FLNG — FLEX LNG Ltd.

Flex LNG Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $85.7 million ($83.6 million adjusted for EUAs).
• Net Income: $16.8 million; adjusted net income of $23.5 million, resulting in EPS of $0.31 and adjusted EPS of $0.43.
• Time Charter Equivalent (TCE): Average of $70,900 per day.
• Cash Balance: All-time high of $479 million, with no debt maturities before 2029.
• Dividend: Declared at $0.75 per share, marking the 17th consecutive dividend of this amount, with a trailing yield of 11%.

2. Strategic Updates and Business Highlights

• Fleet Management: Flex Constellation is fully booked through Q1 2026; Flex Volunteer will be available from mid-January 2026 after dry dock.
• Contract Backlog: 53 years of minimum firm backlog, potentially extending to 80 years if options are exercised.
• Dry Docking Efficiency: Successfully completed four scheduled dry dockings in 2025 without lost time incidents (LTIs), averaging $5.6 million per docking.
• Market Position: Positioned to benefit from increasing LNG volumes, with a strong contract profile to mitigate short-term market fluctuations.

3. Forward Guidance and Outlook

• 2025 Revenue Guidance: Expected to be around $340 million.
• TCE Guidance: Anticipated to be between $71,000 and $72,000 per day.
• Adjusted EBITDA: Expected to reach approximately $250 million.
• Market Outlook: Positive trends in the LNG market with increasing global trading volumes and a favorable spot market environment.

4. Bad News, Challenges, or Points of Concern

• Spot Market Volatility: The spot market experienced a downturn at the start of Q3, impacting earnings from Flex Constellation and Flex Artemis.
• Contract Options: Uncertainty surrounding the declaration of options for Flex Aurora and the potential impact on future revenues.
• Market Exposure: With two vessels open in 2026, the company has adjusted its backlog visibility score from dark green to light green, indicating a cautious approach to future contract renewals.

5. Notable Q&A Insights

• Flex Volunteer and Flex Aurora: Management expressed optimism regarding the Flex Aurora option due in Q1 2026, contingent on the current momentum in the spot market.
• Market Activity: There is a growing demand for term contracts, with expectations for increased project activity in the coming years.
• Cash Management: The company maintains a disciplined approach to capital allocation, prioritizing shareholder returns while ensuring liquidity for market opportunities.
• Delisting Update: Flex LNG has transitioned from the Oslo Stock Exchange to the New York Stock Exchange, encouraging shareholders to transfer their holdings for continued trading.

Overall, Flex LNG reported solid financial results for Q3 2025, with a strong cash position and a robust contract backlog, while navigating challenges in the spot market and managing future contract options.