#financial results #Flex LNG #Bermuda #Hamilton #LNG Shipping

Flex LNG's Third Quarter 2026 Earnings Report

Flex LNG Ltd., a prominent player in the LNG shipping sector, has announced its unaudited financial results for the third quarter of 2026, marking a significant moment for the company as it reports its strongest earnings ever for this period. The report, delivered on November 11, 2026, showcases both challenges and accomplishments as the company navigates the fluctuating landscape of the LNG market.

Key Highlights

In the third quarter of 2026, Flex LNG recorded vessel operating revenues totaling $97.4 million, a slight decrease from the $106.8 million from the previous quarter. Despite this drop, the company reported a net income of $42.8 million, resulting in basic earnings per share of $0.79, down from $44.9 million and $0.83 respectively in Q2.

The Average Time Charter Equivalent (TCE) rate was reported at $78,875 per day, significantly lower than the $86,119 seen in the second quarter. Adjusted EBITDA was placed at $72.1 million, compared to $79.0 million previously. Furthermore, adjusted net income for the quarter stood at $35.0 million with adjusted earnings per share of $0.65.

Dividends and Shareholder Returns

Demonstrating its commitment to shareholders, Flex LNG declared a dividend of $0.75 per share for the third quarter, a move that reflects ongoing confidence in the company’s financial health. The dividend is set to be paid around December 10, 2026, to shareholders on record by November 27, 2026. This marks the 21st consecutive quarterly dividend to shareholders, highlighting an aggregate distribution of approximately $41 million. Since 2021, the company has returned over $900 million to its shareholders through regular and special dividends.

CEO Comments

Marius Foss, CEO of Flex LNG Management AS, expressed optimism despite the current market conditions. He pointed out that the fleet achieved remarkable revenues of $97.4 million, underscoring continuous strong performance. Foss acknowledged ongoing contributions from vessels such as Flex Volunteer and Flex Artemis, which sustained solid earning rates from spot charters. These vessels are currently being marketed for long-term charters while remaining active in spot and short-term markets until suitable arrangements are finalized.

Market Outlook

Looking ahead, Foss emphasized that the spot freight market could see continued volatility due to pending vessel deliveries and fluctuations in LNG exports from the Middle East. He noted the critical implications of geopolitical factors, including the reopening of the Strait of Hormuz and the stabilization of Qatari LNG supplies. These components, coupled with the potential impact of the El Niño climate pattern and shifts in regulations regarding Russian LNG imports to the EU, will be crucial in shaping future market dynamics.

Strategic Financial Adjustments

Flex LNG is also engaging in strategic financial maneuvers to bolster its position. An amendment to the lease financing for Flex Artemis and Flex Amber has been initiated, aimed at reducing financial burdens and extending repayment timelines. Additionally, a favorable sale and leaseback agreement for Flex Enterprise will help mitigate debt obligations that are due in 2029, further optimizing the company's cost of debt.

Conclusion

In a challenging but opportunistic market, Flex LNG’s robust Q3 results and strategic adjustments pave the way for a resilient and forward-looking approach in the LNG shipping arena. The committed teamwork and operational dedication within the company, coupled with strong support from stakeholders, position Flex LNG to navigate the complexities of the energy market effectively.

As the company prepares to hold a live video webcast at 1500 CET (0900 EST), stakeholders and interested parties are invited to join and gain further insights into Flex LNG’s future direction and performance strategies. For more details on this event, they can visit the company’s official website.