Flex LNG Ltd. announced its unaudited financial results for the quarter ended June 30, 2026.
Highlights:
Vessel operating revenues of $106.8 million for the second quarter 2026, compared to $80.5 million for the first quarter 2026.
Net income of $44.9 million and basic earnings per share of $0.83 for the second quarter 2026, compared to net income of $19.5 million and basic earnings per share of $0.36 for the first quarter 2026.
Average Time Charter Equivalent (“TCE”) rate of $86,119 per day for the second quarter 2026, compared to $65,729 per day for the first quarter 2026.
Adjusted EBITDA of $79.0 million for the second quarter 2026, compared to $53.2 million for the first quarter 2026.
Adjusted net income of $42.5 million for the second quarter 2026, compared to $16.9 million for the first quarter 2026.
Adjusted basic earnings per share of $0.79 for the second quarter 2026, compared to $0.31 for the first quarter 2026.
The Company declared a dividend for the second quarter 2026 of $0.75 per share. The dividend is payable on or about September 17, 2026 to shareholders, on record as of September 3, 2026.
Marius Foss, CEO of Flex LNG Management AS, commented:
“In the second quarter of 2026, we generated revenues of $106.8 million, or $102.7 million excluding EU Allowances, our highest quarterly revenue since the fourth quarter of 2021. Fleet-wide Time Charter Equivalent earnings were $86,119 per day, compared with $65,729 per day in the first quarter. Adjusted net income was $42.5 million, resulting in adjusted earnings per share of $0.79, an increase of 155% from the first quarter.
Energy markets have experienced significant volatility in recent months, as hostilities in the Middle East disrupted the broader energy complex. The resulting volatility and trading inefficiencies created attractive opportunities for our two spot-exposed vessels, Flex Volunteer and Flex Artemis. We secured employment for both vessels covering the second and third quarters, and each contributed to the increase in revenues. Both vessels are currently being marketed for spot and term employment from the end of the third quarter of 2026, leaving us with approximately 89% firm contract coverage for the remainder of the year.
In addition, Flex Aurora commenced her two-year firm charter with a supermajor in late March 2026. The charter runs until 2028 and includes three successive two-year extension options. We therefore benefited from a full quarter of earnings from the vessel during the second quarter. Likewise, Flex Constellation completed her first full quarter under her new 15-year charter. These two vessels made a solid contribution to both revenues and earnings.
Looking ahead to the remainder of 2026, we expect the freight market to remain volatile. On the supply side, around 55 vessels were delivered during the first seven months of the year, and shipbrokers expect a further 40 to 45 vessels to enter the fleet before year-end, hence, fleet growth is expected to remain high. At the same time, several demand-side factors could provide support to the market. European gas storage levels are currently at multi-year lows of around 61% as of mid August, while the shortfall in Qatari export volumes is contributing to the redirection of U.S. export volumes toward Asian importers. Despite the reduction in Qatari volumes, global LNG exports are flat year-on-year, supported by solid growth in U.S. export volumes and strong growth from West African exporters.
Against this backdrop, we are entering an interesting and potentially volatile period for the LNG shipping market, with the balance between continued fleet growth and competition on LNG volumes between Europe and Asia.
However, we maintain our full-year 2026 revenue guidance of $345 – $370 million, excluding EUAs. We also maintain expected fleet-wide TCE earnings of $73,000 – $78,000 per day. Our guidance range for adjusted EBITDA is $255 – $280 million.
Supported by a strong earnings outlook for 2026, substantial contract backlog and a robust balance sheet, including $397 million of cash and no debt maturities before 2029, the Board is pleased to declare another quarterly dividend of $0.75 per share, equivalent to an aggregate distribution of approximately $41 million, marking our twentieth consecutive ordinary quarterly dividend of $0.75 per share. Including special dividends, we will have returned approximately $850 million to shareholders since 2021.”