FLEX LNG Ltd

Second-quarter revenue was $106.8 million, or $102.7 million excluding EUAs, versus a strong prior quarter improvement driven by spot and contract earnings. Net income was $44.9 million and EPS was $0.83; adjusted net income was $42.5 million and adjusted EPS was $0.79. Fleet average TCE was $86,100 per day. Management kept full-year guidance unchanged: revenue of $345 million-$370 million, TCE of $73,000-$78,000 per day, and adjusted EBITDA of $255 million-$280 million. The company also maintained OpEx guidance of $16,000 per day for the full year and declared a $0.75 per share dividend.

Marius Foss framed the quarter as very strong and emphasized that the business benefited from high spot earnings, completed dry dockings, and solid contract coverage. He was optimistic on LNG shipping fundamentals, pointing to low European storage, strong long-term LNG demand, and a positive ton-mile effect from growing U.S. supply. On geopolitics, he stressed elevated uncertainty and said the Strait of Hormuz situation could support the market if disruptions persist.

Knut Traaholt said the quarter improved significantly mainly due to higher revenues, with Flex Volunteer and Flex Artemis benefiting from spot rates and Flex Constellation and Flex Aurora contributing under new contracts. He noted vessel OpEx averaged $16,260 per day in the quarter, versus about $16,100 per day for the first six months, and reaffirmed full-year OpEx guidance of $16,000 per day. Cash flow from operations was $63 million, up from $37 million in Q1; after $28 million of scheduled debt repayments and $41 million distributed to shareholders, quarter-end cash was $397 million. He also highlighted a $22 million interest rate swap portfolio, $775 million notional, a 2.46% average fixed rate, and a hedge ratio expected around 70% into mid-next year.

Analysts asked about operations in and around the Strait of Hormuz, including whether any Flex vessels were trading there and who pays for extra insurance in high-risk areas. Management said none of the 13 vessels had traded inside since the end of February, and that charterers pay for the additional insurance if vessels are instructed into such areas. They also discussed the outlook for rates, with management saying Q3 is seasonally softer and spot rates have come down from around $120,000 on a round-trip basis last Q3 to about $30,000 now, while expressing hope for a stronger Q4. On financing and dividends, management said refinancing the 2029 debt maturity is still early, hedging will be added opportunistically, and future dividends will continue to be decided quarter by quarter by the Board.