Flex LNG's $65.6M EBITDA Surge: Why LNG's Golden Age is Far From Over – Buy Now!

The global energy transition isn’t sidelining LNG—it’s fueling it. And Flex LNG (FLNG) just delivered proof. With a Q1 2025 EBITDA of $65.6 million, the company is roaring into what could be the most pivotal year yet for liquefied natural gas. Here’s why investors need to take notice—and act fast.

The LNG Demand Story is Bulletproof

LNG isn’t just surviving the energy transition—it’s thriving. Why? Because reliability matters. Even as renewables expand, natural gas remains the go-to “bridge fuel” for countries balancing climate goals with energy security. The International Energy Agency projects LNG demand to grow by 1.5% annually through 2030, driven by Asia’s industrialization and Europe’s post-Russian gas diversification.

Flex LNG isn’t just riding this wave—it’s surfing it. Its Q1 results show a business model engineered for stability:
- 87.6% of 2025 operating days are already locked in via firm contracts.
- A 59-year contract backlog (rising to 88 years if options are exercised) acts as a financial moat, shielding revenue from volatile spot markets.
- 100% technical uptime proves operational excellence, minimizing downtime risks that can cripple peers.

This isn’t a bet on a fad—it’s a bet on a structural trend.

The Dividend Machine Keeps Chugging

Let’s talk cold, hard cash. Flex LNG just declared a $0.75 dividend per share, payable in June, maintaining a 12% trailing yield. That’s not a typo—12% in an era of negative bond yields.

But here’s the kicker: This dividend isn’t a gimmick. The company holds $409.6 million in cash and has a 96% contracted backlog for 2025. With its fleet of modern, flexible LNG carriers (like the soon-to-be-redelivered Flex Artemis), Flex LNG is positioned to capitalize on rising U.S. exports and Asia’s energy hunger.

Debt? What Debt?

Critics will point to Flex LNG’s $1.78 billion in long-term debt. Fair point—but here’s why it’s manageable:
- $700 million in interest rate swaps lock in ultra-low borrowing costs (2.09% weighted average).
- Refinancing efforts, including deals for vessels like the Flex Courageous, are extending debt maturities and improving liquidity.
- With $88.4 million in Q1 revenue and $18.7 million net income, the company is generating cash to outpace obligations.

This isn’t a debt trap—it’s a financing strategy.

ESG: The Elephant in the Room?

Skeptics might question how an LNG player squares with ESG trends. Flex LNG’s 2024 ESG report answers that:
- A zero Lost Time Injury Frequency Rate (a critical safety metric in maritime).
- A “B” CDP Climate Change Rating, signaling progress toward emissions targets.
- Fleet efficiency gains via optimized routes and digital tools.

Yes, LNG isn’t perfect—but it’s better than coal, and that’s what counts for utilities in India, China, and Europe.

Risks? Sure—But the Upside Outweighs Them

No investment is risk-free. Regulatory shifts (e.g., stricter EU methane rules) or a sudden LNG glut could pressure margins. But consider this:
- Flex LNG’s diversified charter portfolio (including U.S., Middle Eastern, and Asian customers) insulates it from regional downturns.
- The 12% dividend yield acts as a cushion against minor price dips.
- With U.S. LNG exports hitting record highs, the tailwinds are real.

Time to Pull the Trigger

The math is undeniable: A 12% dividend yield, a fortress-like contract backlog, and a management team nimbly refinancing debt. This isn’t a “wait-and-see” play—it’s a BUY NOW opportunity.

If you believe in LNG’s role in the energy transition—and you should—Flex LNG isn’t just a stock. It’s an insurance policy against a world that still needs gas to keep the lights on.

Action Item: Buy Flex LNG shares now. The dividend alone could turn skeptics into believers. Don’t let this ship sail without you.

Investment decisions should always align with your risk tolerance. Past performance doesn’t guarantee future results.