Interim results for the period ended June 30, 2024
Golar LNG signed a 20-year FLNG deployment agreement in Argentina and made significant progress on other FLNG opportunities. The company also completed a commercial reset with BP for FLNG Gimi, potentially releasing up to $0.5 billion in liquidity. Golar reported Q2 2024 net income of $26 million and Adjusted EBITDA of $59 million, with an EBITDA backlog of roughly $11 billion.
FLNG Hilli Episeyo achieved $69 million in Q2 Distributable Adjusted EBITDA, while FLNG Gimi is expected to generate about $220 million in pre-COD compensation in 2024-2025. Golar entered a 20-year FLNG project with Pan American Energy in Argentina, potentially generating $300 million in annual Adjusted EBITDA. The company declared a $0.25 per share dividend for Q2. As of June 30, 2024, Golar had $604 million in cash and a net debt position of $594 million.
Golar LNG ha firmato un accordo di deployamento FLNG di 20 anni in Argentina e ha fatto significativi progressi su altre opportunità FLNG. L'azienda ha anche completato un reset commerciale con BP per FLNG Gimi, potenzialmente liberando fino a 0,5 miliardi di dollari in liquidità. Golar ha riportato un utile netto di 26 milioni di dollari per il Q2 2024 e un EBITDA adjusted di 59 milioni di dollari, con un backlog di EBITDA di circa 11 miliardi di dollari.
FLNG Hilli Episeyo ha raggiunto 69 milioni di dollari in EBITDA adjusted distribuibile per il Q2, mentre si prevede che FLNG Gimi genererà circa 220 milioni di dollari in compensazione pre-COD nel 2024-2025. Golar ha avviato un progetto FLNG di 20 anni con Pan American Energy in Argentina, potenzialmente generando 300 milioni di dollari di EBITDA adjusted annuali. L'azienda ha dichiarato un dividendo di 0,25 dollari per azione per il Q2. Al 30 giugno 2024, Golar aveva 604 milioni di dollari in contante e una posizione di debito netto di 594 milioni di dollari.
Golar LNG firmó un acuerdo de despliegue de FLNG por 20 años en Argentina y logró avances significativos en otras oportunidades de FLNG. La empresa también completó un reajuste comercial con BP para FLNG Gimi, lo que podría liberar hasta $0.5 mil millones en liquidez. Golar reportó un ingreso neto de $26 millones en el segundo trimestre de 2024 y un EBITDA ajustado de $59 millones, con un backlog de EBITDA de aproximadamente $11 mil millones.
FLNG Hilli Episeyo alcanzó $69 millones en EBITDA ajustado distribuible del Q2, mientras que se espera que FLNG Gimi genere alrededor de $220 millones en compensación pre-COD en 2024-2025. Golar ingresó a un proyecto FLNG de 20 años con Pan American Energy en Argentina, generando potencialmente $300 millones en EBITDA ajustado anuales. La empresa declaró un dividendo de $0.25 por acción para el Q2. Al 30 de junio de 2024, Golar tenía $604 millones en efectivo y una posición de deuda neta de $594 millones.
Golar LNG는 아르헨티나에서 20년 FLNG 배치 계약을 체결하였으며 다른 FLNG 기회에 대한 상당한 진전을 보였습니다. 이 회사는 또한 FLNG Gimi에 대해 BP와 상업적 재조정을 완료하여 최대 5억 달러의 유동성을 확보할 수 있게 되었습니다. Golar는 2024년 2분기에 2,600만 달러의 순이익과 5,900만 달러의 조정 후 EBITDA를 보고하였으며, 약 110억 달러의 EBITDA 백로그를 기록하였습니다.
