Interim results for the period ended September 30, 2024
Golar LNG reports Q3 2024 financial results with a net loss of $36 million, though achieving $54 million net profit excluding $90 million in non-cash items. Key developments include reaching Final Investment Decision for a new 3.5mtpa FLNG vessel for 2027 delivery, receiving a reservation notice from Pan American Energy for FLNG Hilli's 20-year deployment in Argentina, and maintaining strong operational performance. The company declared a $0.25 per share dividend and reports an Adjusted EBITDA backlog of approximately $11 billion. FLNG Gimi's commissioning is underway with Commercial Operations Date expected in 1H 2025.
Golar LNG ha riportato i risultati finanziari del terzo trimestre 2024, registrando una perdita netta di 36 milioni di dollari, ma ottenendo un profitto netto di 54 milioni di dollari escludendo 90 milioni di dollari in voci non monetarie. Sviluppi chiave includono il raggiungimento della Decisione Finale di Investimento per una nuova nave FLNG da 3,5 mtpa con consegna prevista nel 2027, la ricezione di una notifica di prenotazione da Pan American Energy per il dispiegamento di 20 anni del FLNG Hilli in Argentina e il mantenimento di una forte performance operativa. L'azienda ha dichiarato un dividendo di 0,25 dollari per azione e riporta un backlog di EBITDA rettificato di circa 11 miliardi di dollari. La messa in servizio del FLNG Gimi è in corso, con la data di inizio delle operazioni commerciali prevista per la prima metà del 2025.
Golar LNG reporta resultados financieros del tercer trimestre de 2024 con una pérdida neta de 36 millones de dólares, aunque obtuvo un beneficio neto de 54 millones de dólares excluyendo 90 millones de dólares en partidas no monetarias. Los desarrollos clave incluyen alcanzar la Decisión Final de Inversión para un nuevo buque FLNG de 3,5 mtpa con entrega prevista para 2027, recibir un aviso de reserva de Pan American Energy para el despliegue de 20 años del FLNG Hilli en Argentina y mantener un fuerte rendimiento operativo. La compañía anunció un dividendo de 0,25 dólares por acción y reporta un backlog de EBITDA ajustado de aproximadamente 11 mil millones de dólares. La puesta en marcha del FLNG Gimi está en curso, con una fecha de inicio de operaciones comerciales esperada en la primera mitad de 2025.
골라 LNG는 2024년 3분기 재무 결과를 발표하며 순손실 3600만 달러를 기록했지만, 비현금 항목 9000만 달러를 제외한 순이익은 5400만 달러에 달했습니다. 주요 개발 사항으로는 2027년 인도 예정인 새로운 3.5mtpa FLNG 선박에 대한 최종 투자 결정(FID)의 도달, 아르헨티나에서 FLNG 힐리의 20년 배치에 대한 파나미리카 에너지의 예약 통지 수령, 그리고 강력한 운영 성과 유지가 포함됩니다. 이 회사는 주당 0.25달러의 배당금을 선언했으며, 약 110억 달러의 조정 EBITDA 미결 주문이 있다고 보고했습니다. FLNG 기미의 커미셔닝이 진행 중이며, 상업 운영 개시일은 2025년 상반기로 예상됩니다.
Golar LNG rapporte des résultats financiers pour le troisième trimestre 2024 avec une perte nette de 36 millions de dollars, bien qu'il ait réalisé un bénéfice net de 54 millions de dollars en excluant 90 millions de dollars d'éléments non monétaires. Les développements clés incluent l'atteinte de la décision finale d'investissement pour un nouveau navire FLNG de 3,5 mtpa avec une livraison prévue en 2027, la réception d'un avis de réservation de Pan American Energy pour le déploiement de 20 ans du FLNG Hilli en Argentine, et le maintien d'une forte performance opérationnelle. L'entreprise a déclaré un dividende de 0,25 dollar par action et rapporte un carnet de commandes d'EBITDA ajusté d'environ 11 milliards de dollars. La mise en service du FLNG Gimi est en cours, avec une date de début des opérations commerciales prévue au premier semestre 2025.
Golar LNG berichtet über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Nettoverlust von 36 Millionen Dollar, hat jedoch einen Nettogewinn von 54 Millionen Dollar erzielt, wenn man 90 Millionen Dollar an nicht zahlungswirksamen Posten ausschließt. Zu den wichtigsten Entwicklungen gehört die Erreichung der Endgültigen Investitionsentscheidung für ein neues FLNG-Schiff mit einer Kapazität von 3,5 mtpa zur Lieferung im Jahr 2027, der Erhalt einer Reservierungsbenachrichtigung von Pan American Energy für den 20-jährigen Einsatz des FLNG Hilli in Argentinien und die Aufrechterhaltung einer starken operativen Leistung. Das Unternehmen erklärte eine Dividende von 0,25 Dollar pro Aktie und berichtet von einem bereinigten EBITDA-Auftragsbestand von rund 11 Milliarden Dollar. Die Inbetriebnahme des FLNG Gimi ist im Gange, mit einem erwarteten Datum für den Beginn der kommerziellen Betriebstätigkeit in der ersten Hälfte von 2025.
