year gas prices hit bottom and we saw about 188 U S cargo counts cargoes being cancelled and most of them in the third quarter of 2020, hence the export volumes in the first half of transit 'twenty, one are 8% higher than the volumes in the second half of <unk>.

Thousand 'twenty, given the high gas prices, which I will cover shortly there have been no cargo cancellation. This summer and we do not expect any either would therefore expect X.

Export volumes to grow by around 10% or more in the second half of the bringing the goal for the Astro alone 25 million tons or about 7% annual growth.

That would be few if any incentives to repeat the cargo cancellation seen last year at the same time, we also expected Egypt to return as a large LNG export in Egypt have so far exported 4 million tons. This year compared to only one 5 million tons in 2020.

Slide 12 European inventory, you'll see European and when gas inventories have easily become a permanent part of our slide deck as we started to highlight in our December 20, <unk> presentation. The strong demand from Asia at the end of 'twenty 'twenty into 2021 was pooling cargoes away from the Atlantic Basin.

And away from European bias with rapid depletion of gas inventories in Europe as a consequence.

As illustrated on last slide this Asian demand pool has continue into 2021 and thus solving from natural gas at the time when gas demand in Europe has been strong due to our long and cold winter, while high coal prices and even higher carbon prices have intensive.

Switching from coal to gas.

At the same time GAAP palm has elected to not in case pipeline flows to claim above them in the aggregate volumes and Norwegian gas flows have been also been on the soft side due to maintain maintenance deferrals last year due to the COVID-19 situation.

The European gas inventories remains low and Europe will probably answer the winter with significantly lower storage levels in the previous two winters in the last couple of months, we have seen fierce global competition for gas.

During this period.

European gas prices has acted as the global benchmark price where correlation between gas prices in Europe, and Asia have been remarkably high with Asian prices at a slightly higher level, reflecting the higher shipping costs lower gas inventories also increased the probability of high volatility in gas prices.

As another cold winter in Europe, Canada, and the rapid depletion of gas inventories with a 70% chance of another large nino winter. According to the U S National Oceanic and atmospheric administration or new op, we could therefore be in fall or winter with sharp movement in gas prices.

Turning to slide 13, the spot market for freight.

The French market boomed at the start of the year with all time high freight rates and LNG prices.

With the winter in Asia, turning a bit hotter in February and a lot of new building deliveries at the start of the.

The market softened from the elevated levels seen at the start of that as you can see from the graph on the right hand side vessel availability short octane that February, particularly in the Pacific region, but also to some extent in the Atlantic due to the big fees in U S, which resulted in temporary export curtailments was.

Some LNG export band stuff.

However, the season seasonal downturn was fairly shallow with the market bouncing back by end of April we started to see green shoots in March with ballast bonus sentiment bottoming out in week nine while it started to pick up in week 11 <unk>.

Since reporting and may affect rates have moved like a snake between 70 to $90000 per day for modern tonnage bank charters have generally been long tonnage. After a flurry of term business. This spring and summer. So most spot fixtures have been relapsed. However, these relapse, which is tonnage controlled by charters are.

Typically only available for shorter duration as the charter typically want to control. These ships during the peak winter season, we are now approaching the time of the air where spot rates tend to move upwards and the market expectation is for much higher rents as we can infer from the one year time charter rates, which I will cover on the next slide.

Slide number 14, the one year time charter market.

One year time charter rate, which is the best proxy for the future earnings in the spot market has been on our tier the last four months for most of 2020, the one year Tc rate was around $60000 per day and this was also the case at the start of 2021 until the market sentiment a block later on.

More positive in April since then the one year time charter rates has nearly doubled the one year time charter rate for modern tonnage quoted by phone list is currently $115000 per day.

This led up market participants expect spot rates to move across.

Willingness to pay premium to spot rates for one year periods and even more so for six month periods.

