Flex LNG Q1 revenue falls amid seasonal market low, raises full-year outlook

Overview

• Bermuda LNG shipper's Q1 revenue and adjusted EPS declined sequentially amid seasonal market lows

• Company raised FY2026 guidance for revenue, TCE rate, and adjusted EBITDA after market rebound

• Flex LNG declared a quarterly dividend of $0.75 per share, its 19th consecutive ordinary payout

Outlook

• Flex LNG raises FY2026 revenue guidance to $345-370 mln, up about 10% from prior forecast

• Company expects FY2026 fleet-wide TCE rate of $73-78,000 per day, up about 8%

• Flex LNG forecasts FY2026 adjusted EBITDA of $255-280 mln, up about 11% from previous guidance

Result Drivers

• SEASONAL WEAKNESS - Co said Q1 results reflected the seasonal low period in the LNG shipping market, which bottomed out in mid-Q1

• HIGHER VOYAGE EXPENSES - Earnings were impacted by higher voyage expenses, including bunkers and gas-up/cool-down, related to positioning open ships

Company press release: ID:nWkr2nYmHq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy."

• Wall Street's median 12-month price target for FLEX LNG Ltd is $25.00, about 24.1% below its May 12 closing price of $32.93

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

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