1 | 2017 1 | 2017 2018 | 1

Interim Report Presentation

Period ending 31 December 2018

28 February 2019

2 | 2017 2 | 2017 2018 | 2

• THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTATION PURPOSES

AND DOES NOT PURPORTE TO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN.

• THE PRESENTATION DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SECURTIEIS. THIS

PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON.

• NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION INCLUDED HEREIN IS GIVEN BY

THE COMPANY, AND THAT NOTHING CONTAINED IN THIS PRESENTATION IS OR CAN BE RELIED UPON AS A PROMISE OR REPRESENTATION BY THE COMPANY, WHO

DISCLAIM ALL AND ANY LIABILITY, WHETHER ARISING IN TORT OR CONTRACT OR OTHERWISE.

• THE PRESENTATION SPEAKS AS OF THE DATE SET OUT ON ITS FRONT PAGE. THE COMPANY DOES NOT INTEND TO, OR WILL ASSUME ANY OBLIGATION TO, UPDATE

THE PRESENTATION OR ANY OF THE INFORMATION INCLUDED HEREIN.

• THE CONTENTS OF THE PRESENTATION ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL ADVICE. EACH

RECIPIENT SHOULD CONSULT WITH ITS OWN PROFESSIONAL ADVISORS FOR ANY SUCH MATTER AND ADVICE.

• AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE

COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY

STATEMENTS AND INFORMATION IN THIS PRESENTATION.

• THE PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE

COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES, SOMETIMES IDENTIFIED BY THE WORDS "BELIEVES”, "EXPECTS”, “INTENDS”, “PLANS”, “ESTIMATES” AND

SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION, INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE

COMPANY OR CITED FROM THIRD PARTY SOURCES, ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER

FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. THE COMPANY DOES NOT PROVIDE ANY

ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS NOR DOES THE COMPANY ACCEPT ANY

RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THE PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED

DEVELOPMENTS. NO OBLIGATION IS ASSUMED TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFORM THESE FORWARD-LOOKING STATEMENTS TO

ACTUAL RESULTS.

• THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE

JURISDICTION OF THE NORWEGIAN COURTS.

Disclaimer

3 | 2017 3 | 2017 2018 | 3

Highlights

• Flex LNG reports fourth quarter Revenues of $36.1m in line

with guidance of approx. $35m.

• Significantly improved EBITDA and Net Income of $28.3m

and $15.2m versus $12.7m and $1.2m respectively in third

quarter.

• In connection with a $300m equity raise in October 2018, Flex

LNG acquired five additional LNGCs bringing the fleet size to

13 vessels including newbuildings.

• $250m attractive bank financing secured for Flex

Constellation and Flex Courageous scheduled for delivery in

June and August.

• From very tight market in fourth quarter to soft market in first

quarter. We expect tighter market during 2019 due to glut of

LNG coming online.

• Financial numbers for first quarter 2019 expected to be in line

with third quarter 2018 due to lower headline rates and

utilization.

4 | 2017 4 | 2017 2018 | 4

Unique fleet comprising of 13 modern large 5th generation LNGCs

ME-GI X-DF ME-GI with Full

Reliquefaction System

ME-GI with Partial

Reliquefaction System

High Pressure Low pressure

Endeavour (2018)

Courageous (2019)

Freedom (2020)

Vigilant (2021)

ME-GI and X-DF vessels are the most fuel-efficient and technically advanced LNGCs

Source: Company

Enterprise (2018)

Ranger (2018)

Rainbow (2018)

Constellation (2019)

Resolute (2020)

Reliance (2020) Aurora (2020)

Amber (2020)

Volunteer (2021)

Initial Flex LNG LNGCs

Acquired in 2017:

$329m equity issued Acquired in 2018: $300m equity issued

5 | 2017 5 | 2017 2018 | 5

46

Port

calls

13.9kts ballast

Average

Speed

15,9kts laden

48%

time

spent

laden

0% technical

off-hire 3,334,402cbm

Cargo

78,358,447

MMBTU

TRCF: 0

LTI: 0

LTIF: 0

66 Ship Shore

Compatibility

Studies

The year in numbers illustrate first class operational performance

130,524 NM Ballast

Distance

130,222 NM Laden

Circumference of Earth: 21,639 NM

0%

Sick

leave

Source: Company

6 | 2017 6 | 2017 2018 | 6

Income Statement

• Revenues of $36.1m in line with guidance of approx. $35m implying fleet TCE of about $95kpdr and

spot earnings of about $130kpdr

• Increased revenues due to burgeoning spot marked, with all-time high charter rates reported

• Net income of $15.2m and $11.8m for fourth quarter and full year 2018 respectively

Unaudited Figures in USD, 000 Q4 2018 Q3 2018 YTD 2018

Voyage revenues 36 101 19 008 77 209

Voyage related costs -5 977 -5 167 -26 161

Administrative expenses -1 781 -1 132 -4 639

EBITDA 28 343 12 709 46 409

Depreciation -6 872 -5 477 -17 412

EBIT 21 471 7 232 28 997

Finance income 283 72 607

Finance cost -6 511 -6 124 -17 781

Other financial items -17 -1 -54

EBT 15 226 1 179 11 769

Income tax 12 - 10

Net Income (loss) 15 238 1 179 11 779

7 | 2017 7 | 2017 2018 | 7

• Balance sheet consist of four vessels on the water and nine newbuildings under construction

• Vessel purchase prepayments of $421m relates to the nine newbuildings

• Total interest bearing debt of $455m of which $23m is due next 12 months

• Equity ratio of 64% and very solid liquidity situation given availability of $270m Sterna RCF

Balance Sheet

Unaudited Figures in USD, 000 YE 2018 YE 2017 YE 2018 YE 2017

Newbuildings and capitalized costs 0 594 937 Share capital 5 410 3 680

Vessel purchase prepayment 421 472 72 000 Share premium 1 189 665 885 323

Vessels 812 489 3 Other equity -367 751 -368 902

Total non-current assets 1 233 961 666 940 Total equity 827 324 520 101

Other financial liabilities 431 602 160 000

Total non-current liabilities 431 602 160 000

Inventory 915 1 041

Other current assets 4 413 6 568 Current portion of long-term debt 23 365 0

Cash and cash equivalents 55 097 9 961 Current liabilities 12 095 4 409

Total current assets 60 425 17 570 Total current liabilities 35 460 4 409

Total liabilities 467 062 164 409

TOTAL ASSETS 1 294 386 684 510 TOTAL EQUITY AND LIABILITIES 1 294 386 684 510

8 | 2017 8 | 2017 2018 | 8

Cashflow

• Positive operational cashflow of about $23m

and $ 34m for the fourth quarter and 2018

respectively

• About $ 234m of newbuilding capex in

connection with deliveries during 2018

• About $7m each for Flex Endeavour/Enterprise

• About $110m each for Flex Ranger/Rainbow

• Prepayment of $275m in connection with

acquisition of five newbuildings in October

2018 in connection with the $300m private

placement of new shares

• Raised $ 472.5m of external finance through

bank loans and Rainbow SLB during 2018

• Repaid Sterna RCF in full (outstanding $160m

at beginning of year)

• Thus $270m is currently available under this

facility

Unaudited Figures in USD, 000 Q4 2018 YTD 2018

Net Income (loss) 15 226 11 769

Working capital adjustments 1 320 4 918

Other non-cash items 6 839 17 392

Net cash flow from operating 23 385 34 079

Newbulding capex 1 010 -233 550

Advanced payment for newbuilding assets -275 400 -349 000

Net cash flow used in investing -274 390 -582 550

Net proceeds from issue of shares 295 311 295 311

Net proceeds from issuance of debt - 584 613

Repayment of debt -5 906 -286 069

Other 123 -248

Net cash flow from financing 289 528 593 607

Net cash flow 38 523 45 136

Cash balance at the beginning of period 16 574 9 961

Cash balance at the end of period 55 097 55 097

9 | 2017 9 | 2017 2018 | 9

Attractive take-out financing secured for 2019 deliveries

• $250m post-delivery bank financing secured for Flex Constellation

and Flex Courageous scheduled for delivery June and August 2018

• Blue-chip terms and conditions

• Interest rate of Libor+235bps (margin)

