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FLEX LNG Ltd. ("FLEX LNG" or the "Company") is a limited liability company, originally incorporated in the British Virgin Islands in September 2006 and re-domiciled to Bermuda in June 2017. The Company is currently listed on the New York Stock Exchange under the symbol "FLNG". The Company's activities are focused on seaborne transportation of liquefied natural gas ("LNG") through the ownership and operation of fuel efficient, fifth generation LNG carriers. As of June 30, 2026, the Company had thirteen LNG carriers in operation.

Basis of accounting

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of management, include all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the Company's consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and notes included in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 27, 2026.

The unaudited interim condensed consolidated financial statements do not include all the disclosures required in an Annual Report on Form 20-F.

Significant accounting policies

The accounting policies adopted in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2025.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to provide additional disclosures about certain expense categories included within relevant income statement captions.

The amendments are effective for the Company for annual reporting periods beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statement disclosures.

Environmental Credits and Environmental Credit Obligations

In May 2026, the FASB issued Accounting Standards Update 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes accounting and disclosure requirements for environmental credits and related obligations. The guidance addresses the recognition, measurement, presentation and disclosure of environmental credits that are generated, purchased or received, including credits held for regulatory compliance or other purposes, as well as obligations arising under environmental compliance programs.

The amendments are effective for the Company for annual and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements and related disclosures, including the potential impact on environmental credits generated in connection with applicable maritime emissions regulations.

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Basic earnings per share amounts are calculated by dividing the net income/(loss) by the weighted average number of ordinary shares outstanding during that period.

Diluted earnings per share amounts are calculated by dividing the net income/(loss) by the weighted average number of shares outstanding during the period, plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. If in the period there was a loss, then any potential ordinary shares have been excluded from the calculation of diluted loss per share, because the effects were anti-dilutive.

The following reflects the net income/(loss) and share data used in the earnings per share calculation.

(in thousands of $, except share data)						Six months ended
						June 30,
						2026			2025
Net income						64,362			36,447
Weighted average number of ordinary shares						54,092,376			54,087,768
Share options						—			7,850
Weighted average number of ordinary shares, adjusted for dilution						54,092,376			54,095,618
Earnings per share:
Basic						1.19			0.67
Diluted						1.19			0.67

The following identifies the balance sheet line items included in cash, cash equivalents and restricted cash as presented in the interim condensed consolidated statements of cash flows:

(in thousands of $)						June 30,						December 31,
						2026						2025
Cash and cash equivalents						397,382						447,632
Restricted cash						—						65
Cash, cash equivalents and restricted cash						397,382						447,697

Restricted cash previously represented cash required to be held in a separate bank account under Norwegian tax regulations. Effective 1 January 2026, this requirement was abolished, and accordingly there was no restricted cash at the reporting date.

Other current assets includes the following:

(in thousands of $)						June 30,						December 31,
						2026						2025
Trade accounts receivable, net						—						392
Accrued income						29,606						26,113
Prepaid expenses						8,010						5,929
Other receivables						12,489						13,800
Total other current assets						50,105						46,234

Trade accounts receivable are presented net of allowances for doubtful accounts. The Company recorded allowances for doubtful debts of $0.0 million as of June 30, 2026 (December 31, 2025: $0.0 million).

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Other current liabilities includes the following:

(in thousands of $)						June 30,						December 31,
						2026						2025
Accrued expenses						(13,804)						(11,545)
Deferred charter revenue						(30,235)						(24,967)
EUA obligations under the EU ETS						(6,889)						(7,761)
Other current liabilities						(380)						(39)
Provisions						(162)						(100)
Total other current liabilities						(51,470)						(44,412)

Movements in the six months ended June 30, 2026 for vessels and equipment, net is summarized as follows:

