Nyheter for Golar LNG Limited

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Interim Results for the Period Ended September 30, 2019

Company news

2019-11-26 15:10:02


Transformation and simplification

Iain Ross, CEO, Golar LNG, said:

Further progress has been made this quarter toward the Company's goal of being the leading independent developer of long-term LNG infrastructure. Significant progress has been made on execution of the Companys downstream LNG distribution strategy and on strengthening the Companys financial position.

Continued strong growth in LNG production around the world and associated lower pricing together with customers increased focus on their ESG responsibility is also accelerating their appetite to switch from burning coal, fuel oil and diesel to cheaper and cleaner LNG.

The recent award of Golar Power's second 25-year gas to power project supports our strategy to transform Golar into a world leading LNG infrastructure player delivering flexible energy solutions that provide much needed stability to an energy grid that has seen substantial renewable energy growth. The Barcarena 605MW PPA award underpins the development of a second hub terminal in Brazil. This project, together with progress on downstream distribution of LNG using spare FSRU capacity, transforms Golar Power from a single project company into a business with significant and demonstrable growth potential.  This potential will be realized through the introduction of new and more efficient technology that can be integrated in a user-friendly way that makes it easier for customers to switch to LNG.  This approach will also facilitate bespoke solutions for smaller customers allowing for demand aggregation, something larger LNG producers have paid little attention to.

Increasing interest from oil majors and NOC's, appreciative of our low cost and flexible FLNG solutions and impressed by our flawless operational track record is also encouraging. Part monetization of a current contract and use of a shipyard able to offer more attractive payment terms provides the potential to lift additional FLNG projects.

The proposed shipping spin-off in its planned form, has, disappointingly for the Board, not yet been completed.  This is due to a misalignment between the founding parties of the proposed newco causing Golar to withdraw from the process. Golar remains committed to splitting the ships into a separate vehicle and is revising the mechanism that it will use to achieve this."



Financial Summary


 
(in thousands of $) 3Q 2019 3Q 2018 2Q 2019 YTD 2019  YTD 2018
           
Total operating revenues 98,670 123,101 96,745 309,702 248,665
Net (loss)/income attributable to Golar LNG Limited (82,301) 66,212 (112,682) (236,724) 81,529
Adjusted EBITDA1 58,932 83,528 39,663 161,492 96,928
Operating (loss)/income (13,666) 132,470 (23,435) (8,237) 217,304
Dividend per share 0.150 0.150 0.325
Adjusted net debt1 2,294,932 2,201,731 2,258,824 2,294,932 2,201,731


Financial Highlights

  • Following the Barcarena power project award and increased coverage on the shipping fleet, Contract Earnings Backlog1 (Golar LNG Limited share) is expected to increase from $6.6 billion to $7.0 billion once a Final Investment Decision (FID) for Barcarena is taken.
  • The Companys liquidity position is substantially strengthened as a result of the drawdown of the new $150 million facility, and post quarter end, draw down of the $700 million FLNG Gimi facility and the agreed release of $75 million of Hilli Episeyo restricted cash.

Operational Highlights

Shipping:

  • Time Charter Equivalent (TCE)1 earnings of $35,200 for 3Q were negatively influenced by a weak start to the quarter and by positioning and repositioning for 5 dry dockings.
  • Three vessels commenced their dry dockings during 3Q - two of these completed during the quarter and one concluded in 4Q. 

FLNG:

  • FLNG Hilli Episeyo - 100% commercial uptime maintained: 29 cargoes exported to date. Perenco are planning for a drilling campaign in the Kribi area to prove up more reserves during 2020. If successful, this may lead to further capacity utilization and/or contract extension for FLNG Hilli Episeyo. The companies are also in discussion regarding a smaller increase in production which will utilize part of train 3 starting from 1Q 2020.
  • FLNG Gimi - Conversion progressing according to schedule and budget.

Golar Power:

  • Gas has been introduced to Sergipe power station with hot commissioning underway.
  • Awarded a 25 year power purchase agreement (PPA) for the construction of a 605MW combined cycle thermal power plant in Barcarena, Brazil. This is also expected to include a 25 year FSRU contract.
  • Execution of Brazilian small scale downstream distribution strategy progresses including signing up customers, purchase and delivery of the first 12 isotainers and a commitment to charter in small-scale LNG shipping capacity from Avenir.



Outlook 4Q 2019 and 2020

LNG Shipping
The last of Golars eight scheduled 2019 vessel dry docks commenced and concluded in 4Q. All vessels have now completed their scheduled five-year dry docking. 4Q TFDE TCE1 is anticipated to be in the range of $75,000 to $80,000 per day, more than double 3Q. Inclusive of the two steam turbine vessels, a full fleet 4Q TCE1 of $70,000 to $75,000 is expected. The improved charter rates are the result of increasing LNG production, which has created better market conditions allowing the Company to increase contract coverage. 60% of available capacity has been chartered at fixed rates with a further 30% fixed on index related charters. We also anticipate good coverage into 1Q 2020. This will likely support strong improvements in year-on-year EBITDA1 and cash generation from the shipping fleet.

FLNG
As a result of the strong operational performance of FLNG Hilli Episeyo and recent multi-year low LNG prices, interest in low cost FLNG solutions is strong. Golar continues to develop its FLNG pipeline with four major oil and gas/national oil companies. These will however take time to mature. Nearer term, outline interest from potential investors interested in buying into existing FLNG contract backlog and supporting the Company going forward has been received and is under evaluation. Work with Asian yards to find ways to standardize their FLNG production and design model to achieve lower costs and more efficient financing, particularly between FID and COD, is ongoing.

Golar Power
Start-up of the Sergipe project is on track for 1Q 2020 with gas now being supplied to the power station from FSRU Nanook and hot commissioning underway. COD will trigger acceptance of the Nanook FSRU contract as well as the PPA agreements. Golars interest in these 25-year contracts is worth approximately $99 million in annual EBITDA1 assuming an USD/BRL rate of 3.7.

Further north, the recently awarded 25-year 605MW Barcarena combined cycle thermal power plant will be the anchor customer and springboard for development of additional downstream LNG distribution opportunities in Brazil. FSRU selection and detailing of the terminal are underway with an anticipated FID in 1H 2020.



Financial Review

Business Performance


  2019 2019
  Jul-Sep Apr-Jun
(in thousands of $) Vessel and other operations FLNG Total Vessel and other operations FLNG Total
Total operating revenues 44,146   54,524   98,670   42,221   54,524   96,745  
Vessel operating expenses (15,982 ) (12,415 ) (28,397 ) (16,996 ) (13,822 ) (30,818 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (5,603 )   (5,603 ) (14,327 ) (100 ) (14,427 )
Administrative expenses (12,162 ) (470 ) (12,632 ) (14,676 ) 516   (14,160 )
Project development expenses (831 ) 341   (490 ) 571   (448 ) 123  
Realized gain on oil derivative instrument(2)   4,584   4,584     5,162   5,162  
Other operating (losses)/gains 2,800     2,800     (2,962 ) (2,962 )
Adjusted EBITDA(1) 12,368   46,564   58,932   (3,207 ) 42,870   39,663  
             
Reconciliation to operating income (loss)            
Unrealized (loss)/gain on oil derivative instrument(2)   (44,170 ) (44,170 )   (27,630 ) (27,630 )
Depreciation and amortization (16,435 ) (11,993 ) (28,428 ) (16,070 ) (12,051 ) (28,121 )
Impairment of long-lived assets

 
      (7,347 )   (7,347 )
Operating (loss)/income (4,067 ) (9,599 ) (13,666 ) (26,624 ) 3,189   (23,435 )


(2) The line item "Realized and unrealized gain on oil derivative instrument" relating to income from the FLNG Hilli Episeyo Liquefaction Tolling Agreement is split into, "Realized gain on oil derivative instrument" and "Unrealized (loss) gain on oil derivative instrument". The unrealized component represents a mark-to-market loss of $44.2 million (June 30, 2019: $27.6 million) on the oil embedded derivative, which represents the estimate of expected receipts under the remainder of the Brent oil linked clause of the Hilli Episeyo Liquefaction Tolling Agreement. The realized component amounts to $4.6 million (June 30, 2019: $5.2 million) and represents the income in relation to the Hilli Episeyo Liquefaction Tolling Agreement receivable in cash.

Golar reports today 3Q operating losses of $13.7 million compared to losses of $23.4 million in 2Q.

Total operating revenues increased from $96.7 million in 2Q to $98.7 million in 3Q and voyage, charterhire and commission expenses decreased from $14.3 million to $5.6 million both largely as a result of an improving shipping market.

Revenues from vessel and other operations, including management fee income, was $44.1 million and, net of voyage, charterhire and commission expenses, increased by $10.6 million to $38.5 million in 3Q. Assisted by multi-year low summer LNG prices, contango in the gas market encouraged a number of sellers to use vessels for floating storage ahead of the Northern hemisphere winter. Vessel availability decreased and both sentiment and spot rates increased toward the end of the quarter as a result. Full fleet TCE1 earnings increased from $24,400 in 2Q to $35,200 in 3Q, although utilization at 65% was in line with the prior quarter. Despite improving rates, revenue continued to be negatively impacted by the positioning and scheduled dry docking of a further three vessels during the quarter.

In line with prior quarters, FLNG Hilli Episeyo generated operating revenues of $54.5 million including base tolling fees and amortization of pre-acceptance amounts recognized.

Vessel operating expenses at $28.4 million in 3Q were $2.4 million lower than 2Q. Most of the decrease is attributable to lower spare part purchases across the shipping fleet and lower repair and maintenance and crew travel costs for FLNG Hilli Episeyo.

At $12.6 million for the quarter, total administrative expenses were $1.5 million lower than 2Q due to lower legal and professional fees and other savings. Project development expenses at $0.5 million began to normalize during the quarter, 2Q having been reduced due to the reversal of previously over accrued expenses.

The Brent oil linked component of Hilli Episeyo's fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three-month look-back at average Brent Crude prices. Lower oil prices resulted in a $0.6 million decrease in the realized gain on the oil derivative instrument, down from $5.2 million in 2Q to $4.6 million in 3Q.

The mark-to-market fair value of the derivative asset decreased by $44.2 million during the quarter, with a corresponding unrealized loss of the same amount recognized in the income statement. The fair value decrease was driven by a downward movement in the expected future market price for Brent Oil. The spot price for Brent Oil decreased from $66.55 per barrel on June 30 to $60.78 on September 30.

Other operating gains and losses reported a $2.8 million gain in 3Q following receipt of proceeds from a 2018 loss of hire claim for Golar Viking. This compared to a loss of $3.0 million in 2Q, representing unrecoverable receivables from Schlumberger following the dissolution of OneLNG.

Depreciation and amortization at $28.4 million in 3Q was in line with the prior quarter.

Net Income Summary


  2019 2019
(in thousands of $) Sep-Oct Apr-Jun
Operating income (loss) (13,666 ) (23,435 )
Interest income 2,709   3,223  
Interest expense (23,368 ) (24,376 )
Losses on derivative instruments (17,619 ) (14,719 )
Other financial items, net (978 ) (1,932 )
Income taxes (274 ) (176 )
Equity in net losses of affiliates (7,761 ) (26,970 )
Net income attributable to non-controlling interests (21,344 ) (24,297 )
Net loss attributable to Golar LNG Limited (82,301 ) (112,682 )


In 3Q, the Company generated a net loss of $82.3 million, compared to a 2Q net loss of $112.7 million. Key items contributing to this are summarized as follows:

  • An increase in capitalized interest in respect of FLNG Gimi contributed to a $1.0 million reduction in 3Q interest expense.
  • 3Q recorded a $17.6 million loss on derivative instruments compared to a 2Q loss of $14.7 million.  Most of the $2.9 million increase in 3Q relative to 2Q is attributable to losses on the three million Golar Total Return Swap ("TRS") shares.
  • The $7.8 million 3Q equity in net losses of affiliates is primarily comprised of the following:
    • a $0.2 million gain in respect of Golar's 32% share in Golar Partners;
    • a $7.2 million loss in respect of Golar's 50% stake in Golar Power; and
    • a $0.8 million loss in respect of Golar's 22.5% stake in Avenir.

Net income attributable to non-controlling interests represents external interests in the Hilli Episeyo and the finance lease variable interest entities ("VIEs").



Financing and Liquidity

Golars total cash position as at September 30 was $625.4 million (including long-term restricted cash), of which $250.2 million was unrestricted. Included within restricted cash is $104.5 million relating to lessor-owned VIEs, $108.9 million of collateral in respect of the TRS and $151.9 million relating to the Hilli Episeyo LC. During November Perenco and SNH agreed to a reduction in the Hilli Episeyo LC requirement (with a proportionate decrease in the Perenco and SNH security). This is expected to result in the release of approximately $75 million of restricted cash in November 2019.

As at September 30, $188 million of equity had been invested in FLNG Gimi. Having satisfied the initial $300 million equity investment threshold during 4Q, the first drawdown against the $700 million debt facility took place in November. Based on the current payment schedule approximately $42 million is expected to be paid by Golar in 2020.

As previously indicated, infrastructure funds have approached Golar seeking to invest in existing long term FLNG projects and provide capital for future projects. The Company is now evaluating their proposals.  As of today, Golar is a fully funded company looking forward to substantial increases in contracted earnings over the next three years as new committed projects come on line.  There is a strong focus on capital allocation and any future surplus cash will be applied to the most attractive use, for example further growth investments or share buybacks.

Inclusive of the refinanced margin loan which is now a revolving facility and a new $150 million debt facility entered into during the quarter, Golar's contractual debt1 including 100% of Hilli Episeyo as at September 30 was $2.7 billion. Golar's adjusted net debt1 was $2.3 billion.

Included within the $975.0 million current portion of long-term debt and short-term debt on the Balance Sheet as at 30 September is $835.3 million relating to lessor-owned VIE subsidiaries that Golar is currently required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo.

