Flex LNG 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.”