(in thousands of $)						Vessels and equipment			Dry docks									Total
Cost
At December 31, 2025						2,467,470			65,509									2,532,979
Additions						—			13,691									13,691
Disposals						—			(7,500)									(7,500)
At June 30, 2026						2,467,470			71,700									2,539,170
Accumulated depreciation
At December 31, 2025						(406,998)			(23,486)									(430,484)
Charge						(32,593)			(6,458)									(39,051)
Disposals						—			7,500									7,500
At June 30, 2026						(439,591)			(22,444)									(462,035)
Net book value
At December 31, 2025						2,060,472			42,023									2,102,495
At June 30, 2026						2,027,879			49,256									2,077,135

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(in thousands of $)						June 30,						December 31,
						2026						2025
U.S. dollar denominated floating rate debt
$66 million term tranche under the Flex Enterprise $150 Million Facility						29,478						34,391
$140 million term tranche under the $290 Million Facility						92,792						100,054
$90 million term tranche under the $270 Million Facility						65,486						73,658
$330 Million Sale and Leaseback						270,500						279,000
Flex Rainbow $180 Million Sale and Leaseback(1)						151,182						155,966
Flex Endeavour $160 Million Sale and Leaseback(1)						146,182						150,292
Flex Courageous $175 Million Sale and Leaseback(1)						166,875						171,325
Flex Resolute $175 Million Sale and Leaseback(1)						169,123						173,604
Flex Constellation $180 Million Facility						172,500						177,500
Total U.S. dollar floating rate debt						1,264,118						1,315,790
U.S. dollar denominated fixed rate debt
Flex Volunteer Sale and Leaseback						127,310						131,143
Total U.S. dollar denominated fixed rate debt						127,310						131,143
U.S. dollar denominated revolving credit facilities
$84 million revolving tranche under the Flex Enterprise $150 Million Facility						83,675						83,675
$150 million revolving tranche under the $290 Million Facility						150,000						150,000
$180 million revolving tranche under the $270 Million Facility						180,000						180,000
Total U.S. dollar denominated revolving credit facilities						413,675						413,675
Total debt						1,805,103						1,860,608
Less
Current portion of debt						(112,688)						(111,614)
Long-term portion of debt issuance costs						(9,567)						(10,416)
Long-term debt						1,682,848						1,738,578

(1)These sale and leaseback agreements are comprised of a fixed rate of interest and a floating element based on Term SOFR, plus a margin.

As of June 30, 2026, the Company's only capital commitments relate to long-term debt obligations, summarized below;

(figures in thousands of $)
						Sale & Leaseback			Period repayment			Balloon repayment						Total
1 year						52,104			60,584			—						112,688
2 years						45,592			69,353			—						114,945
3 years						47,126			62,880			290,154						400,160
4 years						48,743			46,752			180,000						275,495
5 years						50,447			31,180			—						81,627
Thereafter						516,636			303,552			—						820,188
Total						760,648			574,301			470,154						1,805,103

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Loan covenants

Certain of our financing agreements discussed above, have, amongst other things, the following financial and vessel covenants, as amended or waived, which are tested quarterly, the most stringent of which require us (on a consolidated basis) to maintain:

• a book equity ratio of minimum of 0.20 to 1.0;

• a positive working capital;

• minimum liquidity, including undrawn credit lines with a remaining term of at least six months, being the higher of:

(i) $25 million; and (ii) an amount equal to five percent (5%) of our total interest-bearing financial indebtedness net

of any cash and cash equivalents; and

•collateral maintenance test, ensuring that the aggregate value of the vessels making up the applicable facility exceeds the aggregate value of the debt commitment outstanding.

As of June 30, 2026, all financial covenants have been met accordingly.

In order to reduce the risks associated with fluctuations in interest rates, the Company has hedged exposures to interest rates using derivative instruments, which involves swapping floating rates of interest to fixed rates of interest. These instruments are not designated as hedges for accounting purposes.

Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative instrument is negative, the Company owes the counterparty, and, therefore, the Company is not exposed to the counterparty's credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Company do not contain credit risk-related contingent features. The Company has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts.

Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

The Company assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities.

