Flex LNG (NYSE:FLNG) Announces Quarterly Earnings Results

Flex LNG (NYSE:FLNG) issued its quarterly earnings data on Wednesday. The company reported $0.79 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.17, FiscalAI reports. The business had revenue of $106.80 million for the quarter, compared to analysts’ expectations of $93.53 million. Flex LNG had a net margin of 22.26% and a return on equity of 12.15%.

Here are the key takeaways from Flex LNG’s conference call:

• Strong second-quarter performance: Revenue reached $106.8 million, fleet-average TCE was $86,100 per day, and adjusted net income more than doubled sequentially to $42.5 million, driven by strong spot earnings and new contracts.
• Dividend maintained at $0.75 per share for the 20th consecutive quarter, bringing distributions over the past 12 months to $3 per share, or approximately a 9.7% yield. FLEX LNG cited its contract coverage, cash position, and balance sheet as support.
• The company maintained full-year guidance of $345 million-$370 million in revenue, $73,000-$78,000 in TCE, and $255 million-$280 million in adjusted EBITDA. It has 51 years of minimum firm backlog and approximately 89% coverage for remaining 2026 available days.
• Spot-market conditions have softened as vessel availability has increased and newbuilding deliveries remain heavy; management noted that modern two-stroke spot rates have declined materially. Geopolitical uncertainty, including the expectation that the Strait of Hormuz may remain closed through 2026, adds further market risk, although U.S. LNG growth and low European storage could support winter demand.

Flex LNG Price Performance

Flex LNG stock opened at $32.35 on Thursday. The stock has a market capitalization of $1.75 billion, a P/E ratio of 23.11 and a beta of 0.20. The company’s fifty day moving average price is $30.37 and its 200 day moving average price is $29.98. The company has a debt-to-equity ratio of 2.45, a quick ratio of 2.69 and a current ratio of 2.72. Flex LNG has a 1 year low of $24.00 and a 1 year high of $33.40.

Flex LNG Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be paid a $0.75 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.00 dividend on an annualized basis and a yield of 9.3%. Flex LNG’s dividend payout ratio (DPR) is currently 214.29%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on FLNG. Pareto Securities downgraded shares of Flex LNG from a “buy” rating to a “sell” rating in a report on Wednesday, May 13th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Flex LNG in a report on Wednesday, July 8th. Wall Street Zen lowered shares of Flex LNG from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Finally, Kepler Capital Markets set a $25.00 target price on shares of Flex LNG and gave the stock a “reduce” rating in a research note on Thursday, May 14th. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Sell” and a consensus target price of $25.00.

Hedge Funds Weigh In On Flex LNG

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company grew its position in shares of Flex LNG by 4.2% in the second quarter. The Manufacturers Life Insurance Company now owns 10,359 shares of the company’s stock valued at $228,000 after purchasing an additional 416 shares during the period. Millennium Management LLC raised its position in shares of Flex LNG by 0.6% during the 4th quarter. Millennium Management LLC now owns 92,459 shares of the company’s stock worth $2,307,000 after purchasing an additional 549 shares during the last quarter. Invesco Ltd. lifted its stake in Flex LNG by 3.6% in the 2nd quarter. Invesco Ltd. now owns 22,471 shares of the company’s stock valued at $494,000 after buying an additional 784 shares in the last quarter. American Financial Group Inc. lifted its stake in Flex LNG by 6.5% in the 4th quarter. American Financial Group Inc. now owns 16,500 shares of the company’s stock valued at $412,000 after buying an additional 1,000 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its holdings in Flex LNG by 13.4% in the 4th quarter. NewEdge Advisors LLC now owns 9,382 shares of the company’s stock worth $234,000 after buying an additional 1,110 shares during the last quarter.

About Flex LNG

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.