As LNG have become picea advantage of having large fuel efficient ships. It's also becoming more advantageous display bridging Maggie X DF ships with approximately <unk> 74000 cubic meter of cargo capacity and a stand up 160000 cubic type youll ship.

It's now $22000 per day, given today's LNG prices and.

The <unk> savings of utilizing more modern tarnished with higher cargo capacity, we actually think this pad should widen even more.

The firm one year time charter rate is also pushing up longer term.

Term charter rates with both <unk> affinity quoting time charter rates at $90000 per day, which is maybe not surprisingly the lead time for LNG carriers today is about three years.

You would need to spend about $2.7 billion in capex than the $30 million in building supervision.

Women similar depth level as flex about $1.5 billion of net debt.

It's about $20 million in financing fees, you would also need to spend more and they are building up the organization. So let's assume you would have to raise $1.3 billion of equity to finance. This investment if you have a similar share count to flex LNG that would translate into a required equity.

Share of $24.

However, if you did this investment in our new reflects at $24 per share you would be getting zero return on the investment before taking delivery of ships, probably in 2024, and 2025 and thus be missing out on a lot of the evidence. If you have other elected to be invested in flex.

So turning to slide 15 gas prices gas prices have been on a bull run since bottoming out last summer and as mentioned in the introduction. They are in our view right now actually a bit too high.

The market have in one year time turned upside down going from too much LNG G. Two little LNG LNG as evidenced that.

Was more resilient than other sources of energy last year being the only energy source, except for renewables going with the recent natural gas, which is very complementary to renewables that havent been enough of it to go around and prices have therefore responded upwards currently the Asian spot.

Bias, Jake MSI, adding at around $17 wireless European past ETF is trading at around $15 per million Btu, the spread between European and Asian prices are also positive which is important for incentivising cargoes to be pulled to Asia and the spread is expected to widen during the winter.

We do expect congestion to pile up again, and Panama consulting and even longer voyages plant the cargoes heading to Asia.

As we have communicated in the Bath future prices have a mixed that golar of predicting future spot prices, but today's future prices in any case suggest.

When a term market the winter J cam prices actually surpassed the level, we saw at the first of the year when tabloids AKM contracts hit the high.

It's the average of about $800 with a high of $32.5 and expectation of continued high gas prices over the winter with a gradual normalization of gas prices by the middle of 2020 fee. When they are converging towards the typical oil linked price.

About 25% discount to oil parity. This also makes sense as we do expect considerable new LNG export volumes to be ramped up by 2024 onwards.

What is most important for US is the LNG is biased is sufficiently high enough with a positive spread between U S and Asian prices are at a premium to European prices and Thats certainly the case today.

Slide 16, the order book as a term market have been working activities and clear the number of available ships is declining and today about 80% of the ships on order is linked to a long term charter and where we expect that more and commit the chips will be tied up on term charter hire to delivery if not all of it.

As such announcements, our Austin delayed new building orders have picked up recently, but with new billing biases.

Above $200 million that are very pure speculative new building orders as illustrated we have discussed in great length in the past implication of new E. Carbonization rules for all ships or <unk> as it's called and there is undoubtedly a lot of new buildings set for delivery, which will replace older tonnage.

Particularly the older inefficient steam generation of ships.

<unk> ships are therefore doing short haul in Asia, and less similar mechanism upward and faced in that region. The European Calvin tax will be applicable for ships planning into Europe. If the ships are bringing imports from outside the European emission trading at half the award, which will be applicable for carbon taxation in Europe. They can.

Carbon taxation will ramp up from 2023, when 20% of applicable emissions will be taxed.

This level in cases to 45% in 2024, 70% in 2025, and finally from trends to 26, and <unk> hundred percent of the applicable emissions will be taxed.

Slide 17, Covid. Despite recent progress on Covid. This remains a big challenge for the shipping industry, while vaccination of all out rapidly encased in Europe with Europe, surpassing U S. N vaccination levels fractionation levels in all the parts of the world remain low and that our questions.

