Flex LNG - Announces new contract for Flex Aurora

Rhea-AI Summary

Flex LNG (NYSE: FLNG) agreed a new Time Charter for Flex Aurora with a minimum firm period of two years and charterer options of 2+2+2 years, making the contract potentially extendable to eight years through 2034 if all options are exercised. The vessel was redelivered in early March 2026 and secured prompt employment.

The announcement raises Flex LNG's minimum contract backlog to 55 years, potentially increasing to 82 years if options are exercised. Management noted the contract should contribute positively to Q2 2026 earnings but said full-year guidance may be revised due to market volatility.

Positive

• Minimum 2-year time charter agreed for Flex Aurora
• Charterer options create potential 8-year commitment through 2034
• Company backlog raised to minimum 55 years, potentially to 82 years
• Prompt re-employment after redelivery in early March 2026

Negative

• Full-year guidance may be revised due to new market information
• Management cites high volatility in LNG shipping and energy markets
• Remaining spot exposure means near-term earnings remain sensitive to freight rates

News Market Reaction – FLNG

-2.04%

1 alert

-2.04% News Effect

On the day this news was published, FLNG declined 2.04%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New Aurora charter firm term: 2 years Aurora max contract length: 8 years New contract backlog: 55–82 years +5 more

8 metrics

New Aurora charter firm term 2 years Minimum firm period for Flex Aurora time charter

Aurora max contract length 8 years Including 2+2+2 year extension options to 2034

New contract backlog 55–82 years Company-wide contract backlog after Flex Aurora deal

Prior backlog 53–74 years Backlog range after Mar 18, 2026 extensions

Q4 2025 vessel revenues $87.5m Unaudited Q4 2025, vs $85.7m prior quarter

Q4 2025 net income per share $0.40 Unaudited Q4 2025 basic EPS

2025 Adjusted EBITDA $251.1m Full-year 2025 performance metric

Debt outstanding $1,860.6m Total debt as of Dec 31, 2025 from annual report

Market Reality Check

Price: $30.26 Vol: Volume 676,198 is below t...

normal vol

$30.26 Last Close

Volume Volume 676,198 is below the 20-day average of 935,613, suggesting no outsized trading reaction yet. normal

Technical Shares at $30.89 are trading above the 200-day MA of $25.68 and sit 3.44% below the 52-week high.

Peers on Argus

FLNG was up 1.71% while key maritime energy peers like LPG, NVGS, DHT and TNK al...

FLNG was up 1.71% while key maritime energy peers like LPG, NVGS, DHT and TNK also showed gains between roughly 2–4%. However, the momentum scanner did not flag a coordinated sector move, suggesting this contract news was more stock-specific.

Historical Context

5 past events · Latest: Mar 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 20	AGM announcement	Neutral	-4.7%	Set date and record date for the 2026 Annual General Meeting.
Mar 18	Contract extensions	Positive	+3.1%	Supermajor extended charters and backlog rose to 53–74 years range.
Mar 05	Investor presentation	Neutral	+0.5%	Management presented at an energy & shipping conference with investor meetings.
Feb 27	Annual report filing	Neutral	-0.5%	Filed 2025 Form 20‑F, detailing operations, risks and capital structure.
Feb 11	Earnings presentation	Neutral	-1.7%	Announced schedule and access details for Q4 2025 results webcast.

Pattern Detected

Recent news has mainly been operational and corporate updates, with contract/backlog news on Mar 18 coinciding with a positive price move, while administrative items (AGM, filings, presentations) have produced modest mixed reactions.

Recent Company History

Over the last few months, FLNG has reported a series of corporate and operational updates. A fleet and charter extension update on Mar 18, 2026 expanded firm contract backlog to 53 years (up to 74 years with options) and coincided with a 3.12% gain, underscoring market focus on backlog growth. Other events—including the AGM notice on Mar 20, a March conference presentation, filing of the 2025 Form 20‑F, and a fourth-quarter 2025 results presentation—saw relatively modest share moves. Today’s new Aurora contract builds directly on this backlog-expansion narrative.

Market Pulse Summary

This announcement adds a new minimum two-year charter for Flex Aurora, lifting total contract backlo...

Analysis

This announcement adds a new minimum two-year charter for Flex Aurora, lifting total contract backlog to 55–82 years depending on option exercises. It follows March extensions that set backlog at 53–74 years, reinforcing a recent focus on securing employment for the fleet. Investors may weigh this visibility against the company’s disclosed $1,860.6m of debt and exposure to volatile LNG spot markets, while monitoring future guidance updates and additional chartering activity for further context.

Key Terms

time charter agreement, liquefied natural gas, lng, spot market

4 terms

time charter agreement financial

"agreed a new Time Charter Agreement ("TC") with a minimum firm period"

A time charter agreement is a contract where a shipowner rents a vessel to a charterer for a set period in exchange for regular payments, while the owner keeps responsibility for the crew and upkeep and the charterer decides where the ship goes and pays fuel and port costs. For investors, time charters matter because they turn a ship into a predictable income stream or liability depending on market freight rates, affecting revenue stability, cash flow visibility and asset utilization risk.

liquefied natural gas medical

"Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG)."

