Flex LNG's 17th Consecutive Dividend and Strategic Financial Moves in Q3 2025

The announcement of Flex LNG's (FLNG) $0.75 per share dividend for the third quarter of 2025, payable on December 11, marks the company's 17th consecutive quarterly payout-a testament to its commitment to shareholder returns despite a challenging macroeconomic environment, according to Morningstar's earnings release. This dividend, annualized at $3.00 per share, corresponds to a yield of 11.7%, one of the highest in the energy sector, according to Seeking Alpha. Such consistency is rare in an industry prone to cyclical volatility, underscoring FLNG's ability to balance operational resilience with strategic financial discipline.

Fleet Optimization: A Pillar of Stability

Flex LNG's recent fleet optimization initiatives have been pivotal in sustaining its dividend. In Q3 2025, the company completed scheduled drydockings for the vessels Flex Amber and Flex Artemis, ensuring regulatory compliance and operational efficiency, according to the Morningstar release. More significantly, FLNG executed a $175 million sale and leaseback agreement for the Flex Resolute under a 10-year bareboat charter, while refinancing the Flex Constellation for $180 million. These moves not only preserved liquidity but also contributed to an all-time high cash balance of $479 million, as noted in the Morningstar release. By leveraging non-core assets and extending financing terms, FLNG has fortified its balance sheet, reducing exposure to short-term interest rate fluctuations.

Cash Flow Metrics and Dividend Sustainability

FLNG's Q3 2025 financial results reflect the efficacy of these strategies. Vessel operating revenues totaled $85.7 million, slightly below the $86.0 million in Q2, but adjusted EBITDA remained robust at $61.2 million, according to the Morningstar release. Adjusted net income of $23.5 million, coupled with a 53-year minimum charter backlog, provides a durable foundation for dividend sustainability, according to Seeking Alpha. While net income and earnings per share (EPS) dipped marginally from Q2 levels, the company's ability to maintain high EBITDA and cash reserves demonstrates its capacity to absorb operational headwinds.

Shareholder Returns and Risk Mitigation

Beyond dividends, FLNG has signaled confidence in its financial position through a $15 million share buyback program, according to the Seeking Alpha earnings preview. This move, combined with its 17th consecutive dividend, reinforces the company's dual focus on capital returns and long-term value creation. However, investors must remain cognizant of potential risks. A report by Seeking Alpha notes concerns about a possible dividend reduction due to broader market uncertainties, as noted in the Seeking Alpha earnings preview. Yet, FLNG's strategic refinancing, asset optimization, and strong charter backlog mitigate such risks, offering a buffer against near-term volatility.

Conclusion

Flex LNG's 17th consecutive dividend is not merely a financial milestone but a reflection of its disciplined approach to fleet management and capital allocation. By prioritizing liquidity, extending financing terms, and maintaining a robust charter backlog, FLNG has positioned itself to navigate macroeconomic challenges while rewarding shareholders. For investors, the key question is whether these strategies can sustain the 11.7% yield in an era of rising interest rates and shifting energy demand. The answer, for now, appears to lie in FLNG's ability to adapt-proving that even in a volatile sector, strategic foresight can yield enduring returns.