FLNG Hilli Episeyo는 2분기 조정 후 분배 가능한 EBITDA에서 6,900만 달러를 달성하였으며, FLNG Gimi는 2024-2025년 기간 동안 약 2억 2천만 달러의 COD 이전 보상을 생성할 것으로 예상됩니다. Golar는 아르헨티나에서 Pan American Energy와 함께 20년 FLNG 프로젝트에 착수하여 연간 3억 달러의 조정 후 EBITDA를 잠재적으로 생성합니다. 이 회사는 2분기에 주당 0.25달러의 배당금을 선언하였습니다. 2024년 6월 30일 기준으로 Golar는 6억 4백만 달러의 현금과 5억 9천 4백만 달러의 순부채를 보유하고 있었습니다.
Golar LNG a signé un accord de déploiement FLNG de 20 ans en Argentine et a réalisé des progrès significatifs sur d'autres opportunités FLNG. L'entreprise a également complété un ajustement commercial avec BP pour FLNG Gimi, libérant potentiellement jusqu'à 0,5 milliard de dollars de liquidités. Golar a signalé un revenu net de 26 millions de dollars pour le T2 2024 et un EBITDA ajusté de 59 millions de dollars, avec un backlog d'EBITDA d'environ 11 milliards de dollars.
FLNG Hilli Episeyo a atteint 69 millions de dollars en EBITDA ajusté distribuable pour le T2, tandis que FLNG Gimi devrait générer environ 220 millions de dollars en compensation pré-COD en 2024-2025. Golar a engagé un projet FLNG de 20 ans avec Pan American Energy en Argentine, générant potentiellement 300 millions de dollars d'EBITDA ajusté annuels. L'entreprise a déclaré un dividende de 0,25 dollar par action pour le T2. Au 30 juin 2024, Golar avait 604 millions de dollars en caisse et une position d'endettement net de 594 millions de dollars.
Golar LNG hat einen 20-jährigen FLNG-Deployment-Vertrag in Argentinien unterzeichnet und erhebliche Fortschritte bei anderen FLNG-Möglichkeiten erzielt. Das Unternehmen hat auch einen kommerziellen Neustart mit BP für FLNG Gimi abgeschlossen, der potenziell bis zu 500 Millionen Dollar an Liquidität freisetzen könnte. Golar berichtete im Q2 2024 einen Nettogewinn von 26 Millionen Dollar und ein bereinigtes EBITDA von 59 Millionen Dollar, mit einem EBITDA-Rückstand von etwa 11 Milliarden Dollar.
FLNG Hilli Episeyo erzielte im Q2 ein verteilbares bereinigtes EBITDA von 69 Millionen Dollar, während FLNG Gimi voraussichtlich etwa 220 Millionen Dollar an Vor-COD-Entschädigung in den Jahren 2024-2025 generieren wird. Golar trat ein 20-jähriges FLNG-Projekt mit Pan American Energy in Argentinien ein, das potenziell 300 Millionen Dollar an jährlichem bereinigtem EBITDA generieren könnte. Das Unternehmen erklärte eine Dividende von 0,25 Dollar pro Aktie für das Q2. Zum 30. Juni 2024 hatte Golar 604 Millionen Dollar in bar und eine Nettoverschuldung von 594 Millionen Dollar.
- Signed 20-year FLNG deployment agreement in Argentina.
- Completed commercial reset with BP for FLNG Gimi, potentially releasing up to $0.5 billion in liquidity.
- Q2 2024 net income of $26 million.
- Adjusted EBITDA of $59 million.
- EBITDA backlog of roughly $11 billion.
- Declared $0.25 per share dividend for Q2.
- FLNG Gimi expected to generate about $220 million in pre-COD compensation in 2024-2025.
- Total operating revenues decreased by 17% YoY to $64.7 million in Q2 2024.
- Adjusted EBITDA decreased by 29% YoY to $59 million in Q2 2024.
- Net debt position of $594 million as of June 30, 2024.
Insights
Golar LNG's Q2 2024 results show a significant improvement in profitability, with net income attributable to Golar increasing to
The company's strategic focus on FLNG is paying off, with new agreements signed for FLNG deployments and potential refinancing opportunities. The 20-year FLNG deployment agreement in Argentina and the commercial reset arrangements with bp for FLNG Gimi are particularly noteworthy, potentially unlocking significant value and improving liquidity.
