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Flex LNG Ltd. (“Flex LNG” or the “Company”) today announced its unaudited
financial results for the six months ended June 30, 2025.
Highlights:
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Vessel operating revenues of $86.0 million for the second quarter 2025,
compared to $88.4 million for the first quarter 2025.
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Net income of $17.7 million and basic earnings per share of $0.33 for the
second quarter 2025, compared to net income of $18.7 million and basic earnings
per share of $0.35 for the first quarter 2025.
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Average Time Charter Equivalent (“TCE”) rate of $72,012 per day for the second
quarter 2025, compared to $73,891 per day for the first quarter 2025.
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Adjusted EBITDA of $62.6 million for the second quarter 2025, compared to
$65.6 million for the first quarter 2025.
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Adjusted net income of $24.8 million for the second quarter 2025, compared to
$29.4 million for the first quarter 2025.
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Adjusted basic earnings per share of $0.46 for the second quarter 2025,
compared to $0.54 for the first quarter 2025.
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In June and July 2025, we successfully completed our scheduled drydocking for
Flex Aurora and Flex Resolute, respectively.
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In May 2025, we signed and completed a sale and leaseback agreement with an
Asian-based lease provider for the vessel, Flex Courageous. Under the terms of
the agreement, the vessel was sold for a consideration of $175.0 million, with a
bareboat charter back of 10 years, as previously announced. The Company repaid
the full amount outstanding for Flex Courageous under the $320 Million Sale and
Leaseback.
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In July 2025, we signed a $180.0 million term loan facility in respect of Flex
Constellation with an international shipping bank. The $180 Million Facility has
a 15.5 year tenor and an interest rate of SOFR plus a margin of 165 basis
points. The repayment of the facility is based on a 25 year age-adjusted
repayment profile for the first 7.5 years, and thereafter follows a 22 year
profile until maturity, when the facility is fully repaid. In August 2025, we
prepaid the full amount outstanding relevant to Flex Constellation under the
$320 Million Sale and Leaseback. The new facility is expected to be drawn down
in September 2025.
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In August 2025, we signed a sale and leaseback agreement with an Asian-based
lease provider for the vessel, Flex Resolute. Under the terms of the agreement,
the vessel will be sold for a consideration of $175.0 million, with a bareboat
charter back of approximately 10 years. The new financing is expected to be
completed in September 2025, subject to final documentation and customary
closing conditions.
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The Board of Directors has authorised a share repurchase program that allows
the Company to repurchase up to $15 million of its outstanding shares listed on
the New York Stock Exchange (“NYSE”) and the Oslo Stock Exchange (“OSE”), which
is valid through November 27, 2025. The manner, timing, pricing and amount of
the repurchases under the program (if any) will be subject to the discretion of
the Company and may be based upon a number of factors, including market
conditions, and in accordance with applicable rules and regulations.
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The Company declared a dividend for the second quarter 2025 of $0.75 per
share. The dividend is payable on or about September 18, 2025 to shareholders,
on record as of September 5, 2025.
Marius Foss, Interim CEO of Flex LNG Management AS, commented:
"We are today reporting second quarter revenues of $86 million, or $84 million
excluding EUAs, with a TCE of approximately $72,000/day, almost unchanged from
last year’s second quarter revenues of $84.7 million. Although the second
quarter is historically the weakest of the year, spot earnings bottomed out in
the first quarter, making 2025 one of the rare years where Q2 rates exceeded Q1
levels. However, the spot market remained soft. This affected the quarterly
earnings for Flex Artemis, which is on a variable charter, as well as Flex
Constellation, which is trading in the spot market before she commences a 15
-year time charter in the first half of 2026. Vessel OPEX was in line with our
guidance, and net income for the quarter was $17.7 million, implying an EPS of
$0.33 per share, with adjusted net income of $24.8 million, equivalent to
adjusted EPS of $0.46 per share.
During June and July, we completed the five-year special surveys for Flex Aurora
and Flex Resolute. Both drydockings were finished well ahead of our guided 20
days of off-hire, demonstrating our ability to minimize off-hire periods. Flex
Aurora’s drydocking cost came in slightly above budget due to her five-year
special survey being conducted in Denmark, which was a deliberate choice aligned
with her loading schedule. This enabled a faster return to service with the
charterer, partly offsetting the higher costs. Looking ahead, Flex Artemis and
Flex Amber are scheduled for their drydockings in Singapore in the third
quarter. These drydockings are a great testament to the dedication and
professionalism of our technical team and the committed crew on board. We
sincerely appreciate their outstanding efforts and safe execution throughout the
process.
Due to our minimum 56 year charter backlog, potentially extending to 85 years
including charterers’ optional periods, we enjoy access to highly attractive
financing opportunities. We are pleased to announce the completion of
documentation for two new financing facilities for Flex Resolute and Flex
Constellation. We have secured a new $175 million JOLCO lease for Flex Resolute.
