FLEX LNG Surpasses Expectations in Q2 2026 with Strong Revenues and Dividend Payment
FLEX LNG, a leading player in the liquefied natural gas (LNG) shipping industry, has delivered impressive results for the second quarter of 2026. The company's CEO, Marius Foss, and CFO, Knut Traaholt, presented the Q2 results during an investor webcast on August 19, 2026.
Highlighting the key takeaways from the quarter, Foss noted that FLEX LNG has achieved "very strong results" with revenues of close to $107 million, excluding EUAs. This performance marks the company's second-best quarter since the fourth quarter of 2021. The fleet average TCE (Time Charter Equivalent) during the quarter came in at $86,100 per day.
Net income for the second quarter was a respectable $44.9 million, translating to an earnings per share (EPS) of $0.83. When adjusting for unrealized gains and interest rates, swaps, and FX, FLEX LNG's adjusted net income stood at $42.5 million or $0.79 in EPS.
The company's two vessels, Flex Artemis and Flex Volunteer, traded in a strong spot market in the second quarter, contributing significantly to the solid quarterly results. However, elevated geopolitical uncertainty in the LNG space, particularly due to disruptions caused by the conflict in Iran, remains a concern for the industry as a whole.
In related news, FLEX LNG has completed all scheduled five-year special surveys for its fleet of 13 vessels. The company's Flex Vigilant underwent dry docking in June, marking the final such event for 2026. This milestone marks the end of a series of significant maintenance and upgrade projects undertaken by FLEX LNG to ensure the continued reliability and efficiency of its vessels.
Foss and Traaholt emphasized that FLEX LNG remains committed to its full-year guidance, with revenue expectations ranging from $345 million to $370 million. Similarly, the company anticipates TCE to fall within the range of $73,000 to $78,000 per day. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is expected to be between $255 million and $280 million.
In a significant show of confidence in its financial stability and prospects, the FLEX LNG board has declared another dividend payment of $0.75 per share, marking the 20th consecutive quarter with this payout level. The company has distributed around $850 million since 2021, including special dividends. This latest dividend brings the total paid over the last 12 months to $3 per share, implying a dividend yield of approximately 9.7%.
Looking ahead, FLEX LNG's contract coverage remains robust, with a total backlog that spans 51 years of minimum firm commitments. If all options are declared, this figure could grow to 78 years. The company is marketing its vessels for both spot and new term contracts, ensuring continued stability in its revenue streams.
With the current geopolitical uncertainty and softer spot market dynamics, FLEX LNG's decision-making regarding dividend payments remains cautious but confident. The company maintains an orange level for market outlook, reflecting these concerns. However, it continues to express confidence in the long-term structural demand story for LNG, supported by the construction of new U.S. export capacity.
