Flex LNG Ltd. (FLNG): Financial results for Q2 2026
Flex LNG Ltd. (FLNG) furnished an SEC Form 6-K — earnings release. Interim Financial Information Flex LNG Ltd. Second Quarter 2026 August 19, 2026 August 19, 2026 - Hamilton, Bermuda Flex LNG Ltd. ("we", "us", "our", "Flex LNG", or the “Company”) today announced its unaudited financial results for the quarter ended June 30, 2026. Highlights: A s
How this was made
The 30-second read
Why it matters
The earnings beat and dividend announcement provide fresh, material information for traders.
Market read
First‑report earnings with reaffirmed guidance and dividend make this a notable catalyst for FLNG and the broader LNG shipping sector.
What to watch
Potential volatility from Middle‑East disruptions and rising EU carbon allowance costs could erode margins.
Flex LNG reported its highest Vessel operating revenues and TCE rate since the fourth quarter 2021, driven by spot-market earnings and full-quarter contributions from new charters, while maintaining full-year 2026 guidance.
Vessel operating revenues increased to $106.8 million from $80.5 million in Q1 2026, TCE rate rose to $86,119 per day from $65,729 per day, and net income increased to $44.9 million from $19.5 million. The Company maintained its full-year revenue, TCE and Adjusted EBITDA guidance and declared its twentieth consecutive ordinary quarterly dividend of $0.75 per share.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Vessel operating revenuesGAAP | $106.8 million | – | – |
| Vessel operating revenues excluding EU Allowancesother | $102.7 million | – | – |
| EU Allowances income included in Vessel operating revenuesother | $4.1 million | – | – |
| Voyage expensesGAAP | $6.4 million | – | – |
| Vessel operating expensesGAAP | $19.2 million | – | – |
| Administrative expensesGAAP | 1,904 (figures in thousands of $) | – | – |
| DepreciationGAAP | $19.8 million | – | – |
| Operating incomeGAAP | 59,468 (figures in thousands of $) | – | – |
| Interest incomeGAAP | 665 (figures in thousands of $) | – | – |
| Interest expenseGAAP | 19,594 (figures in thousands of $) | – | – |
| Gain/(loss) on derivativesGAAP | 4,678 (figures in thousands of $) | – | – |
| Foreign exchange (loss)/gainGAAP | (67) (figures in thousands of $) | – | – |
| Other financial itemsGAAP | (287) (figures in thousands of $) | – | – |
| Income before taxGAAP | 44,863 (figures in thousands of $) | – | – |
| Income tax expenseGAAP | 12 (figures in thousands of $) | – | – |
| Net incomeGAAP | $44.9 million | – | – |
| Basic earnings per shareGAAP | $0.83 | – | – |
| Diluted earnings per shareGAAP | $0.83 | – | – |
| Time Charter Equivalent incomenon-GAAP | 100,405 (figures in thousands of $) | – | – |
| Time Charter Equivalent ratenon-GAAP | $86,119 per day | – | – |
| Fleet onhire daysother | 1,166 | – | – |
| Opex per daynon-GAAP | $16,260 | – | – |
| Available daysother | 1,183 | – | – |
| EBITDAnon-GAAP | 83,589 (figures in thousands of $) | – | – |
| Adjusted EBITDAnon-GAAP | $79.0 million | – | – |
| Adjusted net incomenon-GAAP | $42.5 million | – | – |
| Adjusted basic earnings per sharenon-GAAP | $0.79 | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.79 | – | – |
full-year 2026 outlook
- Revenue$345 - $370 million, excluding EUAs
- NoteExpected fleet-wide TCE earnings of $73,000 - $78,000 per day.
- NoteAdjusted EBITDA of $255 - $280 million.
Capital returns
- Declared a dividend of $0.75 per share for the second quarter of 2026.
- The dividend is equivalent to an aggregate distribution of approximately $41 million.