However, investors should note the 17% decrease in total operating revenues year-over-year. This decline, coupled with the
The FLNG market is showing robust growth potential, evidenced by Golar's recent agreements and strong project pipeline. The 20-year deployment in Argentina's Vaca Muerta shale basin is a game-changer, tapping into the world's second-largest shale gas formation. This project alone could generate annual Adjusted EBITDA of approximately
The company's progress on the 3.5mtpa MKII FLNG is also promising, with
However, the ongoing delays in the Greater Tortue Area project with bp highlight the complexities and risks associated with large-scale LNG projects. The new pre-COD compensation arrangements provide some financial cushion but also underscore the importance of timely project execution in this sector.
Golar LNG's strategic pivot towards FLNG is aligning well with market trends. The global LNG market is experiencing strong growth, driven by increasing energy demand and the transition from coal to cleaner energy sources. Golar's $11 billion Adjusted EBITDA backlog reflects the long-term potential of this market.
The company's focus on innovation, evidenced by the development of the MKII FLNG, positions it well to capture a significant share of future FLNG projects. The strong interest from potential clients in West Africa, South America, the Middle East and Southeast Asia indicates a robust pipeline of opportunities.
Investors should, however, be mindful of the cyclical nature of the LNG market and potential geopolitical risks that could impact project development in certain regions. The company's ability to secure and execute contracts efficiently will be important for maintaining its competitive edge in this rapidly evolving sector.
Highlights and subsequent events
- Golar LNG Limited (“Golar” or “the Company”) signed an agreement for a 20-year FLNG deployment in Argentina. Strong progress on further FLNG opportunities.
- Golar and bp entered into commercial reset arrangements for FLNG Gimi for the pre-Commercial Operations Date (“Pre-COD”) period, enabling refinancing at improved terms which is expected to release liquidity of up to
$0.5 billion . - Finalization of yard EPC and payment terms agreed in preparation for contracting of 3.5mtpa MKII FLNG.
- Golar reports Q2 2024 (“Q2” or “the quarter”) Net income attributable to Golar of
$26 million , and Adjusted EBITDA1 of$59 million . - Adjusted EBITDA backlog1 of approximately
$11 billion , including existing and redeployment charters for FLNGs Hilli and Gimi, before commodity exposure. - FLNG Hilli Episeyo maintains market leading operational track record. Cumulative production to date surpasses 8 million tons.
- Declared dividend of
$0.25 per share for the quarter.
FLNG Hilli Episeyo: Maintained her market leading operational track record, generating
FLNG Gimi: In August 2024, Golar and the Greater Tortue Area (“GTA”) operator, a subsidiary of BP p.l.c. (“bp”), executed agreements simplifying and settling previous disputes related to payment mechanisms for pre-COD contractual cashflows (“the commercial reset”). Golar is now contractually entitled to receive daily payments from January 10, 2024 until the Commercial Operations Date (“COD”). The daily payments have step-up mechanisms based on project milestones up to COD and are secured by long-stop dates. Golar will also be entitled to certain lump-sum bonus payments subject to the achievement of certain project milestones. Under the new arrangements and based on the operator’s latest timeline, Golar expects to receive approximately
The FLNG Gimi is moored at the GTA Hub offshore Mauritania and Senegal, ready to commence operations. Following the commercial reset of pre-COD contractual arrangements, Golar, bp and Kosmos Energy Ltd. (“Kosmos”) have agreed to use an LNG commissioning cargo to accelerate the commissioning schedule. A bp and Kosmos procured LNG cargo is expected to arrive at the GTA hub within August. The commissioning cargo is intended to parallel process the commissioning of the GTA FPSO and FLNG Gimi, and targets to shorten the time to COD.