- Secured $300 million five-year senior unsecured bond financing
- Expected to receive $220 million in pre-COD compensation for FLNG Gimi across 2024-2025
- FLNG Hilli generated $73 million Q3 Distributable Adjusted EBITDA
- Maintains $11 billion Adjusted EBITDA backlog
- Reported Q3 2024 net loss of $36 million
- Total operating revenues decreased 4% YoY to $64.8 million
- Adjusted EBITDA declined 21% YoY to $59 million
- $90 million in non-cash losses from market adjustments
Insights
The Q3 results reveal mixed financial performance with notable strategic developments. The
Key positives include progress on FLNG Gimi with expected
The PAE agreement for FLNG Hilli deployment in Argentina represents significant future earnings potential, with expected annual Adjusted EBITDA of
The strategic positioning in the FLNG market shows remarkable foresight. The MK II FLNG project, budgeted at
The Argentina project targeting Vaca Muerta shale gas demonstrates strong market expansion, with potential for multiple FLNG deployments. The 10% stake in Southern Energy S.A. offers additional upside through gas marketing and operations involvement.
The operational track record of FLNG Hilli, with 122 LNG cargo exports, validates Golar's execution capability and supports their position as the leading FLNG service provider.
Highlights and subsequent events
- Final Investment Decision (“FID”) for MK II 3.5mtpa FLNG for delivery within 2027.
- Received reservation notice for FLNG Hilli under definitive agreements with Pan American Energy (“PAE”) for 20-year FLNG deployment in Argentina.
- Strong progress on FLNG commercial opportunities.
- Agreed commercial reset of pre-COD contract mechanisms with bp for FLNG Gimi (“the commercial reset”).
- FLNG Hilli maintains market-leading operational track record.
- Golar reports a Q3 2024 (“Q3” or “the quarter”) Net loss of
$36 million , a Net profit of$54 million excluding$90 million of market adjusted non-cash items, and Adjusted EBITDA1 of$59 million . - Adjusted EBITDA backlog1 of approximately
$11 billion , including existing and redeployment charters for our existing FLNGs Hilli and Gimi, before commodity exposure. - Issued
$300 million five-year senior unsecured bond. - Declared dividend of
$0.25 per share for the quarter.
FLNG Hilli: Maintained market leading operational track record, generating
FLNG Gimi: Following the commercial reset reached in August 2024, Golar is now contractually entitled to receive daily payments for the period from January 10, 2024 until the Commercial Operations Date (“COD”). Under the new arrangements and based on the operator's latest timeline, Golar expects to receive approximately
Golar, bp and Kosmos Energy Ltd. agreed to use an LNG cargo to accelerate the commissioning schedule. In October 2024 the LNG carrier British Sponsor started to introduce gas to the FLNG Gimi. FLNG commissioning is now underway and will continue to utilize gas from the accelerated commissioning cargo until the bp FPSO is ready to send gas to the FLNG Gimi. Commissioning activity will then further ramp up.
Based on the latest project schedule, COD is expected within 1H 2025. COD will trigger the start of the 20-year Lease and Operate Agreement that unlocks the equivalent of around
The contemplated refinancing of the FLNG Gimi is progressing, targeting a new increased debt facility with a lower margin and improved amortization profile versus the current vessel debt facility and potentially releasing significant liquidity to Golar. Credit approvals are being received and detailed documentation has started. Execution of the facility will be subject to remaining credit approvals and finalizing documentation.
FLNG business development: In July 2024, Golar and PAE entered into definitive agreements for a 20-year FLNG deployment project in Argentina. The project will tap into the Vaca Muerta shale deposit in the Neuquén Basin, the world's second largest shale gas formation and is expected to commence LNG exports within 2027. The fully executed agreements include a Gas Sales Agreement from PAE for the supply of gas and an FLNG charter agreement with Golar. The definitive contracts are subject to satisfying defined conditions precedent, including an export license, environmental assessment and FID by PAE. Work on the conditions precedent is progressing with their satisfaction and FID expected within Q1 2025. PAE issued a reservation notice reserving the FLNG Hilli to the project in October 2024. This includes a reservation fee should the project not materialize, and ends Golar’s option to nominate an alternative FLNG to service the contract.
Hilli is expected to generate an annual Adjusted EBITDA1 of approximately
The FLNG Hilli project will initially utilize spare capacity in Argentina's existing pipeline network. Work to construct a dedicated pipeline connecting the FLNG terminal location directly to the Vaca Muerta shale formation is also being pursued. This could support a multi-FLNG vessel project in Argentina, including opportunities for our MKII FLNG(s).