Corporate and Other Matters

As at September 30, 2019, there were 101.3 million shares outstanding, including the 3 million shares underlying the TRS. There were also 3.5 million outstanding stock options with an average price of $35.22 and 0.2 million Restricted Stock Units in issue. During 4Q the Company agreed to purchase 1.5 million of the 3 million shares underlying the TRS. The cash cost of these 1.5 million TRS shares will be $69.5 million.  This will be satisfied by $54.7 million of restricted cash already set aside as collateral for these shares with the balance of $14.8 million funded out of unrestricted cash. The cash cost of eliminating the remaining 1.5 million TRS shares will be similar. Purchase of the remaining 1.5 million shares is scheduled to take place during 1Q 2020. Thereafter there will be 98.3 million shares outstanding.

At Golar's Annual General Meeting on September 27, 2019, Company Secretary Georgina Sousa was appointed as a Director, replacing Michael Ashford who retired. Georgina returns to Golar with a wealth of experience and a deep historical understanding of the business having served Golar in a similar capacity up until early 2015.



Commercial Review

LNG Shipping

The third quarter began with LNG trading at multi-year low prices, at times below $4.00/mmbtu. A subdued commodity price and the continued absence of arbitrage opportunities kept a lid on spot shipping rates, which started the quarter at around $55kpd for a TFDE vessel. Attracted by the forward curve, European charterers then entered the market for floating storage. The number of prompt available vessels halved from around 11 at the end of July to 6 in early August as a result. Longer than usual voyages (due to slow steaming and idling at sea) continued to absorb shipping capacity, allowing spot rates to increase. European LNG imports for the first 8 months of 2019 nearly doubled relative to the same period in 2018. An increase in shipping requirements in the second half of September then sowed the seeds for a sustained improvement in rates and chartering opportunities. Seeking to reduce dependence on peak-season LNG imports, Chinese demand also re-emerged in late September. Seasonal tailwinds elsewhere and European storage at close to 100% capacity necessitating ongoing floating storage further reduced vessel availability to zero allowing TFDE rates to quickly breach $100kpd in early October. Spot rates in excess of $100kpd continue to be achieved to date.

New liquefaction facilities continue to deliver.  Cameron T1, Prelude, Freeport T1, Corpus Christi T2 and Elba Island have all commenced production and new liquefaction is expected to start up and ramp up at the fastest pace on record over the course of 2020. Ample new supply together with China's efforts to smooth its demand profile mean that Asian LNG prices have not however enjoyed their customary winter boost and the LNG arbitrage window has remained closed. Much of this new US volume has therefore ended up in Europe. Despite lower upward pressure on ton mile demand, the structural shortage of vessels has arrived.  Charterers are increasingly keen to sign 1 year+ charters removing more vessels from the market and adding to upward pressure on spot rates. Owners are increasingly requesting offers rather than offering ships to charterers as a result.

Supported by low LNG prices, the LNG spot and short term market continues to represent an ever increasing share of global LNG trade. Dominated by US projects, 114mtpa of new liquefaction capacity is slated to come on stream between 2020 and 2025. Based on current trading patterns the LNG order book of 109 vessels will not be sufficient to carry this. Newbuild orders have slowed and the earliest delivery slot for a vessel ordered today is 2H 2022. With all of its 10 carriers recently dry docked, the Cool Pool will have uninterrupted exposure to this market. Golar expects shipping to be a positive earnings contributor from 4Q 2019 throughout 2020.

Golar Partners (a non-consolidated affiliate of Golar LNG)

The fleet continued to perform well with 3Q adjusted EBITDA1 in line with 2Q. A substantial reduction in interest rate swap losses allowed the Partnership to report a $13.4 million increase in net income, up from a loss of $5.5 million in 2Q to income of $7.9 million in 3Q.  Distribution coverage1 increased as expected, from 1.12 in 2Q to 1.18 in 3Q.

Although the spot market for steam turbine vessels remained subdued for most of 3Q, a rapid tightening of the shipping market from the end of September meant that these vessels have since represented the only available tonnage on more than one occasion. Both the Golar Maria and Golar Mazo will therefore contribute additional earnings in 4Q with the Golar Maria securing employment through to April 2020. A two year charter for the Golar Maria starting in late 2020 has also been secured. The charter includes options for the charterer to extend by a further 1+1+1 years.  Between April and November 2020 the vessel will trade in what is expected to be a strong spot market.

The Partnership has received notice from Kuwait National Petroleum Co. ("KNPC") of a two year contract award for the FSRU Golar Igloo. Pending contract finalization and signing, the award provides Golar Partners with two years of continued LNG storage and regasification services at the Mina Al-Ahmadi Refinery in Kuwait for KNPCs regasification seasons beginning in March 2020. The contract may be further extended by KNPC for an additional year through to December 2022.

Collectively the two year Golar Maria and Golar Igloo contracts are expected to add approximately $95 million of additional revenue backlog1.

On October 1, Graham Robjohns re-assumed his role as the Partnerships Chief Executive Officer, replacing Brian Tienzo.

FLNG

FLNG Hilli Episeyo continues to achieve 100% commercial uptime. The vessel ended 3Q ahead of its delivery targets and recently exported its 29th cargo.  Perenco are planning for a drilling campaign in the Kribi area to prove up more reserves during 2020. If successful, this may lead to further capacity utilization and/or contract extension for FLNG Hilli Episeyo. The companies are also in discussion regarding a smaller increase in production which will utilize part of train 3 starting from 1Q 2020.  The FLNG Gimi Conversion project continues on target in Singapore. Two of Gimis five planned dry dockings are now complete. Sponson fabrication continues as does extensive detailed engineering and procurement by Keppel and topsides contractor Black and Veatch. Around 80 Golar personnel and 1,500 Keppel employees are now working daily on the project, with overall progress on schedule. Seventy percent owned FLNG Gimi will service the 20-year contract with BP offshore Mauritania and Senegal, commencing 4Q 2022.
On July 30, Golar together with Noble Energy, Delek Drilling and Ratio Oil entered into an Interim Project Development Agreement to assess the viability of a Golar FLNG solution to support future development phases of the Mediterranean Leviathan project. Golar is assessing the feasibility of its current approximately 3.5mtpa FLNG Front End Engineering and Design study for this project. Golar and another oil major have also executed an agreement to jointly assess the suitability of Golar's FLNG solutions across a range of gas resource opportunities. Due diligence is underway and term sheets are being negotiated. Further project development discussions are progressing with another oil major as well as term sheet negotiations with a national oil company, both of whom have also been attracted by the Company's industry leading technical and operational record.

Cognizant of balance sheet limitations, Golar is working with infrastructure funds interested in investing in existing FLNG projects as well as others currently under discussion. Proceeds from a partial sell down of a contracted FLNG at an attractive multiple, the use of alternative shipyards able to offer more attractive payment terms during construction and the use of Export Credit finance are being pursued in order to allow the next FLNG project to be taken forward.

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners non-consolidated downstream joint venture)

Hooked up and commissioned, the FSRU Nanook is now sending gas ashore to the Sergipe power station allowing hot commissioning to take place. Commercial operations are now expected to commence within the next three months.

Golar Power's push into small scale distribution continues with around 100 customers keen to move from MOUs to binding agreements for quantity and price of LNG supply.  Golar Power has agreed to charter a small scale (7,500m3) LNG carrier from affiliate company Avenir, commencing mid-2020.  In addition, 12 Iso Containers (for the transportation of LNG by road or barge) have also been received in Brazil, along with commitments for delivery of modular regasification and unloading units.

On October 21 Golar Power was awarded a 25-year power purchase agreement for the construction of a 605MW combined cycle thermal power plant. Located in Barcarena, Para, on Brazil's northern coast, this LNG-to-power project will be developed by a special purpose company 50% owned by Golar Power. Due to commence operations in 2025, power will be sold to nine different power distribution companies via the Brazilian grid and evacuated via an existing substation nearby. The power station will also be the anchor tenant for a Golar Power FSRU. The intention is to ensure an appropriate amount of spare FSRU capacity also remains available to displace large volumes of diesel, coal, LPG and heavy fuel oil consumption with LNG. Selection of the FSRU and FID are expected to occur in 1H 2020. This would allow small scale LNG distribution to customers to commence as soon as mid-2021, well ahead of the January 2025 power station start-up date. Total capex for the power project is estimated at $430 million, of which Golar's share, payable between 2022 and 2025, equates to $107 million. Rapid monetization of the terminal/FSRU and the Sergipe downstream distribution business would allow Golar Power to fund the Barcarena project without recourse to shareholders Golar and Stonepeak.

License approvals for another project in the south of Brazil are also making good progress. In the State of Santa Catarina, Golar Power has received key regulatory and environmental licences for a third FSRU terminal developed by Terminal Gas Sul, a project company wholly owned by Golar Power. An oil major is expected to use most of the FSRU capacity to supply a large scale power plant that Golar Power has the option to invest in. In common with the Sergipe and Barcarena projects, Golar Power will also seek to use spare FSRU capacity to pursue other local downstream opportunities.

Golar Power has established a leading position in Brazil's LNG revolution.  As a country of approximately 210 million people with an existing fleet of 2.7 million diesel fueled heavy vehicles, the addressable market for the transition to LNG is substantial. Diesel prices over the last four years have translated into an LNG equivalent of approximately $26/mmbtu.  Cost savings from switching to LNG are material and additional to the environmental benefits that include reductions in Co2, NOX and particulate emissions.

Founded by Golar, Stolt Nielsen and Hoegh, Avenir LNG's experience with the construction of small scale ships and the introduction of LNG to Sardinia via its 2020 commencing HiGas terminal also provides additional experience.

The Board is excited about the position that Golar Power has established in Brazil, and also about Avenir. It is excited by the long term economic and environmental benefits that Brazil stands to gain from its transition to LNG and how this will translate into sustainable long term returns for Golar's shareholders.  The credibility derived from our leadership in Brazil's energy transition creates a strong footing to use this unique experience to develop similarly large gas to power and transportation markets elsewhere.



 

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.

These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP. Non-GAAP measures are not uniformly defined by all companies, and may not be comparable with similar titles measures and disclosures used by other companies. The reconciliations 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
   

Golar Power awarded PPA for 605MW LNG-to-Power Project in Barcarena, Brazil

Company news

2019-10-21 15:40:01

Golar LNG Limited ("Golar") announces today that Golar Power Limited ("Golar Power"), a (50/50) joint venture with Stonepeak Infrastructure Partners, has been awarded a 25 year power purchase agreement (PPA) for the construction of a 605MW combined cycle thermal power plant at the 2019 A-6 New Energy Auction held on Friday 18th October by the Brazilian National Electric Energy Agency ANEEL. (Auction).

The LNG-to-power Project will be developed by CELBA (Centrais Eletricas Barcarena S/A), a special purpose company 50% controlled by Golar Power. Located in the Brazilian city of Barcarena, State of Pará, the 605MW power plant will utilize imported LNG for the generation of electricity using modern H-Class gas turbines, which will then be distributed to the Brazilian national electricity grid through the existing Vila do Conde Substation located nearby. Total investments for the power project are estimated at $430 million, of which Golar LNGs share is $107m.  Capex will be funded through debt and equity between 2022 and 2025 with the equity portion expected to come from proceeds of the first wave of small-scale distribution in Golar Power.

The PPA has been awarded with a pool of 9 different power distribution companies and is expected to generate fixed annual revenues of $174 million (BRL 711.7 million) for 25-years starting on January 1st, 2025.  Payments under the PPA are inflation indexed and provide for pass-through of fuel costs to the PPA counterparties.

In connection with the PPA, Golar Power anticipates accelerating investment in a new LNG Terminal at the Port of Vila do Conde, also located in Barcarena. The terminal will be wholly operated by Golar Power and will provide an FSRU for 25 years to supply the Project. The Terminal is expected to commence operations by mid-2021 and is located in a strategic entry point in the North region of Brazil, which will be used as a hub to allow the distribution of LNG and supply of natural gas for electricity generation, commercial and industrial customers, transportation and bunkering well in advance of the power project commencement.  FSRU selection and detailing of the terminal are under way with an anticipated FID in 1H 2020.

Golar Power CEO Eduardo Antonello commented, We are extremely excited with the Barcarena Project, thats amongst the most strategic LNG developments across the entire world. For decades this whole region has been starving for cleaner and cheaper energy, right at the centre of one of the most prominent natural resource basins in the globe. The energy hub that will be introduced by Golar Power in the State of Pará has the potential to supply an area larger than Western Europe, with millions of kilometres of river navigation routes. Weve been working for over 3 years on this endeavour, whilst also mapping the potential LNG applications such as road and river transportation, mining, agriculture, industries as well as large populational areas, and now it has become a reality. Considering the environmental and social benefits, our project has the potential to displace very large volumes of diesel, coal, LPG and heavy fuel oil (HFO) consumption with cheaper LNG, allowing significant reduction of greenhouse gas emissions and creating unique technical and economic development opportunities for the local populations.

Golar LNG CEO Iain Ross commented the award of this new project supports our current strategy to transform Golar LNG into a world leading LNG infrastructure player delivering  cheaper and cleaner energy solutions supported by cash flow from long term contracts.

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 managements 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 may, could, should, would, expect, plan, anticipate, intend, forecast, believe, estimate, predict, propose, potential, 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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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.

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.

Hamilton, Bermuda

October 21, 2019

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan

Eduardo Maranhao

   

Golar LNG Limited Q3 2019 results presentation

Company news

2019-10-21 13:40:02

Golar LNG's 3rd Quarter 2019 results will be released before the NASDAQ opens on Tuesday November 26, 2019. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Tuesday, November 26, 2019. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:
International call +44 2071 928 000
UK Free call 0800 376 7922
US Toll +1 631 510 7495
USA Free call 866 966 1396
Norway Toll +47 23 96 02 64
Norway Free call 800 51874
The participants will be asked for their name and conference ID. The Golar conference ID is 6289311

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 3333 009 785
United States +1 917 677 7532
Norway +47 21 03 42 35
- followed by replay access number 6289311.   This service will be available for the 7 days immediately following the scheduled event.

   

Golar LNG Limited & Golar LNG Partners L.P. announce organizational changes

Company news

2019-10-01 15:10:01

Golar LNG Limited (Golar or the Company) announces today that, after almost 20 years of service with the Golar group Graham Robjohns has decided to step down from his position as Chief Financial Officer. In order to facilitate a smooth transition, Mr. Robjohns will remain in his current position until April 30, 2020 while the search for his replacement proceeds.

