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Flex LNG Reports Strong Fourth Quarter Earnings for 2025

Flex LNG Ltd. has released its financial results for the fourth quarter of 2025, demonstrating solid growth and resilience in the LNG shipping sector. For the three-month period ending December 31, 2025, the company reported vessel operating revenues of $87.5 million, an increase compared to $85.7 million in the previous quarter. This upward trend reflects the company's robust operational capabilities and strategic positioning in a competitive market.

Key Financial Metrics

The financial highlights from Flex LNG's fourth-quarter report are impressive. The company achieved a net income of $21.6 million, equivalent to a basic earnings per share of $0.40. This marks a notable improvement over the third quarter's net income of $16.8 million and basic earnings per share of $0.31. The average Time Charter Equivalent (TCE) rate for the fourth quarter stood at $70,119 per day, slightly lower than the previous quarter's rate of $70,921 per day.

Adjusted EBITDA for the quarter was $61.8 million, which is a marginal increase from $61.2 million in Q3 2025. Furthermore, the adjusted net income was reported at $23.3 million, showing a slight decline from $23.5 million in Q3 2025. The company's commitment to shareholder value remains evident with the declaration of a quarterly dividend of $0.75 per share, payable on or about March 12, 2026, to shareholders recorded as of February 27, 2026.

A Look at Full-Year Performance

CEO Marius Foss provided insights into the overall performance for the full year of 2025. The average TCE rate was recorded at $71,728 per day, consistent with the company's guidance of $71,000 to $72,000. The total adjusted EBITDA for the year reached $251.1 million, exceeding earlier projections of approximately $250 million.

Significantly, interest expenses for Flex LNG declined to $92.6 million for 2025, marking a reduction of $13 million from 2024, attributed to improved loan margins and strategic refinancing efforts undertaken in 2024 and 2025. This proactive management has strengthened the financial basis of the company, resulting in no debt maturities before 2029, along with a robust cash position of $448 million at the year-end.

LNG Market Insights

Looking ahead, Foss emphasized the compelling long-term outlook for the LNG market. With global LNG exports increasing by roughly 4% year-on-year to reach 429 million tons, North American projects were a significant contributor to this growth, showing a 25% increase compared to the previous year. The year 2025 is viewed as the beginning of a new phase in liquefaction capacity with 70 million tons per annum of new projects having reached Final Investment Decision (FID).

However, challenges remain in the short to medium term, primarily due to the delivery of new vessels in conjunction with the upcoming liquefaction projects. The company anticipates continued volatility in the spot market over the next 12 to 18 months. Notably, their existing contract backlog ensures earnings visibility, extending from a minimum of 50 years and potentially up to 75 years if all charterers exercise their extension options.

Financial Guidance for 2026

As the company prepares for 2026, it acknowledges the softer market conditions anticipated for spot-exposed ships, leading to wider ranges for TCE, revenues, and adjusted EBITDA projections. Nevertheless, Flex LNG has fortified its balance sheet through significant refinancing, and it is set to strategically navigate the market conditions ahead.

Overall, Flex LNG has demonstrated resilience, strong financial performance, and a solid plan for growth amid a changing landscape in the LNG sector. The commitment to return value to shareholders through dividends underscores the company’s confidence in its ongoing operations and future potential.

For further details, a live video webcast discussing the financial results and additional company insights will take place, highlighting Flex LNG's strategic guidance and future prospects.