FLNG

Image source: The Motley Fool. Wednesday, Aug. 19, 2026 at 9:00 a.m. ET Chief Executive Officer - Marius Foss Chief Financial Officer - Knut Traaholt H. Foss: Welcome back to Flex LNG's Second Quarter 2026 Results Presentation. Hope you all have a great summer. My name is Marius Foss. I'm the CEO of Flex LNG. And today, I'm joined by our CFO, Knut Traaholt, who will walk you through the financials later in the presentation. Today, we will summarize the second quarter results and provide an update on the LNG shipping market. As always, we will conclude this webcast with a Q&A session. Knut Traaholt: If you would like to ask questions, please use the chat functions on the webcast or send questions to -- by e-mail to [email protected]. Before we start, we would like to highlight the following. We are using certain non-GAAP measures such as TCE, adjusted EBITDA, and adjusted net income. These are supplements to the earnings reported in accordance with U.S. GAAP. The reconciliations of these non-GAAP measures are available in the earnings report released today. There are also limitations to the completeness of our presentation. Therefore, we encourage you to read the quarterly report together with today's presentation. And with that, back to you, Marius. H. Foss: Thank you, Knut. Let's begin with the highlights of the quarter. We are happy to present very strong results for the second quarter. We sailed in revenues of close to $107 million or close to $103 million, excluding the EUAs. This is our second best quarter since the fourth quarter of 2021. The fleet average TCE during the quarter ended up at $86,100 per day. Net income for the second quarter came in at $44.9 million, implying an earnings per share of $0.83. When adjusting for unrealized gains and interest rates swaps and FX, we ended up with adjusted net income of $42.5 million or adjusted earnings per share at $0.79. Flex Artemis and Flex Volunteer have traded in a strong spot market in the second quarter and contributed to our solid quarterly results. We continue to see elevated geopolitical uncertainty in the LNG space as the conflict in Iran causes disruption to the LNG flow from the region. Lastly, with the dry docking of Flex Vigilant in June, we have completed all scheduled 5-year special surveys for our fleet. We maintain our full year guidance from last quarter and expect revenues to come in between $345 million and $370 million. Similarly, we expect the TCE to come in somewhere between $73,000 and $78,000 per day. We expect adjusted EBITDA to come in between $255 million and $280 million. With our strong quarter, contract coverage and solid balance sheet, the Board has declared another dividend of $0.75 per share. This is the 20th consecutive dividend of $0.75 per share, and we have now distributed around $850 million since 2021, including special dividends. Our last 12 months dividend is $3 per share, implying a dividend yield of around 9.7%. Flex Vigilant completed her dry dock in Denmark in June, and this was the third and final dry docking for 2026. The average cost per dry docking came in around $6 million per vessel as guided, and we spent averagely 17 days in dry dock per vessel. Flex Vigilant marks the final 5-year special survey in our fleet of 13 vessels. Looking ahead, we have no dry dockings coming up in 2027, and we will commence our first 10-year docking in 2028. Let's have a look at our contract backlog. Looking at our total contract coverage, we have 51 years of minimum firm backlog, which may grow to 78 years if all options are declared. In the near term, we have close to 89% coverage for the remaining available days in 2026. Flex Artemis and Flex Volunteer have both been trading in the spot market in the second quarter and will come open at the end of the third quarter. We are now marketing the vessels both for spot and new term contracts. With our good contract coverage for the remainder of the year, we maintain our guiding which we upgraded last quarter. This means that we expect full year revenues to come in between $345 million to $370 million. Similarly, we expect TCE to come in somewhere between $73,000 and $78,000 per day. Lastly, we expect the adjusted EBITDA to come in between $255 million and $280 million. We are pleased to announce that the Board has declared a dividend of $0.75 per share. Let us briefly revisit decision factors for the dividends. We maintain the orange level for market outlook. This reflects a softer spot market and heavy schedule of newbuilding deliveries. Looking ahead, we note that low European storage levels going into the cold winter season. Confidence in the long-term structural demand story remains intact, supported by the third wave of U.S. LNG export capacity currently under construction. We keep other considerations in orange given the continued elevated geopolitical risk. There is still uncertainty around the duration of the Iran conflict and the timing of normalization of the Qatar supply. Taking all factors into account, the Board has declared another quarterly dividend of $0.75 per share. This brings dividends paid over the last 12 months to $3 per share. The dividend will be paid on or about 17th of September to shareholders of record as of 3rd of September. And with that, I hand it over to you, Knut, for final financial updates. Knut Traaholt: Thank you, Marius. And the second quarter was significantly improved quarter-over-quarter, mainly driven by higher revenues. And revenues were $106.8 million or $102.7 million, excluding EUAs. The higher revenues were driven by high spot earnings for Flex Volunteer and Flex Artemis, while both Flex Constellation and Flex Aurora contributed by having a full quarter of earnings under the new contracts that commenced in March. On the cost side, vessel OpEx was higher quarter-over-quarter as the second quarter was impacted by higher crew travel costs related to the disruptions in the Middle East. The average OpEx per day in the second quarter was $16,260, while the average OpEx for the first 6 months of the year was around $16,100 per day. We maintain our OpEx guidance of $16,000 per day for the full year. Interest expense continued to improve, reflecting lower loan margins and active management of our RCF facilities. We booked $4.7 million in gains on our interest rate derivatives, of which $2.3 million was realized gains and $2.4 million was unrealized gains. Net income came in at $44.9 million or $0.83 per share, and adjusting for noncash items like unrealized gains from the interest derivative portfolio, the adjusted net income was $42.5 million or equivalent to adjusted earnings per share of $0.79. This is more than double than of the first quarter. So overall, this was a very strong quarter, impacted by improved revenues from the spot market, new contracts, completion of dry docking and continued cost control and improved financial efficiency. On the cash flow, during the quarter, we generated strong cash flow from operations of $63 million, up from $37 million in the first quarter. The increase was mainly driven by higher revenues, as explained on the previous slide. This excludes $19 million in positive change in working capital and $5 million of CapEx related to the dry dockings this year. And the reduction in receivables during the quarter was related to timing of advanced charter hire receipts. We repaid $28 million in scheduled debt installments and distributed $41 million to our shareholders. And then in sum, our net cash flow was $8 million in the quarter, and that resulted in a cash position of $397 million at the end of the quarter. So looking at our balance sheet, we maintain a clean balance sheet with mainly ships and close to $400 million in cash. And our debt financing is comprised of a combination of bank loans, which gives us flexibility and attractive long-term leases. Our first debt maturity is in the first quarter of 2029. And if we look at the book equity ratio, it's robust at 27.4%. And as noted before, our book values reflect the historical cost adjusted with regular depreciation. Our interest rate swap portfolio is unchanged and was valued at $22 million at the end of the second quarter. The notional value of the portfolio is $775 million, with an average fixed rate of 2.46%. We expect to maintain a hedge ratio of around 70% into mid-next year. And with that, I hand it back to you, Marius, for the market outlook. H. Foss: Thank you, Knut. Let's have a look at the LNG trade. Global LNG trade volumes are broadly flat year-to-date, down less than 1% compared with the same period last year. On the supply side, the key development has been significant reduction in the Qatari exports, down around 29 million tonnes. This shortfall has to a large extent been offset by strong growth from the U.S., where exports are up 23% or close to 14 million tonnes. We have also seen continued growth from Australia and Russia. Other exporters have contributed strongly and are up 6 million tonnes from last year. These include LNG Canada, but also West Africa exporters, including Nigeria and Senegal. Industry sources report that global export capacity ran at 96% utilization in July, excluding Qatar. This is above 90% utilization seen last year and a 5-year average of 86%. On the demand side, imports into JKT remained resilient, while Europe and China are down compared to last year. At the same time, India and other importing markets have continued to grow. The key takeaway is that despite a significant disruption from one of the world's largest LNG exporters, Qatar, global trade volumes have remained resilient. And more importantly, for shipping, the growing share of U.S. supply means more LNG coming into the Atlantic Basin. This will likely have a positive ton-mile effect when those volumes move into Asia. Let's have a look a bit closer to the supply side. The reduction in Middle East LNG volumes has been significant. Combined exports from Qatar and UAE are currently down around 63% compared to normal levels. As you can see from the left-hand side, exports dropped very sharply earlier in the year. And while volumes have started to recover, they remain below historical levels. At the same time, the U.S. has continued to ramp up LNG exports. U.S. liquefaction capacity is up around 14 million tonnes year-on-year, supported by