• Loan tenor of five years and repayment profile of 20 years

• Gives attractive average cash break-even of about $45kpdr given

prevailing interest rate level

• Flexible covenants for flexible employment strategy

• No requirement for fixed employment of vessels enabling us to

opportunistically employ the vessels as we see fit

• No financial covenants directly linked to earnings of vessels

• Financial covenants linked to book equity >25%,

• Minimum free liquidity > $25m and 5% NIBD, and

• Positive consolidated WC

• Financing is subject to execution of definitive documentation

and satisfaction of customary closing conditions which is

expected to be finalized by April 2019

10 | 2017 10 | 2017 2018 | 10

136

100 125

30

6

0

20

40

60

80

100

120

140

160

Averageremaning capex

Availableliquidity

Funding needper vessel

Bank leverage

Well capitalized for remaining newbuildings

728

918 146

275

1 225

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Newbuilding capex Pre-paid capex Remaning capex

0 9 18

27 36

45 54

0

10

20

30

40

50

60

TCE50kpdr

TCE75kpdr

TCE100kpdr

TCE125kpdr

TCE150kpdr

TCE175kpdr

TCE200kpdr

$325m of available liquidity $421m of capex pre-paid

Leverage of $100-135m demonstrated And high FCF potential for our LNGCs

$m $m

$m per

vessel

55

270

325

0

50

100

150

200

250

300

350

Cash 31.12.18 Sterna RCFavailability

Available liquidity

$m per

vessel

11 | 2017 11 | 2017 2018 | 11

Freight market has been volatile this winter

• Charter rates for dual fuel 2 stroke LNGC (5th gen) gone from peak of $220kpdr to currently $60kpdr

• Ballast bonus terms considerably less favourable than during start of winter when we could achieve TCEs

above headline rates

Source: SSY, Affinity, Fearnleys and Company

-

50 000

100 000

150 000

200 000

Jan-1

4

Jul-1

4

Jan-1

5

Jul-1

5

Jan-1

6

Jul-1

6

Jan-1

7

Jul-1

7

Jan-1

8

Jul-1

8

Jan-1

9

Spot $/Day

145 cbm steam 160 cbm TFDE 174 cbm DF-2S

Spot Market, daily rates ($)

Type of vessel Atlantic Middel East Pacific

174 cbm 2-stroke 63 000 58 000 58 000

160 cbm TFDE 47 000 42 000 42 000

145 cbm ST 34 000 29 000 29 000

Ballast Bonus

Fuel + 50% Hire

to Hub Fuel only Fuel only

Available vessels per basin

12 | 2017 12 | 2017 2018 | 12

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

20,00

Jan-1

4

Jul-1

4

Jan-1

5

Jul-1

5

Jan-1

6

Jul-1

6

Jan-1

7

Jul-1

7

Jan-1

8

Jul-1

8

Jan-1

9

Henry Hub NBP JKM JKM % Brent (RHS)

And the same is the case for the product market

• Well supplied LNG market due to new capacity and warm winter has resulted in low gas prices throughout

the winter season 18/19. JKM now at 17 months low and 3 year low versus Brent price.