Whether all vaccines have similar efficiency against the Delta values.

Only about 20% of LNG cargoes and up in Europe, Best mentioned, while about take waters and up in Asia, So a vaccination level and little friction and Asia is thus of more importance to the LNG industry.

Because of the lack of a vaccine all out in Asia to rotation remains very difficult to carry out in this region. We are therefore sale meeting a lot of obstacles scouting out two changes. Nevertheless, we work hard to minimize this share of seafarer, which our overview on the complex I think our onshore personnel and crew have Donald.

Mark will jump in this regard with 98% of Vascepa out us being on time. So once again. Thanks for your hard work vaccination levels of seafarers are also mixed a big share of our crew, our Philippine us and for them to get access to vaccines are providing more difficult than in the west with us drive to.

Take every advantage of vaccination of <unk> whenever possible and we are glad to see that the U S allows visiting <unk>.

It takes the vaccine when calling U S ports and terminals and this is something we have done for several of our ships now most recently <unk> where are we on August 4th.

Able to vaccinate 19 of our crew members when we load the cargo at the <unk> Port terminal by doing so in case. The <unk> estimated 223 out of 26 being fully vaccinated with one crew member being partly vaccinated.

In order to organize vaccinations, we need to call ports, where such vaccine vaccines are available and we do hope more context can make vaccines available to see if era as seafarers are key walk yields without shipping about 90% of good transportation will dial and then everybody will feel the pain, so let Sam.

Today's presentation the revenue.

<unk> of $65.8 million in line with guidance covers for 2021. The next couple of years is great. Although we keep exposure to the spot market for ships has mentioned dividend maintained at 40, but upside here in the second half of the year. When we expect revenues to bounce back after the usual seasonal low point in Q2.

All our ships are on the water and all of our ships on on higher we are positive the outlook ultra term and long term and finally, our balance sheet is in great shape with a big cash pile, enabling us through this with our free cash flow. So that's it.

Im happy to take some questions. So let's open up.

Operator.

Ladies and gentlemen, we will now begin the question and answer session and Thats. A reminder, if you wish to ask a question. Please press one on your telephone and wait for you.

Thank you Danielle.

Once again.

If you wish to ask a question.

Stephen will now take your first question and it comes from the line upfront Gubins from Jefferies. Your line is now open.

Howdy gentlemen, how's it going.

Hi, Randy Good you can make it I was thinking maybe Europe, we're obviously with some walkouts.

Yeah, Yeah and finish those earlier, but long time listener first time caller.

I guess two questions one on the share repurchase a minimum level or maximum level.

The last couple of quarters, you increased it by $2 a share this quarter quarter by $1 kind of what was the thinking of that $2.15, and where do you see your current NAV.

Yes, it's a good question.

Probably a $2.7 million of ships and add all the costs. Then you have to issue as stocks at $24 on the missing out on the dividend so.

I do think that the.

Yes.

Well above our book value of our stocks, which is around $16 <unk>.

<unk>.

No.

If you are bidding into onto that $310 million on ships.

It should be more than $20, but general you analysts I guess, you can come up with a lot of different estimates on this but as far as I can see from some of the analysts sending out there both today seems to be in that range.

In terms of the buybacks.

Why why at a certain level.

I think once we have financing in place for all the shifts in November and we have started to fail.

<unk> about the outlook.

Initiated a buyback.

Paul Graham because I had been saying for some time that the stock has been on black Friday prices for some time and.

So we implemented that in at that time I do think that the stockpile was planning at our own seven hour maybe around $8.708. So we've hit the threshold of Tam.

And you started to look better than the share price appreciated. So we moved the two trials and then fourth in.

And at least now we're getting into more sensible valuation.

With the stock recently trading at around $14, we increased it to <unk>.

In order to be able to.

I have the opportunity to buy the stock in there in the market.

