FLEX LNG's Q1 2025: Unraveling Contradictions in Dividend Policy, Market Strategy, and Long-Term Contracts

Dividend policy and financial flexibility, spot market activity and long-term contracts, Flex Artemis and long-term contracts, Flex Constellation and market strategy, long-term contract interest are the key contradictions discussed in FLEX LNG Ltd.'s latest 2025Q1 earnings call.



Financial Performance:
- Flex LNG reported adjusted net income of $29.4 million, translating to $0.54 in adjusted earnings per share.
- The decline in financial results was primarily due to lower freight rates and two vessels open by Q3 2025.

Dividend Distribution:
- The Board declared an ordinary quarterly dividend of $0.75 per share, bringing the trailing 12-month dividend to $3 per share with a yield of 12%.
- This distribution was supported by the company's strong balance sheet with $410 million in cash and a solid contract backlog.

LNG Market Dynamics:
- LNG trade from January to April 2025 grew by 1% to 143 million tonnes compared to the same period last year.
- This growth was driven by increased U.S. LNG exports and European appetite for LNG due to Russia halting pipeline gas exports to Ukraine.

Contract Backlog and Fleet Optimization:
- Flex Constellation was redelivered from a time charter, and Flex Artemis is expected back in Q3 2025, impacting fleet utilization.
- The company initiated the balance sheet optimization program 3.0 to free up $120 million in free cash, with plans for refinancing and debt reduction.

Delisting from Oslo Stock Exchange:
- Flex LNG submitted an application for delisting from the Oslo Stock Exchange, aiming to conclude the process in the second quarter.
- Shareholders are encouraged to transfer their shares to the New York Stock Exchange if they wish to continue on the Flex journey.