Foss said in Flex LNG’s fourth-quarter results report on Wednesday that the short- to medium-term outlook for LNG shipping is expected to be impacted by deliveries of newbuildings ahead of liquefaction projects coming on stream.
“In this period, our contract backlog, currently a minimum of 50 years and potentially extending to 75 years if charterers exercise all extension options, provides us with earnings visibility,” he said.
“In 2026, we will remain exposed to a softer spot market for up to three open vessels, including the redelivery of Flex Aurora later in the first quarter of 2026,” Foss said.
However, the long-term “LNG story remains compelling, and we view 2025 as the start of the third wave of new liquefaction capacity coming online,” Foss said.
In 2025, global LNG exports grew by approximately 4 percent year-on-year, reaching 429 million tons (MT), according to Foss.
Foss said North American projects were a major driver of this growth, with 25 percent growth year-on-year.
“Momentum in global project development also picked up, with 70 million tons per annum (mtpa) of new projects reaching FID during 2025, bringing total capacity under construction to around 200 mtpa,” he said.
Results
Flex, which owns 13 LNG carriers, reported vessel operating revenues of $87.5 million for the fourth quarter of 2025, compared to $85.7 million for the third quarter of 2025.
The shipping firm reported net income of $21.6 million and basic earnings per share of $0.40 for the fourth quarter 2025, compared to net income of $16.8 million and basic earnings per share of $0.31 for the third quarter of 2025.
Foss said time charter equivalent rate for the fleet came in at $71,728/day for the full-year of 2025, “thus in line with our guidance of $71,000 to 72,000/day.”
“Adjusted Ebidta in 2025 was $251.1 million, slightly ahead of our guidance of $250 million,” he said.
“Following extensive refinancing initiatives in 2024 and 2025, we are now realizing tangible benefits,” Foss said.
“Full-year 2025 interest expenses declined to $92.6 million, down $13 million from 2024, driven by improved loan margins, lower base rates, and proactive management of our revolving credit facilities,” he sid.
Adjusted net income in the fourth quarter was $23.3 million, contributing to FY2025 adjusted net income of $101.1 million, with adjusted EPS of $1.87 per share.
The company declared a dividend for the fourth quarter 2025 of $0.75 per share.
Guidance
Flex expects full-year 2026 revenues of $310-340 million, TCE per day of $65,000-75,000, and adjusted Abitda of $225-255 million.
“Our 2026 financial guidance reflects the current soft market for our spot exposed ships, with wider ranges for TCE, revenues, and adjusted Ebitda,” Foss said.
“At the same time, we have strengthened our balance sheet to navigate these conditions,” he said.
“We completed three refinancings worth $530 million in 2025, enabling us to release $137 million in net cash proceeds, while at the same time both lowering our interest costs and increasing our debt maturity profile. As a result, we have no debt maturities before 2029, and we closed the year with a robust cash position of $448 million,” Foss said.