the ramp-up of new capacity, particularly in the Plaquemines. It is also worth to mention that the long anticipated Golden Pass is slowly but steadily increasing its production. We expect to see increased loading from Golden Pass going forward and from Port Arthur as it comes on stream next year. So despite substantial loss from Middle East supply, this has mitigated by strong U.S. growth, and that shift is positive for the shipping demand. Let us have a look at the demand side on the competition between Europe and Asia for the LNG. Europe entered the year with relatively low gas inventories. Inventories are today 61% full, the lowest level in over 15 years and below the 73% seen last year. This means Europe still has a substantial requirement to rebuild inventories ahead of the winter season. At the same time, U.S. LNG is highly flexible and can move between Europe and Asia depending on the relative pricing. Looking at the chart on the left-hand side, there have historically been significant swings in the U.S. LNG flows between the 2 regions. So far this year, both Europe and Asia have attracted additional U.S. LNG volumes, although the balance has shifted through the year. Looking forward, this sets up a continued tug-of-war of U.S. LNG exports. If European storage remain low, Europe will need to keep bidding on Atlantic cargoes, while lack of Qatari volumes could pull more of those volumes into Asia. If you are looking at the newbuildings, we stand out on this slide, ordering activity remains very strong, even with newbuilding prices holding around $250 million and the term rates remain more moderate levels. We have already seen around 60 newbuildings ordered so far this year. A number of these are made without any employment contracts. This year, orders are well above last year's figures of 35 vessels. That tells us there's still significant confidence in the long-term LNG shipping markets. At the same time, elevated newbuilding prices continue to provide support for the value of modern existing tonnage, including our fleet. The order book remains substantial with around 285 vessels to be delivered going forward, equivalent to roughly 38% of the existing fleet. However, the majority of these vessels are already tied up with Qatar or other long-term employment, and the number of open vessels remains fairly limited. Contracting activity remains at very high levels. LNG SPAs volumes signed in the first half of 2026 are already above 30 million tonnes per year. This continued appetite for long-term LNG supply is important because it provides the commercial basis required for new projects to reach FID. We have already seen around 28 million tonnes of projects that reached FID so far this year, including Venture Global's expansion of the CP2, Commonwealth and Delfin. And there are additional projects that could reach FID later this year, up to 39 million tonnes. These potential projects include LNG Canada Phase 2, Ksi Lismis in Canada and Delfin Phase 2 and the Brownsville in the U.S. This would take the potential FIDs in 2026 up to around 67 million tonnes. The key takeaway is that the next wave of LNG supply continues to gain momentum, supported by strong customer contracting and a healthy pipeline of projects moving forward to FID. Let's have a look at the spot market for the modern 2 strokes. We have seen increasing vessel availability in both West and East of Suez, and that continues to put a weight on the spot rates. It is worth mentioning that the number of vessels available today is in line with the 5-year historical averages. This comes at a time when the LNG fleet is growing. This shows that the newbuildings are being absorbed by going straight into the program after being delivered from the shipyards. We did see a sharp spike in the rates earlier this year. But since then, rates have normalized, and we have seen some pressure on the spot rates over the last few weeks. As we move into the second half of the year, we would normally expect some historical seasonal tightening. We have 2 vessels coming open at the end of the third quarter, well positioned for a potential strong winter market. With that, let's turn to a Q&A session. Knut Traaholt: Thank you, Marius, and thank you to everyone who has submitted questions on our webcast and also to our Investor Relations e-mail. It's been an active or a lot of things happening during the quarter, particularly in the Middle East and with the Strait of Hormuz. So we have a number of questions coming in around that and also how that has impacted our operations. So in specific, the question is, do we have any trade in that area or to the Strait of Hormuz? And have we had any ships being stuck inside the Strait of Hormuz? H. Foss: Yes. Thank you. Now I'm pleased to confirm that all vessels in the Flex fleet of 13 vessels, none of them have been trading inside since the end of February. So our charterers' clients are trading elsewhere for time being. Knut Traaholt: And there's also then a follow-up question around this as there are a number of additional insurances that are needed to be trading to the Strait of Hormuz. And the question is specifically who pays for this insurance and what insurance is needed to be trading here? H. Foss: Yes, it's required to have insurance when you sail into high-risk areas. So if and when our ships are ordered to other high-risk areas, this extra coverage will be paid for by the charterers who are instructing the vessel to such areas. Knut Traaholt: And sticking to the Strait of Hormuz, it's more on the market view and the outlook there for, first of all, the resumption of LNG export out of Qatar and UAE, but also more on the normalization of the transit through the Strait of Hormuz. What's your view on that? H. Foss: Well, we believe that Strait of Hormuz will remain closed throughout 2026. So we could potentially look at the interesting market going forward for LNG and other shipping segments. Knut Traaholt: Moving on, you mentioned in the presentation that we have seen a slightly softer spot market now. So there's questions on what your expectations are for the LNG shipping market for the third quarter and then the fourth quarter? H. Foss: Yes. The Q3 is normally a shoulder month before we head into the winter season. So Q3 has softened up from the spot market has been maybe on $120,000 for round trip during the last Q3 and has now come down to $30,000. Our next ship coming open in the end of Q3. So we are preparing for the Q4 market, which historically has been profitable. So we are hopeful and hoping that we can contribute a little bit more there on our Q3 and Q4 results later. But yes, if Hormuz remains closed, I think this will automatically find its way back to where the LNG market should be. Knut Traaholt: Good. Then we have some questions on the financing. First of all, on our interest rate derivative portfolio. As we say, we have 70% coverage until mid-next year. And the question relates to when we expect to add more interest rate hedging to our books? In general, we are trading when the markets are favorable. We are very pleased with the coverage we have today. But obviously, when there are opportunities either for adding more on the short-term or longer-term interest rate hedging, that is our aim to do. And there is also a follow-up questions on our debt maturities in Q1 2029, when we will address that? It's a bit early to address that refinancing now unless that we see an attractive opportunity to add more or better terms to our financings. That is something we are continuously evaluating. And if there are attractive opportunities, we will act on them. And final question, it's a recurring questions. It's about dividend sustainability and the outlook for future dividends. As we have repeatedly said, each dividend is declared by the Board each quarter. We are fairly transparent on the decision factors, which we have also presented today. That is a repeat of the decision factors that we had last year -- sorry, last quarter, which was basically a downgrade of certain factors. However, with the strong balance sheet and cash position and also the contract backlog, the Board was pleased to confirm a dividend for this quarter of $0.75. Future dividends will be decided by the Board, and reassess all these factors, including then our backlog for the open vessels. And with that, that concludes the Q&A session. H. Foss: Thank you. Thank you for participating in our Q2 presentation. We would like to welcome you back in November for our Q3 presentation. Thank you. Before you buy stock in Flex Lng, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Flex Lng wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,488!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,279,584!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 26, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Flex LNG (FLNG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $106.8 million, or $102.7 million excluding EUAs; second-best quarter since Q4 2021. Fleet-Average TCE: $86,100 per day for the quarter. Net Income: $44.9 million, or $0.83 earnings per share. Adjusted Net Income: $42.5 million, or $0.79 adjusted earnings per share, excluding unrealized gains on interest-rate swaps and FX. Cash Flow from Operations: $63 million, up from $37 million in the first quarter. Operating Expenses: Average OpEx per day of $16,260 in Q2; $16,100 per day for the first six months. Dividend: Declared $0.75 per share, marking the 20th consecutive dividend at this level; last 12 months dividend is $3 per share, implying a yield of around 9.7%. Full-Year Guidance: Revenues between $345 million and $370 million; TCE between $73,000 and $78,000 per day; adjusted EBITDA between $255 million and $280 million. Dry Docking Costs: Average cost of around $6 million per vessel, with an average of 17 days in dry dock per vessel. Cash Position: $397 million at the end of the quarter. Debt Repayment: $28 million in scheduled debt installments repaid during the quarter. Warning! GuruFocus has detected 8 Warning Sign with FLNG. Is FLNG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong Q2 2026 results with revenues of $107 million and fleet-average TCE of $86,100 per day, marking the second-best quarter since Q4 2021. Adjusted net income of $42.5 million, more than