Additionally, Golar LNG Partners L.P. ("Golar Partners") announces today that with immediate effect Mr. Brian Tienzo will step down as Chief Executive officer of Golar Partners and will focus full time on Golar group financings. Mr. Robjohns will take on the role of Golar Partners CEO until April 30, 2020 while the search for a permanent replacement proceeds.

Graham Robjohns commented, The journey with Golar from a small LNG shipping company with 6 ships to where we are today has been exciting, interesting, challenging and fun in equal measure. Golar has a wonderful team of highly talented people and the opportunities to create a very successful next chapter for Golar. After 20 years however, I feel the time is now right for change and for me to seek new challenges outside of Golar. I wish the Company well and look forward to seeing it flourish.

Chairman of Golar MLP Tor Olav Troim says in a comment: Graham has been a very important part of the management team since Golar LNG was listed in 2000. He has had several key management positions in the group and has always worked extremely hard and delivered superior and diligent services to the group. These services have been critical in the transformation of Golar from an LNG Shipping company to todays LNG Infrastructure company.

Graham will in the next six months as CEO for Golar MLP be given a special task to look at structural opportunities to optimize the value of the assets and the large order backlog in Golar MLP.

The Board of Golar LNG is further pleased that we have been able to retain Brian Tienzo in the Group. Brian has been instrumental in arranging most of Golars debt facilities and is, based on his experience and dedication, a very important part of the Golar management team going forward.

Hamilton, Bermuda

October 1st, 2019

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan

   

Golar LNG Limited: 2019 AGM Results Notification

Company news

2019-09-27 17:50:01

Golar LNG Limited (the Company) advises that the 2019 Annual General Meeting of the Company was held on September 27, 2019 at 8:30 a.m. at 2nd Floor, S.E. Pearman Building, 9 Par-la-Ville Road, Hamilton HM 11, Bermuda.  The audited consolidated financial statements for the Company for the year ended December 31, 2018 were presented to the Meeting.

The following resolutions were passed:

  1. To re-elect Tor Olav Trøim as a Director of the Company.
     
  2. To re-elect Daniel Rabun as a Director of the Company.
     
  3. To re-elect Thorleif Egeli as a Director of the Company.

4)   To re-elect Carl Steen as a Director of the Company.

5)   To re-elect Niels G. Stolt-Nielsen as a Director of the Company.

6)   To re-elect Lori Wheeler Naess as a Director of the Company.

7)   To elect Georgina Sousa as a Director of the Company.

8)   To re-appoint Ernst & Young LLP of London, England as auditors and to authorise the Directors to determine their remuneration.

9)   To approve the remuneration of the Companys Board of Directors of a total amount of fees not to exceed US$1,750,000 for the year ended December 31, 2019.

Hamilton, Bermuda
September 27, 2019

   

Presentation to Investors, New York, September 2019

Company news

2019-09-03 14:30:02

Golar LNG Limited (Golar) is presenting at the Barclays Investment Bank CEO Energy-Power Conference in New York, USA on September 3-4, 2019.  The material Golar is presenting covers various areas such as the funding arrangements of the Gimi $700m underwritten facility and expected capital expenditures for the Gimi FLNG conversion.  This material is available on our website (http://www.golar.com/investors/presentations/2019).

FORWARD LOOKING STATEMENTS

This presentation contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golars expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda
September 3, 2019
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan

   

Interim results for the period ended June 30, 2019

Company news

2019-08-29 13:50:01

Focus on Group clarity, liquidity and near-term value growth

Iain Ross, CEO, Golar LNG, said:

Golar is bringing simplicity to its business, improving Group liquidity, reducing earnings volatility and taking steps to bring forward shareholder returns.

To maximize shareholder value we intend to suspend the dividend for two quarters in order to buy back the three million shares underlying the Total Return Swap, simplifying our capital structure and reducing the share count from 101 million to 98 million.

Within the Group, we have fixed four LNG carriers on floating rate contracts and two more on fixed rate charters. We have secured new financing facilities that will immediately release $180 million to Golar which, together with the $700m underwritten funding for the Gimi, de-risks the Groups balance sheet and enhances liquidity. Finally, in Golar Power, we are securing customers and transport capacity to accelerate downstream LNG distribution projects capable of delivering swift returns.

Operationally, Golar made steady progress.  In Shipping, we have taken advantage of seasonally low rates to dry dock vessels ahead of the second half market upturn.  In FLNG, Hilli Episeyo maintained 100% commercial uptime, while the Gimi conversion project continues to budget and schedule. In Golar Power, Sergipe has reached its commissioning phase.

Financial Summary

 
(in thousands of $)2Q 20192Q 20181Q 20191H 20191H 2018
      
Total operating revenues96,74559,374114,287211,032125,564
Net (loss)/income attributable to Golar LNG Limited(112,682)36,319(41,741)(154,423)15,317
Adjusted EBITDA139,6634,16262,897102,56013,400
Operating (loss)/income(23,435)78,40528,8645,42984,834
Dividend per share0.1250.1500.1500.175
Adjusted net debt12,258,8242,193,4512,197,3842,258,8242,193,451

Financial Highlights

  • Contract Earnings Backlog1 (Golar LNG Limited share) of $6.5 billion.
  • Agreed to phased buyback of the 3 million shares underlying the Total Return Swap (TRS) at an incremental cash cost of approximately $31 million.
  • Dividend suspended for two quarters to finance intended TRS buyback.
  • Adjusted net debt1 of $2.3 billion, $1.0 billion of which relates to Golar LNG Limiteds (Golar or the Companys) 8 TFDE ships.
  • Post period, executed new financing facilities that add an immediate $180 million of liquidity.

Operational Highlights

Shipping:

  • Improved fleet utilization of 66%, versus 51% in 1Q 2019 (1Q); three of Golars 11 carriers  now employed on 1-5 year index linked contracts and two vessels on multi-month fixed rate charters.
  • Four of these five charters commence in 3Q 2019 providing greater visibility on future vessel utilization.
  • 2Q fleet TCE at $24,400 reflects a seasonally softer market as well as idle time associated with four dry-dockings in the period and a further three dry-dockings in 3Q.

FLNG:

  • FLNG Gimi - $700 million underwritten financing commitment. Conversion on budget and schedule.
  • FLNG Hilli Episeyo - 100% commercial uptime maintained: 25 cargoes exported to date. Negotiation with charterers regarding additional utilization continues; initiated discussions with charterers on a reduction in the Letter of Credit ("LC") that would allow the release of up to $75 million of restricted cash.

Golar Power:

  • Sergipe power station remains on track for year-end completion.
  • Downstream LNG distribution business securing customers. Initial commitments made to secure isotainers and access to trucking; in advanced discussions with Avenir for small-scale shipping capacity.

Outlook 2H 2019 and 2020

LNG Shipping
Earnings are expected to improve; supported by new term contracts, a tighter supply demand balance, seasonally stronger rates and additional trading days for the fleet. All TFDE carrier drydockings are expected to have been concluded by year-end. Subject to market conditions, we intend to complete the previously announced spin-off of our TFDE fleet by the end of 2019.

The market faces an impending structural shortage of shipping: in 2019, vessel demand growth of 15% is expected against supply growth of 8%.  Further vessel demand growth of 14% is expected in 2020, with supply growth lagging at 9%. This is partly offset by current low LNG prices that eliminate arbitrage opportunities and reduce transportation to the Far East.

FLNG
Interest in new FLNG developments remains strong, with several projects under consideration for oil majors.  Golar is working with Asian yards to find ways to standardize its FLNG production and design model to achieve lower costs and more efficient financing.

Golar Power
Commercial operations at Sergipe remain on track to begin in January 2020. Part of the contracted cash flows will be used to accelerate development of the downstream LNG distribution business in Brazil. Golar Power is on schedule to deliver its first small-scale LNG shipment from the spare capacity of the FSRU Nanook in 2Q 2020.

Low LNG prices are improving the economics of these low-capex, fast payback opportunities, where a key merit is switching demand for expensive diesel, heavy fuel oil and coal into demand for low-cost, clean LNG.

Financial Review

Business Performance

 20192019
 Apr-JunJan-Mar
(in thousands of $)Vessel and other operationsFLNGTotalVessel and other operationsFLNGTotal
Total operating revenues42,221 54,524 96,745 59,763 54,524 114,287 
Vessel operating expenses(16,996)(13,822)(30,818)(18,176)(13,072)(31,248)
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement)(14,327)(100)(14,427)(16,140)(360)(16,500)
Administrative expenses(14,676)516 (14,160)(12,893)(652)(13,545)
Project development expenses571 (448)123 (668)(922)(1,590)
Realized gain on oil derivative instrument(2) 5,162 5,162  2,233 2,233 
Other operating (losses)/gains (2,962)(2,962)9,260  9,260 
Adjusted EBITDA(1)(3,207)42,870 39,663 21,146 41,751 62,897 
       
Reconciliation to operating income (loss)      
Unrealized (loss)/gain on oil derivative instrument(2) (27,630)(27,630) 28,380 28,380 
Depreciation and amortization(16,070)(12,051)(28,121)(16,112)(12,051)(28,163)
Impairment of long-lived assets

 
(7,347) (7,347)(34,250) (34,250)
Operating (loss)/income(26,624)3,189 (23,435)(29,216)58,080 28,864 

(2) With effect from the quarter ended September 30, 2018, we have split the line item "Realized and unrealized gain on oil derivative instrument" relating to income from the FLNG Hilli Episeyo Liquefaction Tolling Agreement into two line items, "Realized gain on oil derivative instrument" and "Unrealized (loss) gain on oil derivative instrument". The unrealized component represents a mark-to-market loss of $27.6 million (March 31, 2019: gain of $28.4 million) on the oil embedded derivative, which represents the estimate of expected receipts under the remainder of the Brent oil linked clause of the Hilli Episeyo Liquefaction Tolling Agreement. The realized component amounts to $5.2 million (March 31, 2019: $2.2 million) and represents the income in relation to the Hilli Episeyo Liquefaction Tolling Agreement receivable in cash. This presentation change has been retrospectively adjusted in prior periods.

Golar reports today 2Q operating losses of $23.4 million compared to income of $28.9 million in 1Q.

Total operating revenues decreased from $114.3 million in 1Q to $96.7 million in 2Q. The reduction was driven by lower revenues from vessels and other operations as a result of a seasonally weak shipping market and drydockings.

Revenues from vessel and other operations, including management fee income, was $42.2 million and, net of voyage, charterhire and commission expenses, decreased by $15.7 million to $27.9 million in 2Q. Weaker Asian demand that pushed US volumes into Europe and lowered ton-miles, softer prices that capped the ability to pay for freight and elevated vessel deliveries combined to ensure that demand for spot tonnage was matched by sufficient vessel availability throughout the quarter.  Although fleet utilization increased from 51% in 1Q to 66% in 2Q, full fleet TCE1 earnings decreased from $39,300 in 1Q to $24,400 in 2Q. Also negatively impacting revenue was the scheduled dry-docking of 4 vessels that each spent a portion of 2Q in a shipyard and positioning for this operation.

In line with prior quarters, FLNG Hilli Episeyo generated operating revenues of $54.5 million including base tolling fees and amortization of pre-acceptance amounts recognized.

Vessel operating expenses at $30.8 million in 2Q were $0.4 million lower than 1Q with the decrease predominantly attributable to the Golar Viking which saw costs normalize during the quarter.

At $14.2 million for the quarter, total administrative expenses were $0.6 million higher than 1Q due to additional legal and professional fees. Project development expenses are reduced by $1.7 million relative to 1Q, partly due to an over accrual of expenses in the prior quarter.

The Brent oil linked component of Hilli Episeyo's fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three-month look-back at average Brent Crude prices. Higher oil prices resulted in a $2.9 million increase in the realized gain on the oil derivative instrument, up from $2.2 million in 1Q to $5.2 million in 2Q.

The mark-to-market fair value of the derivative asset decreased by $27.6 million during the quarter, with a corresponding unrealized loss of the same amount recognized in the income statement. The fair value decrease was driven by a downward movement in the expected future market price for Brent Oil. The spot price for Brent Oil decreased from $68.39 per barrel on March 31 to $66.55 on June 30.

Other operating gains and losses within FLNG reported a 2Q loss of $3.0 million, representing unrecoverable receivables from Schlumberger following the dissolution of OneLNG.

Depreciation and amortization at $28.1 million in 2Q was in line with the prior quarter.

On May 23 a major shareholder in OLT Offshore LNG Toscana concluded the sale of their interest. Of the consideration paid by the buyer, 1 was allocated to equity with the balance applied to the acquisition of the seller's shareholder loans. Golars 2.7% equity interest in the project has therefore been written down to $nil resulting in a non-cash 2Q impairment charge of $7.3 million.

Net Income Summary

 20192019
(in thousands of $)Apr-JunJan-Mar
Operating income (loss)(23,435)28,864 
Interest income3,223 3,214 
Interest expense(24,376)(29,352)
Losses on derivative instruments(14,719)(5,699)
Other financial items, net(1,932)(1,407)
Income taxes(176)(205)
Equity in net losses of affiliates(26,970)(12,899)
Net income attributable to non-controlling interests(24,297)(24,257)
Net loss attributable to Golar LNG Limited(112,682)(41,741)

In 2Q, the Company generated a net loss of $112.7 million. Key items contributing to this are summarized as follows:

  • A small reduction in LIBOR and a $0.9m increase in capitalized interest in respect of FLNG Gimi resulted in a $5.0 million reduction in 2Q interest expense.
  • 2Q recorded a $14.7 million loss on derivative instruments compared to a 1Q loss of $5.7 million.  Most of the $9.0 million increase in 2Q relative to 1Q is attributable to losses on the three million Golar share TRS.
  • The $27.0 million 2Q equity in net losses of affiliates is primarily comprised of the following:
    • a $20.0 million loss in respect of Golar's 32% share in Golar Partners; and
    • a $7.0 million loss in respect of Golar's 50% stake in Golar Power.

Golar's share of Golar Partner's 2Q loss amounts to 32% of $5.5 million.  Additional to this Golar recognized the regular amortization of fair value assets and liabilities (principally arising in connection with its deconsolidation) plus a one-off $15.0 million write off the fair value asset in relation to the Golar Freeze which was deemed to have been disposed by the Partnership during the quarter following its classification as a finance lease.

