Flex LNG (NYSE:FLNG) reported fourth-quarter 2025 results highlighted by $87.5 million in revenue, or $85 million excluding the impact of EU Allowances (EUAs) related to the EU Emissions Trading System. Chief Executive Officer Marius Foss said the company’s fleet averaged a time charter equivalent (TCE) rate of $71,100 per day during the quarter.
Net income for the fourth quarter was $21.6 million, equating to earnings per share of $0.40. After adjusting for unrealized losses and items tied to interest rate swaps and foreign exchange, Flex LNG reported adjusted net income of $23.3 million, or $0.43 per share.
Full-year 2025 performance and fleet activity
Operationally, Traaholt said Flex LNG achieved close to 100% technical uptime in 2025, net of drydocking days. Four drydockings were completed during the year—FLEX AURORA and FLEX RESOLUTE in the second quarter, and FLEX AMBER and FLEX ARTEMIS in the third quarter. Total drydocking time amounted to 64 days, which management noted was below its budget of 80 days.
Flex LNG had two vessels trading in the spot market during 2025—FLEX ARTEMIS and FLEX CONSTELLATION—exposing results to weaker spot conditions earlier in the year. Traaholt said the $15 million year-over-year revenue decline was primarily explained by higher market exposure with those vessels trading in a “softer spot market.”
Contract coverage, redeliveries, and spot exposure
Management said FLEX VOLUNTEER completed a drydock in January and is now trading in the spot market. Foss also disclosed that ONR Charters will not declare the one-year options for FLEX AURORA, which is expected to be redelivered to Flex LNG in March.
Looking ahead, the company said its 2026 spot exposure is limited to three vessels—FLEX VOLUNTEER, FLEX AURORA, and FLEX ARTEMIS—while the remaining 10 vessels are on time charters. Foss said all three spot-exposed vessels are being marketed for both spot and long-term employment.
Flex LNG said it has 78% of available days fixed on long-term charters in 2026. The company also discussed charter options attached to FLEX RESOLUTE, FLEX COURAGEOUS, and FLEX FREEDOM in 2027, which are due to be declared during 2026. In the Q&A, Foss said he could not provide timing beyond that the charterers will decide during 2026, and added that the option outcomes would not affect the company’s “fleet portfolio of 75% in 2026.”
Flex LNG also noted that FLEX CONSTELLATION is scheduled to complete its final voyage in March before commencing a 15-year time charter “in direct continuation.”
2026 guidance and planned drydockings
Flex LNG issued 2026 guidance reflecting continued volatility in the LNG shipping spot market. Management expects:
- Revenue: $310 million to $340 million
- TCE per day: $65,000 to $75,000
- Adjusted EBITDA: $225 million to $255 million
Foss said the wide ranges reflect open positions and exposure to volatile spot rates. He characterized expectations for spot earnings as “modest” given competing forces: new LNG export volumes ramping up, geopolitical uncertainty and potential congestion at terminals, and significant newbuild deliveries.
For 2026, the company expects three drydockings. FLEX VOLUNTEER’s docking was completed in January, FLEX FREEDOM is set to enter drydock later in February, and FLEX VIGILANT is expected to drydock in the second quarter. Management budgeted about 20 days of off-hire per docking on average and an average cost of $5.9 million per docking.
On costs, Traaholt said fourth-quarter operating expenses were $16,600 per day, higher than prior quarters due to scheduled engine maintenance based on running hours. Full-year 2025 OpEx averaged $15,800 per day, slightly above the company’s guided $15,500 level. For 2026, Flex LNG budgeted OpEx of $16,000 per day, citing scheduled maintenance and cost inflation, particularly related to crew changes.
Dividend, balance sheet, and hedging
The board declared another quarterly dividend of $0.75 per share, the company’s 18th consecutive dividend at that level. Foss said Flex LNG has distributed about $770 million since 2021, and that the last 12 months of dividends totaled $3 per share, implying a yield of approximately 11.5% at the time of the presentation. The dividend is expected to be paid on or about March 12 to shareholders of record on Feb. 27.
Management emphasized balance sheet strength, reporting a year-end cash balance of $448 million and noting that no debt matures prior to 2029. Traaholt said 2025 cash flow from operations was $44 million, and after working capital movements and drydocking expenditures, net operating cash flow was approximately $36 million. During the year, Flex LNG repaid $27 million in scheduled debt installments and distributed $41 million to shareholders, resulting in a $31 million reduction in cash.
Traaholt also highlighted a book equity ratio of 27% and an interest rate swap portfolio valued at $17.5 million on the balance sheet. The portfolio’s average fixed rate is 2.5%, and Flex LNG expects to maintain a hedge ratio of around 70% into mid-2027. Since January 2021, management said the swap portfolio has generated unrealized and realized gains of around $132 million.
Market backdrop: volatility, newbuilds, and LNG supply growth
Foss described the 2025 LNG shipping spot market as a “roller coaster,” with softer rates early in the year followed by a fourth-quarter rally that saw modern two-stroke spot fixtures reach as high as $175,000 per day. He said the company expects 2026 to be “equally volatile,” with many fixtures and significant new export volumes ramping up, but also substantial newbuild deliveries.
Flex LNG said global LNG exports rose 4% year over year in 2025 to around 429 million tons, driven by U.S. growth of 25% versus 2024. Foss said Europe absorbed the majority of increased volumes, with imports up 24% year over year, while Asia was mixed, noting China’s LNG imports fell 15% from 2024 and India’s demand sensitivity to higher prices.
The company also pointed to a large LNG carrier order book. Management said 79 newbuild LNG carriers were delivered in 2025 (including 23 in the fourth quarter), up from 60 deliveries in 2024, and estimated the remaining order book at about 290 vessels—roughly 40% of the existing fleet. For 2026, Flex LNG cited expectations of 90 to 95 vessel deliveries, including units that slipped from 2025, and said approximately 45 vessels in the order book are currently uncommitted.
At the same time, Flex LNG noted increased scrapping of older steam vessels, citing 15 steam vessels scrapped in 2025. Management said spot rates for steam vessels are currently quoted under $5,000 per day, effectively pushing them out of the market, and referenced shipbroker SSY’s view that close to 100 steam vessels will roll off long-term contracts over coming years.
On fleet growth, Foss said Flex LNG is in a position to order ships if needed, but stressed discipline and an unwillingness to order without contracts attached. He cited a newbuilding price of about $250 million for a standard two-stroke vessel built in Korea and said the benchmark for a 10-year contract is around $85,000 per day “give or take,” adding that Flex LNG’s calculations do not view that as an attractive investment for a shipowner. Foss also said the company intends to focus on its existing fleet, which he described as high-quality and aligned in size with new orders.
About Flex LNG (NYSE:FLNG)
Flex LNG Ltd is a Bermuda-registered owner and operator of liquefied natural gas (LNG) carriers, offering shipping services to major energy producers and utilities worldwide. Since its establishment in 2006, the company has focused on building a versatile fleet of modern, eco-efficient LNG vessels designed to meet the growing global demand for lower-emission fuel transportation.
The company’s core activities encompass time-charter contracts, long-term transportation agreements and spot market voyages.