double Q1 2026, driven by higher spot earnings and new contracts. Completed all scheduled five-year special surveys for the fleet, with no dry dockings in 2027, reducing future operational disruptions. Maintained a robust contract backlog of 51 years of minimum-firm coverage, with 89% coverage for remaining 2026 days. Declared a dividend of $0.75 per share, marking the 20th consecutive quarter, with a dividend yield of approximately 9.7%. Strong balance sheet with $397 million in cash and a book-equity ratio of 27.4%, providing financial flexibility. Positive market outlook due to low European gas storage levels and the third wave of US LNG export capacity, which could boost shipping demand. US LNG export growth (up 23%) and the shift to Atlantic Basin supply are expected to have a positive ton-mile effect. No vessels trading in the Strait of Hormuz since February, avoiding geopolitical risks and associated insurance costs. Interest expense improved due to lower loan margins and active management of RCF facilities. Elevated geopolitical uncertainty, particularly the Iran conflict and Strait of Hormuz closure, which is expected to persist through 2026. Softer spot market in Q3 2026, with rates declining from $120,000 to $30,000 per day, pressuring near-term earnings. Heavy schedule of newbuilding deliveries, with an order book of 285 vessels (38% of existing fleet), increasing vessel availability and competition. Global LNG trade volumes are flat year-to-date, down less than 1%, indicating limited demand growth. Qatari exports are down 29 million tons, and combined Qatar/UAE exports are down 63%, disrupting supply and creating market uncertainty. European gas inventories are at the lowest level in over 15 years (61% full), requiring significant rebuilding ahead of winter, which could strain supply. Vessel OpEx increased quarter-over-quarter due to higher crew travel costs related to Middle East disruptions. The company maintains an 'orange' market outlook, reflecting a softer spot market and heavy newbuilding schedule. Two vessels (Flex Artemis and Flex Volunteer) are open for new contracts, and marketing them in a weak spot market may result in lower rates. Future dividends are subject to Board discretion and market conditions, with no guarantee of maintaining the $0.75 per share level. Q: What is the company's outlook for the resumption of LNG exports from Qatar and UAE, and the normalization of transit through the Strait of Hormuz? A: CEO Marius Foss stated that the company believes the Strait of Hormuz will remain closed throughout 2026, which could lead to an interesting market for LNG and other shipping segments going forward. Q: What are the expectations for the LNG shipping market in the third and fourth quarters of 2026? A: CEO Marius Foss noted that Q3 is typically a shoulder month, with spot rates having softened from around $120,000 to $30,000. The company's next vessels come open at the end of Q3, positioning them for the historically profitable Q4 winter market. He added that if Hormuz remains closed, the market should automatically find its way back to where LNG rates should be. Q: Does Flex LNG have any vessels trading in the Strait of Hormuz, and have any ships been stuck inside? A: CEO Marius Foss confirmed that none of the 13 vessels in the Flex fleet have been trading inside the Strait of Hormuz since the end of February, as charterers are trading elsewhere for the time being. Q: Who pays for the additional insurance required for trading in high-risk areas like the Strait of Hormuz? A: CEO Marius Foss explained that if and when ships are ordered to high-risk areas, the extra coverage will be paid for by the charterers who are instructing the vessels to such areas. Q: When does the company expect to add more interest-rate hedging to its portfolio, and how will it address debt maturities in Q1 2029? A: CFO Knut Traaholt stated that the company trades when markets are favorable and is pleased with its current 70% coverage until mid-next year. Regarding refinancing, it is still early to address the 2029 maturities, but the company continuously evaluates attractive opportunities to improve terms. Q: What is the outlook for dividend sustainability and future dividends? A: CFO Knut Traaholt reiterated that each dividend is declared by the Board quarterly, based on transparent decision factors. Despite a downgrade in certain market factors, the strong balance sheet, cash position, and contract backlog allowed the Board to confirm a dividend of $0.75 per share for the quarter. Future dividends will be reassessed based on all factors, including the backlog for open vessels. Q: What drove the significant improvement in second-quarter financial results? A: CFO Knut Traaholt attributed the strong quarter to higher revenues driven by high spot earnings for Flex Volunteer and Flex Artemis, a full quarter of earnings from new contracts for Flex Constellation and Flex Aurora, completion of dry dockings, continued cost control, and improved financial efficiency. Net income came in at $44.9 million, more than double the first quarter. Q: How is the global LNG trade performing despite the disruption from Qatar? A: CEO Marius Foss noted that global LNG trade volumes are broadly flat year to date, down less than 1%. The significant reduction in Qatari exports (down around 29 million tons) has been largely offset by strong growth from the US (up 23% or close to 14 million tons), as well as growth from Australia, Russia, and other exporters. This shift towards US supply is positive for shipping demand due to the positive ton-mile effect. Q: What is the current state of the newbuilding order book and its impact on the market? A: CEO Marius Foss highlighted that ordering activity remains very strong, with around 60 newbuildings ordered so far this year, many without employment contracts. The order book stands at around 285 vessels, equivalent to roughly 38% of the existing fleet, but the majority are tied up with Qatar or other long-term employment. Elevated newbuilding prices continue to support the value of modern existing tonnage. Q: What are the key factors influencing the spot market for modern two-stroke LNG carriers? A: CEO Marius Foss explained that increasing vessel availability in both West and East of Suez is putting weight on spot rates, although the number of available vessels is in line with five-year historical averages. The sharp spike in rates earlier in the year has normalized, with some pressure seen in recent weeks. The company expects historical seasonal tightening in the second half of the year, positioning its two open vessels well for a potential strong winter market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter performance was driven by strong spot market earnings from Flex Artemis and Flex Volunteer, alongside full-quarter contributions from new contracts for Flex Constellation and Flex Aurora. Management attributes the resilient global LNG trade to a 23% surge in U.S. exports, which has effectively mitigated a significant 29 million tonne shortfall in Qatari supply. The shift toward U.S.-sourced LNG is viewed as a strategic positive for shipping demand due to the favorable ton-mile effect when Atlantic Basin volumes move into Asian markets. Operational efficiency was maintained despite higher crew travel costs resulting from Middle East geopolitical disruptions, which impacted vessel OpEx during the period. The company successfully completed its 5-year special survey cycle for the entire 13-vessel fleet, eliminating scheduled dry docking requirements for 2027. Management maintains a robust dividend policy supported by a $397 million cash position and a minimum firm contract backlog of 51 years. Full-year 2026 revenue guidance of $345 million to $370 million is maintained, supported by 89% contract coverage for the remaining available days in the year. Management anticipates a 'tug-of-war' for U.S. LNG exports between Europe and Asia, driven by European gas inventories sitting at their lowest levels in over 15 years. The company is positioning two vessels coming open at the end of Q3 to capture expected seasonal tightening and potential rate spikes in the Q4 winter market. Strategic confidence in long-term demand is underpinned by a healthy pipeline of projects reaching Final Investment Decision (FID), potentially totaling 67 million tonnes in 2026. Financial strategy includes maintaining a 70% interest rate hedge ratio through mid-2027 to mitigate volatility in interest expenses. Geopolitical risk remains elevated with management operating under the assumption that the Strait of Hormuz will remain closed through the end of 2026. High newbuilding prices, currently around $250 million, are providing structural support for the valuation of Flex LNG's existing modern 2-stroke fleet. The order book represents 38% of the existing global fleet, though management notes the majority of these vessels are already committed to long-term contracts, limiting open market competition. Vessel OpEx guidance is held at $16,000 per day for the full year, despite temporary inflationary pressures from rerouting and logistics challenges in high-risk zones. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that none of the 13 vessels in the fleet have traded inside the Strait of Hormuz since late February 2026. Charterers are responsible for the costs of additional high-risk area insurance if they instruct vessels to enter such zones. Management acknowledged a softer Q3 spot market, with rates declining to approximately $30,000 compared to $120,000 in the prior year's period. They expressed optimism for Q4, noting that continued closure of the Strait of Hormuz should fundamentally support a return to higher rate levels. The company intends to add more interest rate hedging only when market conditions are favorable, expressing satisfaction with current coverage. Refinancing of Q1 2029 debt maturities is not currently being addressed unless highly attractive terms or opportunities to improve financing efficiency arise. The $0.75 per share dividend was maintained despite 'orange' level warnings on market outlook and geopolitical risks. Future distributions remain dependent on the Board's quarterly assessment of cash position, balance sheet strength, and the re-chartering of open vessels.

