An analyst asked about business trends for the month of July.
CFO Sean Quinn adhered to company policy of not commenting on intra-quarter performance. However, he noted that the performance for the quarter-to-date was factored into the FY26 guidance provided. He added that the company was on track with its plans for the first month and, importantly, that the product mix was also consistent with expectations.
An unnamed analyst asked for the rationale behind withdrawing the company's long-term guidance, questioning if it was solely due to tariffs or if other fundamental business views had changed.
CFO Sean Quinn stated that the decision to withdraw guidance was specifically and solely due to the uncertainty of the tariff and trade environment and its potential impact on demand. He clarified that nothing has fundamentally changed about the company's long-term strategy or business objectives, and that providing a short-term forecast in the current environment would not be helpful.
An analyst requested more details on the variable hire contract with Gunvor, which is nearing the end of its firm period.
CEO Øystein Kalleklev clarified the 5-year variable charter's rate is set per voyage between a floor and a ceiling, pegged to spot rates for modern ships. The charterer, Gunvor, has five single-year extension options on a similar index basis. A decision on the extension is expected closer to the August 2025 maturity.
An unnamed analyst inquired about the company's forward-looking strategy for optimizing its interest rate derivatives.
CEO Øystein Kalleklev stated that after realizing significant profits ($127 million since 2021) from its past interest rate swap strategy, the company will remain opportunistic. With most gains now crystallized, the focus will be on monitoring the market for attractive levels to potentially increase the hedge ratio again, especially as long-term rates have recently fallen. Kalleklev mentioned that FLEX LNG would look for windows of opportunity, similar to how they capitalized on market distress during the Silicon Valley Bank collapse, to secure favorable terms.