Flex LNG FLNG Q4 2025 Earnings Call Transcript

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Wednesday, February 11, 2026 astatine 9 a.m. ET

• Chief Executive Officer — H. Foss

• Chief Financial Officer — Knut Traaholt

H. Foss: We merchantability successful revenues of $87.5 cardinal oregon $85 million, excluding the EUAs related to emanation trading system. The fleet mean TCE during the 4th ended up astatine $70,100 per day. Net income for the 4th fourth came successful astatine $21.6 million, implying an net per stock astatine $0.40. When adjusting for unrealized losses and involvement complaint swap and FX, ending up with adjusted nett income of $23.3 cardinal oregon adjusted net per stock of $0.43. We completed the adust dock of Flex Volunteer successful January. She is present trading successful the spot market.

We received a announcement from 1 of our charters that they volition not state the 1-year options connected the bully vas Flex Aurora, and we expect to person her backmost successful our fleet successful March. Our spot vulnerability successful 2026 is constricted to 3 vessels, Flex Volunteer, Flex Aurora and the Flex Artemis, and each 3 vessels are marked for semipermanent contracts. The remaining 10 vessels are connected clip charters. We are contiguous presenting guidance for the afloat twelvemonth and with 3 vessels successful the spot market, we are presenting wide ranges, reflecting vulnerability to the volatile spot markets.

We expect afloat twelvemonth revenues to beryllium betwixt $310 cardinal and $340 million, and the expected TCE per time astir $65,000 to $75,000 per day. Adjusted EBITDA is expected to travel successful astatine astir $225 cardinal to $255 cardinal for the afloat year. The Flex LNG has a precise robust fiscal position. We are -- with a currency equilibrium of $448 cardinal astatine the year-end. No indebtedness matures anterior 2029, and we person a coagulated declaration backlog. The Board has declared different $0.75 per stock dividend. This is the 18th consecutive dividend of $0.75 per share, and we person distributed past astir $770 cardinal since 2021.

Our past 12 months dividend is $3 per share, implying a dividend output of astir 11.5%. When looking astatine the 2025 figures, the abbreviated summary is that we delivered successful enactment with our guidance. The afloat twelvemonth TCE ended astatine $72,000 per time and with sell-in revenues of $340 million. Our adjusted EBITDA came successful astatine $251 million. We traded 2 vessels successful the spot marketplace successful 2025, the Flex Artemis and the Flex Constellation, and we completed 4 adust dockings successful 2025, Flex Aurora and Flex Resolute successful Q2, Flex Amber and Flex Artemis successful Q3. With that, let's person a look astatine our declaration backlog. In 2026, we person 78% of disposable days fixed connected semipermanent charters.

As you tin spot successful the bottommost of this slide, Flex Artemis and Flex Volunteer are present trading successful the spot market, portion Flex Aurora volition beryllium redelivered from her existent charters successful March. We are actively selling each 3 vessels for some spot and semipermanent contracts. Further, successful 2027, we person options for Flex Resolute, Flex Courageous and Flex Freedom. These options are owed to beryllium declared during this year. The spot marketplace was a roller coaster past twelvemonth with brushed rates successful the commencement of the year, portion we saw a rally successful Q4 with spot fixtures for modern 2 strokes reaching up to $175,000 per day.