Revenue and Earnings
Reported revenues of $80.5M (or $78M excluding EUAs). Net income of $19.5M (EPS $0.36). Adjusted net income $16.9M (adjusted EPS $0.31).
FLEX LNG
· FLNG
May 13th, 2026
Summary
- Earnings Call Date:
- 2026-05-13
- Change Since:
- -1.42%
- Next Earnings Date:
- 2026-08-28
Earnings Call Sentiment
PositiveThe call presents a predominantly positive outlook driven by upgraded full-year guidance (revenues +10%, TCE +8%, adjusted EBITDA +11%), strong contract coverage (91% of 2026 available days fixed), a continued dividend program, and a solid balance sheet with $389M cash and hedges supporting rate visibility. Offsetting factors include seasonal softness in Q1, drydock-related off-hire and costs, a negative working capital timing impact, and elevated geopolitical risk from the Iran/Qatar situation creating short-term uncertainty. On balance, operational progress, tangible contract wins, and upgraded guidance outweigh the short-term headwinds.
Company Guidance
The company upgraded full‑year 2026 guidance, now expecting revenues of $345–$370 million (≈+10% vs prior), fleet average TCE of $73,000–$78,000/day (≈+8%), and adjusted EBITDA of $255–$280 million (≈+11%); OpEx is maintained at ~$16,000/day and the average cost of the three 2026 drydockings is ~ $6 million. At quarter end cash was $389 million, book equity ~27%, Q1 cash from operations was $37 million, debt repayments totaled $28 million, dividends distributed $41 million (cash down $59 million in Q1), and the Board declared another $0.75/share dividend (19th consecutive; $3 last 12 months, ~9.2% yield). Contract cover and risk metrics underpinning the guidance include 91% of remaining 2026 available days fixed, 54 years of minimum backlog (up to 81 years if options exercised), a 13‑vessel fleet, an interest‑rate hedge portfolio notional $775 million (avg fixed rate 2.46%, portfolio value $20 million) and a targeted hedge ratio of ~70% net of RCF into mid‑2027.
Upgraded Full-Year Guidance
Full-year revenue guidance raised to $345M–$370M (≈10% increase vs prior guidance). Fleet average TCE guidance raised to $73k–$78k/day (≈8% increase). Adjusted EBITDA guidance raised to $255M–$280M (≈11% increase).
Improved Contract Cover and Backlog
91% of remaining available days in 2026 are fixed. Company reports 54 years of minimum backlog (potentially 81 years if options exercised). Multiple contract extensions secured: Flex Resolute and Flex Courageous now employed to 2032 (with options to 2039); Flex Aurora fixed for 2 years to 2028 with additional 2+2+2 year options.
Dividend and Capital Return
Board declared quarterly dividend of $0.75/share (19th consecutive). Last 12 months dividends $3.00/share implying ~9.2% yield. Company has distributed ~$810M since 2021.
Strong Balance Sheet and Liquidity
Cash of $389M at quarter end. Book equity ~27%. No debt maturities before 2029. Active interest-rate hedge portfolio (notional $775M; average fixed rate 2.46%) with cumulative swap gains since 2021 of ~$137M.
Operational Milestones
Completed 2 of 3 planned 5-year special survey drydockings (Flex Volunteer, Flex Freedom) ahead of schedule; Flex Vigilant to drydock later in May. Average expected cost for 3 drydockings ~ $6M.
Market Tailwinds and Trade Growth
Global LNG trade volumes up ~3% year-to-date (first 4 months). U.S. export volumes ~130 Mtpa, up ~18% vs full year 2025. Tightening of supply following Qatar disruptions has opened robust short-term spot market and increased long-haul ton-mile demand.
Cost Control and Interest Rate Gains
Average OpEx per day ~ $16,000 and guidance maintained at $16,000/day. Interest expenses improved due to lower loan margins and active RCF management. Recognized $4.9M gains on interest rate derivatives (2.4M realized, 2.5M unrealized).
H. Foss
Welcome to Flex LNG First Quarter 2026 Results Presentation. My name is Marius Foss, I'm the CEO of the Flex LNG. And today, I'm joined with our CFO, Knut Traaholt, who will walk you through the financials later in the presentation. Today, we will cover the first quarter results and provide an update on the LNG shipping market. As always, we will conclude the webcast with a Q&A session.
Knut Traaholt
If you would like to ask questions, please use the chat functions in the webcast or send questions by e-mail to ir@flexlng.com. Before we start, we would like to highlight the following. We are using certain non-GAAP measures such as TCE, adjusted EBITDA and adjusted net income. These are supplements to the earnings report reported in accordance with U.S. GAAP. The reconciliations of these non-GAAP measures are available in the earnings report, which we released today. There are certain limitations to the completeness of our presentation. Therefore, we encourage you to read the quarterly report together with the presentation.
And with that, back to you, Marius.
H. Foss
Thank you, Knut. Let's begin with the highlights of the quarter. We sailed in revenues of $80.5 million or $78 million, excluding the EUAs related to the EU emission trading system. The fleet average TCE during the quarter ended up at $65,700 per day. Net income for the first quarter came in at $19.5 million, implying an earnings per share of $0.36. When adjusting for unrealized gains of interest rate swaps and FX, we ended up with an adjusted net income of $16.9 million or adjusted earnings per share of $0.31. This has been an active ...
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