Golar LNG Limited: Interim results for the period ended 31 March 2021
The recent press release from Golar outlines substantial advancements following the transactions with New Fortress Energy, closing on April 15, which have bolstered Golar's balance sheet. Shipping rates remain strong at approximately $70,000 per day, exceeding seasonal expectations. Golar anticipates an ongoing growth in LNG trade at a 4% CAGR, supporting future earnings. The company has appointed new CEO Karl Fredrik Staubo and CFO Eduardo Maranhao, facilitating leadership continuity. Financially, Golar reports a net income of $25.36 million, a significant recovery from a loss of $104.25 million in Q1 2020.
- Completion of NFE transactions simplifies Golar's business and strengthens its balance sheet.
- Shipping rates are strong at around $70,000 per day, exceeding seasonal norms.
- Golar's net income is $25.36 million, a major improvement from the prior year's loss.
- Expectations for LNG trade growth at 4% CAGR, enhancing future revenue prospects.
- Potential EEXI regulations may impact the viability of up to 254 steam turbine carriers.
- Limited new LNG carrier orders expected before 2024, which could restrict fleet expansion.
NFE transactions closed, strong shipping rates despite seasonality, and gas prices supportive of upstream activities
The first quarter and subsequent months have been positive and eventful for Golar. With the announcement of the sale of Golar LNG Partners LP (“GMLP”) and Hygo Energy Transition Ltd. (“Hygo”) to New Fortress Energy (“NFE”) on January 13, and closing of the transactions on April 15, Golar has made significant progress simplifying its business, crystalizing the value of its asset portfolio, and strengthening its balance sheet.
We are encouraged by the strength of shipping rates during what is normally a seasonally weak period, with TFDE1 spot rates currently around
Current and forward energy prices are also strengthening, increasing the attractiveness of LNG upstream investments and our FLNG technology. We continue to pursue FLNG growth projects including both tolling arrangements and opportunities to develop hydrocarbon exposure through ownership of gas molecules suitable for production by our FLNG technology.
Finally, we are pleased to have appointed Mr. Karl Fredrik Staubo as CEO and Mr. Eduardo Maranhao as CFO. With their GMLP and Hygo backgrounds both have been intimately involved with the business for some time and will be familiar faces to Golar stakeholders, allowing for a seamless transition.
Financial Summary
| (in thousands of $) | Q1 2021 | Q1 2020 | % Change | Q4 2020 | % Change | |
| Total operating revenues | 125,827 | 122,559 | 118,684 | |||
| Adjusted EBITDA | 77,612 | 76,208 | 78,031 | (1)% | ||
| Net income/(loss) attributable to Golar LNG Ltd | 25,364 | (104,247) | 8,126 | |||
| Golar's share of contractual net debt1 | 2,062,580 |
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Golar LNG Limited: Interim results for the period ended 31 March 2021 FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What are the recent financial results for Golar LNG (GLNG)?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Golar LNG reported a net income of $25.36 million for Q1 2021, a substantial recovery from a net loss of $104.25 million in Q1 2020."
}
},
{
"@type": "Question",
"name": "What are the implications of the NFE transaction for Golar LNG (GLNG)?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The transactions with New Fortress Energy simplify Golar's operations and strengthen its balance sheet, facilitating future business growth."
}
},
{
"@type": "Question",
"name": "How have shipping rates affected Golar LNG's (GLNG) business?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Shipping rates are currently around $70,000 per day, which is stronger than usual for this season, positively impacting Golar's earnings."
}
},
{
"@type": "Question",
"name": "What growth is expected in the LNG market for Golar LNG (GLNG)?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Golar anticipates a 4% CAGR growth in LNG trade, which should enhance future revenues from its carrier portfolio."
}
}
]
}
FAQ
What are the recent financial results for Golar LNG (GLNG)?
Golar LNG reported a net income of $25.36 million for Q1 2021, a substantial recovery from a net loss of $104.25 million in Q1 2020.
What are the implications of the NFE transaction for Golar LNG (GLNG)?
The transactions with New Fortress Energy simplify Golar's operations and strengthen its balance sheet, facilitating future business growth.
How have shipping rates affected Golar LNG's (GLNG) business?
Shipping rates are currently around $70,000 per day, which is stronger than usual for this season, positively impacting Golar's earnings.
What growth is expected in the LNG market for Golar LNG (GLNG)?
Golar anticipates a 4% CAGR growth in LNG trade, which should enhance future revenues from its carrier portfolio.
Golar LNG Ltd
NASDAQ:GLNGGLNG RankingsGLNG Latest NewsGLNG Stock Data | ||||