COD will occur upon completion of all project infrastructure commissioning and will trigger the start of the 20-year Lease and Operate Agreement that unlocks the equivalent of around
The commercial reset also enables refinancing of the existing FLNG Gimi debt facility. A potential refinancing facility is now in the credit approval process. This potential debt facility offers a lower margin and improved amortization profile versus the current vessel debt facility and will release significant liquidity to Golar.
FLNG business development: In July 2024, Golar and Pan American Energy (“PAE”) entered into definitive agreements for a 20-year FLNG deployment project in Argentina. Expected to commence LNG exports within 2027, the project will tap into the Vaca Muerta shale deposit in the Neuquén Basin, the world’s second largest shale gas formation. The fully executed agreements include a Gas Sales Agreement from PAE for the supply of gas and an FLNG charter agreement with Golar. A final investment decision is expected before year-end subject to receipt of regulatory and environmental approvals and satisfaction of customary closing conditions.
The PAE project expects to utilize Golar’s FLNG Hilli Episeyo. With a nameplate capacity of 2.45 million tons per annum (“mtpa”) and assuming
This initiative is envisaged to be the first phase of a multi-vessel project. In addition to FLNG Hilli Episeyo, this opportunity represents one of several potential deployment prospects for a 3.5mtpa MKII FLNG.
Golar’s offering as the only proven operator of FLNG as a service and planned available liquefaction capacity from 2027/2028 continues to be met by strong prospective client interest for additional FLNG projects. FLNG project opportunities in West Africa, South America, the Middle East and Southeast Asia are at various stages of development. The commercial team has been further expanded with two senior resources.
Further development of our planned MKII 3.5mtpa FLNG is progressing. Long lead items already ordered are now
Other/Shipping: Operating revenues and costs under corporate and other items is comprised of two FSRU operate and maintain agreements in respect of the LNG Croatia and Italis LNG (formerly known as Golar Tundra). The non-core shipping segment is comprised of the LNGC Golar Arctic and Fuji LNG which is now trading on a multi-month charter. Subject to contracting, Fuji LNG is expected to enter the FLNG conversion yard at the end of her current charter in Q1 2025. Golar Arctic remains a candidate for sale or long-term charter.
Shares and dividends: As of June 30, 2024, 104.0 million shares are issued and outstanding. Of the
Golar’s Board of Directors approved a total Q2 2024 dividend of
The Annual General Meeting was held on August 13, 2024.
Financial Summary
| (in thousands of $) | Q2 2024 | Q2 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
| Net income/(loss) | 35,230 | 6,910 | 101,725 | (85,659) | (219)% | |
| Net income/(loss) attributable to Golar LNG Ltd | 25,907 | (4,545) | (670)% | 81,127 | (106,408) | (176)% |
| Total operating revenues | 64,689 | 77,530 | (17)% | 129,648 | 151,498 | (14)% |
| Adjusted EBITDA 1 | 58,716 | 82,815 | (29)% | 122,303 | 166,963 | (27)% |
| Golar’s share of Contractual Debt 1 | 1,197,626 | 1,176,630 | 1,197,626 | 1,176,630 |
Financial Review
Business Performance:
| 2024 | 2023 | ||
| (in thousands of $) | Apr-Jun | Jan-Mar | Apr-Jun |
| Net income | 35,230 | 66,495 | 6,910 |
| Income taxes | 140 | 138 | 1,445 |
| Net income before income taxes | 35,370 | 66,633 | 8,355 |
| Depreciation and amortization | 13,780 | 12,476 | 12,450 |
| Impairment of long-lived assets | — | — | 5,021 |
| Unrealized loss/(gain) on oil and gas derivative instruments | 16,050 | (2,148) | 76,646 |
| Other non-operating expense, net | — | — | 1,305 |
