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Flex LNG - First Quarter 2026 Earnings Release

Flex LNG Ltd. recently announced its financial results for the first quarter of 2026, reflecting a combination of seasonal trends and significant geopolitical events influencing the global liquefied natural gas (LNG) shipping industry. With quarterly vessel operating revenues of approximately $80.5 million, the company noted a decline from $87.5 million in the previous quarter ending in December 2025. This decrease was attributed to typical seasonal lows observed in the LNG shipping market during this timeframe, which aligns with historical patterns.

Financial Overview

The first quarter brought a net income of $19.5 million, equating to basic earnings per share of $0.36. This also marked a reduction compared to the last quarter, where net income reached $21.6 million with earnings of $0.40 per share.

In terms of performance metrics, the Average Time Charter Equivalent (TCE) rate settled at $65,729 per day, down from $70,119 per day recorded in the last quarter. Adjusted EBITDA stood at $53.2 million, down from $61.8 million previously reported. Furthermore, adjusted net income dropped to $16.9 million from the prior quarter's $23.3 million, with adjusted earnings per share falling from $0.43 to $0.31.

Marius Foss, CEO of Flex LNG Management AS, attributed these figures to a softer market environment marked by increased voyage expenses, alongside the positioning costs of open ships amid a challenging shipping landscape. However, the geopolitical climate shifted dramatically following the outbreak of conflict in Iran, which began in late February. This escalation caused spot rates to surge from their cyclical lows in February to over $250,000 per day as supply disruptions in Qatar and the closure of the strategically critical Strait of Hormuz led to significant dislocations in global LNG markets.

Market Dynamics and Future Guidance

Amid these market shifts, Flex LNG reported that it had two vessels engaged in the spot market, and the re-delivery of the Flex Aurora in March allowed the company to capitalize on the tightening market conditions. They successfully secured a two-year contract for the Flex Aurora while placing Flex Volunteer and Flex Artemis on short-term contracts as they await improvement in market rates. The companies also announced that contracts for Flex Resolute and Flex Courageous are secured until 2032, with potential extensions to 2039.

Looking forward, Flex LNG has adjusted its full-year guidance for 2026. The anticipated revenues, excluding emissions allowances (EUAs), are now projected to range between $345 million and $370 million, representing an approximate 10% increase compared to prior forecasts. The fleet-wide TCE rate is expected to be in the range of $73,000 to $78,000 daily, reflecting around an 8% increase. Additionally, the adjusted EBITDA is anticipated to rise between $255 million and $280 million, indicating an 11% increase from earlier estimates.

CEO Marius Foss underscored the importance of safety for their crew, particularly during heightened geopolitical tensions. Flex LNG’s vessels did not operate within the Strait of Hormuz during the conflict, ensuring that all personnel remained safe throughout. The company’s commitment to safety is highlighted in their 2025 ESG report, released alongside the earnings announcement, which reports a zero Lost Time Injury Frequency (LTIF) for the second consecutive year.

Dividends and Shareholder Returns

The board of Flex LNG has also declared a quarterly dividend of $0.75 per share, amounting to total distributions of approximately $41 million. This marks the 19th consecutive quarterly dividend declared by the company, with the total return to shareholders since 2021 now exceeding $810 million. Shareholders can expect the dividend to be payable around June 11, 2026, to those on record by May 29, 2026.

As the LNG market evolves and addresses challenges posed by geopolitical developments, Flex LNG is positioned to adapt and grow, continuing its commitment to fiscal responsibility and shareholder returns while prioritizing safety and sustainability in operations. Streamed presentations regarding the earnings report serve as an informative platform for investors and stakeholders, highlighting Flex LNG's strategic decisions and forward outlook.

For further details, investor relations can be contacted directly at Flex LNG, where additional resources and reports are available for review.