Is FLEX LNG’s (FLNG) $100M Equity Offering Reshaping Its Capital Structure and Investment Appeal?

• FLEX LNG Ltd. recently reported its third-quarter and nine-month 2025 earnings, announced the filing of a US$100 million follow-on equity offering, and provided updated full-year 2025 revenue guidance of approximately US$340 million with expected TCE rates around US$71,000 to US$72,000 per day.
• Alongside the equity offering and earnings update, the company also declared a third-quarter dividend of US$0.75 per share, maintaining its commitment to shareholder returns.
• We'll examine how FLEX LNG's follow-on equity offering could influence its capital structure and update its investment narrative.

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FLEX LNG Investment Narrative Recap

To be a FLEX LNG shareholder today, you need confidence in the durability of long-term charter contracts and the market’s appetite for LNG shipping, with solid recurring cash flows buffered by multi-year agreements. The recent follow-on equity offering appears unlikely to materially impact the short-term catalyst of stable charter rates, but could influence the company’s longer-term capital allocation flexibility, especially if LNG shipping supply growth weighs on future day rates. The biggest risk remains the potential oversupply of LNG vessels, which could challenge charter pricing and margin stability if supply outpaces demand.

Among the recent announcements, the $100 million follow-on equity offering stands out in the context of tight fleet growth options and a focus on regular cash returns to shareholders. This move adds potential financial resources, which may become essential as FLEX faces industry headwinds from rising costs and evolving environmental rules, all while balancing its high dividend policy. Yet, with the vessel orderbook still looming...

Read the full narrative on FLEX LNG (it's free!)

FLEX LNG's narrative projects $369.5 million revenue and $145.9 million earnings by 2028. This requires 1.3% yearly revenue growth and a $46.8 million earnings increase from $99.1 million today.

Uncover how FLEX LNG's forecasts yield a $25.33 fair value, a 5% downside to its current price.

Exploring Other Perspectives

The Simply Wall St Community has published four fair value estimates for FLEX LNG, ranging from US$22.50 to a striking US$13,641.04. While opinions differ widely, supply growth risks and future charter rate uncertainty remain key themes shaping how you might weigh the company’s prospects.

Explore 4 other fair value estimates on FLEX LNG - why the stock might be worth 15% less than the current price!

Build Your Own FLEX LNG Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FLEX LNG research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free FLEX LNG research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FLEX LNG's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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