| Interest income | (8,556) | (10,026) | (11,836) |
| Interest expense | — | — | 610 |
| Gains on derivative instruments, net | (107) | (6,202) | (11,673) |
| Other financial items, net | 54 | 2,640 | 464 |
| Net losses from equity method investments | 2,125 | 214 | 1,577 |
| Net income from discontinued operations | — | — | (104) |
| Adjusted EBITDA 1 | 58,716 | 63,587 | 82,815 |
| 2024 | ||||||||
| Apr-Jun | Jan-Mar | |||||||
| (in thousands of $) | FLNG | Corporate and other | Shipping | Total | FLNG | Corporate and other | Shipping | Total |
| Total operating revenues | 56,120 | 5,444 | 3,125 | 64,689 | 56,368 | 5,386 | 3,205 | 64,959 |
| Vessel operating expenses | (22,765) | (5,056) | (3,453) | (31,274) | (18,784) | (5,137) | (1,941) | (25,862) |
| Voyage, charterhire & commission expenses | — | — | (1,711) | (1,711) | — | (33) | (1,737) | (1,770) |
| Administrative income/ (expenses) | 34 | (5,882) | (4) | (5,852) | (471) | (6,590) | (14) | (7,075) |
| Project development (expenses)/income | (1,300) | (2,226) | — | (3,526) | (1,085) | 274 | (1) | (812) |
| Realized gain on oil and gas derivative instruments (2) | 36,390 | — | — | 36,390 | 34,147 | — | — | 34,147 |
| Adjusted EBITDA 1 | 68,479 | (7,720) | (2,043) | 58,716 | 70,175 | (6,100) | (488) | 63,587 |
(2) The line item “Realized and unrealized (loss)/gain on oil and gas derivative instruments” in the Unaudited Consolidated Statements of Operations relates to income from the Hilli Liquefaction Tolling Agreement (“LTA”) and the natural gas derivative which is split into: “Realized gain on oil and gas derivative instruments” and “Unrealized (loss)/gain on oil and gas derivative instruments”.
| 2023 | ||||
| Apr-Jun | ||||
| (in thousands of $) | FLNG | Corporate and other | Shipping | Total |
| Total operating revenues | 60,373 | 11,697 | 5,460 | 77,530 |
| Vessel operating expenses | (15,869) | (7,006) | (1,834) | (24,709) |
| Voyage, charterhire & commission expenses | (150) | — | (74) | (224) |
| Administrative (expenses)/income | (42) | (7,962) | 10 | (7,994) |
| Project development income | (1,965) | (16,590) | — | (18,555) |
| Realized gain on oil and gas derivative instruments | 46,451 | — | — | 46,451 |
| Other operating loss | 2,499 | 7,817 | — | 10,316 |
| Adjusted EBITDA 1 | 91,297 | (12,044) | 3,562 | 82,815 |
Golar reports today Q2 net income of
- TTF and Brent oil unrealized mark-to-market (“MTM”) losses of
$16 million ; and - A
$2 million MTM loss on interest rate swaps.
The Brent oil linked component of FLNG Hilli Episeyo’s fees generates additional annual cash of approximately
$20 million realized gain on the Brent oil linked derivative instrument of which Golar has an effective89.1% interest;$4 million realized gain in respect of fees for the TTF linked production of which Golar has an effective89.4% interest; and$12 million realized gain on the hedged component of the quarter’s TTF linked fees of which100% is attributable to Golar.
Further, we recognized a total of
$16 million loss on the Brent oil linked derivative asset;$12 million gain on the TTF linked natural gas derivative asset; and$12 million loss on the economically hedged portion of the Q2 TTF linked FLNG production.
Balance Sheet and Liquidity:
As of June 30, 2024, Total Golar Cash1 was
Golar’s share of Contractual Debt1 as of June 30, 2024 is
A total of
Expenditure on long-lead items, engineering services and conversion candidate Fuji LNG for the MKII FLNG amounted to
Non-GAAP measures
In addition to disclosing financial results in accordance with U.S. generally accepted accounting principles (US GAAP), this earnings release and the associated investor presentation contains references to the non-GAAP financial measures which are included in the table below. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance.