- The dividend is expected to be paid on or around September 17, 2026.
- Dividends paid were $40,569 (figures in thousands of $) in the second quarter 2026.
- The Company stated this marks its twentieth consecutive ordinary quarterly dividend of $0.75 per share.
- Including special dividends, the Company stated it will have returned approximately $850 million to shareholders since 2021.
What drove it
- Higher charter revenues from Flex Volunteer and Flex Artemis operating in the spot market.
- Flex Constellation and Flex Aurora commenced new charters during the first quarter of 2026, with each contributing during the second quarter.
- Revenue benefited from more onhire days because one vessel, Flex Vigilant, was drydocked in Q2 2026, compared with two vessels in Q1 2026.
- Flex Aurora commenced its two-year firm charter in late March 2026, which runs until 2028 and includes three successive two-year extension options.
- Flex Constellation completed its first full quarter under its new 15-year charter.
- The Company achieved 100% technical uptime, excluding offhire related to drydockings, during Q2 2026.
- Firm contract coverage was approximately 89% for the remainder of 2026, and aggregate firm contract backlog was 51 years, potentially rising to 78 years if all extension options are exercised by charterers.
Concerns
- Flex Artemis and Flex Volunteer are being marketed for new employment from the end of the third quarter 2026 and are expected to remain in the short-term market until suitable long-term employment is secured.
- The Company expects the freight market to remain volatile.
- The LNG carrier newbuild orderbook stands at approximately 285 vessels, equivalent to around 37% of the fleet on the water.
- Around 55 vessels were delivered during the first seven months of 2026, with a further 40–45 expected during the remainder of the year, followed by approximately 95 vessels in 2027 and 80 in 2028.
- Vessel operating expenses increased primarily because of higher crew travel costs related to disruptions affecting air travel through the Middle East, as well as the timing of expenses between quarters.
- No financial asset was recognized for the FuelEU Maritime compliance surplus as of June 30, 2026, because recognition remains subject to commercial negotiations with charterers and accounting assessment.
What to watch
- Employment and charter-rate outcomes for Flex Artemis and Flex Volunteer from the end of the third quarter 2026.
- Delivery of the additional 40–45 vessels expected to enter the fleet before year-end.
- Whether the approximately 89% firm contract coverage for the remainder of 2026 and 51 years of aggregate firm backlog support delivery within the maintained guidance ranges.
- LNG freight-market volatility, including competition for LNG volumes between Europe and Asia.
- The balance between higher global LNG export volumes from the U.S. and West Africa and disruption to Qatari export volumes.
Balance sheet and cash flow
- Cash and cash equivalents were $397.4 million as of June 30, 2026, compared to $389.1 million as of March 31, 2026.
- Vessels and equipment, net were $2,077.1 million as of June 30, 2026, compared to $2,091.9 million as of March 31, 2026.
- Total long-term debt was $1,793.7 million as of June 30, 2026, compared to $1,821.0 million as of March 31, 2026.
- Total equity was $702.5 million as of June 30, 2026, compared to $698.2 million as of March 31, 2026.
- Net cash provided by operating activities was $76.8 million in the second quarter 2026, compared to $9.7 million in the first quarter 2026.
- Drydocking expenditure was $5,033 (figures in thousands of $) in the second quarter 2026.
- Repayment of long-term debt was $27,839 (figures in thousands of $) in the second quarter 2026.
- The Company had fixed interest rates on an aggregate notional principal amount of $775.0 million, with a weighted average fixed interest rate of 2.46% and a weighted average duration of 2.3 years, as of June 30, 2026.
- The Company stated that it had no debt maturities before 2029.
Analysis
Flex LNG delivered a substantially stronger second quarter. Vessel operating revenues were $106.8 million, compared with $80.5 million in Q1 2026, and TCE rate was $86,119 per day, compared with $65,729 per day. Net income was $44.9 million, compared with $19.5 million, while Adjusted EBITDA was $79.0 million, compared with $53.2 million. The Company described both revenue and TCE as their highest levels since the fourth quarter 2021.