In order to reduce the risk associated with fluctuations in interest rates, the Company has interest rate swap agreements, whereby it receives a floating and pays a fixed rate of interest, on an aggregate net notional principal of $775.0 million as of June 30, 2026 (December 31, 2025: $775.0 million).

Our interest rate swap contracts as of June 30, 2026, of which none are designated as hedging instruments, are summarized as follows:

(in thousands of $)

Notional principal

Weighted average duration (years)

Weighted average fixed interest rate

Floating rate: Reference Rate

Receiving floating, pay fixed

775,000

2.3

2.46

%

SOFR

(1)    In 2023, the reference rate for these interest rate swap agreements transitioned from the London Interbank Offered Rate, or LIBOR, to SOFR plus a credit adjustment spread of 0.26% based on the LIBOR fallback protocol.

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The Company's gain on derivatives per the consolidated statement of operations for the six months ended June 30, 2026 and 2025 was comprised of the following:

(figures in thousands of $)						Six months ended
						June 30,
						2026			2025
Change in fair value of derivative instruments						4,893			(16,672)
Realized gain/(loss) on derivative instruments						4,692			8,035
Gain on derivatives						9,585			(8,637)

Movements in the six months ended June 30, 2026 for the derivative instrument assets and liabilities is summarized as follows:

(in thousands of $)						Derivative Instrument Asset			Derivative Instrument Liability									Total
At December 31, 2025						18,054			(604)									17,450
Change in fair value of derivative instruments						4,289			604									4,893
At June 30, 2026						22,343			—									22,343

The principal financial assets of the Company at June 30, 2026 and December 31, 2025 consist of cash and cash equivalents, restricted cash, other current assets, receivables due from related parties and derivative instruments receivable amongst other less significant items. The principal financial liabilities of the Company consist of payables due to related parties, accounts payable, other current liabilities, derivative instruments payable, other non-current liabilities and long-term debt.

The fair value measurements requirement applies to all assets and liabilities that are being measured and reported on a fair value basis. The assets and liabilities carried at fair value should be classified and disclosed in one of the following three categories based on the inputs used to determine its fair value:

Level 1: Quoted market prices in active markets for identical assets or liabilities;

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data; and

Level 3: Unobservable inputs that are not corroborated by market data.

The fair value of the Company's cash and cash equivalents and restricted cash approximates their carrying amounts reported in the accompanying consolidated balance sheets.

The fair value of other current assets, other non-current assets, receivables from related parties, payables due to related parties, accounts payable, other current liabilities and other non-current liabilities approximate their carrying amounts reported in the accompanying consolidated balance sheets.

The fair value of floating rate debt has been determined using Level 2 inputs and is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly or semi-annual basis. Carrying value of the floating rate debt is shown net deduction of debt issuance cost, while fair value of floating rate debt is shown gross.

The fixed rate debt has been determined using Level 2 inputs being the discounted expected cash flows of the outstanding debt.

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The following table includes the estimated fair value and carrying value of those assets and liabilities.

(in thousands of $)									June 30,									December 31,
									2026									2025
			Fair value hierarchy level						Carrying value of asset (liability)			Fair value asset (liability)						Carrying value of asset (liability)			Fair value asset (liability)
Cash, cash equivalents			Level 1						397,382			397,382						447,632			447,632
Restricted cash			Level 1						—			—						65			65
Derivative instruments receivable			Level 2						22,343			22,343						18,054			18,054
Derivative instruments payable			Level 2						—			—						(604)			(604)
Cash settled share option awards			Level 2						(341)			(341)						(163)			(163)
Floating rate long-term debt			Level 2						(1,667,343)			(1,677,793)						(1,718,136)			(1,729,465)
Fixed rate long-term debt			Level 2						(126,327)			(116,417)						(130,071)			(117,827)

There have been no transfers between different levels in the fair value hierarchy during the six months ended June 30, 2026.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair value (Level 2) of our derivative instruments, which is comprised of interest rate swap derivative agreements, is the present value of the estimated future cash flows that we would receive or pay to terminate the agreements at the balance sheet date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves and the credit worthiness of both us and the derivative counterparty.