Interested in Flex LNG Ltd.? Here are five stocks we like better. Strong second-quarter performance: Flex LNG reported $106.8 million in revenue, $44.9 million in net income, and average TCE earnings of $86,100 per day, supported by stronger spot-market earnings and full-quarter contributions from new contracts. Guidance and dividend maintained: The company retained its 2026 revenue, TCE, and adjusted EBITDA outlook and declared its 20th consecutive quarterly dividend of $0.75 per share. Flex LNG had nearly 89% of its 2026 available days covered by contracts and 51 years of minimum firm backlog. Market risks remain: Management cited softer spot rates, increased availability of modern LNG carriers, geopolitical uncertainty, and the expected closure of the Strait of Hormuz through 2026. Two vessels are expected to become available late in the third quarter as the company positions for a potentially stronger winter market. 3 Small-Cap Stocks That Offer Big Dividends Flex LNG (NYSE:FLNG) reported second-quarter results marked by higher spot-market earnings, full-quarter contributions from recently commenced contracts and the completion of its scheduled five-year special surveys across its 13-vessel fleet. Chief Executive Officer Marius Foss said the company generated revenue of $106.8 million during the quarter, or approximately $102.7 million excluding EU Allowances. The result was the company’s second-best quarterly revenue performance since the fourth quarter of 2021, according to Foss. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Fleet average time-charter equivalent, or TCE, earnings reached $86,100 per day. Net income was $44.9 million, or $0.83 per share, while adjusted net income was $42.5 million, or $0.79 per share, after adjustments for unrealized gains on interest-rate swaps and foreign-exchange items. Foss said Flex Artemis and Flex Volunteer benefited from a strong spot LNG shipping market during the second quarter. Meanwhile, Flex Constellation and Flex Aurora contributed a full quarter of earnings under contracts that began in March. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? Chief Financial Officer Knut Traaholt said second-quarter revenue improved significantly from the first quarter, while vessel operating expenses rose because of higher crew-travel costs associated with disruptions in the Middle East. Average vessel operating expenses were $16,260 per day in the quarter, compared with approximately $16,100 per day for the first six months of 2026. The company maintained its full-year vessel operating expense guidance of $16,000 per day. Traaholt also said interest expense continued to improve, reflecting lower loan margins and management of the company’s revolving credit facilities. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Flex LNG booked $4.7 million in gains on interest-rate derivatives, including $2.3 million of realized gains and $2.4 million of unrealized gains. Operating cash flow totaled $63 million during the quarter, compared with $37 million in the first quarter, excluding a $19 million positive working-capital change and $5 million of dry-docking capital expenditures. Cash at quarter-end was $397 million. The company paid $28 million in scheduled debt installments. It distributed $41 million to shareholders during the quarter. Its first debt maturity is due in the first quarter of 2029. Traaholt said Flex LNG’s book equity ratio was 27.4%. Its interest-rate swap portfolio had a notional value of $775 million and was valued at $22 million at the end of the quarter, with an average fixed rate of 2.46%. The company expects to maintain an interest-rate hedge ratio of about 70% into the middle of next year. Flex LNG maintained its full-year 2026 guidance, forecasting revenue between $345 million and $370 million, TCE earnings of $73,000 to $78,000 per day, and adjusted EBITDA of $255 million to $280 million. The company said it had 51 years of minimum firm contract backlog, which could increase to 78 years if all charter options are exercised. It had contract coverage for nearly 89% of its remaining available days in 2026. Flex Artemis and Flex Volunteer are expected to become available at the end of the third quarter. Foss said the company is marketing both vessels for spot employment and new term contracts. The board declared a quarterly dividend of $0.75 per share, representing the company’s 20th consecutive quarterly dividend at that level. The payment is expected to be made around Sept. 17 to shareholders of record as of Sept. 3. Flex LNG said it has distributed about $850 million since 2021, including special dividends. Management retained an “orange” assessment for its market outlook and other dividend considerations, citing a softer spot market, a heavy schedule of newbuild deliveries and elevated geopolitical risks. Foss said uncertainty remains regarding the duration of the Iran conflict and the timing of a normalization in Qatari LNG supply. Flex Vigilant completed its dry docking in Denmark in June, marking the third and final dry docking scheduled for 2026. Foss said the company has now completed five-year special surveys for its entire 13-vessel fleet. Average dry-docking costs were approximately $6 million per vessel, in line with guidance, and vessels spent an average of 17 days in dry dock. The company does not expect any dry dockings in 2027 and plans to begin its first 10-year docking cycle in 2028. Management said global LNG trade volumes were broadly flat year to date, declining less than 1% from the prior-year period. Qatari exports were down by around 29 million tons, although higher U.S. exports, up 23% or nearly 40 million tons, offset much of that decline. Australia, Russia and other exporters, including LNG Canada and West African suppliers, also added volumes. Foss said combined LNG exports from Qatar and the United Arab Emirates were down around 63% from normal levels. He added that U.S. liquefaction capacity was up about 14 million tons year over year, supported particularly by production ramp-ups at Plaquemines and gradually rising production from Golden Pass. On demand, management said imports into Japan, South Korea and Taiwan remained resilient, while European and Chinese imports were lower than a year earlier. European gas inventories stood at 61% full, below 73% a year earlier and the lowest level in more than 15 years, according to the company. Foss said the growth in Atlantic Basin supply could support LNG shipping demand if U.S. cargoes move to Asia. However, he noted that modern two-stroke vessel availability has increased both east and west of Suez, putting pressure on spot rates. During the question-and-answer session, Foss said no Flex LNG vessels had traded inside the Strait of Hormuz since the end of February. He said charterers would pay the additional insurance required if they direct vessels into high-risk areas. Foss said the company believes the Strait of Hormuz will remain closed through 2026. He described the third quarter as typically a seasonal shoulder period, noting that spot-market round-trip rates had fallen from roughly $120,000 during the prior third quarter to about $30,000. With two vessels becoming available at the end of the third quarter, management said it is positioning for what has historically been a stronger winter market. Flex LNG Ltd is a Bermuda-registered owner and operator of liquefied natural gas (LNG) carriers, offering shipping services to major energy producers and utilities worldwide. Since its establishment in 2006, the company has focused on building a versatile fleet of modern, eco-efficient LNG vessels designed to meet the growing global demand for lower-emission fuel transportation. The company's core activities encompass time-charter contracts, long-term transportation agreements and spot market voyages. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Flex LNG Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

HAMILTON, Bermuda, Aug. 19, 2026 /PRNewswire/ -- Flex LNG Ltd. ("Flex LNG" or the "Company") today announced its unaudited financial results for the quarter ended June 30, 2026. Highlights: Vessel operating revenues of $106.8 million for the second quarter 2026, compared to $80.5 million for the first quarter 2026. Net income of $44.9 million and basic earnings per share of $0.83 for the second quarter 2026, compared to net income of $19.5 million and basic earnings per share of $0.36 for the first quarter 2026. Average Time Charter Equivalent ("TCE") rate of $86,119 per day for the second quarter 2026, compared to $65,729 per day for the first quarter 2026. Adjusted EBITDA of $79.0 million for the second quarter 2026, compared to $53.2 million for the first quarter 2026. Adjusted net income of $42.5 million for the second quarter 2026, compared to $16.9 million for the first quarter 2026. Adjusted basic earnings per share of $0.79 for the second quarter 2026, compared to $0.31 for the first quarter 2026. The Company declared a dividend for the second quarter 2026 of $0.75 per share. The dividend is payable on or about September 17, 2026 to shareholders, on record as of September 3, 2026. Marius Foss, CEO of Flex LNG Management AS, commented: "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. Fleet-wide Time Charter Equivalent earnings were $86,119 per day, compared with $65,729 per day in the first quarter. Adjusted net income was $42.5 million, resulting in adjusted earnings per share of $0.79, an increase of 155% from the first quarter. Energy markets have experienced significant volatility in recent months, as hostilities in the Middle East disrupted the broader energy complex. The resulting volatility and trading inefficiencies created attractive opportunities for our two spot-exposed vessels, Flex Volunteer and Flex Artemis. We secured employment for both vessels covering the second and third quarters, and each contributed to the increase in revenues. 