Flex LNG – Third Quarter 2025 Earnings Release

HAMILTON, Bermuda – Flex LNG Ltd. (NYSE: FLNG) today reported its unaudited financial results for the third quarter of 2025, revealing a slight dip in key metrics amidst a dynamic LNG market environment.

Key Takeaways from Flex LNG’s Q3 2025 Results:

• Vessel operating revenues stood at $85.7 million, marginally lower than the $86.0 million reported in Q2 2025.
• Net income decreased to $16.8 million, resulting in basic earnings per share (EPS) of $0.31, down from $17.7 million and $0.33 EPS in the previous quarter.
• The Average Time Charter Equivalent (TCE) rate was $70,921 per day, slightly below the $72,012 per day achieved in Q2 2025.
• Adjusted EBITDA amounted to $61.2 million, compared to $62.6 million in the second quarter.
• Adjusted net income was $23.5 million, a decrease from $24.8 million in the prior quarter.
• Adjusted basic earnings per share came in at $0.43, versus $0.46 in Q2 2025.
• The company successfully completed scheduled drydocking for Flex Amber and Flex Artemis during the quarter.
• Flex LNG secured a $180 million term loan facility for Flex Constellation in July 2025, which was subsequently drawn down in September. This facility boasts a 15.5-year tenor and a SOFR-plus-165-basis-point interest rate, reflecting the company’s proactive approach to capital structure management.
• A sale and leaseback agreement for the vessel Flex Resolute was finalized in September 2025 with an Asian-based lease provider. The vessel was sold for $175 million, accompanied by a 10-year bareboat charter back.
• Flex LNG declared a dividend of $0.75 per share for the third quarter of 2025, payable on or about December 11, 2025, to shareholders of record as of November 28, 2025.

Marius Foss, Interim CEO of Flex LNG Management AS, addressed the results, stating, “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.”

Strategic Financial Maneuvering and Market Outlook:

The successful refinancing of Flex Constellation and Flex Resolute marked the culmination of Flex LNG’s Balance Sheet Optimization Program 3.0. This strategic initiative has generated $530 million in new financing this year, extending the company’s debt maturity profile to 2029 and unlocking $137 million in net proceeds. Bolstering its financial position, Flex LNG reported an all-time high cash balance of $479 million at the end of the third quarter. These moves provide vital financial flexibility in a shipping market subject to peaks and troughs.

The LNG market is seeing fundamental shifts. The company highlighted the 70 MTPA of new liquefaction capacity sanctioned in 2025, and the potentially strongest year for long-term SPA contracting since 2011. These factors point to significant long-term demand growth. US LNG export volumes are up over 20% year-to-date, demonstrating how new export facilities are absorbing available vessel capacity.

While the near-term freight market presents challenges due to newbuild deliveries outpacing the commissioning of new export capacity, Flex LNG anticipates a positive trend with increased scrapping of older, less efficient steam vessels. The expectation is that with nearly 120 steam vessels either open or rolling off contracts in coming years, the scrapping trend will amplify.

“Despite near-term market softness, Flex LNG remains well positioned, supported by a robust balance sheet and a substantial charter backlog,” Foss concluded.

Investor Returns:

The Board of Directors has maintained its commitment to shareholder value by declaring an ordinary dividend of $0.75 per share for the seventeenth consecutive quarter. With an annualized dividend yield of approximately 11%, this reflects the company’s stable financial performance and a charter backlog totaling 53 years minimum.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions, including management’s examination of historical operating trends and data from third parties. While believed reasonable, these assumptions are subject to uncertainties, and there is no guarantee that expectations will be achieved. Actual results may differ materially from those projected. The Company undertakes no obligation to update or revise any forward-looking statements.

Factors that could cause actual results to differ materially include unforeseen liabilities, future capital expenditures, economic conditions and currencies, inflationary pressures, market conditions, fluctuations in charter rates and vessel values, changes in demand, operating expenses, fuel efficiency, financing availability, contract performance, regulatory changes, environmental concerns, litigation, global and regional economic and political conditions, armed conflicts, trade wars, business disruptions, cybersecurity threats, vessel breakdowns, and other factors described in reports filed with the U.S. Securities and Exchange Commission.