This report also contains certain forward-looking non-GAAP measures for which we are unable to provide a reconciliation to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside of our control, such as oil and gas prices and exchange rates, as such items may be significant. Non-GAAP measures in respect of future events which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied to Golar’s unaudited consolidated financial statements.
These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures and financial results calculated in accordance with GAAP. Non-GAAP measures are not uniformly defined by all companies and may not be comparable with similarly titled measures and disclosures used by other companies. The reconciliations as at June 30, 2024 and for the six months period ended June 30, 2024, from these results should be carefully evaluated.
| Non-GAAP measure | Closest equivalent US GAAP measure | Adjustments to reconcile to primary financial statements prepared under US GAAP | Rationale for adjustments |
| Performance measures | |||
| Adjusted EBITDA | Net income/(loss) | +/- Income taxes + Depreciation and amortization +/- Impairment of long-lived assets +/- Unrealized (gain)/loss on oil and gas derivative instruments +/- Other non-operating (income)/losses +/- Net financial (income)/expense +/- Net (income)/losses from equity method investments +/- Net loss/(income) from discontinued operations | Increases the comparability of total business performance from period to period and against the performance of other companies by excluding the results of our equity investments, removing the impact of unrealized movements on embedded derivatives, depreciation, financing costs, tax items and discontinued operations. |
| Distributable Adjusted EBITDA | Net income/(loss) | +/- Income taxes + Depreciation and amortization +/- Impairment of long-lived assets +/- Unrealized (gain)/loss on oil and gas derivative instruments +/- Other non-operating (income)/losses +/- Net financial (income)/expense +/- Net (income)/losses from equity method investments +/- Net loss/(income) from discontinued operations - Amortization of deferred commissioning period revenue - Amortization of Day 1 gains - Accrued overproduction revenue + Overproduction revenue received - Accrued underutilization adjustment | Increases the comparability of our operational FLNG Hilli from period to period and against the performance of other companies by removing the non-distributable income of FLNG Hilli, project development costs, the operating costs of the Gandria (prior to her disposal) and FLNG Gimi. |
| Liquidity measures | |||
| Contractual debt 1 | Total debt (current and non-current), net of deferred finance charges | +/- Debt within liabilities held for sale net of deferred finance charges +/-Variable Interest Entity (“VIE”) consolidation adjustments +/-Deferred finance charges +/-Deferred finance charges within liabilities held for sale | During the year, we consolidate a lessor VIE for our Hilli sale and leaseback facility. This means that on consolidation, our contractual debt is eliminated and replaced with the lessor VIE debt. Contractual debt represents our debt obligations under our various financing arrangements before consolidating the lessor VIE. The measure enables investors and users of our financial statements to assess our liquidity, identify the split of our debt (current and non-current) based on our underlying contractual obligations and aid comparability with our competitors. |
| Adjusted net debt | Adjusted net debt based on GAAP measures: Total debt (current and non-current), net of deferred finance charges - Cash and cash equivalents - Restricted cash and short-term deposits (current and non-current) - Other current assets (Receivable from TTF linked commodity swap derivatives) | Total debt (current and non-current), net of: +Deferred finance charges +Cash and cash equivalents +Restricted cash and short-term deposits (current and non-current) +/-VIE consolidation adjustments +Receivable from TTF linked commodity swap derivatives | The measure enables investors and users of our financial statements to assess our liquidity based on our underlying contractual obligations and aids comparability with our competitors. |
| Total Golar Cash | Golar cash based on GAAP measures: + Cash and cash equivalents + Restricted cash and short-term deposits (current and non-current) | -VIE restricted cash and short-term deposits | We consolidate a lessor VIE for our sale and leaseback facility. This means that on consolidation, we include restricted cash held by the lessor VIE. Total Golar Cash represents our cash and cash equivalents and restricted cash and short-term deposits (current and non-current) before consolidating the lessor VIE. Management believe that this measure enables investors and users of our financial statements to assess our liquidity and aids comparability with our competitors. |
(1) Please refer to reconciliation below for Golar’s share of contractual debt
Adjusted EBITDA backlog: This is a non-U.S. GAAP financial measure and represents the
Non-cash items: Non-cash items comprise of impairment of long-lived assets, release of prior year contract underutilization liability, MTM movements on our TTF and Brent oil linked derivatives, listed equity securities and interest rate swaps (“IRS”) which relate to the unrealized component of the gains/(losses) on oil and gas derivative instruments, unrealized MTM (losses)/gains on investment in listed equity securities and gains on derivative instruments, net, in our unaudited consolidated statement of operations.
