Flex LNG reported a sharp sequential improvement in second-quarter 2026 earnings as heightened volatility in global energy markets created profitable opportunities for the company’s spot-exposed LNG carriers.
Net income reached $44.9 million, or $0.83 per basic share, compared with $19.5 million, or $0.36 per share, in the first quarter. The approximately 130% sequential increase in net income accompanied a 33% increase in vessel operating revenue to $106.8 million from $80.5 million.
Excluding European Union Allowances, revenue was $102.7 million, representing Flex LNG’s highest quarterly revenue since the fourth quarter of 2021.
Fleetwide Time Charter Equivalent earnings increased to $86,119 per day from $65,729 per day in the first quarter, a roughly 31% sequential increase.
Adjusted EBITDA reached $79 million, up from $53.2 million sequentially, while adjusted net income increased to $42.5 million from $16.9 million. Adjusted EPS rose 155% to $0.79 from $0.31.
A significant driver of the improvement was Flex LNG’s exposure to the spot shipping market during a period of energy-market disruption.
Management said hostilities in the Middle East caused significant volatility across the energy complex and created trading inefficiencies that generated attractive opportunities for Flex Volunteer and Flex Artemis, the company’s two spot-exposed vessels.
Flex LNG secured employment for both vessels covering the second and third quarters, with each contributing to the sequential increase in revenue. The vessels are being marketed for additional spot and term employment beginning near the end of the third quarter.
Contracted vessels also contributed to the stronger quarter. Flex Aurora completed its first full quarter under a two-year firm charter with a supermajor that runs through 2028 and contains three successive two-year extension options.
Flex Constellation completed its first full quarter under a new 15-year charter. Together with the company’s broader contracted fleet, those agreements leave Flex LNG with approximately 89% firm contract coverage for the remainder of 2026.
Management nevertheless expects LNG shipping conditions to remain volatile. Approximately 55 new vessels were delivered during the first seven months of 2026, and shipbrokers expect another 40 to 45 vessels to enter the fleet before year-end.
On the demand side, European gas storage levels were approximately 61% in mid-August, while reduced Qatari export volumes were contributing to the redirection of U.S. LNG toward Asian buyers. Global LNG exports remained roughly flat year-over-year, supported by stronger U.S. and West African exports.
Flex LNG maintained its full-year guidance for revenue of $345 million to $370 million excluding EU Allowances, fleetwide TCE earnings of $73,000 to $78,000 per day and adjusted EBITDA of $255 million to $280 million.
The company ended the period with $397 million of cash and no debt maturities before 2029. Its board declared another $0.75-per-share quarterly dividend, marking the twentieth consecutive ordinary quarterly dividend at that level. Including special dividends, Flex LNG said it will have returned approximately $850 million to shareholders since 2021.
KEY QUOTES:
“The resulting volatility and trading inefficiencies created attractive opportunities for our two spot-exposed vessels.”
Marius Foss, CEO of Flex LNG Management AS