That said of course, we do have our main principal shareholder John Fredrickson family, which has offtake today of around 47%. So so there are some limitations to how aggressive we can be on the buyback.

Yes.

We felt it sensible to two to increase the threshold to 15. So we can be in the market on days like this when the stock is not performing very well and.

And buying back the stock.

But in general of course, we do.

Paying dividends, so, but we're trying to do both and by increasing the threshold, we can do do a bit of both.

As I mentioned, where we do also think there is room to increase the dividend and in the second half of that.

Great I know very thorough answer there and then second and last question just around the Qatari tenders, maybe growth opportunities there or is that something flex is participating in what are your thoughts on those projects.

Now I of course, it's a fantastic project for the Qatar is as far as I understand that we will you will have a fairly competitive.

Production pipe.

It's a very efficient.

Phil.

We'll have the industry lowest call it the <unk>, so kind of the past.

Export terminal.

They will do this stood at 3 million tons first.

They power wall and 845 ships for that they have still 25, steamships, which they probably want to the best of that 70 ships and then they probably an 825.

Maybe even 30 ship for Golden pass <unk> hundred chips, and then of course, they are planning to that $6.4 million tons. So so thats. Another 25.30 ships. So so we are participating in that then we are looking into it.

Aye.

Of course, I think with our current stock price, which is well above now well below.

And of the placement cafes were knocked out that we will pursue growth unless.

It's attractive for us to do so and with the stock price, we have today and the implied valuation per ship.

We focus on the dividend and buybacks and so we will only only pursue it.

If it's accretive to our shareholders.

Yeah.

Got it alright, well, thanks again for having a good catching up.

Good good to hear from you around it.

Okay. We will now take our next question comes from the line of Greg Lewis from <unk> Your guidance.

I'll open.

Hey, Thank you Ina and good afternoon, everybody and he always essentially presentation always super helpful.

Was hoping for a little more color.

Slide 14.

I mean, clearly there has been a nice uptick in Charlotte or a.

Driven by the counter seasonal spot market.

Realizing you fixed for five years, so I guess a couple of questions here one is.

From a multi year contract you had how competitive was that.

Wasn't it wasn't.

Flex competing against.

Another another competitor was there.

I'm kind of curious any color around the competition for that and then just as we think about the one year time charter market clearly rates are higher.

Wade I'll pass along.

No.

Well the bulk market.

The last couple of months or a quarter versus what would be happening in that market.

Last the quarter before previously.

Yeah.

However try to.

To stop.

Giving you some answer.

First.

Yes.

I alluded to we have done some.

We have added significantly backlog.

But the last couple of months.

In April we did.

Four possibly five ships, which are in relation to that PA process.

Of course, all all these passes are competitive.

Charter's always try to do.

To get the best terms and so the Aaas.

But of course, that's not really that many old notes you can go to we have.

Five.

<unk> modern ships available in the market.

So of course, it's not like it's off.

Big tender with a lot of people because that's.

That's not really nobody else through good could give them.

Maybe with one or two exceptions, we give them.

That many ships in one go and I don't think antibody could have done it with delayed those kind of delivery slots that we have.

So of course, we have a dialogue with them and we.

I think we find.

Our deal that works well for us we could add the significant backlog were when we started the year, we had nine of authority and chips linked to the spot market.

So it was a good way for us to Derisk, our portfolio and we got obviously molybdenum on.

Equity.

And then of course since then.

By us doing that it also.

Kind of improve the sentiment in the term market because suddenly there was less available and also gas prices really rallied palma, a low of $5.5 as starting in March too.

$17 today. So so that's also increased willingness to pay for them and we added one more time chart now to more time charters inmate wonderful pump delivery flex constellation.

Well I think we got.

Great and then.

Since we don't have that many ships last fall.

Our open in 2021, we were able to fix for what our ship for delay.

Delivery.

Q1 next year. So that is also a good position for us.

It's usually a bit of the soft softer period of the air and we're fixing forward our ship for three to five years also on what I think it.