Abbreviations used:
FLNG: Floating Liquefaction Natural Gas vessel
FSRU: Floating Storage Regasification Unit
MKII FLNG: Mark II FLNG
FPSO: Floating Production, Storage and Offloading unit
MMBtu: Million British Thermal Units
mtpa: Million Tons Per Annum
Reconciliations - Liquidity Measures
Total Golar Cash
| (in thousands of $) | June 30, 2024 | December 31, 2023 | June 30, 2023 |
| Cash and cash equivalents | 527,591 | 679,225 | 770,567 |
| Restricted cash and short-term deposits (current and non-current) | 93,930 | 92,245 | 132,219 |
| Less: VIE restricted cash and short-term deposits | (17,590) | (18,085) | (18,804) |
| Total Golar Cash | 603,931 | 753,385 | 883,982 |
Contractual Debt and Adjusted Net Debt
| (in thousands of $) | June 30, 2024 | December 31, 2023 | June 30, 2023 |
| Total debt (current and non-current) net of deferred finance charges | 1,173,592 | 1,216,730 | 1,189,278 |
| VIE consolidation adjustments | 223,782 | 202,219 | 177,440 |
| Deferred finance charges | 20,711 | 23,851 | 29,672 |
| Total Contractual Debt | 1,418,085 | 1,442,800 | 1,396,390 |
| Less: Keppel’s and B&V’s share of the FLNG Hilli contractual debt | (31,459) | (32,610) | (33,760) |
| Less: Keppel’s share of the Gimi debt | (189,000) | (189,000) | (186,000) |
| Golar’s share of Contractual Debt | 1,197,626 | 1,221,190 | 1,176,630 |
| Less: Total Golar Cash | (603,931) | (753,385) | (883,982) |
| Less: Receivables from the remaining unwinding of TTF hedges | (24,719) | (57,020) | (102,509) |
| Golar’s Adjusted Net Debt | 568,976 | 410,785 | 190,139 |
Please see Appendix A for a capital repayment profile for Golar’s Contractual Debt.
Forward Looking Statements
This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “if,” “subject to,” “believe,” “assuming,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “could,” “would,” “predict,” “propose,” “continue,” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Golar undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Other important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to:
- our ability and that of our counterparty to meet our respective obligations under the 20-year lease and operate agreement (the “LOA”) with BP Mauritania Investments Limited, a subsidiary of BP p.l.c (“bp”), entered into in connection with the Greater Tortue Ahmeyim Project (the “GTA Project”), including the commissioning and start-up of various project infrastructure such as the FPSO. Delays could result in incremental costs to both parties to the LOA, delay FLNG commissioning works and the start of operations for our FLNG Gimi (“FLNG Gimi”);
- our ability to meet our obligations under our commercial agreements, including the liquefaction tolling agreement (the “LTA”) entered into in connection with the FLNG Hilli Episeyo (“FLNG Hilli”);
- our ability to meet our obligations with Pan American Energy (“PAE”) in connection with the recently signed agreement on FLNG deployment in Argentina;
- that an attractive deployment opportunity, or any of the opportunities under discussion for the Mark II FLNG, one of our FLNG designs, will be converted into a suitable contract. Failure to do this in a timely manner or at all could expose us to losses on our investments in a donor vessel for a prospective Mark II project, the Fuji LNG, long-lead items and engineering services to date. Assuming a satisfactory contract is secured, changes in project capital expenditures, foreign exchange and commodity price volatility could have a material impact on the expected magnitude and timing of our return on investment;
- changes in our ability to retrofit vessels as FLNGs and our ability to secure financing for such conversions on acceptable terms or at all;
- failure of our contract counterparties to comply with their agreements with us or other key project stakeholders;
- increased tax liabilities in the jurisdictions where we are currently operating or have previously operated;
- global economic trends, competition and geopolitical risks, including impacts from the 2024 U.S. presidential election, the length and severity of future pandemic outbreaks, inflation and the ongoing conflicts in Ukraine and the Middle East, potential for trade wars or conflict between the US and China, attacks on vessels in the Red Sea and the related sanctions and other measures, including the related impacts on the supply chain for our conversions or commissioning works, the operations of our charterers and customers, our global operations and our business in general;
