Transcript: Flex LNG Q1 2026 Earnings Conference Call

On Wednesday, Flex LNG (NYSE: FLNG ) discussed first-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

The full earnings call is available at Summary FLEX LNG Ltd reported first-quarter revenues of $80.5 million, with a net income of $9.5 million and adjusted net income of $16.9 million. The company announced new charter agreements, including two-year extensions for Flex Dissolute and Flex Correatious, and a new contract for Flex Aurora, enhancing its contract backlog. Full-year 2026 guidance has been revised upwards, with expected revenues between $345 million and $370 million, and adjusted EBITDA projected to be $255 to $280 million.

The Board declared a quarterly dividend of $0.75 per share, marking the 19th consecutive dividend with a 9.2% yield over the last 12 months. Management highlighted a robust balance sheet, ongoing dry docking activities, and strategic positioning in the LNG shipping market despite geopolitical uncertainties. Full Transcript H. Marius Foss, CEO Welcome to FLEX LNG Ltd's first quarter 2026 results presentation.

My name is Marius Foss. I'm the CEO of FLEX LNG Ltd, and today I'm joined by 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 and A session.

Knut Traaholt, CFO If you'd like to ask questions, please use the chat functions in the webcast or send questions by email 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 reports in accordance with US 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.

Marius Foss, CEO 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 Euro 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 $9.5 million, implying an earnings per share of $0.36. When adjusting for analyzed gains of interest rates, 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 quarter for FLEX LNG. We have added more contract coverage.

First, the charter of the Flex Dissolute and Flex Correatious has declared the two-year extension options from 2027 to 2029, and the vessels are now fully employed until 2032. We have fixed the Flexite order for a new two-year firm time charter until 2028 with additional two two-year options, potentially an eight-year charter if all options are declared. We have now completed the dry dockings of both Flex Volunteer and Flex Freedom during the quarter. The Flex Vigilant will enter dry dock later in May.

Based on the added new backlog and improved spot market, we are updating our full-year 2026 guidance as follows: We now expect revenues to come in between $345 million and $370 million, around a 10% increase from the previous guidance. The TCE is expected to be up 8%, between $73,000 and $78,000 per day. We expect the adjusted EBITDA to come in around $255 to $280 million, up 11%. With improved earnings visibility and a continued robust financial position, the Board has declared another dividend of $0.75 per share.

This is the 19th consecutive dividend of $0.75 per share, and we have distributed around $810 million since 2021. Our last 12 months' dividend is $3 per share, implying a dividend yield of around 9.2%. We have completed two out of the three dry dockings so far in 2026. The dry docking of the Flex Volunteer was completed in January, and she is now trading in the spot market.

Flex Freedom completed her dry docking in March and went straight back to service under the current charter. Both dry dockings were completed ahead of schedule. The third and final vessel to be dry docked in 2026, Flex Vigilant, is expected to enter dry dock later this month in Europe. She will, upon completion of dry dock, return back to charter.

We expect the average cost of the three dry dockings to be around $6 million. Flex Vigilant marks the final five-year special survey in our fleet of 13 vessels. Let's have a look at the contract backlog. Flex Constellation was delivered to her new charter in early March and has now commenced her 15-year contract.

We were also pleased to announce that the charter of Flex Dissolute and Flex Correatious exercised their option from 2027 to 2029 for both vessels. The vessels have firm employment until 2032, and the charters have additional options potentially extending the employment until 2039. In March, Flex Aurora was fixed on a new two-year firm contract with a supermajor and entered service almost in direct continuation after she was delivered from her previous 3.5-year contract. The new contract also has two plus two plus two-year options potentially extending until 2034.

Flex Artemis and Flex Volunteer have both been trading in the spot market in the first quarter. Flex Artemis is currently employed on a multi-month contract until the end of September. Flex Volunteer is also fixed on a multi-contract and will come open early July. We are marketing both vessels for spot and term contracts.

Looking at the total contract coverage, 91% of the remaining available days in 2026 are now fully fixed. We have