Flex LNG highlights strong performance, market position at energy conference

Flex LNG showcased its strong financial position and market outlook at the 32nd Energy Conference in Oslo. The company’s fleet comprises 13 modern two-stroke LNG carriers with an average age of 5.8 years, all acquired at an average newbuild cost of $185m, significantly below current newbuild prices of approximately $250m. The company reports a minimum charter backlog of 55 years, which could extend to 84 years with charterer options, providing substantial earnings visibility.

Financially, Flex LNG boasts no debt maturities before 2029 and a cash position of $413m as of Q2-2025, expected to increase by an additional ~$90m in Q3 from refinancing. This strong balance sheet supports the company's attractive capital returns, with $690m paid in dividends since Q4-2021, representing an LTM dividend yield of ~11.8%. The company also highlighted the ongoing surge in European LNG demand and opening arbitrage opportunities to Asia, influencing global trade flows.

The presentation also addressed broader market trends, including substantial newbuild deliveries expected over the next 24 months, with approximately 280 new 2-stroke vessels entering the market. Despite this, high newbuild prices are discouraging speculative ordering. Furthermore, Flex LNG emphasized the accelerating scrapping of aging LNG steamships, with 12 vessels confirmed scrapped in YTD-2025, and North America driving growth in new liquefaction supply, with over 150 MTPA of new capacity ramping up or under construction by 2028.