The fair value (Level 2) of cash-settled share option awards included within Other non-current liabilities and Other current liabilities is determined at each reporting date and recognized as a liability until settlement. The fair value represents the amount that would be paid to settle the awards at the balance sheet date. The liability is measured using the Black-Scholes option valuation model, which incorporates observable market inputs including the market price of our common shares at the measurement date, implied or historical share price volatility derived from market data, risk-free interest rates based on U.S. Treasury yield curves, and expected dividend yield. The expected term of the awards is based on historical exercise patterns and other relevant observable data.

Concentration of Risk

We transact business with the following related parties and affiliated companies (and respective subsidiaries), being companies in which Geveran Trading Co. Ltd ("Geveran") and companies associated with Geveran have significant influence or control, including: SFL Corporation Ltd, Seatankers Management Co. Ltd, Frontline Plc and Front Ocean Management Ltd.

Related Party Balances

A summary of balances due from related parties and affiliated companies at June 30, 2026 and December 31, 2025 is as follows:

(in thousands of $)						June 30,						December 31,
						2026						2025
Frontline (Management) Cyprus Limited						490						340
Receivables due from related parties and affiliated companies						490						340

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A summary of balances due to related parties and affiliated companies at June 30, 2026 and December 31, 2025 is as follows:

(in thousands of $)						June 30,						December 31,
						2026						2025
Seatankers Management Co. Ltd						(63)						(4)
Frontline (Management) Cyprus Limited						(100)						(50)
Frontline Corporate Services Ltd						(38)						(21)
Flex LNG Fleet Management AS						(649)						(309)
SFL UK Management Ltd						(3)						(4)
Front Ocean Management AS						(293)						(244)
Front Ocean Management Ltd						(45)						(41)
Payables due to related parties and affiliated companies						(1,191)						(673)

Related Party Transactions

A summary of income from related parties and affiliated companies is as follows:

(in thousands of $)						Six months ended
						June 30,
						2026			2025
Avance Gas AS						—			3
Total income from related parties and affiliated companies						—			3

A summary of expenses from related parties and affiliated companies is as follows:

(in thousands of $)						Six months ended
						June 30,
						2026			2025
Administrative service fees
Seatankers Management Co Ltd						(117)			(188)
Frontline (Management) Cyprus Limited						(100)			(115)
Front Ocean Management AS						(461)			(403)
Front Ocean Management Ltd						(132)			(84)
Technical management fees
Flex LNG Fleet Management AS						(844)			(1,935)
Office facilities
SFL UK Management Ltd						(3)			(5)
Frontline Corporate Services Ltd						(68)			—
Total expenses from related parties and affiliated companies						(1,724)			(2,730)

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In May 2025, at the 2025 Annual General Meeting of Shareholders ("AGM"), the Company's shareholders approved (i) the reduction of the Company's Share Premium Account (Recognized as Additional paid-in capital in the Consolidated Statements of Changes in Shareholders’ Equity) of the Company by $200.0 million and (ii) the credit of a corresponding amount resulting from the reduction to the Company’s Contributed Surplus account, with effect from May 8 2025. The purpose of this proposal is primarily to increase the ability of the Company to make distributions to its shareholders.

As at June 30, 2026, the Company had an issued share capital of $0.5 million divided into 54,520,325 ordinary shares, par value $0.01 per share (December 31, 2025: $0.5 million divided into 54,520,325 ordinary shares, par value $0.01 per share).

As at June 30, 2026, the Company had Additional Paid in Capital of $704.3 million (December 31, 2025: $704.3 million).

In the six months ended June 30, 2026, the Company paid a cash distribution out of the Company's Contributed Surplus account of $0.75 per share for the fourth quarter of 2025 and first quarter of 2026. As at June 30, 2026, the Company had Contributed Surplus of $140.1 million (December 31, 2025: $221.3 million).

