Flex LNG - Third Quarter 2025 Earnings Release

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Flex LNG (NYSE:FLNG) reported third quarter 2025 results for the period ended September 30, 2025: vessel operating revenues $85.7M, net income $16.8M and basic EPS $0.31. Average TCE was $70,921/day and adjusted EBITDA was $61.2M. Financing and balance-sheet items included a $180M term loan for Flex Constellation, a $175M sale and leaseback of Flex Resolute, and completion of Balance Sheet Optimization Program 3.0 delivering $530M in new financings and releasing $137M in net proceeds.

The company declared a $0.75 quarterly dividend (seventeenth consecutive quarter), reported an all-time high cash balance of $479M, and outlined vessel drydock activity and near-term market challenges.

Positive

• $530M in new financings delivered in 2025
• Balance Sheet Optimization released $137M net proceeds
• Completed $175M sale and leaseback for Flex Resolute
• Drew $180M term loan for Flex Constellation (15.5-year tenor)
• All-time high cash balance of $479M
• Declared $0.75 quarterly dividend (17th consecutive quarter; ~11% annualized yield)

Negative

• Average TCE declined to $70,921/day from $72,012/day in prior quarter
• Net income fell to $16.8M from $17.7M in prior quarter
• Flex Volunteer to be redelivered late Dec 2025 and enter a five-year special survey (temporary offhire)
• Company expects short- to medium-term freight market to remain challenging due to newbuild deliveries

HAMILTON, Bermuda, Nov. 12, 2025 /PRNewswire/ -- Flex LNG Ltd. ("Flex LNG" or the "Company") today announced its unaudited financial results for the quarter ended September 30, 2025.

Highlights:

• Vessel operating revenues of $85.7 million for the third quarter 2025, compared to $86.0 million for the second quarter 2025.
• Net income of $16.8 million and basic earnings per share of $0.31 for the third quarter 2025, compared to net income of $17.7 million and basic earnings per share of $0.33 for the second quarter 2025.
• Average Time Charter Equivalent ("TCE") rate of $70,921 per day for the third quarter 2025, compared to $72,012 per day for the second quarter 2025.
• Adjusted EBITDA of $61.2 million for the third quarter 2025, compared to $62.6 million for the second quarter 2025.
• Adjusted net income of $23.5 million for the third quarter 2025, compared to $24.8 million for the second quarter 2025.
• Adjusted basic earnings per share of $0.43 for the third quarter 2025, compared to $0.46 for the second quarter 2025.
• In September, we successfully completed our scheduled drydocking for Flex Amber and Flex Artemis.
• In July 2025, we signed a $180 million term loan facility in respect of Flex Constellation. The new facility was drawn down in September. The Flex Constellation $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.
• In September 2025, we completed a sale and leaseback agreement with an Asian-based lease provider for the vessel, Flex Resolute. Under the terms of the agreement, the vessel was sold for a consideration of $175 million, with a bareboat charter back of 10 years.
• The Company declared a dividend for the third quarter 2025 of $0.75 per share. The dividend is payable on or about December 11, 2025 to shareholders, on record as of November 28, 2025.

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

"Third quarter revenues came in at $85.7 million, with a TCE rate of ~$70,900 per day. We completed the drydockings of two vessels during the quarter, and Flex Artemis traded in the spot market. The charterer of Flex Volunteer decided not to exercise the one-year option, and we expect her to be redelivered in late December this year, where she will go straight into drydock for her five-year special survey and thereafter be marketed for new employment. While this year's winter season began on a sluggish note, we are encouraged to see spot rates for modern tonnage in the region of $60,000-70,000 per day.

We have completed all of the four planned drydockings for 2025, on time and within budget. I would like to extend my thanks to our dedicated technical team and the crews onboard for their outstanding efforts in ensuring efficient operations throughout. Looking ahead, we plan to complete three drydockings in 2026: Flex Volunteer, Flex Freedom and Flex Vigilant.

In September, we finalized the refinancing of Flex Constellation and Flex Resolute, marking the completion of our Balance Sheet Optimization Program 3.0. In total, the program has delivered $530 million in new financings this year on attractive terms, extending our next debt maturity to 2029 and releasing $137 million in net proceeds. As of the end of the third quarter, we recorded an all-time high cash balance of $479 million.

2025 has seen record-high FIDs for new liquefaction capacity, with nearly 70 MTPA of additional capacity sanctioned, and this is supported by what could be the strongest year for long-term SPA contracting since 2011. In addition, US LNG export volumes are up more than 20% so far this year through an impressive ramp up of new export capacity and higher utilization, which has helped absorb available tonnage. We expect the short- to medium-term freight market to remain challenging, with newbuild deliveries occurring before new export capacity comes online. However, we are finally seeing a notable increase in scrapping activity, among older and less efficient steam vessels, with 14 scrapped year-to-date. With nearly 120 steam vessels either open or rolling off contracts over the next few years, we expect a wave of further retirements ahead. Despite near-term market softness, Flex LNG remains well positioned, supported by a robust balance sheet and a substantial charter backlog.

The Board has again declared an ordinary dividend of $0.75 per share for the seventeenth consecutive quarter. This dividend corresponds to an annualized dividend yield of approximately 11%. This decision is supported by strong financial performance and position, as well as a minimum charter backlog of 53 years."

Third Quarter 2025 Result Presentation

In connection with the earnings release, a video webcast will be held today at 15:00 CET (09:00 a.m. EST).

In order to watch the webcast, use the following link:
Third Quarter 2025 Earnings Presentation

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 

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.

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Flex LNG - Earnings Release Q3 2025

 

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SOURCE Flex LNG

FAQ

What did Flex LNG (FLNG) report for Q3 2025 revenue and EPS?

Flex LNG reported vessel operating revenues $85.7M and basic EPS $0.31 for Q3 2025.

How much cash did Flex LNG (FLNG) hold at the end of Q3 2025?

Flex LNG recorded an all-time high cash balance of $479M at September 30, 2025.

What financings did Flex LNG (FLNG) complete in 2025 under Program 3.0?

Program 3.0 delivered $530M in new financings in 2025 and released $137M in net proceeds.

What are the details of the Flex Constellation financing announced in 2025?

Flex Constellation secured a $180M term loan with a 15.5-year tenor and interest of SOFR plus 165 bps, drawn in September 2025.

When is the Q3 2025 dividend payable for Flex LNG (FLNG) and how much is it?

The company declared a $0.75 per share dividend payable on or about December 11, 2025 to shareholders of record as of November 28, 2025.

What operational vessel events did Flex LNG (FLNG) report for Q3 2025?

Flex LNG completed drydockings for Flex Amber and Flex Artemis, and expects Flex Volunteer redelivery and a five-year special survey in late December 2025.