Net income attributable to non-controlling interests represents external interests in the Hilli Episeyo and the finance lease variable interest entities ("VIEs").

Financing and Liquidity

Golars total cash position as at June 30 was $545.4 million (including long-term restricted cash), of which $139.8 million was unrestricted. Included within restricted cash is $115.0 million relating to lessor-owned VIEs, $152.0 million relating to the Hilli Episeyo LC and $96.8 million of collateral in respect of the TRS.

During August, Golar executed a new margin loan to replace the March 2020 maturing $100 million facility.  The new $110 million facility is revolving and continues to be secured by Golars common unit investment in the Partnership. In addition to the increased amount the new facility also provides for the release of restricted cash. New liquidity from this facility including restricted cash released amounts to $30 million.

Also in August Golar executed a new $150 million term loan facility providing further liquidity.

Golar is currently in discussions with Perenco about a reduction in the Hilli Episeyo LC requirement (with a proportionate decrease in the Perenco and SNH security).  This is expected to result in the release of approximately $75 million of restricted cash to free cash.

The success of Hilli Episeyo, the signing of the contract with BP for the Gimi and Golars general FLNG business development has attracted a great deal of interest from infrastructure funds.  The Company has received multiple expressions of interest and offers to invest in the current and future Contract Earnings Backlog1 which it continues to evaluate.

Golar's contractual debt1 including 100% of Hilli Episeyo as at June 30 was $2.6 billion. Golar's adjusted net debt1 was $2.3 billion. Upon closing of the ship spin-off transaction contractual debt1 and adjusted net debt1 are expected to reduce by approximately $1.0 billion.

Included within the $802.3 million current portion of long-term debt and short-term debt on the Balance Sheet as at 30 June is $724.0 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo.

Corporate and Other Matters

To simplify Golars capital structure, remove the cash collateral requirement and reduce earnings volatility the Company intends to buy back the 3 million shares underlying the TRS.  In order to finance this buyback the Board has approved the suspension of the dividend for two quarters which amounts to a cash saving of approximately $30 million.  The cash cost of eliminating the 3 million TRS shares less the current (restricted) cash collateral posted is a net cash amount of approximately $31 million, as of August 27, 2019.  As at June 30, 2019, there were 101.3 million shares outstanding, including the 3 million shares underlying the TRS.

Interest from third party industrial and institutional investors confirms that there is significant value over and above book values for both FLNG projects and Golar Power. The third party valuations purely reflect exposure to the $6.5 billion of contracted earnings backlog1 from existing assets. Further value exists in the strategic positions created and the project portfolio Golar is currently developing within the FLNG and LNG downstream business.

During the quarter 0.2 million Restricted Stock Units (RSUs) were granted to employees.  An RSU represents the right to receive a share of Golar LNG Limited common stock after a vesting period has been satisfied.  The RSUs will vest over a three-year period in one-third increments.  There were also 3.7 million outstanding stock options in issue with an average price of $35.85.

Golars Annual General Meeting is scheduled for September 27, 2019 in Bermuda.  The record date for voting was August 1, 2019.

Commercial Review

LNG Shipping

A mild spring together with the anticipated start up and ramp up of significant new LNG supply meant that Far East LNG continued to trade at around $4-5/mmbtu throughout this traditionally weak shipping quarter, eliminating inter-basin trading opportunities. Lower LNG prices that left limited scope to pay for freight meant that US volumes were pushed into Europe. Increased Chinese demand offset weaker demand from Japan and Korea however the ongoing trade war between the US and China meant that China continued to source its spot LNG requirements from more proximate markets. Although average sailing distances increased as US volumes continued to find markets in South Korea and Japan, ton-mile growth remained subdued. A steady supply of newbuild deliveries together with shorter than anticipated voyages that increased the number of available sublet vessels originally destined to service certain projects meant that demand was matched by vessel availability throughout the quarter. As a result, owners keen to position themselves for the H2 upturn aggressively bid for single voyages to secure near-term utilization. This contributed to an unusual decrease in TCE1 despite an increase in utilization and a disconnect between firming term rates and muted spot rates.

During June, commissioning cargoes were exported from both Cameron T1 and Prelude. Both have since commenced commercial operations. Chenieres Corpus Christi T2 also commenced LNG production, recently followed by Freeport LNG. The imminent arrival of substantial new, predominantly US, volumes also coincides with a reduction in newbuild vessel deliveries. This together with a contango in the gas market with forward prices of $6.4mmbtu being quoted for December sets the stage for a strong shipping market over the next two years. A number of charterers have approached the market to cover their requirements for this period leaving a handful of owners including Golar with flexible tonnage going forward. The level of interest in longer-term charters continues to increase.

GasLog has now withdrawn its 6 vessels from, and Golar assumed 100% ownership of, the Cool Pool, which continues to commercially manage Golars TFDE vessels together with the Golar Tundra and one of Golar Powers vessels. Ownership of the Cool Pool will be transferred from Golar to the separate shipping entity upon formation. Those vessels not already contracted for 12-months or more together with the Golar Tundra and the Golar Power vessel will then be commercially managed by the Cool Pool.

The proposed spin-off of the 8 TFDE carriers in the Golar fleet is anticipated to happen before the end of 2019, subject to market conditions.

Golar Partners (a non-consolidated affiliate of Golar LNG)

Full utilization of the FSRU Golar Igloo, an improved daily rate in respect of the Golar Grand, recognition of a day one gain on the FSRU Golar Freeze contract and hire at its full daily rate, offset by interest rate swap losses, collectively resulted in the Partnership reporting a 2Q net loss of $5.5 million.

The FSRU Golar Freeze completed its first full quarter of operations under its new 15-year contract in Jamaica. As the contract term is for the major part of the vessels remaining economic life, US GAAP requires that it be accounted for as a finance lease. This triggered the recognition of a 2Q $4.2 million day one gain.

With respect to the Partnership's ships, Golar Mazo remained idle throughout the quarter whilst the Golar Maria achieved close to full utilization but at a substantially discounted rate relative to 1Q. Despite an increase in the rate receivable by the Golar Grand between May 2019 and May 2020, revenue earned from the Partnerships ships was $3.7 million down on 1Q.

By virtue of its 50% interest in Hilli Episeyo's common units, the Partnership is entitled to 50% of the net earnings of Hilli Episeyo attributable to common unit holders. Golar Partners received a $3.9 million dividend in 2Q as a result.

A full quarter's contribution from both FSRU Golar Igloo and FSRU Golar Freeze partly offset by reduced earnings in respect of its carriers resulted in a solid improvement in a distribution coverage ratio1 which increased from 1.01 in 1Q to 1.12 in 2Q. Based on current forecasts a further improved distribution coverage ratio1 is expected for 3Q.

FLNG

FLNG Hilli Episeyo continues to achieve 100% commercial uptime. The vessel recently exported its 25th cargo. Discussions continue with field operator Perenco with respect to increasing the vessel's utilization and potentially increasing the overall duration of the contract term.  The initial focus of these discussions remains on utilization of train 3 and the contract adjustments necessary to ensure that the export of additional LNG at current prices is an attractive proposition for all parties. We expect resolution of this by year-end.

The FLNG Gimi Conversion project continues on target in Singapore.  Seventy percent owned FLNG Gimi, expected to cost $1.3 billion excluding financing costs, will service the 20-year contract with BP offshore Mauritania and Senegal, commencing 4Q 2022. Procurement of long lead items, vessel life extension, removal of redundant equipment and fabrication of the sponsors are being progressed.

On July 30, Golar together with Leviathan Joint Venture Partners Noble Energy, Delek Drilling and Ratio Oil entered into an Interim Project Development Agreement to assess the viability of a Golar FLNG solution to support future development phases of the Eastern Mediterranean Leviathan project. The initial development phase of this world-class 620bcm field will supply Middle East markets via existing pipeline infrastructure. The Interim Project Development Agreement contemplates the potential use of an FLNG solution to monetize subsequent expansion phases via the export of LNG to global markets. Using design basis input from the Leviathan Partners, Golar will assess the compatibility of its existing FLNG Front End Engineering and Design study for an FLNG vessel of up to 5mtpa. The Company believes that its generic mark III newbuild solution will be suitable for this and other potential projects under active discussion.

In addition, the Company has recently entered into agreements and negotiations with a number of major oil and gas companies to assess various opportunities globally for deploying its generic FLNG vessels, which if concluded have the potential for the counterparties to reach a final investment decision in 2020. The Company has however decided against jointly developing the FLNG vessel for the US Gulf Coast Delfin LNG project.

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners non-consolidated downstream joint venture)

Pre-commissioning of the Sergipe power plant continues. FSRU Golar Nanook is being hooked-up to its mooring and first fire of the power stations gas turbines is due in October. Commissioning of the plant and gas supply systems is underway and will progress over the coming 4-months.  Although the overall timetable is challenging, commercial acceptance in January, 2020 remains achievable.

License approvals for other projects in Brazil are also making good progress. In Babitonga Bay, Santa Catarina, Golar Power has received key government licences for an FSRU terminal.  An oil major is expected to use most of the FSRU capacity to supply a power plant that Golar Power has the option to invest in.  A small amount of spare FSRU capacity would also allow Golar Power to pursue other local downstream opportunities.  Similarly, in Barcarena, Para, the first major licenses have been received that allow Golar Power to build both an FSRU terminal and a power station.  A major industrial user would be the anchor tenant for this facility however significant spare capacity would remain.  Opportunities to utilize this spare capacity include a potential power plant as well as small-scale LNG distribution.

In respect of downstream LNG/diesel switching opportunities, conversion of non-binding expressions of interest into Gas Sales Agreements with customers in Brazil is progressing well. The intention is to use both the storage, for breaking bulk, and up to potentially 200 million mmbtu p.a. spare regas capacity of the FSRU Golar Nanook.  Golar Power is in advanced discussions with Avenir Ltd for the provision of a 7,500 M3 LNG carrier to provide downstream distribution of LNG around the coast of Brazil. Access to trucking capacity has been secured and LNG isotainers have been acquired. Successful development of these opportunities can generate a material contribution to Golar Power's earnings.  The base case scenario now assumes that this will take effect from mid-2020.

Golar has prompt FSRUs available to support both projects. Once fully permitted the Babitonga and Bacarena terminals together with spare capacity on the FSRU Nanook collectively puts Golar Power in a strong position to win future power auctions, and to distribute significant quantities of LNG locally.

Non-GAAP measures

Adjusted EBITDA: Adjusted EBITDA is calculated by taking net income before interest, tax, unrealized mark-to-market movements on the oil derivative instrument, depreciation and amortization. We believe that the exclusion of these items enables investors and other users of our financial information to assess our sequential and year over year performance and operating trends on a more comparable basis and is consistent with managements own evaluation of business performance. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net (loss)/income or any other indicator of Golar's performance calculated in accordance with US GAAP. The table below reconciles net (loss) income, the most directly comparable US GAAP measure, to Adjusted EBITDA.

Last Twelve Months Further Adjusted EBITDA:  Last Twelve Months Further Adjusted EBITDA is calculated as Adjusted EBITDA for the last twelve months, less one-off gains/(losses) for the last twelve months, less Golar Partners share of Hilli Adjusted EBITDA (as defined below) for the last twelve months.  Management uses a trailing 12 month approach to remove the impact of seasonality on our results.  In Last Twelve Months Further Adjusted EBITDA management has removed a one-off gain relating to Golar Tundra claim monies as this would not be expected to occur on a regular basis ($50 million), offset by an impairment for OneLNG and an impairment associated with the Gandria. Management believes that the definition of Last Twelve Months Further Adjusted EBITDA provides relevant and useful information to investors.  Last Twelve Months Further Adjusted EBITDA is not intended to represent future cash flows from operations or net income/ (loss) as defined by US GAAP. Last Twelve Months Adjusted EBITDA is a non-GAAP financial measure and should be seen as a supplement to and not a substitute for our US GAAP measures of performance and the financial results calculated in accordance with US GAAP and reconciliations from these results should be carefully evaluated. The table below reconciles Last Twelve Months Adjusted EBITDA to Last Twelve Months Further Adjusted EBITDA.

Golar Partners share of Hilli Adjusted EBITDA:  Golar Partners share of Hilli Adjusted EBITDA is defined as Golar Partners share of Golar Hilli LLCs (Hilli LLC) revenue and operating expenses before interest, tax, depreciation and amortization.  As we have retained control of Hilli LLC we continue to consolidate its results on a line by line basis. In order to calculate our proportionate share of Last Twelve Months Further Adjusted EBITDA, management has removed the amount attributable to Golar Partners. From a US GAAP perspective, we recognize Golar Partners share of Hilli LLC within net income attributable to non-controlling interests.  This is a non-GAAP financial measure and is not intended to represent future cash flows attributable to Golar Partners. This measure should be seen as a supplement to and not a substitute for our US GAAP measures of performance. Refer to Golar Partners' earnings releases for a reconciliation to the most comparable US GAAP measure: http://www.golarlngpartners.com/investors/quarterly-reports.

 20192019201820182018201820172017
(in thousands of $)Apr-Jun

   

2019 Annual General Meeting

Company news

2019-08-16 13:40:01

Further to the press release of July 5, 2019 giving notice that the Golar LNG Limited 2019 Annual General Meeting will be held on September 27, 2019, a copy of the Notice of Annual General Meeting and associated information including the Companys Annual Report on Form 20-F can be found on our website at http://www.golarlng.com and in the attachments below.

Golar LNG Limited
Hamilton, Bermuda
August 16, 2019


Attachments



   

Golar LNG Limited Q2 2019 results presentation

Company news

2019-08-13 18:30:01

Golar LNG's 2nd Quarter 2019 results will be released before the NASDAQ opens on Thursday August 29, 2019. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Thursday, August 29, 2019. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:
International call +44 2071 928 000
UK Free call 0800 376 7922
US Toll +1 631 510 7495
USA Free call 866 966 1396
Norway Toll +47 23 96 02 64
Norway Free call 800 51874
The participants will be asked for their name and conference ID. The Golar conference ID is 1975358

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 3333 009 785
United States +1 917 677 7532
Norway +47 21 03 42 35

- followed by replay access number 1975358.   This service will be available for the 7 days immediately following the scheduled event.

