FLEX LNG Ltd. is an international maritime transportation company focused on the seaborne movement of liquefied natural gas. The company was incorporated in 2006 and is headquartered in Hamilton, Bermuda. Its common shares trade on the New York Stock Exchange under the symbol FLNG, and the company is also associated ...FLEX LNG Ltd. is an international maritime transportation company focused on the seaborne movement of liquefied natural gas. The company was incorporated in 2006 and is headquartered in Hamilton, Bermuda. Its common shares trade on the New York Stock Exchange under the symbol FLNG, and the company is also associated with a listing on the Oslo Stock Exchange. Flex LNG operates in the oil and gas midstream portion of the energy value chain, providing transportation infrastructure between LNG export facilities, import terminals, utilities, trading companies, and other energy customers.
The company’s core assets are 13 modern LNG carriers. These vessels were built at leading Korean shipyards and use newer two-stroke propulsion systems, including MEGI technology, intended to improve fuel efficiency and reduce emissions compared with older LNG carrier designs. The fleet’s large cargo capacity and modern specifications support long-distance LNG transportation and help the company compete for time-charter employment. Rather than primarily selling LNG itself, Flex LNG earns revenue by making vessel capacity available through charter contracts and by managing the commercial operation of its ships.
Flex LNG’s operating model is capital intensive. The largest components of its cost base and balance sheet typically relate to vessel ownership, ship financing, interest expense, depreciation, insurance, crew and technical management, maintenance, dry-docking, regulatory compliance, and voyage-related expenses. Because LNG carriers are high-value assets, the company carries substantial debt and financial leverage. The supplied trailing financial data indicates debt-to-assets of approximately 68.5%, debt-to-equity of about 2.54, and net debt to EBITDA of roughly 5.67. These figures highlight the importance of charter coverage, vessel utilization, refinancing access, interest-rate management, and disciplined capital allocation.
The supplied trailing data also shows strong reported operating margins, including an EBITDA margin of approximately 71.7% and a net profit margin of approximately 22.3%. Trailing free cash flow was reported at approximately $193 million on a free-cash-flow-to-firm basis, while the company reported a dividend of $3 per share and a dividend yield near 9.7% based on the referenced data. Dividend sustainability can vary with charter rates, contract timing, debt service, maintenance spending, taxes, and the shipping cycle, so the dividend should not be viewed as independent of operating and financing conditions.
Management is led by Halfdan Marius Foss, who joined the organization in 2018 and was promoted to chief executive officer in December 2025. With only nine reported full-time employees, Flex LNG functions as a highly asset-focused shipping enterprise and relies on specialized maritime, technical, commercial, and administrative capabilities. Its principal strategic objectives are generally to operate the fleet safely and efficiently, maintain attractive charter coverage, protect liquidity, manage leverage, preserve access to capital, and create shareholder returns. Key risks include LNG shipping-rate volatility, vessel downtime, counterparty exposure, changing environmental rules, financing costs, geopolitical disruption, and fluctuations in global LNG demand and supply.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$347.6M
-2.4%
+32.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$74.8M
-36.4%
+129.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+52.9%
-9.3%
+25.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+50.6%
-8.9%
+31.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+21.5%
-34.8%
+73.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$134.9M
-26.2%
+691.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+38.8%
-24.4%
+496.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
257.0%
+14.5%
+0.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.03x
+1.6%
-1.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
H. Foss: Welcome back to Flex LNG's Second Quarter 2026 Results Presentation. Hope you all have a great summer. My name is Marius Foss. I'm the CEO of Flex LNG. And today, I'm joined by our CFO, Knut Traaholt, who will walk you through the financials later in the presentation. Today, we will summarize the second quarter results and provide an update on the LNG shipping market. As always, we will conclude this webcast with a Q&A session.
Knut Traaholt: If you would like to ask questions, please use the chat functions on the webcast or send questions to -- by e-mail to ir@flexlng.com. Before we start, we would like to highlight the following. We are using certain non-GAAP measures such as TCE, adjusted EBITDA, and adjusted net income. These are supplements to the earnings reported in accordance with U.S. GAAP. The reconciliations of these non-GAAP measures are available in the earnings report released today. There are also limitations to the completeness of our presentation. Therefore, we encourage you to read the quarterly report together with today's presentation. And with that, back to you, Marius.
H. Foss: Thank you, Knut. Let's begin with the highlights of the quarter. We are happy to present very strong results for the second quarter. We sailed in revenues of close to $107 million or close to $103 million, excluding the EUAs. This is our second best quarter since the fourth quarter of 2021. The fleet average TCE during the quarter ended up at $86,100 per day. Net income for the second quarter came in at $44.9 million, implying an earnings per share of $0.83. When adjusting for unrealized gains and interest rates swaps and FX, we ended up with adjusted net income of $42.5 million or adjusted earnings per share at $0.79. Flex Artemis and Flex Volunteer have traded in a strong spot market in the second quarter and contributed to our solid quarterly results. We continue to see elevated geopolitical uncertainty in the LNG space as the conflict in Iran causes disruption to the LNG flow from the region. Lastly, with the dry docking of Flex Vigilant in June, we have completed all scheduled 5-year special surveys for our fleet. We maintain our full year guidance from last quarter and expect revenues to come in between $345 million and $370 million. Similarly, we expect the TCE to come in somewhere between $73,000 and $78,000 per day. We expect adjusted EBITDA to come in between $255 million and $280 million. With our strong quarter, contract coverage and solid balance sheet, the Board has declared another dividend of $0.75 per share. This is the 20th consecutive dividend of $0.75 per share, and we have now distributed around $850 million since 2021, including special dividends. Our last 12 months dividend is $3 per share, implying a dividend yield of around 9.7%. Flex Vigilant completed her dry dock in Denmark in June, and this was the third and final dry docking for 2026. The average cost per dry docking came in around $6 million per vessel as …
