Flex LNG - Second Quarter 2025 Earnings Release

, /PRNewswire/ -- Flex LNG Ltd. ("Flex LNG" or the "Company") today announced its unaudited financial results for the six months ended June 30, 2025. Highlights: Vessel operating revenues of $86.0 million for the second quarter 2025, compared to $88.4 million for the first quarter 2025. Net income of $17.7 million and basic earnings per share of $0.33 for the second quarter 2025, compared to net income of $18.7 million and basic earnings per share of $0.35 for the first quarter 2025. Average Time Charter Equivalent ("TCE") rate of $72,012 per day for the second quarter 2025, compared to $73,891 per day for the first quarter 2025. Adjusted EBITDA of $62.6 million for the second quarter 2025, compared to $65.6 million for the first quarter 2025. Adjusted net income of $24.8 million for the second quarter 2025, compared to $29.4 million for the first quarter 2025. Adjusted basic earnings per share of $0.46 for the second quarter 2025, compared to $0.54 for the first quarter 2025. In June and July 2025, we successfully completed our scheduled drydocking for Flex Aurora and Flex Resolute, respectively. In May 2025, we signed and completed a sale and leaseback agreement with an Asian-based lease provider for the vessel, Flex Courageous. Under the terms of the agreement, the vessel was sold for a consideration of $175.0 million, with a bareboat charter back of 10 years, as previously announced. The Company repaid the full amount outstanding for Flex Courageous under the $320 Million Sale and Leaseback. In July 2025, we signed a $180.0 million term loan facility in respect of Flex Constellation with an international shipping bank. The $180 Million Facility has a 15.5 year tenor and an interest rate of SOFR plus a margin of 165 basis points. The repayment of the facility is based on a 25 year age-adjusted repayment profile for the first 7.5 years, and thereafter follows a 22 year profile until maturity, when the facility is fully repaid. In August 2025, we prepaid the full amount outstanding relevant to Flex Constellation under the $320 Million Sale and Leaseback. The new facility is expected to be drawn down in September 2025. In August 2025, we signed a sale and leaseback agreement with an Asian-based lease provider for the vessel, Flex Resolute. Under the terms of the agreement, the vessel will be sold for a consideration of $175.0 million, with a bareboat charter back of approximately 10 years. The new financing is expected to be completed in September 2025, subject to final documentation and customary closing conditions. The Board of Directors has authorised a share repurchase program that allows the Company to repurchase up to $15 million of its outstanding shares listed on the New York Stock Exchange ("NYSE") and the Oslo Stock Exchange ("OSE"), which is valid through November 27, 2025. The manner, timing, pricing and amount of the repurchases under the program (if any) will be subject to the discretion of the Company and may be based upon a number of factors, including market conditions, and in accordance with applicable rules and regulations. The Company declared a dividend for the second quarter 2025 of $0.75 per share. The dividend is payable on or about September 18, 2025 to shareholders, on record as of September 5, 2025. Marius Foss, Interim CEO of Flex LNG Management AS, commented: "We are today reporting second quarter revenues of $86 million, or $84 million excluding EUAs, with a TCE of approximately $72,000/day, almost unchanged from last year's second quarter revenues of $84.7 million. Although the second quarter is historically the weakest of the year, spot earnings bottomed out in the first quarter, making 2025 one of the rare years where Q2 rates exceeded Q1 levels. However, the spot market remained soft. This affected the quarterly earnings for Flex Artemis, which is on a variable charter, as well as Flex Constellation, which is trading in the spot market before she commences a 15-year time charter in the first half of 2026. Vessel OPEX was in line with our guidance, and net income for the quarter was $17.7 million, implying an EPS of $0.33 per share, with adjusted net income of $24.8 million, equivalent to adjusted EPS of $0.46 per share. During June and July, we completed the five-year special surveys for Flex Aurora and Flex Resolute. Both drydockings were finished well ahead of our guided 20 days of off-hire, demonstrating our ability to minimize off-hire periods. Flex Aurora's drydocking cost came in slightly above budget due to her five-year special survey being conducted in Denmark, which was a deliberate choice aligned with her loading schedule. This enabled a faster return to service with the charterer, partly offsetting the higher costs. Looking ahead, Flex Artemis and Flex Amber are scheduled for their drydockings in Singapore in the third quarter. These drydockings are a great testament to the dedication and professionalism of our technical team and the committed crew on board. We sincerely appreciate their outstanding efforts and safe execution throughout the process. Due to our minimum 56 year charter backlog, potentially extending to 85 years including charterers' optional periods, we enjoy access to highly attractive financing opportunities. We are pleased to announce the completion of documentation for two new financing facilities for Flex Resolute and Flex Constellation. We have secured a new $175 million JOLCO lease for Flex Resolute. This transaction mirrors the JOLCO lease for Flex Courageous, which we announced in the first quarter and was completed in May. In addition, we have obtained a very competitive bank loan facility of $180 million for Flex Constellation. These refinancings will extend our debt maturities, reducing our cost of financing, and realizing around $132 million in proceeds from the Balance Sheet Optimization Program 3.0. The OSE has approved the delisting of the Flex LNG stock, and the last day of listing will be September 15 this year. After this date, the Flex LNG stock will be listed exclusively on the NYSE. We are today announcing the launch of a share buy-back program of up to $15 million. The share buy-back program will last until the Q3-2025 earnings release date, currently set to November 27, 2025. Any purchase under the share buy-back program is made independently of any dividend considerations. With solid earnings, a substantial backlog, and a fortress balance sheet with $413 million in cash and no debt maturities prior to 2029, the Board is pleased to declare another quarterly dividend of $0.75 per share, equivalent to approximately $41 million. This brings our trailing twelve-month dividend to $3.00 per share. It also marks our sixteenth consecutive ordinary quarterly dividend of $0.75, and when including special dividends, we will have returned approximately $690 million to shareholders since Q4 2021." Second Quarter 2025 Result 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:Second Quarter 2025 Earnings Presentation 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] This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. 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, which 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. The words "believe," "expect," "forecast," "anticipate," "aim," "commit," "estimate," "intend," "plan," "possible," "potential," "pending," "target," "project," "likely," "may," "will," "would," "should," "could" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon 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, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, 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 vary materially from those projected in the forward-looking statements. The Company undertakes no obligation, and specifically declines 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. 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 impact of public health threats, changes in the Company's operating expenses, including bunker prices, drydocking and insurance 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 or developments, armed conflicts, including the war between Russia and Ukraine, and possible cessation of such war in Ukraine, the conflict between Israel and Hamas and related conflicts in the Middle East, the Houthi attack in the Red Sea and Gulf of Aden, threats by Iran to close 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, business disruptions, including supply chain disruption and congestion, due to natural or other disasters or otherwise, potential physical disruption of shipping routes due to accidents, climate-related incidents, 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-2025-earnings-release,c4220238 The following files are available for download: SOURCE Flex LNG WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Flex LNG - Second Quarter 2025 Earnings Release

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