It's a good attractive return also so of course, that's been competition, but.

I think we said all along the way that one of the recent pause billing Anr ship management was in order to be in position to.

To act on these kind of opportunities when they have that item and we thought so that that might be the case in 39 for instance.

I dwelled into the in the past that wasn't.

That wasn't possible to achieve those kind of contract in that market, but in 2021, Mark has been firm a lot of term interest and then we have just act on those opportunities Derisking.

Our top position.

And just having a bit more stable income and thus, enabling us to pay dividends.

When it comes to the one year time charter rate its been fairly liquid I would say.

Recently asked us been considered cyclical Permian pass.

That stuff's been fewer and fewer ships available.

LNG rates had been picking up and more on a monthly basis had that implied pi for a one year time charter rate. That's just picked up and picked up and we all know at very good levels.

Where which implies that also.

So season will be good with <unk>.

Quotations now six months six to seven months of 130000 Boe.

Personally I think that's right.

Yes, we'll be moving higher than that but let's see.

But again I think for US it's been about.

Finding good charters give which gives us a good return derisk, our business and enabling us to to really pay juicy dividends.

Hi, Greg.

Sure.

Alright.

He got disconnected, Sir David will now take our next question and our next question comes from the line of Keay need here for a while.

Edge your line is open.

Hey, good afternoon, and congrats on an excellent quarter.

Good to hear from your JV, So what do you think.

Yeah, absolutely well I'm very happy you reported results exactly within your guidance, but apparently the market cannot read your Q1 slides, so thats kind of entertaining, but anyways you have an all time record high cash balances you have no capex required you don't really want to bid on the Qatari vessels or at least Thats, what I read between lines.

So how much cash do you think you need because right now I think it was $144 million how much do you think is a responsible amount of cash versus how much is available for repurchases or whatnot.

I think we have of course plenty of cash today and.

And.

This is a new all time high you have asked me in the past in the.

As I am as I mentioned during the presentation.

Some of our bank loans they have our R.

Our cash covenant, which would imply a minimum cash of $70 million. This.

FIFO all leases, but for the the ship finance on the bank loans.

This is the case, so $70 million and usually you would like to have some vessel on this.

And I will given how we have derisked our.

Our business of course is buffer or question needs to be less than probably in the past. So I think when we have discussed this before and I have alluded to having $100 million of cash in size away. At this factor we are positioned for ethanol, we have 44% higher than that so.

Sitting with a lot of cash in the.

That's why we are eager to.

Staff.

Yeah.

This little bit more to our shareholders through dividends and buybacks. So we certainly have more cash than we need.

Yes, it certainly seems that way you've got about 40 million extra cash as you kind of alluded to there.

You increased your repurchase authorization to $15 a share right now in the U S markets. I know you had a convert to Oslo and whatnot, but it trades about $14.20. So I was just curious you have 3 million more shares authorized to repurchase is there any appetite for something like say a $15 tender offer you can do 3 million shares at 15%.

$45 million that would take care of you our cash balance and it would also add at extreme value to shareholders.

Thoughts on that.

And it's something we consider in the Boston and we opted for this program.

November.

A couple of ways you can do it.

I think one with us after that in November.

We saw that the volatility in the stock price well.

Keeping a lot of investors awake at night.

<unk> coming into the market then my regulation on those such a buyback program, we can buy up to 25% of applicable volume. So you can buy 25% of the daily volume. This is calculated.

Over the last month or so so you can really come in and stabilize the share price to some extent.

And then you also get more information during the road I think in November a lot of analyst West.

Concerned about the 54 ships for delivery in 2021.

We were a bit more upbeat because we're very bullish on volumes.

Uh huh.

All 25 million tonnes expected increase in 2021, so I felt we started a bit we didnt want to scale of people that we were spending too much money on this and we have incrementally use this an incremental increase.

The test sold in order to in our last as we have seen.

Things have been turning either unbiased along the item and we bought back so.