   

2019 Annual General Meeting

Company news

2019-07-05 14:30:02

Golar LNG Limited advises that its 2019 Annual General Meeting will be held on September 27, 2019.  The record date for voting at the Annual General Meeting is set to August 1, 2019.  The notice, agenda and associated material will be distributed prior to the meeting.

Golar LNG Limited
Hamilton, Bermuda
July 5, 2019

   

Changes to the Cool Pool

Company news

2019-06-06 15:10:01

Golar LNG Limited ("Golar") announces today that due to the potential spin-off of its TFDE fleet into a new pure-play LNG shipping entity, GasLog has decided to withdraw its six vessels from the Cool Pool.  Golar, or, subject to interim market conditions, the spin-off entity, will assume ownership of the Cool Pool following GasLog's departure in June.  There will be a ramp down period to allow for conclusion of existing GasLog vessel charter contracts. 

Golar are in talks with other owners of similar tonnage to join the new shipping entity.  It is expected that Golar's spot traded TFDE carriers, the Golar Tundra together with Golar Power's available TFDE carriers and any further tonnage within the new shipping entity will continue to trade within the Cool Pool after a formal launch of the spin-off. Transfer of the Cool Pool to this new shipping entity is expected to create the leading independent provider of available on-the-water TFDE LNG carriers. Formal launch of the spin-off and the transfer of the shares in Cool Pool thereto remains subject to satisfactory market and other closing conditions.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda
June 6, 2019
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2019-05-21 14:30:02

Reference is made to the first quarter 2019 report released on May 21, 2019. Golar LNG has declared a total dividend of $0.15 per share to be paid on July 3, 2019. The record date will be June 13, 2019.

Golar LNG Limited
Hamilton, Bermuda
21 May, 2019





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 31 March 2019

Company news

2019-05-21 14:20:02

Highlights

  • Gross contract earnings backlog1 increased from $7.3 billion to $10.3 billion.
  • Golar's ("Golar" or "the Company") total operating revenues decreased from $181.9 million in 4Q 2018 to $114.3 million in 1Q 2019.
  • Adjusted EBITDA1 decreased from $121.2 million in 4Q 2018 to $62.9 million in 1Q 2019.
  • After recognition of $28.4 million of unrealized Brent oil linked mark-to-market derivative instrument gains and a $34.3 million impairment charge in relation to the Golar Viking, Golar reported operating income of $28.9 million for 1Q 2019.
  • Golar and BP executed contracts for the provision of an FLNG vessel to service the Greater Tortue/Ahmeyim project offshore Mauritania and Senegal for 20 years.
  • Golar received a Final Notice to Proceed with the conversion, sale and subsequent operation of Golar Viking as a FSRU in Croatia. The sale is expected to generate net positive cash of approximately $40 million in 2020.
  • The shipping fleet recorded Time Charter Equivalent1 ("TCE") earnings of $39,300 per day ($39,100 for spot TFDE vessels).
  • FSRU Golar Nanook loaded first Sergipe commissioning cargo from FLNG Hilli Episeyo.
  • Net of financing expenses, equity in net losses of affiliates, taxes and net income attributable to non-controlling interests, Golar reported a 1Q 2019 net loss of $41.7 million.

 

Subsequent Events

  • Gimi MS Corporation ("Gimi MS") received a firm $700 million underwritten financing commitment for the FLNG Gimi.
  • As intended, First FLNG Holdings Pte. Ltd, an indirect wholly owned subsidiary of Keppel Corporation Limited held through Keppel Capital Holdings Pte Ltd. subscribed to 30% of the issued ordinary share capital of Gimi MS.
  • Gimi MS issued Keppel Shipyard with a Final Notice to Proceed with FLNG Gimi conversion works.
  • A 2-year extension to the Golar Tundra sale and leaseback facility was agreed and a 5-year restated and amended facility in respect of the Golar Arctic was credit approved.
  • Dividend of $0.15 cents per share declared for quarter.
  • At a recent meeting in Bermuda, the Board decided to proceed with a spin-off of the Company's Trifuel Diesel Electric ("TFDE") LNG carrier business, subject to satisfactory market conditions, and to focus the Company's future activities primarily around FLNG and downstream assets. This will allow LNG shipping investors more direct exposure to the LNG shipping market and reposition Golar's core business toward LNG infrastructure on long-term contracts.

Financial Review

Business Performance

  2019 2018
  Jan-Mar Oct-Dec
(in thousands of $) Vessel and other operations FLNG Total Vessel and other operations FLNG Total
Total operating revenues 59,763   54,524   114,287   127,415   54,524   181,939  
Vessel operating expenses (18,176 ) (13,072 ) (31,248 ) (18,407 ) (10,692 ) (29,099 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (16,140 ) (360 ) (16,500 ) (40,690 ) 605   (40,085 )
Administrative expenses (12,893 ) (652 ) (13,545 ) (12,902 ) 227   (12,675 )
Project development expenses (668 ) (922 ) (1,590 ) (928 ) (3,798 ) (4,726 )
Realized gain on oil derivative instrument(2) -   2,233   2,233   -   12,419   12,419  
Other operating gains (losses) 9,260   -   9,260   14,740   (1,296 ) 13,444  
Adjusted EBITDA(1) 21,146   41,751   62,897   69,228   51,989   121,217  
             
Reconciliation to operating income (loss)            
Unrealized gain (loss) on oil derivative instrument(2) -   28,380   28,380   -   (195,740 ) (195,740 )
Depreciation and amortization (16,112 ) (12,051 ) (28,163 ) (16,244 ) (12,051 ) (28,295 )
Impairment of long-lived assets

 
(34,250 ) -   (34,250 ) -   -   -  
Operating income/(loss) (29,216 ) 58,080   28,864   52,984   (155,802 ) (102,818 )

(2)With effect from the quarter ended September 30, 2018, we have split the line item "Realized and unrealized gain on oil derivative instrument" relating to income from the FLNG Hilli Episeyo Liquefaction Tolling Agreement into two line items, "Realized gain on oil derivative instrument" and "Unrealized (loss) gain on oil derivative instrument". The unrealized component represents a mark-to-market gain of $28.4 million (December 31, 2018: loss of $195.7 million) on the oil embedded derivative, which represents the estimate of expected receipts under the remainder of the Brent oil linked clause of the Hilli Episeyo Liquefaction Tolling Agreement. The realized component amounts to $2.2 million (December 31, 2018: $12.4 million) and represents the income in relation to the Hilli Episeyo Liquefaction Tolling Agreement receivable in cash. This presentation change has been retrospectively adjusted in prior periods.

 

Golar reports today 1Q 2019 ("1Q") operating income of $28.9 million compared to a $102.8 million loss in 4Q 2018 ("4Q"). 

Total operating revenues net of voyage, charterhire and commission expenses decreased from $141.9 million in 4Q to $97.8 million in 1Q. Of the 1Q total, $43.6 million is derived from vessel and other operations and $54.2 million is from FLNG operations.

Revenues from vessel and other operations, including management fee income, net of voyage, charterhire and commission expenses decreased by $43.1 million to $43.6 million in 1Q. China's decision to pull LNG purchases forward into 4Q18 to avoid gas shortages together with a mild winter in Asia resulted in elevated LNG inventory levels into 1Q19.  Asian LNG prices dropped, Inter-basin trading opportunities disappeared and ton-miles, utilization and rates fell as a result. Fleet utilization decreased from 93% in 4Q to 51% in 1Q. Full fleet TCE1 earnings decreased from $77,600 in 4Q to $39,300 in 1Q.

In line with prior quarters, FLNG Hilli Episeyo generated operating revenues of $54.5 million including base tolling fees and amortization of pre-acceptance amounts recognized.

Vessel operating expenses at $31.2 million in 1Q were $2.1 million higher than 4Q.  Most of the increase is attributable to FLNG Hilli Episeyo due to increased crew tax costs as well as additional repairs and maintenance.

At $13.5 million for the quarter, total administrative expenses were $0.9 million higher than 4Q.

Capitalization of costs incurred in relation to the BP-Kosmos FLNG project from the point of FID in December 2018 resulted in a $3.1 million reduction in project expenses from $4.7 million in 4Q to $1.6 million in 1Q.

The Brent oil linked component of Hilli Episeyo's fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three-month look-back at average Brent Crude prices. Amounting to $2.2 million in 1Q, the realized gain on the oil derivative instrument was down $10.2 million on 4Q. The decrease in this hire component is the result of lower oil prices, particularly during December and January.

The mark-to-market fair value of the derivative asset increased by $28.4 million during the quarter, with a corresponding unrealized gain of the same amount recognized in the income statement. The fair value increase was driven by an upward movement in the expected future market price for Brent Oil. The spot price for Brent Oil increased from $50.57 per barrel on December 31 to $68.39 on March 31 and has recovered further, to $71.97 per barrel on May 20.

Other operating gains and losses within vessel and other operations reported a 1Q gain of $9.3 million, representing a final settlement from the terminated contract for the Golar Tundra.

Depreciation and amortization at $28.2 million in 1Q was in line with the prior quarter.

On the 29th March, Golar signed contracts with LNG Hrvtska d.o.o. relating to the conversion and subsequent sale of the converted carrier Golar Viking. Although the sale is not expected to close until 4Q 2020, the transaction triggered an immediate impairment test. As the current carrying value of the vessel exceeds the price a market participant would pay for it as a carrier today, a non-cash impairment charge of $34.3 million has been recognized. The sale is expected to generate net positive cash of approximately $40 million.

 

Net Income Summary

  2019 2018
(in thousands of $) Jan-Mar Oct-Dec
Operating income (loss) 28,864   (102,818 )
Interest income 3,214   2,983  
Interest expense (29,352 ) (31,251 )
Losses on derivative instruments (5,699 ) (23,605 )
Other financial items, net (1,407 ) (780 )
Income taxes (205 ) (627 )
Equity in net losses of affiliates (12,899 ) (154,089 )
Net income attributable to non-controlling interests (24,257 ) (2,770 )
Net loss attributable to Golar LNG Limited (41,741 ) (312,957 )

In 1Q, the Company generated a net loss of $41.7 million. Key items contributing to this are summarized as follows:

  • A small reduction in LIBOR, 2 fewer days in the period and a $0.4m increase in capitalized interest in respect of FLNG Gimi resulted in a $1.9 million reduction in 1Q interest expense.
  • 1Q recorded a $5.7 million loss on derivative instruments compared to a 4Q loss of $23.6 million.  Most of the $17.9 million reduction in 1Q relative to 4Q is attributable to a smaller loss on the Golar shares Total Return Swap ("TRS").
  • The $12.9 million 1Q equity in net losses of affiliates is primarily comprised of the following:
    • a $4.0 million loss in respect of Golar's 50% share in Golar Power;
    • a $7.7 million loss in respect of Golar's 32% stake in Golar Partners; and
    • a $0.4 million loss in respect of Golar's 22.5% stake in Avenir.

The 4Q loss in respect of Golar's stake in Golar Partners was substantially higher at $157.9 million following a $149.4 million impairment of the carrying value of Golar's interest in the Partnership. Further losses on interest rate swaps, which are a part of the Partnership's interest hedging program, were a major contributor to the Partnership's 1Q net loss.

Net income attributable to non-controlling interests represents external interests in the Hilli Episeyo and the finance lease variable interest entities ("VIEs").

Commercial Review

LNG Shipping

Golar recorded a 1Q TCE1 of $39,300 per day, up 9% on the $35,900 per day achieved in 1Q 2018 but down 49% on the $77,600 achieved in 4Q. This is comprised of a TCE1 of $39,100 in respect of its total TFDE fleet, and $40,100 for its two steam ("ST") vessels.

The 1Q LNG shipping market declined from strong 4Q levels in line with historic seasonality.  LNG demand growth in China and other SE Asian countries was largely offset by declines in Japan and Korea due to a combination of a milder than expected winter and the re-start of several nuclear facilities.  Chinese 1Q demand was up 20% up on 1Q 2018. During the quarter LNG prices reached 3-year lows, which eliminated inter-basin trading opportunities.  At quarter end, LNG was trading at around 6% of Brent, well below energy parity.  Atlantic basin cargoes from the US and Russia into Europe doubled by volume compared to 1Q 2018.  With these additional volumes remaining in Europe, ton-miles and shipping rates continued to fall throughout the quarter, with spot TFDE and ST rates reaching $40,000 and $24,000 respectively by the end of March. The recently introduced tariffs for US LNG into China have also limited US export volumes into China.

Shipping rates achieved so far in 2Q 2019 have been weaker than 1Q but rates and activity have now commenced their seasonal recovery. The strong contango in the gas market with forward prices of $9mmbtu being quoted for December 2019 give solid support to an improved shipping market. The 2019 vessel demand growth of 15% is expected against supply growth of 9%.  Further vessel demand growth of 14% is expected in 2020 with supply growth again lagging at 9%.  This reinforces our belief that LNG shipping will enter a period of structural shortage for the next few years. 

Leading brokers continue to forecast a 10+ vessel shortfall at the end of 2019, increasing to more than 20 at the end of 2020. Rates are expected to reflect this from 2H 2019 and remain strong for the next two years. This has resulted in an increase in requests for medium to long-term charterers. Golar has recently concluded several charters with oil and gas majors and large LNG charterers. These charters are based on index-linked rates and secure full utilization of the chartered vessels.

At its recent meeting in Bermuda, the Board made a decision to proceed with a spin-off of the Company's TFDE LNG carrier business, subject to satisfactory market conditions, and to focus the Company's future activities primarily around FLNG and downstream assets. This will allow LNG shipping investors more direct exposure to the LNG shipping market and reposition Golar's core business toward LNG infrastructure on long-term contracts. Golar are in talks with other owners of similar tonnage to join the new shipping company and have discussed with Golar Power exchanging one of their LNG carriers for the FSRU Golar Tundra.  Management of Golar's vessels will remain with Golar Management Norway AS. Assuming the joint structure proceeds as planned, Golar's direct exposure to the carrier market will then be limited to one modern steam turbine vessel, Golar Arctic, with Golar Viking contracted to be sold in 2020 post FSRU conversion.

 

Golar Partners (a non-consolidated affiliate of Golar LNG)

The Partnership reported a 1Q net loss of $15.0 million as a result of further mark-to-market interest rate swap losses, scheduled winter downtime for the FSRU Igloo and additional idle time for the spot traded LNG carrier Golar Mazo, partly offset by commissioning hire billed in respect of the FSRU Golar Freeze from 11 January.