• Due to higher European carbon prices and ample LNG supply, the spread between JKM and NBP/TTF has

been very narrow

Source: Kpler, Bloomberg, Shell and Company

13 | 2017 13 | 2017 2018 | 13

0 1 2 3 4 5

Qatar

Russia

Nigeria

Algeria

USA

Norway

Peru

Winter 17/18 Winter 18/19*

What was different this winter

• Historically, Asian LNG prices (JKM) has been trading at a premium to European gas prices (NBP/TTF)

• This spread adjusted for the cost of shipping is called the JKM netback

• During this winter season, the spread has been negative meaning it’s uneconomical to shift LNG to Asia

• High relative European gas prices and negative JKM netback have resulted in a spike of LNG from US

(≈450%) and Russia (≈350%) routed to Europe meaning lower ton/mileage

Source: Platts, Bloomberg and Company

Continental European LNG import destinations

* Cumulative figures Oct-Mar. Winter 18/19 numbers from 1 Oct to 24 Feb 2019

Up 450% and counting

Up 350% and counting

14 | 2017 14 | 2017 2018 | 14

El Nino conditions have resulted in higher temperatures in Pacific

Source: Australian Bureau of Metrology

Sea Surface Temperature in Pacific

November 2018 December 2018 January 2019

15 | 2017 15 | 2017 2018 | 15

Glut of LNG coming to the market

Source: Bloomberg, Kpler and Company

Year on Year Change LNG Export Volumes Post FID AND Likely LNG Export Projects

0

100

200

300

400

500

600

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

North America Other Russia Africa

Indonesia Malaysia Australia Qatar

Mmtpa

(10)

(5)

-

5

10

15

20

25

30

35

40

2019 2020 2021 2022 2023 2024 2025

Other

NorthAmerica

Russia

Africa

Indonesia

Malaysia

Australia

Qatar

Mmtpa-Post FID

16 | 2017 16 | 2017 2018 | 16

Few available vessels before 2020

• We have registered 103 LNGC orders for delivery in the period until 2021 including 6 Arc 7 LNGCs

• About 38 vessels in total scheduled for delivery in 2019 as eight vessels delivered so far in Q1

• Very limited open vessels before mid-2020

• Increased sailing distances supportive of LNGC demand

Order book for large LNG carriers Average sailing distances (laden)

Source: Fearnleys, Clarksons, DNB and Company

3 600

3 800

4 000

4 200

4 400

4 600

4 800

Nau

tica

l M

iles

2 1

2 1

7

5 6

12

8

6

2

8

9

6 3

2

7

4

6

1

2

2

1

0

2

4

6

8

10

12

14

16

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2019 2020 2021

Committed Open

# V

esse

ls

17 | 2017 17 | 2017 2018 | 17

Tonnage demand by key LNG export areas

~1,4 x Vsl

~2,2 x Vsl ~1,5 x Vsl

~2,2 x Vsl

~0,8 x Vsl

~1,2 x Vsl

# of Vessels needed to deliver 1 MT of LNG

gradually increasing as especially US and

Northern Russia (winter) volume grows.

2018/2019 the multiplier is expected to increase

by 2,5%, absolute volume by 9%, fleet by ~10%

Source: Poten, Kpler and Company

2018

New Export MT

2019E

New % split

Supply Country / Region % of Supply Multiplier

Vessel

Demand

Africa 10 % 1,46 0,70 9 %

Australia 22 % 1,16 10,5 12,2 21 %

Qatar 24 % 1,39 23 %

South East Asia 15 % 0,83 14 %

U.S. 7 % 2,19 15,0 32,9 10 %

Row 22 % 1,50 7,0 15,4 23 %

Volume weighted multiplier 1,34 33,2 60 1,37

15%

74%

10% 11%

54% 35%

Americas Asia/MiddleEast

Europe

US LNG destination

Q4-17 Q4-18

18 | 2017 18 | 2017 2018 | 18

Summary and outlook

• Delivered on financial guidance for fourth

quarter with Revenues of $36.1m and Net

Income for the quarter of $15.2m

• Secured financing for the two 2019 LNG

newbuildings at attractive terms

• Expect first quarter numbers to be in line with

third quarter due to soft market early 2019

• Very favorable fundamentals for LNG

transportation

• Flex LNG well positioned with a fleet of 13

modern LNGCs

19 | 2017 19 | 2017 2018 | 19 19 | 2018

Q&A