Flex LNG is a Singapore-domiciled owner-operator of fuel-efficient fifth-generation LNG carriers whose charter book just re-anchored itself at the top of the market cycle. The fundamental change is that March 2026 re-contracting pushed aggregate firm coverage to 51 years and, with all charterer options declared, toward 78 years, converting a mid-life fleet into a long-dated annuity stream.
The core dynamic is a mismatch between fixed-rate revenue and a variable-rate cost base. The company has fixed interest on $775.0 million of notional through interest rate swaps, leaving $902.8 million of floating-rate debt exposed, so every basis point of Secured Overnight Financing Rate (SOFR) drift moves interest expense by roughly $9.0 million annually.
Vessel operating revenues rose $12.8 million to $187.3 million in the first half of 2026, and cash and restricted cash ended the period at $397.4 million. Does the long charter book fully offset the remaining floating-rate exposure, or does interest-rate drift still dominate the margin?