So far 900000 stocks.

There are certain limitations that I mentioned and also to <unk>.

We have our shareholder which is a very big plus.

<unk> in the company of 47% by GAAP, Ron or George John traveling from families. So now.

Some implications if he goes to about 50%, which we would like to to avoid.

But so far we have just decided to buy back in the market and all the.

Pushing the dividends up.

Yes.

If we do see that disconnect I wouldn't rule out doing something.

More than than just buying in the market, but let's see Nols the stock.

The stockpile in America last night's close at $15.84 or so so it seems to be where the volatile these days.

Yes, good to talk you through as well.

Yes.

Okay.

Our next question and it comes from the line of.

No.

We do from shareholder your line is now open.

Great. Thank you I mean, im a private investor with you since the IPO.

Thanks, again for meeting your goals and being very transparent.

A lot of this year in a row.

Comp.

And that consumer trend grid lines on slide five.

Uh huh.

Okay, we will keep that in mind for future.

So my question is around your forecast.

Quarter, you gave at three months forecast.

This quarter you only give them too. So my question is when you look at slide four of your backlog.

Look at Q4 and one in Q you are about the same.

<unk>, who then.

Further that youre not giving.

Our forecast for Q1.

Yeah.

Hi.

Usually hit.

Historically, we have we have only provided guidance for the next quarter or so.

When we did all his contacts in April and May.

Add significant length to all.

Backlog. So we've helped in order for people to understand the economic rationale of this Sunday financial implications, we decided to do something we have not done in the past, which is actually to do guide for the rest of the <unk>. So we didn't guide just Q2, but also Q3 and Q4 so so.

We.

Presenting today, we basically have said that we repeat that guidance.

So we repeat the guidance we had last time, we have natural <unk>.

A little bit on the revenues, but more or less now they all have the same.

So we haven't really.

And have started a new.

Kind of principle of guiding the next three quarters.

But.

I'd say, it's a good point then.

Once we are reporting again in November.

Of course, we can consider trying to give.

Some more guidance on 2022, but keep in mind.

We do have ships on variable higher contract them.

And this as spot rates, which are feeding.

Feeding into these indexes tend to fluctuate quite a lot so.

So.

Once you are getting further down the road the variability in the revenues will of course increase.

It seems like the probability of a warm winter.

Lower given the 70% of linear but that's really.

Once youre getting very far into the future on these kind of things that the variability in the revenue guidance become much bigger in.

And then you kind of the value of providing it might become a bit less but.

We can have a look at it then maybe we can.

Provide some numbers on at least.

The number of days back booked for 2022, but as you can see from the fleet overview of that.

The coverage.

'twenty 'twenty, two 'twenty, three and even into 2004 was pretty high.

So I'm not suggesting that you do three quarters or more every time I was just curious to see what was different and I think you've answered. Thank you.

Okay. Thanks.

Okay. Once again, if you wish to ask a question.

Yes.

Yeah.

Once again.

If you wish to ask a question.

Okay I got one question by chance it was about the Drydock schedule. So some people were asking when do we have the dry dock on the ship so in general.

The rule is that your dry dock the ship every fifth yet.

In 2018, we had delivery of four ships. So they will be due for Drydocking then in 'twenty.

'twenty three.

We have two ships in 2019, which is due for booking.

Talking in 'twenty four.

Four ships in transit due for docking in.

25, and then three ships in 'twenty, one which is due for docking in 2026, so typically our drydocking take something between 15 to 20 days in the dark.

Costs.

Somewhere around two and a half to $3 million, depending on based on how well you are maintaining your ships during the operation.

So that's I hope that answer that question or did you have one more.

Okay.

Yes.

Okay with that I think we conclude today's presentation I wish you good day and thank you for listening in and we will be better than Q3 numbers as we have guidance, we expect higher revenues in Q3.

Probably presenting those in the middle of November So I hope you will join us. Thank you.

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