- failure of shipyards to comply with schedules, performance specifications or agreed prices;
- continuing volatility in the global financial markets, including but not limited to commodity prices, foreign exchange rates and interest rates;
- changes in general domestic and international political conditions, particularly where we operate, or where we seek to operate;
- changes in the availability of vessels to purchase and in the time it takes to build new vessels or convert existing vessels and our ability to obtain financing on acceptable terms or at all;
- continuing uncertainty resulting from potential future claims from our counterparties of purported force majeure (“FM”) under contractual arrangements, including but not limited to our future projects and other contracts to which we are a party;
- our ability to close potential future transactions in relation to equity interests in our vessels or to monetize our remaining equity method investments on a timely basis or at all;
- increases in operating costs as a result of inflation, including but not limited to salaries and wages, insurance, crew provisions, repairs and maintenance, spares and redeployment related modification costs;
- changes in our relationship with our equity method investments and the sustainability of any distributions they pay us;
- claims made or losses incurred in connection with our continuing obligations with regard to New Fortress Energy Inc. (“NFE”), Energos Infrastructure Holdings Finance LLC (“Energos”), Cool Company Ltd (“CoolCo”) and Snam S.p.A. (“Snam”);
- the ability of Energos, CoolCo and Snam to meet their respective obligations to us, including indemnification obligations;
- changes to rules and regulations applicable to liquefied natural gas (“LNG”) carriers, FLNGs or other parts of the natural gas and LNG supply;
- changes to rules on climate-related disclosures as required by U.S. Securities and Exchange Commission (the “Commission”), including but not limited to disclosure of certain climate-related risks and financial impacts, as well as greenhouse gas emissions;
- changes in the supply of or demand for LNG or LNG carried by sea for LNG carriers or FLNGs and the supply of natural gas or demand for LNG in Brazil;
- a material decline or prolonged weakness in charter rates for LNG carriers or tolling rates for FLNGs;
- actions taken by regulatory authorities that may prohibit the access of LNG carriers and FLNGs to various ports; and
- other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Commission, including our annual report on Form 20-F for the year ended December 31, 2023, filed with the Commission on March 28, 2024 (the “2023 Annual Report”).
As a result, you are cautioned not to rely on any forward-looking statements. Actual results may differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.
Responsibility Statement
We confirm that, to the best of our knowledge, the interim unaudited consolidated financial statements for the three and six months ended June 30, 2024, which have been prepared in accordance with accounting principles generally accepted in the United States give a true and fair view of the Company’s unaudited consolidated assets, liabilities, financial position and results of operations. To the best of our knowledge, the interim report for the three and six months ended June 30, 2024, includes a fair review of important events that have occurred during the period and their impact on the interim unaudited consolidated financial statements, the principal risks and uncertainties and major related party transactions.
August 15, 2024
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
Tor Olav Trøim (Chairman of the Board)
Dan Rabun (Director)
Thorleif Egeli (Director)
Carl Steen (Director)
Niels Stolt-Nielsen (Director)
Lori Wheeler Naess (Director)
Georgina Sousa (Director)
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachment
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