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FLEX LNG Ltd (FLNG)
NYSE:FLNG
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FLEX LNG
(NYSE:FLNG)
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Rating:77Outperform
Price Target:
$30.00
â–²(17.14% Upside)
FLEX LNG's strong financial performance and positive earnings call are the most significant factors contributing to the score. The technical analysis supports a bullish outlook, though caution is advised due to potential overbought conditions. The valuation is attractive, with a high dividend yield enhancing the stock's appeal.
Positive Factors
Strong Financial Performance
Consistent profitability and strong net income indicate robust financial health, supporting long-term stability and growth potential.
Solid Contract Backlog
A substantial contract backlog ensures steady revenue streams, enhancing financial predictability and reducing market volatility exposure.
Successful Refinancing
Refinancing efforts improve liquidity and extend debt maturities, providing financial flexibility for future investments and growth.
Negative Factors
Soft Spot Market Impact
A soft spot market can lead to revenue volatility, affecting earnings for vessels operating without long-term contracts.
Increased Drydocking Costs
Higher drydocking costs can strain operational budgets, impacting profitability and cash flow management over time.
Challenges in Asian LNG Imports
Declining LNG imports in key Asian markets could reduce demand for LNG shipping, affecting future revenue growth potential.
FLEX LNG (FLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend Yield11.71%
Average Volume (3M)519.99K
Price to Earnings (P/E)13.7
Beta (1Y)0.38
Revenue Growth-2.98%
EPS Growth-17.51%
CountryUS
Employees9
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.46
Shares Outstanding54,087,770
10 Day Avg. Volume416,596
30 Day Avg. Volume519,993
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.93
Enterprise Value/Revenue7.25
Enterprise Value/Gross Profit12.79
Enterprise Value/Ebitda9.44
Forecast
1Y Price Target
$25.74Price Target Upside0.51% Upside
Rating ConsensusHold
Number of Analyst Covering1
FLEX LNG Business Overview & Revenue Model
Company DescriptionFLEX LNG is a leading provider of liquefied natural gas (LNG) transportation services, focusing on the operation of a modern fleet of LNG carriers. The company operates in the maritime shipping sector, specializing in the transportation of LNG from production facilities to various global markets. FLEX LNG is dedicated to providing safe, reliable, and efficient transportation solutions to its customers, which include major energy companies and trading houses.
How the Company Makes MoneyFLEX LNG generates revenue primarily through long-term time charters and spot market contracts for its fleet of LNG carriers. The company enters into contracts with customers for the transportation of LNG, which provides a stable income stream. Additionally, FLEX LNG benefits from operational efficiency and low operating costs, which enhance profit margins. The company also seeks to capitalize on favorable market conditions by engaging in spot market transactions, allowing it to take advantage of higher rates during periods of increased demand for LNG shipping. Strategic partnerships with key players in the energy sector further bolster its revenue potential, ensuring a steady flow of contracts and enhancing its competitive position in the market.
FLEX LNG Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 28, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance, with net income and adjusted net income yielding positive results. Shareholder returns are being prioritized through dividends and a buyback program. Successful refinancing and a positive outlook on the LNG market contribute to a favorable position. However, challenges such as the soft spot market and increased drydocking costs, as well as a decline in Asian LNG imports, present notable areas of concern.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income for the quarter was $17.7 million, with an adjusted net income of $24.8 million. Time Charter Equivalent (TCE) was $72,000 per day, and the Balance Sheet Optimization Program 3.0 is progressing well.
Shareholder Returns and Buyback Program
A $15 million share buyback program was announced, and the Board declared a 75% share dividend, resulting in a last 12 months dividend yield of 12%.
Successful Refinancing
Completed $175 million refinancing of Flex Courageous, generating net proceeds of approximately $43 million. Additional financings for Flex Resolute and Flex Constellation will add $90 million to the cash balance.
Positive LNG Market Developments
LNG trade grew approximately 2% to 245 million tonnes from January to July 2025. U.S. LNG exports increased by more than 20% year-over-year.
Solid Contract Backlog
Strong contract backlog with 56 years of minimum backlog, which might grow up to 85 years if charterers declare all options.
Negative Updates
Soft Spot Market Impact
Slight drop in revenues compared to the first quarter due to seasonal softer spot market, impacting earnings for vessels operating in the spot market.
Increased Drydocking Costs
Drydocking costs for vessels were slightly above previous estimates due to higher costs in Europe compared to Singapore, averaging around $5.7 million per vessel.
Challenges in Asian LNG Imports
Chinese imports are down around 19%, whereas India is down 11% year-over-year, influenced by factors such as demand pull to Europe and economic conditions in China.