This transaction mirrors the JOLCO lease for Flex Courageous, which we announced
in the first quarter and was completed in May. In addition, we have obtained a
very competitive bank loan facility of $180 million for Flex Constellation.
These refinancings will extend our debt maturities, reducing our cost of
financing, and realizing around $132 million in proceeds from the Balance Sheet
Optimization Program 3.0.
The OSE has approved the delisting of the Flex LNG stock, and the last day of
listing will be September 15 this year. After this date, the Flex LNG stock will
be listed exclusively on the NYSE.
We are today announcing the launch of a share buy-back program of up to $15
million. The share buy-back program will last until the Q3-2025 earnings release
date, currently set to November 27, 2025. Any purchase under the share buy-back
program is made independently of any dividend considerations.
With solid earnings, a substantial backlog, and a fortress balance sheet with
$413 million in cash and no debt maturities prior to 2029, the Board is pleased
to declare another quarterly dividend of $0.75 per share, equivalent to
approximately $41 million. This brings our trailing twelve-month dividend to
$3.00 per share. It also marks our sixteenth consecutive ordinary quarterly
dividend of $0.75, and when including special dividends, we will have returned
approximately $690 million to shareholders since Q4 2021."
Second Quarter 2025 Result Presentation
In connection with the earnings release, a video webcast will be held today at
15:00 CEST (09:00 a.m. EST).
In order to watch the webcast, use the following link:
Second Quarter 2025 Earnings Presentation (https://flexlng.com/webcasts/2025/q2)
A Q&A session will be held after the webcast. Information on how to submit
questions will be given at the beginning of the session.
The presentation material which will be used in the live video webcast can be
downloaded on www.flexlng.com and replay details will also be available at this
website.
For further information, please contact:
Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS
Telephone: +47 23 11 40 00
Email: ir@flexlng.com
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business. Forward
-looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts. The Company
desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words “believe,”
“expect,” “forecast,” “anticipate,” “aim,” “commit,” “estimate,” “intend,”
“plan,” “possible,” “potential,” “pending,” “target,” “project,” “likely,”
“may,” “will,” “would,” “should,” “could” and similar expressions identify
forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management’s examination of historical operating
trends, data contained in the Company’s records and other data available from
third parties. Although management believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible to
predict and are beyond the Company’s control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or projections.
As such, these forward-looking statements are not guarantees of the Company’s
future performance, and actual results and future developments may vary
materially from those projected in the forward-looking statements. The Company
undertakes no obligation, and specifically declines any obligation, except as
required by applicable law or regulation, to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. New factors emerge from time to time, and it is not
possible for the Company to predict all of these factors. Further, the Company
cannot assess the effect of each such factor on its business or the extent to
which any factor, or combination of factors, may cause actual results to be
materially different from those contained in any forward-looking statement.
In addition to these important factors, other important factors that, in the
Company’s view, could cause actual results to differ materially from those
discussed in the forward-looking statements include: unforeseen liabilities,
future capital expenditures, the strength of world economies and currencies,
inflationary pressures and central bank policies intended to combat overall
inflation and rising interest rates and foreign exchange rates, general market
conditions, including fluctuations in charter rates and vessel values, changes
in demand in the LNG tanker market, the impact of public health threats, changes
in the Company’s operating expenses, including bunker prices, drydocking and
insurance costs, the fuel efficiency of the Company’s vessels, the market for
the Company’s vessels, availability of financing and refinancing, ability to
comply with covenants in such financing arrangements, failure of counterparties
to fully perform their contracts with the Company, changes in governmental rules
and regulations or actions taken by regulatory authorities, including those that
may limit the commercial useful lives of LNG tankers, customers’ increasing
emphasis on environmental and safety concerns, potential liability from pending
or future litigation, global and regional economic and political conditions or
developments, armed conflicts, including the war between Russia and Ukraine, and
possible cessation of such war in Ukraine, the conflict between Israel and Hamas
and related conflicts in the Middle East, the Houthi attack in the Red Sea and
Gulf of Aden, threats by Iran to close the Strait of Hormuz, trade wars,
tariffs, embargoes and strikes, the impact of restrictions on trade, including
the imposition of new tariffs, port fees and other import restrictions by the
United States on its trading partners and the imposition of retaliatory tariffs
by China and the European Union on the United States, business disruptions,
including supply chain disruption and congestion, due to natural or other
disasters or otherwise, potential physical disruption of shipping routes due to
accidents, climate-related incidents, or political events, potential
cybersecurity or other privacy threats and data security breaches, vessel
breakdowns and instances of offhire, and other factors, including those that may
be described from time to time in the reports and other documents that the
Company files with or furnishes to the U.S. Securities and Exchange Commission
(“Other Reports”). For a more complete discussion of certain of these and other
risks and uncertainties associated with the Company, please refer to the Other
Reports.
Kilde
