Flex LNG Announces Financial Results for Second Quarter 2025
Flex LNG Announces Financial Results for Second Quarter 2025
Flex LNG Ltd. has released its financial results for the second quarter of 2025, covering the six-month period ending June 30. This quarter has been marked by operational achievements and strategic financing initiatives.
Financial Highlights
In Q2 2025, the company reported vessel operating revenues of $86.0 million, which reflects a slight decrease from $88.4 million in Q1 2025. The net income for this quarter stood at $17.7 million, translating to a basic earnings per share (EPS) of $0.33, compared to the prior quarter's $18.7 million net income and $0.35 EPS. The average Time Charter Equivalent (TCE) rate was approximately $72,012 per day, a decrease from $73,891 in Q1. However, adjusted EBITDA remained robust at $62.6 million for the quarter.
Operational Efficiency and Drydocking
The company successfully completed drydockings for its vessels Flex Aurora and Flex Resolute in June and July 2025, respectively. Both vessels returned to service ahead of schedule, showcasing the company’s ability to manage operations efficiently. The slight overrun on Flex Aurora’s drydocking costs was due to strategic decisions made to align her survey with the loading schedule.
Financing Strategy
A significant milestone for Flex LNG this quarter included signing a $180 million term loan facility for Flex Constellation with an international shipping bank. This loan features a competitive tenor of 15.5 years with repayments based on a 25-year profile for the first 7.5 years before shifting to a shorter profile. Additionally, in May, the company executed a sale and leaseback agreement for the Flex Courageous vessel worth $175 million.
In line with further financing strategy, a sale and leaseback arrangement for Flex Resolute is anticipated, which is expected to conclude in September 2025.
Share Buyback and Dividends
The Board of Directors has authorized a $15 million share repurchase program for its outstanding shares listed on the New York Stock Exchange and the Oslo Stock Exchange, valid until November 27, 2025. Furthermore, a quarterly dividend of $0.75 per share has been declared, payable on or around September 18, 2025.
CEO Statement
Marius Foss, the Interim CEO of Flex LNG, highlighted that despite the seasonal softness in the second quarter that is typical for the company, they have managed to maintain steady revenues amid fluctuating market conditions. He noted, “Our minimum 56-year charter backlog, which could extend to 85 years, places us in an advantageous position to seize attractive financing opportunities.”
Market Outlook
As the market braces for the third quarter, Flex LNG anticipates the demand in the LNG sector to stabilize, bolstered by a remarkable cash position of $413 million and no upcoming debt maturities until 2029. The management is optimistic about leveraging their solid performance and operational backlog to navigate through any market volatility that may arise.
Flex LNG also announced that it would discontinue listing its shares on the Oslo Stock Exchange, emphasizing a renewed focus on the New York Stock Exchange.
For more details, a video presentation will be held today at 1500 CEST (0900 ET), where the additional insights into the financial results and future prospects will be shared. Questions can be submitted to the management during the Q&A session following the presentation.
In summary, Flex LNG continues to demonstrate strong operational control and robust financial health, setting a solid foundation for future opportunities in the LNG shipping market.
Topics General Business）
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