Flex LNG Raises 2026 Outlook After Q1 Profit and Stronger LNG Shipping Market
Flex LNG Raises 2026 Outlook After Q1 Profit and Stronger LNG Shipping Market
Flex LNG Ltd. reported a profitable first quarter of 2026 and lifted its full-year guidance after a sharp improvement in LNG shipping rates, stronger contract coverage, and tighter global vessel availability.
The company posted vessel operating revenues of $80.5 million for Q1 2026, compared with $87.5 million in Q4 2025. Net income reached $19.5 million, or $0.36 per share, while adjusted net income came in at $16.9 million, or $0.31 per share. Flex LNG said the quarter was affected by seasonal weakness, scheduled drydockings, and softer spot rates early in the period.
Dividend Remains Steady
Flex LNG declared another quarterly dividend of $0.75 per share, payable around June 11, 2026, to shareholders of record as of May 29, 2026. The company said this marks its 19th consecutive ordinary quarterly dividend at the same level. Since 2021, Flex LNG has returned about $810 million to shareholders, including ordinary and special dividends.
Market Conditions Improve After Weak Start
Management said the LNG shipping market started the year slowly but improved sharply after geopolitical disruption affected Middle East LNG flows. Spot rates reportedly climbed from cyclical lows in February to much higher levels as supply disruptions in Qatar and the closure of the Strait of Hormuz created major shipping dislocation.
Flex LNG confirmed that none of its 13 vessels were operating inside the Strait of Hormuz during the conflict period. The company emphasized that crew safety remained a top priority.
Full-Year 2026 Guidance Increased
Due to stronger market conditions and added contract backlog, Flex LNG raised its 2026 outlook. The company now expects revenue excluding EU Allowances of $345 million to $370 million. It also expects a fleet-wide Time Charter Equivalent rate of $73,000 to $78,000 per day and adjusted EBITDA of $255 million to $280 million.
Contract Backlog Strengthens
Flex LNG said it now has about 91% contract coverage for the remaining available days of 2026. The company also reported stronger backlog after extensions for Flex Resolute and Flex Courageous, which are now firmly employed until 2032, with possible extensions to 2039.
The Flex Aurora was also fixed on a new two-year contract with extension options that could stretch the employment period further. Meanwhile, Flex Artemis and Flex Volunteer were active in the spot and short-term market, giving the company exposure to improved rates.
Balance Sheet and Operations
Flex LNG ended the quarter with about $389 million in cash. Management described the balance sheet as strong and said the company has no debt maturities before 2029. This financial position gives Flex LNG flexibility as it balances long-term contracts, spot exposure, dividend payments, and vessel maintenance.
The company completed drydockings for Flex Volunteer and Flex Freedom during the quarter. Flex Vigilant is expected to enter drydock later in May, completing the final five-year special survey across the fleet.
Outlook
Overall, Flex LNG delivered a solid Q1 2026 despite seasonal pressure and temporary operational downtime. The main story is not only the quarterly profit, but the improved outlook for the rest of the year. Higher spot rates, better contract coverage, strong cash reserves, and continued dividend payments place the company in a stronger position as the LNG shipping market remains volatile but potentially rewarding.
Still, management warned that geopolitical uncertainty remains an important risk. The company said it will continue to monitor market conditions, protect crew safety, and seek the right long-term charter opportunities rather than rushing into weaker deals.
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