We continue to make significant positive progress on our other FLNG commercial opportunities on the back of Golar’s position as the only proven provider of FLNG as a service, our market leading operational performance, our competitive construction cost advantage and the earliest available FLNG capacity globally. We are progressing commercial and technical work on FLNG projects in the Americas, West Africa, the Middle East and Southeast Asia. These commercial opportunities are at various stages of development. We target to secure a charter for our MKII FLNG within 2025. Once a charter is secured for the MKII FLNG under construction Golar will seek asset level debt financing for the unit, targeting ~4-6x contracted EBITDA.
In September 2024 Golar signed an Engineering, Procurement and Construction (“EPC”) agreement with CIMC Raffles (“CIMC”) for its first 3.5mtpa MK II FLNG. The MK II design uses the same topside equipment as its MKI FLNG predecessor but incorporates further efficiency and operability advances. Inclusive of the EPC contract, conversion vessel, yard supervision, spares, crew, training, contingencies, initial bunker supply and voyage related costs to deliver the FLNG to its operational site, the budget for the MK II FLNG conversion is estimated at US
As part of the EPC agreement, Golar has secured an option for a second MK II FLNG conversion slot at CIMC for delivery within 2028. In view of the tight global shipyard situation created by large shipping and FPSO orders, Golar sees availability of early yard slots at credible shipyards as a significant competitive and strategic advantage.
Other/Shipping: Operating revenues and costs under corporate and other items are comprised of two FSRU operate and maintain agreements in respect of the LNG Croatia and Italis LNG. The non-core shipping segment is comprised of the LNGC Golar Arctic, and Fuji LNG which is trading on a multi-month charter. Fuji LNG is expected to enter the CIMC yard at the end of her current charter in Q1 2025.
Macaw Energies has now delivered its first ISO containers to industrial customers with LNG produced from flare-to-gas at its field-testing location in Texas, US. We continue to optimize the unit to cater for fluctuating quality of the flare gas input.
Shares and dividends: As of September 30, 2024, 104.4 million shares are issued and outstanding. Golar’s Board of Directors approved a total Q3 2024 dividend of
Financial Summary
| (in thousands of $) | Q3 2024 | Q3 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
| Net (loss)/income | (35,969) | 113,880 | (132)% | 65,756 | 28,221 | |
| Net (loss)/income attributable to Golar LNG Ltd | (34,782) | 92,462 | (138)% | 46,345 | (13,946) | (432)% |
| Total operating revenues | 64,807 | 67,252 | (4)% | 194,455 | 218,750 | (11)% |
| Adjusted EBITDA 1 | 59,029 | 74,559 | (21)% | 181,332 | 241,522 | (25)% |
| Golar’s share of Contractual Debt 1 | 1,465,334 | 1,171,848 | 1,465,334 | 1,171,848 |
Financial Review
Business Performance:
| 2024 | 2023 | ||
| (in thousands of $) | Jul-Sep | Apr-Jun | Jul-Sep |
| Net (loss)/income | (35,969) | 35,230 | 113,880 |
| Income taxes | 208 | 140 | (159) |
| Net (loss)/income before income taxes | (35,761) | 35,370 | 113,721 |
| Depreciation and amortization | 13,628 | 13,780 | 12,473 |
| Unrealized loss/(gain) on oil and gas derivative instruments | 73,691 | 16,050 | (33,908) |
| Interest income | (8,902) | (8,556) | (11,509) |
| Interest expense | — | — | 135 |
| Losses/(gains) on derivative instruments, net | 14,955 | (107) | (7,018) |
| Other financial items, net | 470 | 54 | (318) |
| Net losses from equity method investments | 948 | 2,125 | 983 |
| Adjusted EBITDA 1 | 59,029 | 58,716 | 74,559 |
| 2024 | ||||||||
| Jul-Sep | Apr-Jun | |||||||
| (in thousands of $) | FLNG | Corporate and other | Shipping | Total | FLNG | Corporate and other | Shipping | Total |
| Total operating revenues | 56,075 | 6,212 | 2,520 | 64,807 | 56,120 | 5,444 | 3,125 | 64,689 |
| Vessel operating expenses | (20,947) | (7,403) | (3,373) | (31,723) | (22,765) | (5,056) | (3,453) | (31,274) |
| Voyage, charterhire & commission expenses | — | — | (888) | (888) | — | — | (1,711) | (1,711) |
| Administrative (expenses)/ income/ | (568) | (6,498) | (7) | (7,073) | 34 | (5,882) | (4) | (5,852) |
| Project development expenses | (1,249) | (1,894) | — | (3,143) | (1,300) | (2,226) | — | (3,526) |
| Realized gain on oil and gas derivative instruments (2) | 37,049 | — | — | 37,049 | 36,390 | — | — | 36,390 |
| Adjusted EBITDA 1 | 70,360 | (9,583) | (1,748) | 59,029 | 68,479 | (7,720) | (2,043) | 58,716 |
(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 | ||||
| Jul-Sep | ||||
| (in thousands of $) | FLNG | Corporate and other | Shipping | Total |
| Total operating revenues | 56,391 | 5,532 | 5,329 | 67,252 |
| Vessel operating expenses | (17,726) | (4,813) | (2,048) | (24,587) |
| Voyage, charterhire & commission expenses | (150) | — | (540) | (690) |
| Administrative (expenses)/income | (354) | (8,021) | (22) | (8,397) |
| Project development income | (956) | (576) | 29 | (1,503) |
| Realized gain on oil and gas derivative instruments | 42,484 | — | — | 42,484 |
| Adjusted EBITDA 1 | 79,689 | (7,878) | 2,748 | 74,559 |
Golar reports today a Q3 net loss of
- TTF and Brent oil unrealized mark-to-market (“MTM”) losses of
$74 million ; and - A
$16 million MTM loss on interest rate swaps.