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. In addition, Flex Aurora commenced her two-year firm charter with a supermajor in late March 2026. The charter runs until 2028 and includes three successive two-year extension options. We therefore benefited from a full quarter of earnings from the vessel during the second quarter. Likewise, Flex Constellation completed her first full quarter under her new 15-year charter. These two vessels made a solid contribution to both revenues and earnings. Looking ahead to the remainder of 2026, we expect the freight market to remain volatile. On the supply side, around 55 vessels were delivered during the first seven months of the year, and shipbrokers expect a further 40 to 45 vessels to enter the fleet before year-end, hence, fleet growth is expected to remain high. At the same time, several demand-side factors could provide support to the market. European gas storage levels are currently at multi-year lows of around 61% as of mid August, while the shortfall in Qatari export volumes is contributing to the redirection of U.S. export volumes toward Asian importers. Despite the reduction in Qatari volumes, global LNG exports are flat year-on-year, supported by solid growth in U.S. export volumes and strong growth from West African exporters. Against this backdrop, we are entering an interesting and potentially volatile period for the LNG shipping market, with the balance between continued fleet growth and competition on LNG volumes between Europe and Asia. 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. Supported by a strong earnings outlook for 2026, substantial contract backlog and a robust balance sheet, including $397 million of cash and no debt maturities before 2029, the Board is pleased to declare another quarterly dividend of $0.75 per share, equivalent to an aggregate distribution of approximately $41 million, marking our twentieth consecutive ordinary quarterly dividend of $0.75 per share. Including special dividends, we will have returned approximately $850 million to shareholders since 2021." Second Quarter 2026 Results Presentation In connection with the earnings release, a video webcast will be held today at 15:00 CEST (09:00 a.m. EST). In order to watch the webcast, use the following link: Link to register and watch webcast A Q&A session will be held after the webcast. Information on how to submit questions will be given at the beginning of the session. The presentation material which will be used in the live video webcast can be downloaded on www.flexlng.com and replay details will also be available at this website. For further information, please contact:Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management ASTelephone: +47 23 11 40 00Email: [email protected] Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, that are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. Words such as "believe," "expect," "forecast," "anticipate," "aim," "commit," "estimate," "intend," "plan," "possible," "potential," "pending," "target," "project," "likely," "may," "will," "would," "should," "could" and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, on further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although management believes that these assumptions were reasonable when made, they are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company's control, and accordingly there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. As such, these forward-looking statements are not guarantees of the Company's future performance, and actual results and future developments may differ materially from those projected in the forward-looking statements. The Company undertakes no obligation, and specifically disclaims any obligation, except as required by applicable law or regulation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors or to assess the impact of each such factor, or combination of factors, on its business or results of operations. Further, the Company cannot assess the effect of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include: unforeseen liabilities, future capital expenditures, the strength of world economies and currencies, inflationary pressures and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the LNG tanker market, the Company's business strategy and expected and unexpected capital spending and operating expenses, including drydocking, surveys, repairs, upgrades, insurance costs and bunker costs, the fuel efficiency of the Company's vessels, the market for the Company's vessels, availability of financing and refinancing, ability to comply with covenants in such financing arrangements, failure of counterparties to fully perform their contracts with the Company, changes in governmental rules and regulations or actions taken by regulatory authorities, including those that may limit the commercial useful lives of LNG tankers, customers' increasing emphasis on environmental and safety concerns, potential liability from pending or future litigation, global and regional economic and political conditions and developments, armed conflicts, including developments involving Russia and Ukraine, Israel, Iran and regional actors in the Middle East, actual or threatened attacks on commercial shipping and disruptions affecting strategic waterways and major maritime trade routes, including the Red Sea and Gulf of Aden, threats to close or disrupt strategic waterways such as the Strait of Hormuz, trade wars, tariffs, embargoes and strikes, the impact of restrictions on trade, including the imposition of new tariffs, port fees and other import restrictions by the United States on its trading partners and the imposition of retaliatory tariffs by China and the European Union on the United States, the cost and effects of cybersecurity incidents or other failures, including system interruptions, breaches, software failures or data security incidents, risks arising from the misuse, misapplication or failure of artificial intelligence in the Company's operations, business disruptions, including supply chain disruption and congestion, including port congestion, due to natural or other disasters or otherwise, potential physical disruption of shipping routes due to accidents, climate-related incidents, public health threats or political events, potential cybersecurity or other privacy threats and data security breaches, vessel breakdowns and instances of offhire, and other factors, including those that may be described from time to time in the reports and other documents that the Company files with or furnishes to the U.S. Securities and Exchange Commission ("Other Reports"). For a more complete discussion of certain of these and other risks and uncertainties associated with the Company, please refer to the Other Reports. This information was brought to you by Cision http://news.cision.com https://news.cision.com/flex-lng/r/flex-lng---second-quarter-2026-earnings-release,c4384944 The following files are available for download: View original content:https://www.prnewswire.com/news-releases/flex-lng---second-quarter-2026-earnings-release-302854948.html

Interested in Flex LNG Ltd.? Here are five stocks we like better. Flex LNG reported Q1 2026 net income of $19.5 million, or $0.36 per share, while completed drydockings and weaker early-quarter spot rates weighed on results. Revenue came in at $80.5 million, and the company kept its quarterly dividend at $0.75 per share for the 19th straight time. The company expanded contract coverage with new and extended charters for several vessels, including Flex Resolute, Flex Courageous, Flex Aurora, and Flex Constellation. As a result, 91% of remaining 2026 available days are now fixed, with minimum backlog at 54 years and potentially 81 years if options are exercised. Management raised full-year 2026 guidance on stronger LNG shipping rates and added backlog, lifting revenue outlook to $345 million-$370 million and TCE guidance to $73,000-$78,000 per day. Despite geopolitical risks and a heavy newbuild pipeline, the company said spot rates remain strong and cash ended the quarter at $389 million. 3 Small-Cap Stocks That Offer Big Dividends Flex LNG (NYSE:FLNG) reported first-quarter 2026 net income of $19.5 million, or $0.36 per share, as management said scheduled drydockings and a softer early-quarter spot market weighed on results but improving LNG carrier rates and new contract coverage supported an upgraded full-year outlook. Chief Executive Officer Marius Foss said the company generated revenue of $80.5 million in the quarter, or $78 million excluding EU Allowances related to the EU Emissions Trading System. Fleet average time charter equivalent, or TCE, was $65,700 per day. Adjusted net income, excluding unrealized gains from interest rate swaps and foreign exchange, was $16.9 million, or $0.31 per share. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “This has been an active quarter for Flex LNG,” Foss said, pointing to additional contract coverage, completed drydockings and a stronger market backdrop. The company’s board declared another quarterly dividend of $0.75 per share, which Foss said marks the 19th consecutive dividend at that level. Flex LNG said it added to its contract backlog during the quarter through several vessel agreements. Foss said the charterer of the Flex Resolute and Flex Courageous exercised two-year extension options from 2027 to 2029, leaving both vessels fully employed until 2032. The charterers also hold additional options that could extend employment to 2039. → MP Materials Is Quietly Building a Rare Earth Powerhouse The Flex Aurora was fixed on a new two-year firm time charter through 2028 with a “Supermajor,” according to Foss. The agreement includes 2+2+2-year options, potentially extending the charter to 2034 if all options are exercised. Foss said the Flex Constellation was delivered into its new charter in early March and has begun a 15-year contract. Meanwhile, the Flex Artemis and Flex Volunteer traded in the spot market during the first quarter. Flex Artemis is currently employed on a multi-month contract through the end of September, while Flex Volunteer is fixed on a multi-month contract and is expected to become available in early July. → MercadoLibre Boldly Invests in Growth: Discount Deepens Overall, Foss said 91% of Flex LNG’s remaining available days in 2026 are now fixed. The company has 54 years of minimum backlog, which could increase to 81 years if charterers declare all options. Flex LNG raised its full-year 2026 guidance, citing additional backlog and a stronger LNG shipping market. Foss said the company now expects revenue between $345 million and $370 million, about 10% above prior guidance. Full-year TCE is expected between $73,000 and $78,000 per day, an increase of about 8% from the previous range. Foss initially said adjusted EBITDA is expected between $255 million and $280 million, up about 11%. Later in the presentation, he referenced an adjusted EBITDA range of $225 million to $280 million. The upgraded outlook follows what Foss described as a sharp reset in the LNG shipping market after “the war in Iran” and the closure of the Strait of Hormuz, which he said led to the shutdown of LNG production in Qatar. Foss said about 20% of global LNG export capacity is currently lost, tightening the market in the short term and benefiting Flex LNG’s open vessels. In the Q&A portion of the call, Foss said none of Flex LNG’s 13 vessels had been trading inside the Strait of Hormuz and that charterers had selected alternatives during the period. Chief Financial Officer Knut Traaholt said the first-quarter results were softer sequentially, mainly due to seasonally lower revenue, fewer available days and off-hire related to scheduled drydockings of two vessels. He also cited weaker early-quarter spot earnings for the Flex Volunteer and Flex Artemis, partly offset by the start of Flex Constellation’s 15-year charter at a higher rate in March. Flex LNG completed drydockings for the Flex Volunteer in January and the Flex Freedom in March, both ahead of schedule. Foss said the Flex Vigilant is expected to enter drydock later in May in Europe and will return to charter afterward. The average cost of the three drydockings is expected to be about $6 million. Traaholt said vessel operating expenses were lower quarter over quarter, with average operating expense close to $16,000 per day in the first quarter. The company maintained its full-year operating expense guidance of $16,000 per day. During the quarter, Flex LNG generated $37 million in cash flow from operations. The company recorded an $18 million negative change in working capital and $9 million of drydock expenses, repaid $28 million in scheduled debt installments and distributed $41 million to shareholders. Cash declined by $59 million in the quarter, leaving Flex LNG with $389 million at quarter-end. Traaholt said the company maintained book equity of 27%. Traaholt also said the company’s interest rate derivative portfolio was valued at $20 million at the end of the first quarter, with a notional value of $775 million and an average fixed rate of 2.46%. Since January 2021, he said the swap portfolio has generated realized and unrealized gains of about $137 million. Foss said global LNG trade volumes grew 3% in the first four months of the year compared with the same period last year, despite reduced Qatari exports. He said lower Middle East volumes were largely offset by stronger supply growth from the U.S., along with continued growth from Australia and other exporters. On demand, Foss said Europe is importing LNG as it rebuilds inventories ahead of winter, while mature Asian importers remain resilient and China remains soft. He said growing U.S. exports are increasing long-haul cargo flows, supporting ton-mile demand for LNG carriers. Foss said spot rates moved from about $30,000 per day in February to more than $250,000 per day in March. While the spike has normalized, he said rates remain well above historical levels for this time of year. He also said forward freight agreements and broker assessments indicate a strong spot market through 2026. However, management kept its market outlook indicator at an “orange” level, citing near-term stress and medium-term uncertainty from a heavy newbuild delivery schedule. Foss said the company also downgraded “other considerations” to orange because of geopolitical risk and uncertainty around the duration of the Iran conflict and normalization of Qatari supply. The declared dividend will be paid on or around June 11 to shareholders of record as of May 29. Foss said Flex LNG has distributed about $810 million to shareholders since 2021, and its last 12 months of dividends total $3 per share. Flex LNG Ltd is a Bermuda-registered owner and operator of liquefied natural gas (LNG) carriers, offering shipping services to major energy producers and utilities worldwide. Since its establishment in 2006, the company has focused on building a versatile fleet of modern, eco-efficient LNG vessels designed to meet the growing global demand for lower-emission fuel transportation. The company's core activities encompass time-charter contracts, long-term transportation agreements and spot market voyages. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Flex LNG Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 9 a.m. ET Chief Executive Officer — Håvard Foss Chief Financial Officer — Knut Traaholt H. Foss: Thank you, Knut. Let's begin with the highlights of the quarter. We sailed in revenues of $80.5 million or $78 million, excluding the EUAs related to the EU emission trading system. The fleet average TCE during the quarter ended up at $65,700 per day. Net income for the first quarter came in at $19.5 million, implying an earnings per share of $0.36. When adjusting for unrealized gains of interest rate swaps and FX, we ended up with an adjusted net income of $16.9 million or adjusted earnings per share of $0.31. This has been an active quarter for Flex LNG. We have added more contract coverage. First, the charterer of the Flex Resolute and Flex Courageous has declared the 2-year extension options from 2027 to 2029, and the vessels are now fully employed until 2032. We have fixed the Flex Aurora for a new 2-year firm time charter until 2028 with additional 2 plus 2 plus 2 years options, potentially an 8-year charter if all options are declared. We have now completed the drydockings of both Flex Volunteer and Flex Freedom during the quarter. The Flex Vigilant will enter drydock later in May. Based on the added new backlog and improved spot market, we are updating our full year 2026 guidance as follows. We now expect revenues to come in between $345 million and $370 million, around 10% increase from the previous guidance. The TCE is expected up 8% between $73,000 and $78,000 per day. We expect the adjusted EBITDA to come in around $255 million to $280 million, up 11%. With improved earnings visibility and continued robust financial position, the Board has declared another dividend of $0.75 per share. This is the 19th consecutive dividend of $0.75 per share, and we have distributed around $810 million since 2021. Our last 12 months dividend is $3 per share, implying a dividend yield of around 9.2%. We have completed 2 out of the 3 drydockings so far in 2026. The drydocking of the Flex Volunteer was completed in January, and she is now trading in the spot market. Flex Freedom completed her drydocking in March, and she went straight back to service under the current charter. Both drydockings were completed ahead of schedule. The third and final vessel to be drydocked in 2026, Flex Vigilant, is expected to enter drydock later this month in Europe. She will, upon completion of drydock, return back to charter. We expect the average cost of the 3 drydockings to be around $6 million. Flex Vigilant marks the final 5-year special survey in our fleet of 13 vessels. Let's have a look at the contract backlog. Flex Constellation was delivered to a new charter in early March, and she has now commenced her 15-year contract. In March, we were also pleased to announce that the charter of Flex Resolute and Flex Courageous exercised their option from 2027 to 2029 for both vessels. The vessels have firm employment until 2032, and the charterers have