Financial Data and Key Metrics Changes - The company reported revenues of $87.5 million for Q4 2025, or $85 million excluding EUA related to the emission trading system. The fleet averaged TCE at $71,100 per day. Net income for Q4 was $21.6 million, resulting in an earnings per share of $0.40. Adjusted net income was $23.3 million, or adjusted earnings per share of $0.43 [3][5] - For the full year 2025, revenues reached $340 million, with an adjusted EBITDA of $251 million. The full year TCE was $72,000 per day [6][12] - The company maintained a cash balance of $448 million at year-end, with no debt maturing before 2029 [5][13] Business Line Data and Key Metrics Changes - The company traded two vessels in the spot market in 2025: FLEX Artemis and FLEX Constellation. Four drydockings were completed in 2025 [6][12] - In 2026, the company expects to complete three drydockings and has a TCE guidance of $65,000-$75,000 per day [9][12] Market Data and Key Metrics Changes - Global LNG exports rose 4% year-over-year in 2025, with Europe leading demand. U.S. LNG exports increased by 25% compared to 2024 [16] - European gas storage levels were reported to be around 40% entering 2026, indicating a potential strong demand pull from Europe [18] - The company noted that while new LNG supply is firm, there are too many ships delivered ahead of the new volumes, leading to modest expectations for earnings from spot exposure [10][20] Company Strategy and Development Direction - The company has a robust financial position and a solid contract backlog, with 78% of available days fixed on long-term charters for 2026 [6][8] - The company is optimistic about its open exposure later in the decade, aligning with expectations of an attractive shipping market due to significant new supply volumes [8][20] Management's Comments on Operating Environment and Future Outlook - Management indicated that the spot market is expected to remain volatile in 2026, with many fixtures anticipated due to new LNG export volumes ramping up [7][10] - The long-term outlook remains optimistic, with a comfortable backlog and visibility despite current market challenges [10][20] Other Important Information - The board declared a quarterly dividend of $0.75 per share, marking the 18th consecutive dividend at this rate, with a total distribution of around $770 million since 2021 [5][10] - The company generated cash flow of $44 million from operations, with a net operating cash flow of approximately $36 million after accounting for working capital movements and drydocking expenditures [13] Q&A Session Summary Question: Can you provide more details on the upcoming options and their likelihood of being declared? - Management stated that they are also waiting for the charters to declare options during 2026, and regardless of the outcome, these options will not affect the fleet portfolio significantly [23] Question: How should the increased market exposure and decision factors be viewed regarding future dividend payments? - Management emphasized that each dividend payment is decided by the board at each meeting, and while some decision factors have been adjusted, the majority remain strong, supporting the dividend [24] Question: Will the company order new ships given the current market exposure? - Management indicated that they are in a position to order ships if needed but prefer to be disciplined and wait for contracts to be attached before making such decisions [26]

Financial Data and Key Metrics Changes - FLEX LNG reported revenues of $87.5 million for Q4 2025, or $85 million excluding EUA related to the emission trading system, with a net income of $21.6 million, resulting in an earnings per share of $0.40 [2][11] - Adjusted net income for Q4 was $23.3 million, or adjusted earnings per share of $0.43 [2] - For the full year 2025, revenues reached $340 million, with an adjusted EBITDA of $251 million, aligning with guidance [5][11] - The cash balance at year-end was $448 million, with no debt maturing before 2029 [4][12] Business Line Data and Key Metrics Changes - The fleet averaged TCE (Time Charter Equivalent) of $71,100 per day for Q4, with a full year TCE of $72,000 per day [2][5] - In 2025, two vessels were traded in the spot market, while four drydockings were completed [5] - For 2026, guidance indicates revenues between $310 million and $340 million, with expected TCE around $65,000-$75,000 per day [3][8] Market Data and Key Metrics Changes - Global LNG exports rose 4% year-over-year in 2025, with Europe leading demand, while U.S. exports increased by 25% [14] - European LNG imports surged by 24% year-over-year, reinforcing its role as a key balancing market [14][16] - In contrast, China reduced its LNG imports by 15% from 2024, relying more on domestic production [15][16] Company Strategy and Development Direction - FLEX LNG maintains a robust financial position with a solid contract backlog and a focus on long-term charters [4][7] - The company is optimistic about future market conditions, anticipating strong demand due to new LNG export volumes and geopolitical uncertainties [6][19] - The board declared a quarterly dividend of $0.75 per share, marking the 18th consecutive dividend [4][9] Management Comments on Operating Environment and Future Outlook - Management noted that the spot market is expected to remain volatile in 2026, with modest earnings expectations from spot-exposed vessels [6][8] - The company highlighted the importance of maintaining a disciplined approach to new ship orders, focusing on existing fleet quality [26][28] - The outlook for LNG demand in Europe remains strong, with expectations of high buying requirements in the coming months [17][19] Other Important Information - The company completed drydockings in 2025 significantly below budget, allowing for more revenue-generating days [10] - The average operational expenditure (OpEx) per day for 2025 was $15,800, slightly above guidance [11] - The interest rate swap portfolio has generated unrealized and realized gains of around $132 million since January 2021 [13] Q&A Session Summary Question: Can you provide more details on the upcoming options for the fleet? - Management indicated that they are awaiting decisions on options due to be declared during 2026, noting that these will not significantly impact the fleet portfolio [22][23] Question: How should the increased market exposure be viewed regarding future dividend payments? - Management stated that dividend decisions are made at each board meeting, emphasizing a solid financial position and large contract backlog to support dividends [24] Question: Will the company order new ships given the current market exposure? - Management expressed a disciplined approach to ordering new ships, preferring to wait for contracts before making new orders [26][27]

Core Viewpoint - Flex LNG reported its unaudited financial results for Q4 and the full year of 2025, highlighting stable earnings and a commitment to shareholder returns through dividends [1] Financial Performance - The company declared a dividend of $0.75 per share for Q4 2025, payable on March 12, 2026 [1] - Adjusted basic earnings per share for Q4 2025 remained stable at $0.43, consistent with Q3 2025 [1] - Adjusted net income for Q4 2025 was $23.3 million, slightly down from $23.5 million in Q3 2025 [1] - Adjusted EBITDA for Q4 2025 increased to $61.8 million from $61.2 million in Q3 2025 [1] - Net income for Q4 2025 was $21.6 million, up from $16.8 million in Q3 2025, with basic earnings per share rising to $0.40 from $0.31 [1] - Vessel operating revenues for Q4 2025 were $87.5 million, compared to $85.7 million in Q3 2025 [1] Operational Insights - The average Time Charter Equivalent (TCE) rate for Q4 2025 was $70,119 per day, down from $70,921 per day in Q3 2025 [1] - The full-year TCE rate for 2025 was $71,728 per day, aligning with the guidance of $71,000 to $72,000 per day [1] - Full-year adjusted EBITDA for 2025 was $251.1 million, slightly exceeding the guidance of approximately $250 million [1] Market Outlook - Global LNG exports grew by approximately 4% year-on-year in 2025, reaching 429 million tons, with North American projects driving a 25% growth [1] - 70 million tons per annum of new LNG projects reached Final Investment Decision (FID) in 2025, contributing to a total capacity under construction of around 200 million tons per annum [1] - The short- to medium-term outlook for LNG shipping is expected to be affected by newbuilding deliveries ahead of liquefaction projects [1] Financial Strategy - The company completed three refinancing initiatives worth $530 million in 2025, releasing $137 million in net cash proceeds and lowering interest costs [1] - Full-year interest expenses for 2025 declined to $92.6 million, down $13 million from 2024 [1] - The company has no debt maturities before 2029 and ended the year with a cash position of $448 million [1]