Company Guidance
During the call, Flex LNG provided comprehensive guidance for fiscal year 2025, projecting revenues between $350 million to $370 million and TCE per day ranging from $72,000 to $77,000. The company aims for an adjusted EBITDA of $250 million to $270 million. The Balance Sheet Optimization Program 3.0 is advancing well, with recent refinancing efforts freeing up $132 million in liquidity and extending debt maturities. Flex LNG announced a $15 million share buyback program, independent of planned dividends, which include a quarterly payout of $0.75 per share, translating to a 12% dividend yield based on a $25 share price. The firm maintains a strong cash position of $413 million, supporting its robust contract backlog of up to 85 years if all options are exercised. The company has completed two out of four planned drydockings for 2025, with costs averaging $5.7 million per vessel. Despite a cautious short-term LNG market outlook, Flex LNG remains optimistic about long-term growth and committed to a shareholder-friendly dividend policy.FLEX LNG Financial Statement Overview
Summary
FLEX LNG demonstrates robust financial health with strong profitability and a stable balance sheet. However, cash flow management poses some challenges due to fluctuations in free cash flow.Income Statement
FLEX LNG shows strong profitability with a stable gross profit margin and EBIT margin over the years. However, the net income has been fluctuating, indicating potential volatility. Revenue growth is inconsistent but has shown resilience in challenging years.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio and a solid equity ratio, indicating a stable capital structure. The return on equity is strong, but there is potential risk due to substantial total debt levels.70
Positive
Cash Flow
Operating cash flow is consistently positive, showing good cash conversion from operations. However, free cash flow has seen significant fluctuations, which may indicate challenges in managing capital expenditures and financing needs.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 355.84M | 356.35M | 371.02M | 347.92M | 343.45M | 164.46M |
| Gross Profit | 201.53M | 207.58M | 227.62M | 209.76M | 209.04M | 81.92M |
| EBITDA | 272.98M | 298.89M | 302.20M | 336.96M | 270.99M | 117.47M |
| Net Income | 99.07M | 117.68M | 120.04M | 188.04M | 162.21M | 8.11M |
Balance Sheet | ||||||
| Total Assets | 2.63B | 2.67B | 2.71B | 2.68B | 2.57B | 2.30B |
| Cash, Cash Equivalents and Short-Term Investments | 412.68M | 437.15M | 410.43M | 332.33M | 200.65M | 128.88M |
| Total Debt | 1.75B | 1.81B | 1.81B | 1.71B | 1.63B | 1.40B |
| Total Liabilities | 1.87B | 1.86B | 1.86B | 1.77B | 1.68B | 1.47B |
| Stockholders Equity | 762.02M | 806.63M | 847.65M | 907.09M | 889.39M | 835.17M |
Cash Flow | ||||||
| Free Cash Flow | 167.51M | 182.79M | 175.03M | 219.88M | -51.09M | -602.09M |
| Operating Cash Flow | 167.52M | 182.80M | 175.03M | 219.88M | 214.84M | 89.30M |
| Investing Cash Flow | -4.00K | -4.00K | -2.00K | -5.00K | -265.93M | -691.39M |
| Financing Cash Flow | -125.20M | -155.61M | -96.54M | -88.76M | 123.10M | 603.32M |
FLEX LNG Technical Analysis
Positive
25.61
Price Trends
25.03
Positive
23.83
Positive
22.75
Positive
Market Momentum
0.05
Positive
56.19
Neutral
69.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNG, the sentiment is Positive. The current price of 25.61 is above the 20-day moving average (MA) of 25.32, above the 50-day MA of 25.03, and above the 200-day MA of 22.75, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLNG.
FLEX LNG Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $128.59M | 2.42 | 10.64% | 5.57% | -1.72% | 55.38% | |
77 Outperform | $1.34B | 13.75 | 12.50% | 11.71% | -2.98% | -17.51% | |
76 Outperform | $1.07B | 12.29 | 7.10% | 1.29% | 1.19% | 12.56% | |
72 Outperform | $1.24B | 25.26 | 4.73% | 10.81% | -42.64% | -84.82% | |
69 Neutral | $36.17B | 23.99 | 58.90% | 2.08% | 5.88% | 46.35% | |
51 Neutral | $4.20B | -573.96 | -0.40% | 2.49% | -2.78% | -105.22% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
FLNG
FLEX LNG
25.61
2.60
11.30%
GLNG
Golar LNG
40.12
2.29
6.05%
TRGP
Targa Resources
168.07
17.83
11.87%
NVGS
Navigator Holdings
15.49
-0.69
-4.26%
DLNG
Dynagas LNG Partners
3.52
-0.21
-5.63%
LPG
Dorian LPG
29.03
-3.70
-11.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.