The improvement was driven by spot-market earnings from Flex Volunteer and Flex Artemis, plus full-quarter earnings contributions from Flex Aurora and Flex Constellation under new charters. Onhire availability also improved, as Flex Vigilant was the only vessel drydocked during the second quarter compared with two drydockings in the first quarter. The quarter included $4.1 million of EUA income within Vessel operating revenues, with an equivalent amount recorded in Voyage expenses.
Costs rose more modestly than revenue. Vessel operating expenses were $19.2 million versus $18.7 million in Q1 2026, and Opex per day was $16,260 versus $15,953. The Company attributed the increase to higher crew travel costs amid Middle East air-travel disruptions and expense timing. Operating cash flow improved to $76.8 million from $9.7 million, reflecting higher vessel operating revenues and the timing of advanced charter-hire receipts.
Balance-sheet measures showed cash and cash equivalents of $397.4 million and total long-term debt of $1,793.7 million at June 30, 2026. Debt declined from $1,821.0 million at March 31, 2026 through scheduled repayments. The Company declared another $0.75 per-share distribution, approximately $41 million in aggregate, while stating it had no debt maturities before 2029.
Management maintained full-year 2026 revenue guidance of $345 - $370 million excluding EUAs, fleet-wide TCE guidance of $73,000 - $78,000 per day and Adjusted EBITDA guidance of $255 - $280 million. The principal operating sensitivity remains the two spot-exposed vessels, Flex Artemis and Flex Volunteer, which are being marketed from the end of Q3 2026. Management also identified high fleet growth, with further vessel deliveries expected in 2026, alongside volatile trade flows and competition for LNG volumes between Europe and Asia.
Management, verbatim
In the second quarter of 2026, we generated revenues of $106.8 million, or $102.7 million excluding EU Allowances, our highest quarterly revenue since the fourth quarter of 2021.
Marius Foss, CEO
Both vessels are currently being marketed for spot and term employment from the end of the third quarter of 2026, leaving us with approximately 89% firm contract coverage for the remainder of the year.
Marius Foss, CEO
However, we maintain our full-year 2026 revenue guidance of $345 - $370 million, excluding EUAs. We also maintain expected fleet-wide TCE earnings of $73,000 - $78,000 per day. Our guidance range for adjusted EBITDA is $255 - $280 million.
Marius Foss, CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- No reportable revenue segments were disclosed.
- Percentage year-over-year and quarter-over-quarter changes were not reported for individual financial metrics.
- A prior outlook section was not provided, so reported results cannot be compared with prior guidance.
- Operating-expense guidance was not reported.
- Gross-margin guidance was not reported.
- Tax-rate guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Flex LNG Ltd. (FLNG) filed a Form 6‑K on Aug 19, 2026, presenting its unaudited Q2 results and reaffirming 2026 guidance.
Ticker impact
Flex LNG reported Q2 2026 earnings with revenue of $106.8M, net income $44.9M and reaffirmed full-year guidance, plus a $0.75 per share dividend.
Expect modest upside as the market digests stronger revenues, higher TCE rate and the dividend announcement.
The earnings release is the first disclosure of the numbers and guidance; the scale is material for a mid‑cap offshore shipping firm, and the dividend adds cash flow appeal.
Market effects
Strong Q2 results may lift sentiment in the LNG shipping sector and support related vessel charter rates.
Positive for Bermuda‑registered shipping firms and may influence European gas storage outlook.
Reaffirmed guidance and dividend could attract global investors seeking exposure to LNG logistics.
Counterpoint
If fleet growth accelerates faster than demand, future earnings could be pressured despite current beat.
Key entities
- companyFlex LNG Ltd.
LNG shipping company listed on NYSE under ticker FLNG.
- executiveMarius Foss
CEO of Flex LNG who commented on the results.