The FSRU Golar Igloo completed its scheduled 5-year drydock during the Kuwait winter downtime period ahead of commencing its 6th annual regas season on February 25. The vessel will remain in service until December 31 with potential for a further contract extension later in the year via a tendering process.

With respect to the Partnership's ships, charterers of the carrier Golar Grand exercised the first of their one-year extension options. The option rate between May 2019 and May 2020 will represent a material improvement on the initial 2-year rate.  This will be partly offset by reduced utilization of the Golar Maria and Golar Mazo in the spot market.

By virtue of its 50% interest in Hilli Episeyo's common units, the Partnership is entitled to 50% of the net earnings of Hilli Episeyo attributable to common unit holders. The Partnership received a dividend in 1Q amounted to $3.0 million.

Distribution coverage1 for 1Q each year is typically low as a result of the scheduled Golar Igloo winter downtime. This remains the case for 2019 where distribution coverage1 fell from 1.2 in 4Q to 1.01 in 1Q.  A full quarter's contribution to adjusted EBITDA1 from both FSRU Golar Igloo and FSRU Golar Freeze partly offset by more volatile near-term earnings in respect of carriers Golar Maria and Golar Mazo is expected to result in a solid improvement to 2Q 2019 distribution coverage.

 

FLNG 

FLNG Hilli Episeyo continues to achieve 100% commercial uptime. By early May Hilli Episeyo had satisfied its first 1.2 million tons of production, which is expected to result in the release of approximately $29.0 million of letter of credit ("LC") cash to 2Q 2019 liquidity. Detailed discussions continue with field operator Perenco with respect to the logistics and timing of increasing both the vessel's utilization and potentially materially increasing the overall duration of the contract term.  These discussions remain on track to conclude before the end of this year.

On February 26, a 100% owned Golar subsidiary, Gimi MS entered into an agreement with BP for the charter of an FLNG unit, Gimi, for a 20-year period expected to commence in 2022. On April 16, Keppel subscribed to 30% of the ordinary share capital of Gimi MS. Total conversion works for FLNG Gimi are expected to cost approximately $1.3 billion, excluding financing costs. Annual contracted revenues less forecasted operating costs of approximately $215 million are expected, equivalent to a total forecasted Contract Earnings Backlog1 of $4.3 billion, of which Golar's 70% share is expected to be $3.0 billion.

The Gimi chartering contract with BP has been signed and the conversion contract with Keppel Shipyard is now effective. Financing has been secured, the first yard installment has been paid and the project is proceeding according to schedule.

A term sheet expected to form the basis of a shareholders agreement has also been agreed with respect to the US Gulf of Mexico "Delfin LNG" project.  Discussions with potential off-takers continue.

The successful commencement of Hilli Episeyo has led to a significant pipeline of new FLNG opportunities. Investors should however be cognizant of the time it takes to execute FLNG opportunities. In most cases FLNG projects include large upstream development processes and material governmental interaction linked to permits, taxation and government participation. The strong cashflows from these projects makes them attractive financing prospects after commencement of operations however pre-delivery construction financing remains capital intensive.

Golar is working actively with yards, equipment providers and financial institutions to develop a design, reduce the capital requirements and to identify a commercial model where our FLNG business becomes more scalable. These developments are all based on the successful technical experience we have gained from the Hilli and Gimi projects.


Golar Power (50/50 Golar/Stonepeak Infrastructure Partners non-consolidated downstream joint venture)

Construction of the Sergipe power plant remains on track for commencement of operations on January 1, 2020. The power station is now nearing mechanical completion and pre-commissioning of selected systems has commenced in anticipation of first firing of the gas turbines in early July. Transmission lines from the substation to the grid were connected on May 3 and the FSRU Nanook with its commissioning cargo is ready for hook-up to the mooring.

Golar's share of expected annual contracted revenues less forecasted operating expenses from the fully financed Sergipe power project and Golar Nanook FSRU is around $99 million assuming a BRL/USD exchange rate of 3.7, regardless of whether power is dispatched or not.

As indicated in February, Golar Power commenced a strategic review during the quarter.  Following the initial phase of this review, the Board of Golar Power has deferred any decision on a potential IPO until 2020. Golar Power will now capitalize on its local presence by focusing on the downstream small-scale LNG market in Brazil.  Successful development of these opportunities can generate a material contribution to Golar Power's earnings in 2020 and 2021. The main focus of the small-scale distribution model is to replace diesel, LPG and fuel-oil with LNG. The market in Brazil is large with diesel consumption equivalent to approximately 40mtpa of LNG demand.

The excess capacity of Golar Nanook is key to developing these opportunities. Nanook has excess throughput capacity of up to approximately 200 million mmbtu per annum over and above what must be reserved for full dispatch at the power station.  This represents approximately two thirds of the vessels capacity.

Assuming a spread of USD $1.00 p/mmbtu can be captured for this open capacity, this would lead to approximately USD $100 million in additional adjusted EBITDA per annum1 for Golar Power. By integrating further downstream this margin can be materially increased. Golar Power has received a number of expressions of interest from potential customers and the level of interest has provided the confidence to move ahead. In the event that not all the capacity is used by small-scale development, there is still the potential for Sergipe expansion. The downstream distribution model created by virtue of Golar Power's interest in FSRU Nanook is characterized by capital expenditure/adjusted EBITDA1 multiples of around 2-3 times, and also by a short period between investment and commencement of cashflow.

The Government of Brazil has made a clear strategic commitment to use LNG as a cheaper and cleaner energy source. The diesel riots of 2018 and a consequent desire to reduce dependence on diesel are a key driver behind this.

This model can be repeated at other locations in Brazil including Barcarena and Santa Catarina where Golar Power has already received initial licenses for the establishment of terminals and FSRUs. The fact that Golar has prompt FSRUs available increases its ability to capitalize on these opportunities in the short term.  Noteworthy is the fact that neither of these initiatives are dependent on Golar Power securing further power provision capacity.

 

Avenir (22.5% interest in LNG small-scale venture, a non-consolidated affiliate)

Good progress is being made with Avenir's HIGAS terminal in Sardinia. Tank bases are complete, tank construction is underway and commissioning is scheduled for August 2020. Evidence of physical progress is generating interest from potential local customers. Avenir is also working on a significant demand for a new industrial plant in the south of the island starting up at the end of 2020. Further afield, active customer interest in bunkering and small-scale power has also been noted.

As a result of better functionality and cost, two 7,500cbm shipbuilding contracts with Sinopacific were recently signed to replace Avenir's contract for two similar vessels at Keppel. Although there have been several requests to charter Avenir's vessels at attractive rates these assets are viewed more as strategic tools that allow it to become an integrated LNG distributer. Opportunities to this end are preferred.

The value of Golar's Avenir shares has, since the offering last year, increased by 75%.

 

Financing Review

Golar's total current cash position as at March 31 was $690.3 million (including long-term restricted cash), of which $212.7 million was unrestricted. Included within restricted cash is $174.8 million relating to lessor-owned VIEs and $175.0 million relating to the Hilli Episeyo LC. Of the $175.0 million restricted cash securing the Hilli Episeyo LC, approximately $29.0 million is expected to be released to free cash in 2Q 2019. Sale of the converted Golar Viking is expected to add a further $40 million to liquidity in 2020. A further $85 million is expected to be released from the Hilli LC in 2021.

On April 16, Gimi MS, a 70% owned subsidiary of Golar, received a firm $700 million underwritten financing commitment for the FLNG Gimi.  Available during construction, the financing has a tenor of 7-years post commercial operation date ("COD") and a 12-year amortization profile. Interest payable on the facility will be the aggregate of LIBOR plus a margin of 400bps during construction, reducing to LIBOR plus 300bps post COD.

A 2-year extension to the Golar Tundra sale and leaseback facility has been agreed and a 5-year restated and amended facility in respect of the Golar Arctic has been credit approved.

Golar's contractual debt1 including 100% of Hilli Episeyo as at March 31 was $2.6 billion. Golar's adjusted net debt1 was $2.2 billion.

Included within the $924.5 million current portion of long-term debt and short-term debt on the Balance Sheet is $745.3 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo.

 

Corporate and Other Matters

As at March 31, 2019, there were 101.3 million shares outstanding, including 3.0 million TRS shares that had an average price of $45.49 per share. The TRS, which is fully collateralized, was marked-to-market as of March 31, 2019 when the closing price was $21.09 per share. The cash collateral posted against the swap is included within the restricted cash balance on the Balance Sheet. There were also 3.8 million outstanding stock options in issue with an average price of $36.03.

The Board has approved a dividend of $0.15 for the quarter.

 

Profitable growth through delivery of Cleaner and Cheaper Energy

Golar believes that natural gas has a critical role to play in providing cleaner energy for many years to come.  Our pioneering infrastructure assets provide safe, competitive and sustainable ways of liquefying, transporting and turning gas into energy around the world. Illustrating the business potential, the consumption of diesel and heavy fuel in the transportation, power and shipping markets today amounts to approximately 30 million barrels per day, while the total LNG market by comparison is equivalent to only 7.4 million barrels per day.

LNG prices have historically been linked to oil prices. Long-term prices were supported by an energy content equilibrium of around 16% of Brent.  The lower production cost of gas relative to oil combined with increased LNG volumes from Qatar, Australia and the US has reduced long-term LNG prices by approximately 30%. Long-term LNG contracts today trade at around 10-11% of Brent.  The spot Brent price is currently around USD $70 per barrel, while spot LNG prices in Europe and Asia are currently trading between USD $4-5 per mmbtu, equivalent to 6-7% of Brent.

The significant cost advantages of current LNG prices creates new opportunities.  A 14,000 TEU container ship fueled by LNG, will, based on today's spot prices, have a pre-tax operating bunker benefit of approximately $40,000 per day compared to an oil-fueled vessel.  An LNG truck in Brazil could reduce its annual pre-tax fuel cost by approximately USD $19,000 relative to a diesel truck.

Current diesel prices along the main trucking routes in Brazil are in excess of USD $25.0 mmbtu equivalent gas cost. There are two million heavy vehicles in Brazil. The potential market for a diesel to LNG conversion is therefore substantial.

Additional to the financial savings as a result of converting to LNG are the equally important environmental benefits. A conversion from diesel to LNG reduces C02 emissions by approximately 30%, SOX by close to 100%, NOX by 33% and particle PM10 pollution by a little over 66%.

 

Outlook

Golar has been transformed since 2013. Significant investment has been injected into FLNG projects, the power project in Sergipe and the development and permitting of further downstream assets. The company has been transformed from an LNG shipping company into an integrated LNG energy company.

The initial focus in 2019 has been to take FID on the Gimi (BP FLNG) and Viking (LNG Hrvatska FSRU) projects, secure project finance and award contracts for these projects.  With those tasks completed, the main focus will be to streamline the company and increase the utilization of existing assets. The intention is to significantly increase the return on investment ("ROI") without committing major capital. As noted above, the Board has, as a part of the new strategy, concluded that it would be right to spin off the TFDE shipping fleet into a separate entity, subject to market conditions. This will materially reduce the company's net debt and highlight the strength of the strong long-term cash flow coming from the remaining assets.

Shipping: With the LNG carrier market showing signs of seasonal recovery and edging into a time-frame where a structural shortage of ships appears inevitable, Golar expects that the new LNG shipping company will be an attractive pure play vehicle for investors to participate in the strong growth and cyclical recovery of the LNG shipping market.

This will allow us to reposition Golar LNG and focus primarily on two business lines:

FLNG: Our project teams will work diligently to safely deliver the Gimi project on time and on budget.  Golar will also work with Perenco to conclude an agreement to increase utilization and provide a meaningful potential extension to the charter duration for FLNG Hilli Episeyo by the end of 2019.  For future FLNG projects, Golar will continue to drive home its competitive advantage and unique FLNG operating experience.  Development of the robust FLNG pipeline, finance permitting, will add further long-term contract earnings backlog1 to the $3.7 billion (Golar share) already secured.

Golar Power: We expect commissioning of the Sergipe power station to complete in 2H19 ahead of the January 1, 2020 COD. At COD, the combination of Sergipe and Nanook will initiate the realization of approximately $2.5 billion of contract earnings backlog1 attributable to Golar. Golar Power will now develop the downstream small-scale market in Brazil, which can create significant earnings as early as 2020/21.

The Board of Directors is pleased with the work done to date in underpinning the business with key projects. The Board is however humble to the fact that these achievements have not yet been positively reflected in the Company's share price. We believe that separation of the company's assets into two entities will better position both companies.  A stock price that reflects the true strategic and contracted value of the underlying assets is a key condition to be able to grow a company.  After a period of rapid expansion and significant capital investment to build the foundation, it is time to reap the $10.3 billion gross contract earnings backlog1 and implement stronger capital discipline with full focus on ROI.  We see substantial potential for cash flow improvement through increased utilization of existing assets.

In repositioning Golar as a solid long-term cashflow business from projects that create large cost and environmental benefits for our customers the Company expects to materially broaden investor interest. With an LNG growth rate of approximately 10% pa, a gross contract earnings backlog1 of $10.3 billion, strong growth in contracted earnings, a well-financed balance sheet, a unique market leading position in FLNG, integrated power projects and a solid pipeline of opportunities, the Board is increasingly optimistic about the future.

 

 

Non-GAAP measures

Adjusted EBITDA: Adjusted EBITDA is calculated by taking net income before interest, tax, unrealized mark-to-market movements on the oil derivative instrument, depreciation and amortization. We believe that the exclusion of these items enables investors and other users of our financial information to assess our sequential and year over year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of business performance. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net (loss) income or any other indicator of Golar's performance calculated in accordance with US GAAP. The table below reconciles net (loss) income, the most directly comparable US GAAP measure, to adjusted EBITDA.