As of June 30, 2026, the Company holds an aggregate of 427,949 shares at a cost of $4.2 million, with a weighted average of $9.77 per share (December 31, 2025: 427,949 shares at a cost of $4.2 million).

In June 2026, the Company issued 234,974 synthetic share options to members of top management and key personnel. The synthetic share options have a five-year term from June 24, 2026, with a three-year vesting period, whereby: 33% will vest after one year; 33% will vest after two years; and the remaining balance will vest after three years. The options have a strike price of $30.00 per share. The strike price will be adjusted for any distribution of dividends made before the relevant options expire. The synthetic options granted to the Chief Executive Officer and the Chief Financial Officer are subject to a cap on maximum annual gain cap equal to two times their annual base salary at the time of exercise of the synthetic options. The synthetic options will be settled in cash based on the difference between the market price of the Company’s shares and the strike price on the date of exercise, and accordingly, are have been classified as a liability.

The synthetic options have an estimated expected life of 2.5 years. The risk-free interest rate was estimated using the interest rate on three years U.S. treasury zero-coupon issues. The volatility was estimated using historical share price data. The dividend yield was estimated at 0% because the strike price is reduced by all dividends declared by the Company from the date of grant to the exercise date. It was assumed that all of the options granted will vest.

As at June 30, 2026, the Company had 356,843 outstanding non-vested synthetic share options (December 31, 2025: 182,805), with a weighted average adjusted exercise price of $26.84 per share (December 31, 2025: $22.25 per share) and a weighted average remaining contractual term of 4.6 years (December 31, 2025: 4.5 years).

As at June 30, 2026, the Company had 59,037 vested share options outstanding (December 31, 2025: 0), with a weighted average adjusted exercise price of $20.75 per share and a weighted average remaining contractual term of 4.0 years.

The synthetic share options had a fair value of $2.5 million as of June 30, 2026 (December 31, 2025: $0.9 million) and the Company recorded a liability of $0.3 million as of June 30, 2026 (December 31, 2025: $0.2 million) in the Consolidated Statements of Financial Position.

Adjusted exercise price refers to the fact that the exercise price of each option is adjusted for dividends paid since the grant date of the option in line with the Company's synthetic share option scheme.

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All of the Company's vessel operating revenues from time charter agreements is recognized and recorded as operating lease income. A summary for the six months ended June 30, 2026 and 2025 is shown below:

(in thousands of $)						Six months ended
						June 30,
						2026			2025
Vessel operating revenues(1) (2) (3)						187,256			174,420

(1) Vessel operating revenues include $6.5 million (2025 - $3.6 million) EUA revenues arising under the time charter agreements with charterers. The EUAs receivable from our charterers, and due to be surrendered to the EU authorities in September 2027.

(2) Vessel operating revenues include $0.8 million (2025: $1.5 million) in variable lease payments, as further described in Note 2 of our Form 20-F for the year ended December 31, 2025, filed with the SEC on February 27, 2026.

(3) Additionally, vessel operating revenues include $1.2 million (2025: nil) of other compensation received from charterers in relation to time charter agreements.

The minimum contractual undiscounted cashflows under non-cancellable operating leases to be received on time charters in respect of our Fleet as of June 30, 2026, were as follows:

(in thousands of $)
1 year						319,910
2 years						259,706
3 years						242,401
4 years						189,792
5 years						187,323
Thereafter						394,316
Total						1,593,448

As of June 30, 2026, all of the Company's assets under vessels and equipment were contracted under operating leases, which are further described in Note 8: Vessels and Equipment.

On August 18, 2026, the Company’s Board of Directors approved a cash dividend for the second quarter of 2026 of $0.75 per share. The dividend is expected to be paid on or around September 17, 2026. The record date and ex-dividend date on the New York Stock Exchange ("NYSE") is expected to be September 3, 2026.,

All declarations of dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, its business prospects and other factors that the Board of Directors may deem relevant.