additional options potentially extending the employment until 2039. In March, Flex Aurora was fixed on a new 2-year firm contract with supermajor and entered service almost in direct continuation after she was redelivered from her previous 3.5-year contract. The new contract also has 2 plus 2-year options, potentially extending until 2034. Flex Artemis and Flex Volunteer have both been trading in the spot market in the first quarter. Flex Artemis is currently employed on a multi-month contract until end of September. Flex Volunteer is also fixed on a multi-contract and will come open early July. We are marketing both vessels for spot and term contracts. Looking at the total contract coverage, 91% of the remaining available days in 2026 are now fully fixed. We have today 54 years of minimum backlog, which may grow up to 81 years if the charterers clear all options. We are also pleased to present a revised of our full year guidance. The guidance we provided in the fourth quarter presentation in February reflected a muted outlook for LNG shipping for this year. Following the war in Iran and the closure of Strait of Hormuz and shutdown of LNG production in Qatar, 20% of the global LNG export capacity is currently lost. This has resulted in strong LNG shipping markets in the short term, which has positively impacted our open vessels. The addition of new contract backlog and a firm spot market for LNG shipping have resulted in improved earnings outlook for Flex LNG, and we are therefore upgrading our financial guidance for the full year. We hike our expectation for the full year TCE rates to range between $73,000 and $78,000 per day. This is an increase of around 8% from the previous guiding. The revenue range is increasing between $345 million to $370 million, which is an increase of around 10% from the previous range. Adjusted EBITDA is now expected to come in between $255 million to $280 million for the full year, an increase of around 11%. On the decision factors for the dividend, we maintain the market outlook on an orange level. This reflects near-term straight alongside medium-term uncertainty driven by a heavy schedule of new building deliveries. We remain confident in the long-term demand story supported by the third wave of U.S. LNG export capacity currently under construction. This quarter, we also have downgraded the other considerations to orange given high geopolitic risk. There are uncertainties around duration of the Iran conflict and the normalization of the Qatar supply. Given the potential long-term implication of LNG trade and shipping markets, we believe it's prudent to reflect this risk into our dividend decisions framework. Taking all factors into account, the Board has declared another quarterly dividend of $0.75 per share. This brings dividends paid over the last 12 months to $3 per share. The dividend will be paid on or around 11th of June for shareholders on record of 29th of May. And with that, over to you, Knut, for a review of the results. Knut Traaholt: Thank you, Marius. The first quarter results were somewhat softer quarter-over-quarter, mainly driven by seasonal lower revenues. Revenues, excluding EUAs, was $78 million, driven by fewer available days in the quarter and off-hire related to scheduled drydockings of 2 ships, plus a seasonal weaker spot earnings early in the quarter for the Flex Volunteer and Flex Artemis. This was partly offset by the start of Flex Constellation's 15-year charter at a higher rate in March. We booked $5.8 million in voyage expenses this quarter compared to $3.8 million in the fourth quarter. The $2 million increase was mainly driven by higher bunker costs and gas up and cool down expenses related to drydock and repositioning of vessels in the spot market. On the cost side, vessel OpEx was lower quarter-over-quarter as fourth quarter included higher scheduled maintenance. The average OpEx per day in the first quarter was close to $16,000 per day. We continue to maintain our OpEx guidance of $16,000 per day for the full year. Interest expenses also improved, reflecting lower loan margins and active management of our RCF facilities. We booked $4.9 million in gains on our interest rate derivatives, of which $2.4 million was realized gains and $2.5 million was unrealized gains. Net income came in at $19.5 million or $0.36 per share. Adjusting for noncash items like unrealized gains from the interest rate derivatives, the adjusted net income was $16.9 million or adjusted earnings per share of $0.31. So overall, this was a quarter impacted by scheduled drydockings and a weaker spot market early in the quarter, but with underlying cost control. As highlighted in our revision of the full year guidance, we expect stronger contribution from the new contract for Flex Aurora and the 2 ships operating in the spot market from the second quarter. During the quarter, we generated cash flow from operations of $37 million. We recorded $18 million in negative change in working capital and had $9 million of drydock expenses. The buildup of receivables during the quarter is particular for the first quarter as charterer pays January hire in December, while April hire for 4 ships were paid early in April, causing a negative change in working capital. We repaid $28 million in scheduled debt installments and distributed $41 million to our shareholders. In sum, our cash position was reduced with $59 million, and this left us with $389 million of cash at the end of the quarter. Looking at our balance sheet. In addition to the cash position of $389 million, we maintain a book equity of 27%. As noted before, our equity book equity values reflect historical costs adjusted with regular depreciations. Our interest-rate portfolio was valued at $20 million at the end of the first quarter. The notional value of the portfolio is $775 million with an average rate fixed at 2.46%. We expect to maintain a hedge ratio net of RCF utilization of around 70% into mid-2027. Since January 2021, this swap portfolio has generated unrealized and realized gains of around $137 million. And with that, I hand it back to you, Marius, for the market section. H. Foss: Thank you, Knut. A robust balance sheet is important to maintain commercial flexibility of our open ships. This was an important factor for the first quarter when we could position our open ships to capture the very strong LNG market that surfaced following the war in Iran. Let's have a look at the LNG trade. Global LNG trade volumes have continued to expand despite a reduction of Qatar export volumes year-to-date. Trade volumes grew 3% in the first 4 months of the year compared to the same period last year. The shortfall from Qatar due to the closure of Strait of Hormuz has largely been offset by stronger supply growth from U.S. alongside continued growth from Australia and other exporters. On the demand side, Europe imports strongly as it rebuilds inventories ahead of winter. The more mature Asian importers, JKT remains resistant while we see continued softness from China. The key takeaway is that despite Qatar shortfall, global trade volumes continue to grow. From shipping markets, much of the new supply is coming from Atlantic Basin and will move over longer distances to Asia. Looking at the left side, we see the U.S. LNG exports continue to grow, supported by the ramp-up of Plaquemines' first loading from Golden Pass and Corpus Christi expansion. On an annual basis, total U.S. export volumes amount to around 130 million tonnes, up 18% from full year of 2025. However, on the right-hand side, the growth from U.S. is offset by shortfall of Middle East volumes. Following the war in Iran, Qatar has been forced to shut down production and declared force majeure reported until June. Therefore, Qatar export dropped dramatically during March and April, removing about 20% of the global supply from the LNG market. The net effect is a tighter LNG shipping market with strong growth from U.S. For LNG shipping, this tightness reshapes the trade flow with importers increasingly relying on Atlantic Basin supply to replace lost Middle East volumes. There, we are seeing 2 important dynamics shaping LNG shipping today. First, Asian demand for U.S. LNG remains strong and the arbitrage is open. Despite very long European gas inventories, U.S. cargoes continue to move East. Second, Europe is entering into injection season with low storage levels. That suggests Europe needs to remain active in the LNG market, rebuilding inventories ahead of winter, particularly given constrained supply from Qatar and the Middle East. The trade flow dynamic we saw on the previous slide is translating into higher ton-mile demand. Average sailing distance have been increasing over the past years, driven by growing Atlantic export, especially U.S. exports serving Asian importers. That structural shift toward longer-haul trade is supportive for the supply-demand balance and reinforces the long-term demand outlook for modern LNG tonnage like Flex LNG. This is a slide known to many of you, and I would like to highlight 3 points. First, newbuilding orders so far in 2026 have now exceeded 2025. We count 38 fresh orders so far this year compared to 35 in 2025. Some of these orders are made on a speculative basis, and this signals growing confidence in the firm shipping market later in this decade, a period that aligns well with our open exposure. Newbuilding prices for the standard 174,000 