FLEX LNG (FLNG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $88.4 million, with adjusted net income of $29.4 million and adjusted EPS of $0.54; net income was $18.7 million.

• Declared a $0.75 per share quarterly dividend, totaling $3.00 per share over the last 12 months, with a yield of about 12%.

• Maintained a solid contract backlog of 59 years minimum, potentially rising to 88 years if options are exercised, with 87.6% contract coverage for 2025.

• Launched Balance Sheet Optimization Program 3.0 and initiated refinancing for several vessels to enhance liquidity and reduce debt costs.

• Announced CEO transition, with Marius Foss appointed as interim CEO.

Financial highlights

• Q1 2025 revenues were $88.4 million ($86.8 million excluding EUAs), with TCE at $73,900 per day.

• Adjusted EBITDA was $65.6 million; operating expenses were $18.1 million, or $15,500 per day.

• Interest expense dropped to $22.2 million, aided by lower base rates and debt restructuring.

• Cash and cash equivalents were $410 million as of March 31, 2025.

• Net debt position was $1.4 billion, with long-term debt at $1,783.8 million.

Outlook and guidance

• Reaffirmed full-year 2025 revenue guidance of $340–$360 million and TCE of $72,000–$77,000 per day.

• EBITDA expected between $250 million and $270 million for 2025.

• Four vessels scheduled for special five-year surveys/drydocks in 2025, totaling ~80 days off-hire and $5.5 million CAPEX per drydock.

• 2025 contract coverage at 87.6% with 15.4% spot market exposure.

• Short-term outlook indicates a soft spot market; long-term demand remains strong.