FLNG · FLEX LNG Ltd.

Flex LNG Ltd.'s Q1 2026 results reflect seasonal weakness in the LNG shipping market, with vessel operating revenues declining to $80.5 million from $87.5 million in Q4 2025, primarily due to drydockings for Flex Volunteer and Flex Freedom reducing available days, lower spot revenues for Flex Volunteer and Flex Artemis early in the quarter, offset partially by higher revenues from Flex Constellation's new 15-year charter commencement in March. TCE rate fell to $65,729/day from $70,119/day, while voyage expenses rose to $5.8 million from $3.8 million due to higher bunker and gas-up/cool-down costs for positioning open ships. Vessel opex per day improved slightly to $15,953 from $16,582, reflecting lower maintenance costs. Net income was $19.5 million ($0.36 basic EPS), with adjusted net income at $16.9 million ($0.31 adjusted EPS). CEO Marius Foss noted the market bottomed mid-Q1 but surged post-Iran war outbreak in late February, with spot rates exceeding $250,000/day amid Qatar disruptions and Strait of Hormuz closure, enabling short-term fixes for Flex Volunteer, Flex Artemis, and a new 2-year charter for Flex Aurora. Extensions for Flex Resolute and Flex Courageous secure firm contracts to 2032. With 91% of remaining 2026 days covered and backlog of 54 years, the company raised FY2026 guidance by 8-11%: revenues excluding EUAs to $345-370 million, TCE to $73-78,000/day, adjusted EBITDA to $255-280 million. A $0.75/share dividend was declared, marking the 19th consecutive quarterly payout, from Contributed Surplus. Balance sheet shows $389.1 million cash, $2,091.9 million net vessels, $1,821.0 million debt, and $698.2 million equity as of March 31, 2026. Operating cash flow was $9.7 million, impacted by drydock timing and spot softness.