  2019 2018 2018 2018
(in thousands of $) Jan-Mar    

Golar LNG Limited - Q1 2019 results presentation

Company news

2019-05-15 15:10:01

Golar LNG's 1st Quarter 2019 results will be released before the NASDAQ opens on Tuesday May 21, 2019. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Tuesday, May 21, 2019. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 2071 928 000

UK Free call 0800 376 7922

US Toll +1 631 510 7495

USA Free call 866 966 1396
Norway Toll +47 23 96 02 64

Norway Free call 800 51874

The participants will be asked for their name and conference ID. The Golar conference ID is 8268615

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 3333 009 785

United States +1 917 677 7532

Norway +47 21 03 42 35

- followed by replay access number 8268615.   This service will be available for the 7 days immediately following the scheduled event.




This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited business update

Company news

2019-04-16 18:30:02

Golar LNG Limited ("Golar" or "the Company") announces today that, further to the announcement made on February 26 with regards to the BP Tortue project, Gimi MS Corporation ("Gimi MS"), a 70% owned subsidiary of Golar, has received a firm $700 million underwritten financing commitment for the FLNG Gimi. FLNG Gimi will service the 20-year Tortue contract with BP due to commence in 2022. Available during construction, the financing has a tenor of 7 years post COD and a 12-year amortisation profile.  Clifford Capital Pte. Ltd, ING Bank N.V., Natixis and ABN Amro Bank N.V. acted as facility underwriters.

Concurrent with receipt of the financing commitment, First FLNG Holdings Pte. Ltd ("FFH"), an indirect wholly owned subsidiary of Keppel Corporation Limited held through Keppel Capital Holdings Pte Ltd subscribed to 30% of the total issued ordinary share capital of Gimi MS.  Gimi MS also issued Keppel Shipyard with a Final Notice to Proceed with FLNG Gimi conversion works that had been initiated under the Limited Notice to Proceed in December 2018.

Project developers of the Croatian FSRU facility, LNG Hrvatska d.o.o. have also issued Golar with a Notice to Proceed with the conversion and subsequent purchase of the 2005 built LNG carrier Golar Viking.  Conversion capex will largely be funded by stage payments from LNG Hrvatska under the agreement.   After a robust vetting process Hudong has been selected as the yard to undertake the requisite conversion works.  CSSC Leasing, an affiliate company of the yard, is expected to provide both conversion financing and bridging finance for the current vessel facility between yard entry, expected in 1Q 2020, and sale to LNG Hrvatska for 159.6 million upon completion. Golar will also receive an annual fee to operate the FSRU for 10-years.

Golar has also received agreement from Lenders of the FSRU Golar Tundra, subject to documentation, to extend the June 2019 maturing facility to June 2021.  Documentation of the Gimi and Tundra facilities is now underway. Having agreed a term sheet, good progress has also been made with respect to refinancing the December 2019 maturing LNG carrier Golar Arctic facility.

CEO Iain Ross commented, "In line with guidance provided in the last quarterly earnings announcement Golar continues to make progress in line with expectations.  The Company looks forward to providing further details when it reports its 1Q 2019 results next month".

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:

  • our inability and that of our counterparty to meet our respective obligations under the Lease and Operate agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project, or the FSRU Delivery Contract entered into in connection with the Croatian FSRU project with LNG Hrvatska d.o.o;
  • changes in our relationships with our counterparties, including our major chartering parties;
  • failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;
  • changes in our ability to obtain additional financing on acceptable terms or at all;
  • increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance as well as the cost of constructing the FLNG Gimi and converting the Golar Viking;
  • changes in general domestic and international political conditions, particularly where FLNG Gimi will operate;
  • a decline or continuing weakness in the global financial markets; and
  • other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

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.

Hamilton, Bermuda

April 16, 2019

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan




This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Announcement of filing of Form 20-F Annual Report

Company news

2019-03-29 17:00:01

Golar LNG Limited announces that it has filed its Form 20-F for the year ended December 31, 2018 with the Securities and Exchange Commission in the U.S.

Form 20-F can be downloaded from the link below, is available on our website (www.golarlng.com) and shareholders may receive a hard copy free of charge upon request. 

March 29, 2019
The Board of Directors
Hamilton, Bermuda
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2019-02-27 15:30:02

Reference is made to the fourth quarter 2018 report released on February 27, 2019. Golar LNG has declared a total dividend of $0.15 per share to be paid on April 3, 2019. The record date will be March 14, 2019.

Golar LNG Limited
Hamilton, Bermuda
27 February, 2019





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited preliminary fourth quarter and financial year 2018 results

Company news

2019-02-27 14:20:01

Highlights

  • Total operating revenues for Golar LNG Limited ("Golar" or "the Company") increased from $123.1 million in 3Q to $181.9 million in 4Q. Full year 2018 operating revenues increased to $430.6 million from $143.5 million in 2017.
  • Adjusted EBITDA1 increased from $83.5 million in 3Q to $121.2 million in 4Q. Full year 2018 Adjusted EBITDA1 increased to $218.1 million from a loss of $24.0 million in 2017.
  • The shipping fleet recorded Time Charter Equivalent1 ("TCE") earnings of $77,600 per day ($97,300 for spot TFDE vessels).
  • Established small-scale LNG entity Avenir LNG Limited ("Avenir") in conjunction with Stolt-Nielsen Limited ("Stolt-Nielsen") and Höegh LNG Holdings Limited ("Höegh").
  • Received a Limited Notice to Proceed with the conversion of a FLNG vessel to service the BP operated Greater Tortue/Ahmeyim project offshore Mauritania and Senegal.
  • FLNG Hilli Episeyo successfully completes first maintenance window ahead of schedule and maintains 100% commercial uptime.
  • Non-cash items including $195.7 million of unrealized Brent oil linked mark-to-market derivative instrument losses and a $149.4 million impairment charge in relation to its investment in Golar LNG Partners L.P. ("Golar Partners" or the "Partnership") contributed to Golar reporting a net loss of $313.0 million for 4Q.

 

Subsequent Events

  • Golar and BP execute contracts for the provision of an FLNG vessel to service the Greater Tortue/Ahmeyim project offshore Mauritania and Senegal for 20 years.
  • Subject to certain conditions precedent and receipt of a final Notice to Proceed, Golar enters into binding agreements to convert, sell and operate a FSRU in Croatia.
  • FSRU Golar Nanook commences loading operations of first Sergipe commissioning cargo from FLNG Hilli Episeyo on February 26.
  • Dividend of $0.15 cents per share declared for quarter.

Financial Review

Business Performance

  2018
  Oct-Dec Jul-Sep
(in thousands of $) Vessel and other operations FLNG Total Vessel and other operations FLNG Total
Total operating revenues 127,415   54,524   181,939   68,577   54,524   123,101  
Vessel operating expenses (18,407 ) (10,692 ) (29,099 ) (16,785 ) (12,065 ) (28,850 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (40,690 ) 605   (40,085 ) (23,280 ) (1,457 ) (24,737 )
Administrative expenses(2) (12,902 ) 227   (12,675 ) (14,804 ) 29   (14,775 )
Project development expenses(2) (928 ) (3,798 ) (4,726 ) (1,037 ) (4,704 ) (5,741 )
Realized gain on oil derivative instrument(3) -   12,419   12,419   -   11,270   11,270  
Other operating gains (losses) 14,740   (1,296 ) 13,444   26,000   (2,740 ) 23,260  
Adjusted EBITDA(1) 69,228   51,989   121,217   38,671   44,857   83,528  
             
Reconciliation to operating income (loss)            
Unrealized (loss) gain on oil derivative instrument(3) -   (195,740 ) (195,740 ) -   77,470   77,470  
Depreciation and amortization (16,244 ) (12,051 ) (28,295 ) (16,477 ) (12,051 ) (28,528 )
Operating income (loss) 52,984   (155,802 ) (102,818 ) 22,194   110,276   132,470  

(2) With effect from the quarter ended June 30, 2018, we presented a new line item, "Project development expenses", which includes costs associated with pursuing future contracts and developing our pipeline of activities that have not met our internal threshold for capitalization. Previously, these costs were presented within "Administrative expenses" along with our general overhead costs. This presentation change has been retrospectively adjusted in prior periods.

(3)With effect from the quarter ended September 30, 2018, we have split the line item "Realized and unrealized gain on oil derivative instrument" relating to income from the FLNG Hilli Episeyo Liquefaction Tolling Agreement into two line items, "Realized gain on oil derivative instrument" and "Unrealized (loss) gain on oil derivative instrument". The unrealized component represents a mark-to-market loss of $195.7 million (September 30, 2018: gain of $77.5 million) on the oil embedded derivative, which represents the estimate of expected receipts under the remainder of the Brent oil linked clause of the Hilli Episeyo Liquefaction Tolling Agreement. The realized component amounts to $12.4 million (September 30, 2018: $11.3 million) and represents the income in relation to the Hilli Episeyo Liquefaction Tolling Agreement receivable in cash. This presentation change has been retrospectively adjusted in prior periods.

 

Golar reports today a 4Q operating loss of $102.8 million compared to income of $132.5 million in 3Q 2018 ("3Q"). The loss arises as a result of a fair value change in the Hilli Episeyo contract related oil derivative from a $77.5 million gain in 3Q to a $195.7 million loss in 4Q. Adjusted EBITDA1 increased from $83.5 million in 3Q to $121.2 million in 4Q. 

Total operating revenues net of voyage, charterhire and commission expenses increased from $98.4 million in 3Q to $141.9 million in 4Q. Of the 4Q total, $86.7 million is derived from vessel and other operations and $55.1 million is from FLNG operations.

Revenues from vessel and other operations, including management fee income, net of voyage, charterhire and commission expenses increased by $41.4 million to $86.7 million in 4Q. The start-up of new LNG production facilities together with China's early entry into the winter buying market and subsequent use of vessels for floating storage generated significant vessel demand. Utilization quickly increased, as did voyage charter rates which reached record levels. Fleet utilization increased from 86% in 3Q to 93% in 4Q. Full fleet TCE1 earnings increased from $41,200 in 3Q to $77,600 in 4Q.

In line with the prior quarter, FLNG Hilli Episeyo generated operating revenues of $54.5 million including base tolling fees and amortization of pre-acceptance amounts recognized. Operational efficiency continues to improve with experience. In addition to a reduction in operating costs, more efficient use of LNG during the liquefaction process resulted in reduced 4Q FLNG related voyage expenses.

Vessel operating expenses at $29.1 million in 4Q were in line with the prior quarter. FLNG operating costs decreased by $1.4 million and are now in line with expected average operating costs for Hilli Episeyo. Offsetting this, an additional $1.8 million of unanticipated repairs were incurred during the final stages of Golar Viking's reactivation.

At $12.7 million for the quarter, total administrative expenses were $2.1 million lower than 3Q.

Reduced engineering fees in connection with the now concluded Front End Engineering and Design ("FEED") exercise for the BP-Kosmos Tortue FLNG conversion resulted in a decrease in project expenses from $5.7 million in 3Q to $4.7 million in 4Q.

The Brent oil linked component of Hilli Episeyo's fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three-month look-back at average Brent Crude prices. Amounting to $12.4 million in 4Q, the realized gain on the oil derivative instrument was up $1.1 million on 3Q. The increase in this hire component is the result of higher oil prices, particularly during September and October.

The fair value of the derivative asset decreased by $195.7 million during the quarter, with a corresponding unrealized loss of the same amount recognized in the income statement. The fair value decrease was driven by a significant downward movement in the expected future market price for Brent Oil. The spot price for Brent Oil decreased from $82.72 per barrel on September 30 to $50.57 per barrel on December 31 and has since recovered to around $65.00 per barrel today. Despite the loss in 4Q, the derivative contract still had a positive value recorded as an asset on the balance sheet of $84.7 million. Based on the spot price of $67.00 and forward curve on 21 February, the gain on this non-cash derivative since year-end would be approximately $35.6 million.

Other operating gains and losses reported a 4Q gain of $13.4 million for the quarter. A further cash recovery of $14.7 million was made during the quarter as a result of proceedings in respect of a former contract for the Golar Tundra. These proceedings are expected to end shortly. Offsetting the 4Q cash recovery in respect of Golar Tundra was the write-down of $1.3 million of Fortuna specific costs incurred in respect of the vessel Gandria.

Depreciation and amortization at $28.3 million in 4Q was in line with the prior quarter.

 

Net Income Summary

  2018 2018
(in thousands of $) Oct-Dec Jul-Sep
Operating (loss) income (102,818 ) 132,470  
Interest income 2,983   3,106  
Interest expense (31,251 ) (32,645 )
Losses on derivative instruments(4) (23,605 ) (8,004 )
Other financial items, net(4) (780 ) (227 )
Income taxes (627 ) (156 )
Equity in net (losses) earnings of affiliates (154,089 ) 2,668  
Net income attributable to non-controlling interests (2,770 ) (31,000 )
Net (loss) income attributable to Golar LNG Limited (312,957 ) 66,212  

(4) With effect from the quarter ended September 30, 2018, we presented a new line item, "(Losses) gains on derivative instruments", which relates to the change in the fair value of our derivative instruments. Previously, these items were presented within "Other financial items, net" along with our general finance costs. This presentation change has been retrospectively adjusted in prior periods.

In 4Q, the Company generated a net loss of $313.0 million. In addition to the decrease in Operating Income, key items contributing to the $379.2 million decrease in 4Q are summarized as follows:

  • 4Q recorded a $23.6 million loss on derivative instruments compared to a 3Q loss of $8.0 million.  This includes mark-to-market valuations on the Total Return Swap ("TRS") and interest rate swaps ("IRS").
  • The $154.1 million 4Q equity in net losses of affiliates is primarily comprised of a loss of $157.9 million in respect of Golar's stake in Golar Partners. Included in this loss is a $149.4 million impairment of the carrying value of Golar's interest in the Partnership. A more sustainable distribution and improving coverage following the distribution cut have not translated into a higher unit price. Golar Partners' unit price as at December 31 was $10.80, whereas the unit price at IPO was $22.50. The impairment is based on the year-end unit price of $10.80. Given the time that the Partnership's unit price has traded below its carry value, the reduction is now considered other than temporary. The unit price on February 26 was $13.78, which equates to $292.5 million for Golar's common unit equity stake. The $8.5 million balance is comprised of Golar's share of the Partnership's 4Q net loss, net of fair value adjustments. Non-cash losses on interest rate swaps were a major contributor to the Partnership's 4Q net loss.

Net income attributable to non-controlling interests represents external interests in the Hilli Episeyo and the finance lease variable interest entities ("VIEs").

