FLNGNYSEWater TransportationUS GAAP · USD

Flex LNG Ltd.

Flex LNG Ltd. is a shipping company focused on the seaborne transportation of liquefied natural gas through a fleet of LNG carriers. The company operates as a vessel-owning and chartering business with ships deployed under time charters and spot market employment, serving global LNG trade routes.

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Revenue348m USD
−2.4 %y/y
Operating profit (EBIT)176m USD
−11.1 %y/y
EBIT margin50.6%
−4.9 ppy/y
Net income74.8m USD
−36.4 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0100200300400m USD2020: 164 m USD2020: EBIT 76 m USD20202021: 343 m USD2021: EBIT 201 m USD20212022: 348 m USD2022: EBIT 201 m USD20222023: 371 m USD2023: EBIT 217 m USD20232024: 356 m USD2024: EBIT 198 m USD20242025: 348 m USD2025: EBIT 176 m USD2025348176
RevenueOperating profit (EBIT)

Business

Share of revenue
Time charter services55 %

Vessel capacity committed to customers under multi-year LNG shipping contracts.

Spot market shipping30 %

Open vessel days sold into the LNG spot market when ships are not fixed long term.

Short-term charter coverage10 %

Temporary employment of vessels on shorter contracts while long-term charters are arranged.

Voyage-related services5 %

Shipping income influenced by bunkers, positioning voyages, and voyage-related expenses.

Customers

Flex LNG sells shipping capacity to LNG producers, LNG traders, and energy companies that need reliable ocean transport for liquefied natural gas. Its customers contract vessels for long-haul export routes or temporarily fix ships in the spot market when they need immediate tonnage. The business is therefore driven by charter demand, LNG trade flows, and the economics of moving gas between export and import regions.

LNG producers

Buy vessel capacity to move LNG from export terminals to end markets and lock in transport access.

Energy traders

Charter vessels for cargo arbitrage, flexible shipping windows, and market dislocation opportunities.

Utilities and importers

Use LNG shipping capacity to secure supply for domestic gas markets and power generation.

Short-term spot charterers

Purchase immediate vessel availability when market disruptions or cargo timing create urgent demand.

Strategy

Flex LNG’s strategy centers on keeping its modern LNG carrier fleet employed through a mix of long-term time charters and shorter-term or spot market coverage. The company emphasizes fuel-efficient vessels, contract coverage, and tactical exposure to market tightness when charter rates improve.

Extend vessel contract coverageShort term

Longer charter coverage reduces idle days and stabilizes fleet deployment.

Monetize spot market volatilityShort term

Open vessels can benefit when LNG freight rates spike due to supply disruption.

Maintain fleet technical readinessMedium term

Drydock timing and vessel condition affect availability and charterability.

Geography

Flex LNG is globally exposed because LNG carriers operate on international routes rather than within a single domestic market. The company is incorporated in Bermuda, listed in the United States, and its commercial activity spans LNG export and import corridors, with Asian-based charterers referenced in its long-term contracts. Market conditions are strongly influenced by Middle East supply, global LNG trade balances, and the length of voyage routes.

Risks

Flex LNG is exposed to sharp swings in LNG shipping rates, voyage costs, and vessel employment because part of the fleet is periodically exposed to the spot market. Its results also depend on geopolitical and trade-route disruptions, especially in the Middle East, where LNG supply outages and Strait of Hormuz access can rapidly change market balances.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →LNG freight rate volatility1Geopolitical disruption in the Middle East2Contract rollover and re-employment risk3Voyage and positioning expense inflation4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. LNG freight rate volatilityImpact: HighLikelihood: High

    A meaningful portion of earnings depends on spot or short-term vessel employment.

    Exposure: spot market vessels

  2. Geopolitical disruption in the Middle EastImpact: HighLikelihood: Medium

    Supply outages and route closures can rapidly alter LNG trade flows and shipping demand.

    Exposure: global LNG routes

  3. Contract rollover and re-employment riskImpact: HighLikelihood: Medium

    Vessels coming off charter must be fixed again in a competitive market.

    Exposure: vessels approaching contract expiry

  4. Voyage and positioning expense inflationImpact: MediumLikelihood: High

    Bunkers, gas-up, and cool-down costs rise when ships need repositioning or cargo readiness.

    Exposure: open vessels

Accounting

Judgemental items
Charter revenue recognition

Revenue depends on days under time charter versus spot employment and when vessels are on hire.

Impact: Affects quarterly comparability and seasonality

Derivative accounting

Gain or loss on derivatives can materially change net income period to period.

Impact: Earnings volatility

Drydocking and vessel maintenance

Scheduled drydockings require cost recognition and may remove vessels from service.

Impact: Operating expense and utilization

Depreciation of LNG carriers

The fleet is capital intensive and vessel lives strongly influence expense recognition.

Impact: Reported profitability

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Last updated: 28/09/2026