Flex LNG Reports Robust Q2 2026 Earnings, Maintains Guidance and Declares Dividend

Flex LNG S.A. (NASDAQ: FLNG) announced its second-quarter 2026 financial results, reporting strong revenue growth and maintaining its full-year guidance. The company’s fleet achieved an average Time Charter Equivalent (TCE) rate of $86,100 per day, driven by strong performance in the spot market.

During the quarter, Flex LNG reported revenues of approximately $107 million, or $103 million excluding EUAs, marking the company’s second-best quarterly performance since the fourth quarter of 2021. Net income for the period reached $44.9 million, or $0.83 per share, while adjusted net income stood at $42.5 million, or $0.79 per share.

### Operational Highlights and Fleet Updates
The company’s vessels, including the Flex Artemis and Flex Volunteer, benefited from favorable spot market conditions. Flex LNG completed the scheduled dry docking of the Flex Vigilant in Denmark in June, concluding all five-year special surveys for its 13-vessel fleet. The average cost per dry docking was approximately $6 million, with an average of 17 days spent per vessel. Looking ahead, the company expects no dry dockings in 2027, with the next ten-year dockings scheduled to begin in 2028.

### Financial Position and Dividend
The Board of Directors declared a quarterly dividend of $0.75 per share, marking the 20th consecutive dividend at this level. Over the trailing twelve months, dividends totaled $3.00 per share, representing a yield of approximately 9.7%. The dividend will be paid on or about September 17, 2026, to shareholders of record as of September 3, 2026.

Flex LNG maintained a strong balance sheet, ending the quarter with $397 million in cash. The company generated $63 million in cash flow from operations, up from $37 million in the first quarter, and repaid $28 million in scheduled debt installments. The book equity ratio remained robust at 27.4%.

### Market Outlook and Contract Coverage
The company has secured close to 89% contract coverage for the remaining days of 2026, with a total minimum firm contract backlog of 51 years, which could extend to 78 years if all options are declared. Flex LNG expects full-year 2026 revenues to be between $345 million and $370 million, TCE to range from $73,000 to $78,000 per day, and adjusted EBITDA to fall between $255 million and $280 million.

In the global LNG market, trade volumes remained resilient despite a significant reduction in Qatari exports, which were down by approximately 29 million tonnes. This shortfall was largely offset by a 23% increase in U.S. exports, alongside growth from Australia and Russia. European gas inventories entered the period at 61% full, the lowest level in over 15 years, highlighting the ongoing need for LNG imports as the winter season approaches.

Geopolitical factors, particularly the conflict in Iran and its impact on the Strait of Hormuz, remain a key focus. Flex LNG confirmed that none of its 13 vessels have been trading in the region since the end of February 2026, and charterers are covering any additional insurance costs for high-risk area transits. The company expects the Strait of Hormuz to remain closed throughout 2026.

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