cubic meter LNG carrier built in Korea remained stable at around $245 million to $250 million. This is supportive for asset value for existing tonnage, including our fleets. We are seeing term rates for 5 and 10 years increasing and moving into more attractive territory. Looking at the newbuilding order book, we count some 290 newbuildings being delivered over the next 5 years, with 20 newbuildings being delivered as per end of April this year. The order book to fleet ratio is around 40%, and we note that the number of vessels without contract remain low, estimated around 45 vessels. From a slow start in January, February, the LNG shipping markets reset following the war in Iran. Spot rates moved from around $30,000 in February into more than $250 in March. While the initial spike has since normalized, rates remain well above historical levels for the time of the year. This shows how tight vessel availability can become when trade flows are disrupted. Looking forward, both the FFA curve and the assessments from various ship brokers indicate strong spot market throughout '26. Ideally, we would like to graduate firm spot market when they're going into the winter market. The Flex Volunteer comes up in early July and the Flex Artemis is open in September. We are -- we believe Flex LNG is well positioned to capitalize the winter market for the remaining open days we have. The long-term LNG supply growth story remains intact. This slide show operating liquefaction capacity today in dark blue versus capacity under construction in light blue. And the key point is that the global project pipeline is substantial. The U.S. stands out as the largest contributor to further growth as the liquefaction capacity is set to double. It is important for LNG shipping because U.S. volumes are of long-haul cargoes supporting ton-mile demand. Qatar also has a large expansion program under construction. Also given the current situation, the timing of the new Qatar volumes is pushed into 2027. We also see additional growth from coming out of West Africa and Mozambique. So while the timing of individual projects may shift, the pipeline of projects remain large. This supports continued demand for LNG shipping capacity. Before we move on to the Q&A section, I would like to highlight 3 points. Firstly, we have no vessels inside the Strait of Hormuz. Secondly, Flex has now 91% covered available days for the remainder of the year. And lastly, we are increasing our full year guidance. I would also like to thank all seafarers and onshore personnel for all the hard work and safe operations. With that, let's move on to the Q&A section. Knut Traaholt: Thank you, Marius, and thank you all for submitting questions to the chat and on our IR e-mail. You mentioned here in the highlights on the situation or our fleet status in the Strait of Hormuz. There's a number of questions regarding that also if we have vessels inside. During the quarter, maybe you can tell a little bit about the operations and the status of the fleet regarding Strait of Hormuz and the Arabian Gulf. H. Foss: Thank you. Now we have lately had a lot of questions for the same, and I can confirm that neither of our 13 vessels operating in the global market today has been trading inside the Strait of Hormuz. Right now, it's closed, so it's not possible to trade in, but our charters also elected other alternatives during this period. Knut Traaholt: And we today announced multi-month contracts for 2 ships. And so there's a number of questions regarding what the prospects are for these 2 spot operating ships for the remainder of the year? H. Foss: Yes. Both Flex Volunteer and Flex Artemis remain open. The prospects are much better now than we saw when we spoke last in February. And if we are able to fix those 2 ships on, say, last levels that we see in the current spot market, I believe Flex LNG is close to touch all-time high revenues for 2026. So it's quite exciting to look at what's going to happen going forward on those 2 ships. Knut Traaholt: And while we mentioned in the presentation, high fixture activity and also on the spot trading vessels, there are questions regarding long-term contracts, the activity levels. And when do you expect the ships to be contracted on long-term contracts? H. Foss: We are continuing marketing our vessels for long-term contracts. And now when the long-term levels is ticking up, we are engaging those tenders that are surfacing the market. We have 54 years of backlog already and aim to expand that further going forward. But we are disciplined and waiting for the right contract to the right contract partners. Knut Traaholt: And then final questions are regarding the dividend and dividend sustainability. We had this question on the last quarter as well. So I think we'll -- we'll guide you to the slide we have in the presentation on our decision factors. These are the decision factors that the Board are using in declaring the dividend and which is an assessment that we do at each quarter. We maintained the market section in orange level or the outlook. That was a downgrading last quarter as we had more ships open. This quarter, we have secured employment for minimum 2 years for the Flex Aurora, which can be extended by additional 6 years. But we still remain more open exposure into '27 and '28. So we keep it for now on orange level. We have also increased sort of other decision factors, which is more on geopolitical risk given the uncertainty with the situation with the war in Iran. So I think it's a highlight that we've mentioned before, we have a robust balance sheet. We have cash of close to $390 million, a strong contract backlog and no debt maturities before 2029. So with that, that concludes the Q&A session. H. Foss: Thank you very much, Knut. Thank you for everybody participating in today's presentation. We are looking forward to see you all back in middle of August. Thank you very much. Before you buy stock in Flex Lng, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Flex Lng wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management upgraded full-year 2026 guidance by approximately 10% due to a significantly tighter LNG shipping market following the closure of the Strait of Hormuz and subsequent loss of 20% of global export capacity. The company successfully extended contract coverage for Flex Resolute and Flex Courageous through 2032, while securing a new multi-year charter for Flex Aurora with a supermajor. Performance attribution for the first quarter was impacted by seasonal softness and scheduled drydockings for two vessels, partially offset by the commencement of a 15-year charter for Flex Constellation. The strategic shift toward Atlantic Basin supply, particularly from the U.S., is driving higher ton-mile demand as cargoes travel longer distances to reach Asian markets. Management emphasized that despite the Qatar supply shortfall, global trade volumes grew 3% in the first four months of the year, supported by U.S. and Australian production. Asset values remain supported by stable newbuilding prices in Korea, ranging between $245 million and $250 million, and a growing order book that signals long-term market confidence. Full-year 2026 revenue guidance is raised to between $345 million and $370 million, reflecting improved earnings visibility from new contracts and firm spot market rates. Management expects the spot market to remain strong through 2026, positioning the open vessels Flex Volunteer and Flex Artemis to capitalize on the upcoming winter peak. The company maintains a cautious 'orange' level outlook for the medium term due to a heavy schedule of newbuilding deliveries and geopolitical uncertainties regarding the Iran conflict. Strategic focus remains on securing long-term contracts as term rates for 5 and 10-year periods move into more attractive territory. The third and final drydocking of 2026 for the Flex Vigilant is scheduled for late May, with an expected average cost of $6 million across the three-vessel program. Geopolitical risk has been downgraded to 'orange' due to uncertainties surrounding the duration of the Iran conflict and the normalization of Qatar's LNG supply. Management confirmed that none of the company's 13 vessels are currently operating inside the Strait of Hormuz, mitigating direct exposure to the closed waterway. The company maintains a robust cash position of $389 million and has no debt maturities until 2029, providing a buffer against market volatility. Interest rate derivatives generated $4.9 million in gains this quarter, with a hedge ratio of approximately 70% maintained through mid-2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that none of their 13 vessels have been trading inside the Strait of Hormuz during the current closure. Charterers have proactively elected alternative routes and trade flows during this period of heightened tension. Prospects for the Flex Volunteer and Flex Artemis have improved significantly since February due to the market reset following regional conflict. If current spot levels hold, management believes the company could approach all-time high revenues for the 2026 fiscal year. The $0.75 per share dividend is supported by a strong contract backlog and a robust balance sheet with nearly $390 million in cash. The Board's decision framework currently weighs the benefit of high current earnings against medium-term uncertainties and geopolitical risks.