Hamilton – October 29, 2026 -- Flex LNG Ltd. reported second-quarter 2026 vessel operating revenues of $106.8 million, up from $80.5 million in the first quarter, and net income of $44.9 million, compared with $19.5 million in the prior quarter.
Basic earnings per share reached $0.83 (Q1: $0.36). Adjusted EBITDA rose to $79.0 million from $53.2 million, while adjusted net income climbed to $42.5 million from $16.9 million. Adjusted basic EPS came in at $0.79 versus $0.31, an increase of 155%.
Spot exposure on two vessels lifts average TCE to $86,119 per day
The average Time Charter Equivalent rate rose to $86,119 per day from $65,729 in the first quarter. Revenue excluding EU Allowances was $102.7 million, the company's highest quarterly revenue since the fourth quarter of 2021.
CEO Marius Foss attributed the gain to Middle East hostilities that disrupted the energy complex. The resulting volatility and trading inefficiencies created opportunities for the spot-exposed Flex Volunteer and Flex Artemis, which were both employed across the second and third quarters. Both vessels are now being marketed for spot and term employment from the end of the third quarter. Firm contract coverage for the rest of 2026 stands at about 89%.
Flex Aurora and Flex Constellation add a full quarter of charter earnings
Flex Aurora began a two-year firm charter with a supermajor in late March 2026. The charter runs until 2028 and carries three successive two-year extension options. Flex Constellation completed her first full quarter on a new 15-year charter.
Fleet growth of 40-45 more vessels meets multi-year-low European gas storage
Around 55 LNG carriers were delivered in the first seven months of 2026, and shipbrokers expect another 40 to 45 before year-end. On the demand side, European gas storage stood at about 61% in mid-August, a multi-year low. The shortfall in Qatari export volumes is redirecting U.S. cargoes toward Asian importers. Global LNG exports are flat year-on-year, with U.S. volumes and West African exporters growing strongly.
Foss described the coming months as an "interesting and potentially volatile period" for LNG shipping, balancing fleet growth against competition between Europe and Asia for LNG volumes.
Flex LNG maintains 2026 guidance of $345-370 million in revenue
The company held its full-year 2026 guidance unchanged:
- Revenue excluding EUAs: $345-370 million
- Fleet-wide TCE: $73,000-78,000 per day
- Adjusted EBITDA: $255-280 million
Board declares $0.75 dividend, its twentieth consecutive, worth about $41 million
The dividend is payable on or about September 17, 2026 to shareholders of record on September 3, 2026. Flex LNG holds $397 million in cash and has no debt maturities before 2029. Including special dividends, it will have returned about $850 million to shareholders since 2021.