FLEX LNG .(US:FLNG)2025-08-20 10:15Financial Performance - Vessel operating revenues for Q2 2025 were $86.0 million, a decrease of 2.7% from Q1 2025's $88.4 million[4] - Net income for Q2 2025 was $17.7 million, down from $18.7 million in Q1 2025, resulting in earnings per share of $0.33[4] - Adjusted EBITDA for Q2 2025 was $62.6 million, compared to $65.6 million in Q1 2025, reflecting a decline of 4.6%[4] - Net income for Q2 2025 was $17,719,000, down from $21,835,000 in Q2 2024, reflecting a decrease of approximately 19%[73] - Total net income for the first half of 2025 was $36,447,000, down 33.6% from $55,059,000 in the first half of 2024[135] - Adjusted net income for Q2 2025 was $24,844,000, down 18.0% from $30,423,000 in Q2 2024[135] - Adjusted diluted earnings per share (EPS) for Q2 2025 was $0.46, a decrease of 17.9% compared to $0.56 in Q2 2024[135] Dividends and Shareholder Returns - The company declared a dividend of $0.75 per share for Q2 2025, bringing the trailing twelve-month dividend to $3.00 per share[13] - The company approved a cash distribution of $0.75 per share for Q2 2025, to be paid from the Contributed Surplus account[124] - The company has authorized a share repurchase program allowing for the repurchase of up to $15 million of outstanding shares, valid through November 27, 2025[26] Debt and Financing - Cash and cash equivalents as of June 30, 2025, were $412.7 million, with total long-term debt at $1,802.2 million[23] - The company signed a $180 million term loan facility for Flex Constellation, with a 15.5-year tenor and an interest rate of SOFR plus 165 basis points[6] - Long-term debt stood at $1,696,278 as of June 30, 2025, compared to $1,703,529 as of December 31, 2024, indicating a decrease of approximately 0.4%[76] - The company incurred extinguishment costs of long-term debt amounting to $1,630,000 in the first half of 2025[135] Operational Highlights - The firm contract coverage for the remainder of 2025 is 85.7%, with a total contract backlog of 56 years, potentially extending to 85 years[16] - The company completed drydocking for Flex Aurora and Flex Resolute ahead of schedule, minimizing off-hire days[10] - The company has a 14.5% exposure to the spot market for the remainder of 2025, primarily related to Flex Artemis and Flex Constellation[17] - Voyage expenses for Q2 2025 were $3.0 million, an increase from $2.0 million in Q1 2025[30] Market and Industry Trends - US LNG exports surged 22% year-on-year to 60 MT in the January–July period of 2025[59] - Europe saw a 24% increase in US LNG imports, reaching 74 MT compared to the same period in 2024[58] - Long-term LNG sales and purchase agreements totaling 47.2 MTPA were signed in the first half of 2025, just short of the record 49 MTPA in H1 2024[62] - Seventeen newbuild LNG carriers were delivered in Q2 2025, bringing the total for the first half of the year to 33 units[60] - The global LNG carrier orderbook is estimated at just short of 300 vessels, with around 30% on order at Chinese yards[60] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash totaled $412.7 million as of June 30, 2025, up from $410.1 million at the end of Q1 2025[50] - Net cash provided by operating activities for the six months ended June 30, 2025, was $67,069, down from $82,350 for the same period in 2024, a decrease of about 18.5%[77] - Cash and cash equivalents increased to $412.681 million as of June 30, 2025, compared to $409.618 million at March 31, 2025[86] Asset Management - Total assets as of June 30, 2025, were $2,627,563, a slight decrease from $2,668,939 as of December 31, 2024[76] - The net book value of vessels and equipment decreased to $2,130.428 million as of June 30, 2025, from $2,154.465 million at January 1, 2025[90] - Trade accounts receivable, net, rose to $5.184 million in Q2 2025, up from $1.404 million in Q2 2024, indicating a significant increase of 269.5%[88] Foreign Exchange and Other Losses - The company reported a foreign exchange loss of $500 for the six months ended June 30, 2025, compared to a gain of $398 for the same period in 2024[77] - The company reported a foreign exchange loss of $500,000 in the first half of 2025, compared to a gain of $263,000 in the first half of 2024[135]