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it can be shipped and stored more easily—think of it like condensing a bulky gas into a compact, refrigerated form for transport. It matters to investors because LNG supply, shipping capacity, and long-term contracts influence energy prices, company revenues, and exposure to geopolitical or infrastructure risks, much like how a clogged highway can delay deliveries and raise costs.

lng technical

"Liquefied Natural Gas (LNG). Our fleet consists of thirteen LNG carriers"

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it takes up far less space for transport and storage, like turning a bulky bundle into a compact package for shipping. Investors care because LNG enables gas trade across regions without pipelines, so changes in production, export capacity, shipping, or demand can quickly affect energy company revenues, infrastructure operators and commodity prices, amplifying both opportunity and risk.

spot market financial

"we believe there are currently favourable dynamics in the LNG shipping spot market"

The spot market is where assets—like stocks, commodities, or currencies—are exchanged for immediate delivery and payment at the current market price. It matters to investors because spot prices reflect real-time supply and demand, guide short-term trading decisions, and serve as the baseline for contracts and valuations; think of it as buying an item at the store right now instead of ordering it for later.

AI-generated analysis. Not financial advice.

HAMILTON, Bermuda, March 25, 2026 /PRNewswire/ -- Flex LNG Ltd. ("Flex LNG" or "Company") (NYSE: FLNG) is pleased to announce it has agreed a new Time Charter Agreement ("TC") with a minimum firm period of two (2) years for Flex Aurora. The charterer, a Supermajor, will have the option to extend the contract with additional 2+2+2 years i.e. total contract length is potentially up to eight (8) years. If all options are declared, the vessel will be committed until 2034. The vessel was redelivered from its previous 3.5-years charter in the first half of March 2026, and the vessel has been successful in finding new employment with prompt delivery. Flex Aurora, built 2020, is a modern 174,000 cbm LNG carrier with X-DF two-stroke propulsion.

Following this announcement, Flex LNG's total contract backlog is minimum 55 years, which may increase to 82 years if the charterers exercise their options.

Marius Foss, CEO of Flex LNG Management AS, commented:

"We are pleased to announce a new time charter contract for Flex Aurora, capitalizing on the firm momentum in the freight market. This new minimum two-year firm contract adds further contract backlog, and it may be extended by up to an additional six years at the charterer's option, reflecting continued recognition of our safe and reliable operations.

We believe there are currently favourable dynamics in the LNG shipping spot market, and with the commencement of this minimum two-year contract for Flex Aurora, we will have two vessels trading in what is presently a firm spot market. At the same time, we see that energy markets remain highly volatile, and conditions may change rapidly."

The new contract for Flex Aurora, combined with the Company's remaining spot exposure, is expected to contribute positively to earnings in the second quarter of 2026. Given the continued uncertainty and volatility in the LNG shipping and broader energy markets, the Company is closely monitoring market developments. As a result, the full-year guidance as presented in the Company's fourth quarter 2025 earnings release and related presentation may be subject to revision, and the Company will update the market as appropriate and/or legally required.

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

About FLEX LNG

Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG). Our fleet consists of thirteen LNG carriers on the water and all of our vessels are state-of-the-art ships with the latest generation two-stroke propulsion (MEGI and X-DF). These modern ships offer significant improvements in fuel efficiency and thus also carbon footprint compared to the older steam and four-stroke propelled ships. Flex LNG is listed on the New York Stock Exchange under the ticker FLNG.

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 Company's business strategy and expected and unexpected capital spending and operating expenses, including drydocking, surveys, repairs, upgrades, insurance costs and bunker 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 and 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, public health threats 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.

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View original content:https://www.prnewswire.com/news-releases/flex-lng--announces-new-contract-for-flex-aurora-302724487.html

SOURCE Flex LNG

FAQ

What are the key terms of Flex LNG's FLNG contract for Flex Aurora announced March 25, 2026?

The contract is a minimum two-year time charter with 2+2+2 year extension options. According to the company, the charterer is a Supermajor and if all options are exercised the vessel could be committed until 2034.

How does the Flex Aurora charter affect Flex LNG's backlog and what are the figures for FLNG?

The new charter lifts Flex LNG's backlog to a minimum of 55 years, potentially to 82 years if options are exercised. According to the company, the calculation reflects contracted firm periods across the fleet including the new Flex Aurora contract.

Will the Flex Aurora charter impact FLNG earnings in 2026 and when?

Yes — the company expects a positive contribution to Q2 2026 earnings from the new contract and remaining spot exposure. According to the company, the timing reflects the charter commencement after redelivery in early March 2026.

Could Flex LNG (FLNG) change its full-year 2026 guidance after the Flex Aurora deal?

Possibly — the company said the full-year guidance may be subject to revision given market uncertainty and volatility. According to the company, it will update the market as appropriate and legally required.

What type and age is the vessel Flex Aurora referenced in the FLNG announcement?

Flex Aurora is a 2020-built, 174,000 cbm LNG carrier with X-DF two-stroke propulsion. According to the company, it is a modern vessel offering improved fuel efficiency and reduced carbon footprint versus older ships.