The Brent oil linked component of FLNG Hilli’s fees generates additional annual cash of approximately
$19 million realized gain on the Brent oil linked derivative instrument of which Golar has an effective89.1% interest;$6 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
$60 million loss on the Brent oil linked derivative asset;$2 million loss on the TTF linked natural gas derivative asset; and$12 million loss on the economically hedged portion of the Q3 TTF linked FLNG production.
Balance Sheet and Liquidity:
As of September 30, 2024, Total Golar Cash1 was
On September 5, 2024 the Company priced
Inclusive of the new bonds, Golar’s share of Contractual Debt1 as of September 30, 2024 is
Following the MKII FLNG FID,
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 September 30, 2024 and for the nine months period ended September 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 | '+/-Variable Interest Entity (“VIE”) consolidation adjustments +/-Deferred finance charges | 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 losses: Non-cash losses 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 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 $) | September 30, 2024 | December 31, 2023 | September 30, 2023 |
| Cash and cash equivalents | 732,062 | 679,225 | 727,133 |
| Restricted cash and short-term deposits (current and non-current) | 92,025 | 92,245 | 132,462 |
| Less: VIE restricted cash and short-term deposits | (17,463) | (18,085) | (18,539) |
| Total Golar Cash | 806,624 | 753,385 | 841,056 |
Contractual Debt and Adjusted Net Debt
| (in thousands of $) | September 30, 2024 | December 31, 2023 | September 30, 2023 |
| Total debt (current and non-current) net of deferred finance charges | 1,422,399 | 1,216,730 | 1,177,612 |
| VIE consolidation adjustments | 233,964 | 202,219 | 191,480 |
| Deferred finance charges | 24,480 | 23,851 | 24,941 |
| Total Contractual Debt | 1,680,843 | 1,442,800 | 1,394,033 |
| Less: Keppel’s and B&V’s share of the FLNG Hilli contractual debt | (30,884) | (32,610) | (33,185) |
| Less: Keppel’s share of the Gimi debt | (184,625) | (189,000) | (189,000) |
| Golar’s share of Contractual Debt | 1,465,334 | 1,221,190 | 1,171,848 |
| Less: Total Golar Cash | (806,625) | (753,385) | (841,056) |
| Less: Receivables from the remaining unwinding of TTF hedges | (12,360) | (57,020) | (49,439) |
| Golar’s Adjusted Net Debt | 646,349 | 410,785 | 281,353 |
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 floating production, storage and offloading unit. Delays could result in incremental costs to both parties to the LOA, delay floating liquefaction natural gas vessel (“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 (“FLNG Hilli”);
- ahead of a Final Investment Decision, our ability to meet our obligations with Pan American Energy (“PAE”) in connection with the recently signed agreement on FLNG deployment in Argentina, and their ability to meet their obligations with us;
- that an attractive deployment opportunity, or any of the opportunities under discussion for the Mark II FLNG (“MK II”), 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 investment in the LNGC, long-lead items, engineering services and yard payments to date, as well as to termination fees. 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;
- changes in our ability to obtain additional financing or refinance existing debts on acceptable terms or at all, including our ability to obtain remaining credit approvals and conclude documentation, both of which are precursors to closing the currently contemplated FLNG Gimi refinancing;
- failure of shipyards to comply with schedules, performance specifications or agreed prices;
- 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;
- 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 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 FLNGs or other parts of the natural gas and LNG supply chain;
- 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 tolling rates for FLNGs;
- actions taken by regulatory authorities that may prohibit the access of 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 nine months ended September 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 nine months ended September 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.
November 12, 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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