Commercial Review

LNG Shipping

Key markets continue to import record levels of LNG as they distance themselves from coal and nuclear, with Chinese and Korean 2018 demand up 41% and 18%, respectively. Lessons learned from gas shortages and last minute buying at the end of 2017 meant that China entered the winter buying market earlier in 2018. Milder than expected temperatures subsequently resulted in a slower than anticipated inventory drawdown with high or full North Eastern terminals delaying a number of vessel discharges and requiring that others slow steam. The resultant increase in congestion together with a steady stream of new cargoes quickly absorbed all available ships, driving LNG carrier rates to all-time high levels in November. Effective spot rates for trifuel diesel electric propulsion ("TFDE") vessels, including positioning and ballast fees briefly exceeded $200,000 per day, with a minimal discount to gas injection vessel rates being noted. Rates for steam ("ST") vessels also reached their highest level in five years.

Drawdown of LNG as a result of cooling December temperatures then allowed vessels to discharge and speed up, adding some slack to the tight shipping availability. Despite record December LNG imports into Northeast Asia, falling Brent prices, strong European gas prices and milder weather prevented the arbitrage window from opening. The shipping balance lengthened to the extent that multiple vessels became available for spot fixtures with resulting TFDE and ST spot rates falling to $100,000 and $85,000 per day, respectively, by the end of December. Rates have continued to soften into 1Q 2019 when around half of the 2019 newbuild vessels are scheduled to deliver. JKM LNG prices have traded down to 9-10% of Brent.  This has significantly capped the global LNG arbitrage and placed further pressure on shipping rates.  These same low prices do however strengthen the long-term fundamental growth prospects of LNG as a cheap clean fuel. Comprised of a TCE1 of $97,300 for spot TFDE vessels, $91,700 in respect of its total TFDE fleet, and $13,700 for its two steam vessels, Golar recorded a 4Q TCE1 of $77,600 per day, up 151% on the $30,900 per day achieved in 4Q 2017 and 88% on the $41,200 achieved in 3Q.         

The Company's forward view of the market remains bullish despite current volatility. Vessel deliveries are expected to slow by approximately 20% from record levels of around 49 in 2018 to around 39 in 2019. Of the 2019 deliveries, only 5 are uncontracted. At the same time, new liquefaction capacity ramps up at close to its fastest pace in history with approximately 35mtpa of new LNG scheduled to come on line in 2019 versus 30mtpa in 2018. Most of this new liquefaction will originate from the US, close to doubling their current nameplate export capacity and further increasing ton-miles. Around 35 vessels and a further 20mtpa of new, predominantly US-source, LNG is scheduled to deliver in 2020. Leading brokers are forecasting a 10+ vessel shortfall at the end of 2019, increasing to more than 20 at the end of 2020.

Significant progress has been made establishing a joint structure with other ship owners that allows LNG shipping investors more direct exposure to the LNG shipping market. Golar plans to contribute its TFDE vessels, the technical management of which will remain with Golar Management Oslo, into a new company. Agreements with banks and lessors have also been reached securing approximately $1.1 billion in financing for the 9 vessels Golar is considering contributing to this new company.

A potential separation or spin-off of the LNG shipping fleet is expected to reduce the volatility in Golar's cash flows and better position the long-term contracting business for infrastructure investors.

Golar Arctic recently completed its floating storage contract in Jamaica and will shortly commence its 5-year scheduled dry-dock in Asia. Thereafter it will trade in the spot market.

Golar Viking is currently serving a short-term contract, due to expire in 1Q 2020. Golar has also entered into binding agreements with a Croatian project developer, LNG Hrvatska d.o.o., to convert the 2005 built Golar Viking into an FSRU, sell the converted vessel, and then operate and maintain the FSRU for a minimum of 10-years. Conversion capex will be funded by stage payments under the agreement. Commencement of this project is subject to certain conditions precedent, including confirmation of project funding and receipt of a Notice to Proceed from LNG Hrvatska d.o.o.

 

Golar Partners (a non-consolidated affiliate of Golar LNG)

Largely the result of a non-cash loss on interest rate swaps and a reduction in revenues recognized in respect of the FSRU Golar Freeze, the Partnership reported a 4Q net loss of $19.0 million. Although charter hire in respect of a prior contract for the FSRU Golar Freeze continues to be received on a monthly basis through to April 2019, all remaining revenue receivable in respect of this contract was recognised in 3Q. Partly offsetting reduced revenues recognized in respect of FSRU Golar Freeze was revenue from the Golar Mazo which was on hire throughout the quarter.

Dry-dock and modifications necessary to service Golar Freeze's new 15-year contract were completed on October 20. The FSRU subsequently departed Dubai arriving offshore Jamaica on December 11. Hire at the full rate is expected to commence early in 2Q. LNG carrier Methane Princess also completed its scheduled dry-docking during the quarter resulting in 20 days off-hire.

Charterers of the FSRU Golar Igloo extended the 2018 regas season to include December and subsequently elected to exercise their option to extend the charter by a further year, covering the 2019 regas season. After its scheduled 5-year dry-dock the vessel returned to Kuwait in late February to commence its 6th regas season.

Charterers of the carrier Golar Grand, cognizant of the strong underlying shipping market, have also exercised the first of their one-year extension options. The option rate between May 2019 and May 2020 will represent a material improvement on the initial 2-year rate.

By virtue of its 50% interest in Hilli Episeyo's common units, the Partnership is entitled to 50% of the net earnings of Hilli Episeyo attributable to common unit holders. The Partnership's reported share of net earnings in 4Q amounted to $1.3 million, which includes non-cash charges of $8.4 million related to the depreciation and amortization of fair value adjustments made upon acquisition of the common units.

On October 23, the Partnership's board approved a quarterly distribution going forward of $0.4042 per unit.  The Partnership has reported increased distribution coverage1 from 1.02 in 3Q to 1.20 in 4Q.

 

FLNG

FLNG Hilli Episeyo, which completed its first scheduled maintenance window during the quarter without issue and ahead of schedule, continues to operate with 100% commercial availability. The vessel is currently in the process of exporting its 16th LNG cargo. In terms of increased utilization, discussions continue with charterers Perenco and SNH. Onshore treatment and compression systems for additional gas volumes are currently being installed.  Noting that only 30-day notice is required under the current agreement, it is expected that the contracted option for the third train may be exercised during 4Q 2019 and that the base throughput could therefore be increased before the end of 2019.

Together, Perenco, SNH and Golar also see the logic in working to further increase throughput that would utilize Hilli Episeyo's fourth train. Discussions have been initiated with a view to concluding a way forward on this objective before the end of 2019.

On February 26, Golar entered into an agreement with BP for the charter of an FLNG unit, Gimi, for a 20-year period expected to commence in 2022. LNG carrier Gimi has been relocated from layup to Keppel Shipyard where a site team has been assembled. Subject to closing conditions, Golar also entered into a Subscription Agreement with Keppel Capital in respect of their participation in a 30% share of the project. Total conversion works, which incorporate lessons learned from FLNG Hilli Episeyo including some improvements and modifications, are expected to cost approximately $1.3 billion, excluding financing costs. Annual contracted revenues less forecasted operating costs of approximately $215 million are expected, equivalent to a total forecasted Contract Earnings Backlog1 of $4.3 billion, of which our expected share is $3.0 billion. Golar is in the final stages of receiving an underwritten credit commitment for a $700 million long-term financing facility from a syndicate of international banks that will also be available during construction. Golar's plan is that together with other financing facilities and taking account of financing costs during construction, by the end of the construction period the anticipated maximum total equity contribution from the Company in respect of its 70% stake will be approximately $300 million.

Progress has also been made on development of the first FLNG for the US Gulf of Mexico "Delfin LNG" project. When connected to Delfin's existing pipeline infrastructure, Golar's FLNG could deliver a low cost liquefaction solution in North America giving Delfin and Golar an early mover advantage marketing a relatively small parcel of LNG into a demand driven market. Work continues to establish the right gas supply and offtake combination to enable a financing and yard commitment before the end of 2019.

The Company notes that Ophir Energy's Production Sharing Agreement with the government of Equatorial Guinea has not been extended. Golar remains engaged with the relevant authorities in the event that the production license is awarded to an operator interested in pursuing FLNG as a development solution.

Longer-term, LNG prices will, in Golar's view, continue to be set by US producers offering Henry Hub indexed LNG at $7-$8mmbtu. This will squeeze the economics of higher cost liquefaction solutions. The multi-year construction time frame for LNG projects does however mean that new capacity additions post 2020 need to be sanctioned promptly to avoid LNG shortages from 2022/3. Where a floating facility is appropriate, Golar's FLNG solutions remain substantially cheaper and quicker to market than alternatives. The Company is seeing increased activity levels on the back of both the success of Hilli Episeyo and the vote of confidence given by BP after their extensive review.  During the last quarter alone Golar has been approached by several potential new resource holders seeking to use the Company's technology to produce what were previously considered stranded assets.

 

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners non-consolidated downstream joint venture)

Construction of the Sergipe power plant remains on track for commencement of operations on January 1, 2020. Engineering, procurement, FSRU, pipeline and civil works are all now complete. Installation of the mooring and assembly of the power plant and associated infrastructure including transmission lines continues apace. FSRU Golar Nanook is currently alongside FLNG Hilli Episeyo in Cameroon where it will collect a commissioning cargo that will be used for acceptance testing in Sergipe over the coming months.

Contractually commencing in less than 11 months, Golar's 2020 share of expected annual contracted revenues less forecasted operating expenses from the fully financed Sergipe power project and Golar Nanook FSRU is around $100 million, reducing to approximately $45 million after deduction of debt service costs. Golar Power is also advancing discussions with a view to using some of the FSRU's spare capacity to support local LNG fuelled opportunities. The targeted opportunities are focused on substituting diesel for LNG and are expected to deliver significant cost and emission savings for the end user.

Further FSRU-power opportunities are being pursued in Brazil. License approvals for projects are making good progress, including the recently gazetted Barcarena site approval. These licenses put Golar Power in a strong position to develop FSRU terminal projects, to win future power auctions, and to distribute LNG locally.

In other FSRU business, the redeployment of Golar Freeze to Jamaica and the potential deployment of a converted Golar Viking to Croatia are evidence of smart utilization of older, smaller steam vessels. The Company continues to pursue these projects in addition to seeking longer-term employment for the larger Golar Tundra. Golar Power will continue to work to jointly develop projects where an opportunity exists to invest either in a terminal or a power station that also requires a FSRU better suited to an asset currently owned by Golar or the Partnership.

Together with its joint venture partner, Golar has initiated a review of the strategic alternatives for Golar Power going forward.  This includes a focused high growth plan for the business incorporating financing considerations.  The original agreements also confer upon our joint venture partner the right to trigger an Initial Public Offering of Golar Power.  Significant value, which has been accumulated in full compliance with IFC and World Bank environmental, social and governance standards, has been built up over the last four years.  This could position Golar Power well for Environment, Social and corporate Governance ("ESG") investors.

 

Avenir (22.5% interest in LNG small-scale venture, a non-consolidated affiliate)

On October 1, Golar invested $24.8 million in small-scale LNG services provider Avenir, representing part of a combined commitment of up to $182.0 million from founding partners Stolt-Nielsen, Höegh and Golar. During November the company was capitalised with the placement of 110,000,000 new shares at a par price of US$1.00 per share. Of these, 45% are owned by Stolt-Nielsen, 22.5% (equivalent to 24,750,000 shares) by Golar, 22.5% by Hoegh and 10% by institutional and other professional investors. The shares were listed on the Norwegian OTC market on November 14 (ticker: AVENIR). These have since appreciated in value by approximately 80%. Following the initial equity offering the founding partners are committed to fund $72.0 million of which Golar is committed to approximately $18 million. To date, proceeds have been invested in four 7,500cbm LNG carriers and two 20,000cbm carriers, all under construction in China, and in an 80% interest in an LNG terminal and distribution facility under development in Sardinia.

Avenir intends to be the leading provider of small-scale LNG for the power, bunkering, trucking and industrial markets by supplying low-cost LNG using innovative technology and leveraging its founders' know-how and existing LNG infrastructure. Golar is very pleased with the way Avenir, its management and shareholders work together and sees significant strategic opportunities for the company.

 

Financing Review

Golar's total current cash position as at December 31 was $704.3 million (including long-term restricted cash), of which $217.8 million was unrestricted. Included within restricted cash is $176.4 million relating to lessor-owned VIEs and $175.5 million relating to the Hilli Episeyo letter of credit. Of the $175.5 million restricted cash securing the Hilli Episeyo letter of credit, approximately $110.0 million is expected to be released between 2019 and 2021. Supported by the vessel's strong operational performance to date, options to reduce the LC and accelerate the release of associated cash collateral are currently being explored.

Notable outflows from unrestricted cash during 4Q include the $24.8 million investment in Avenir, $28.6 million paid in respect of final sums due for Hilli Episeyo, $18.6 million paid to Keppel Shipyard in respect of initial FLNG Gimi conversion costs, a $33.4 million collateral payment on the margin loan and $13.5 million in respect of the TRS.

During the quarter, a 2-year extension to the Golar Seal sale and leaseback facility was agreed. In return for a $13.0 million prepayment in January 2019, this facility has been extended to January 2021. The ECA-backed Golar Bear and Golar Frost debt facilities were also extended to 2H 2024.

Golar's contractual debt1 including 100% of Hilli Episeyo as at December 31 were $2.7 billion. The Company's adjusted net debt1 was $2.1 billion.

Included within the $730.3 million current portion of long-term debt and short-term debt on the Balance Sheet is $646.5 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo.

 

Corporate and Other Matters

As at December 31, 2018, there were 101.3 million shares outstanding, including 3.0 million TRS shares that had an average price of $45.01 per share. The TRS, which is fully collateralized, was marked-to-market as of December 31, 2018 when the closing price was $21.76 per share. The cash collateral posted against the swap is included within the restricted cash balance on the Balance Sheet. There were also 3.8 million outstanding stock options in issue with an average price of $36.16.

The Board has approved a dividend of $0.15 for the quarter.

 

Outlook

Golar enters 2019 in a substantially stronger position than it was twelve months ago. This is evidenced by:

  • FLNG Hilli Episeyo is operational, cash flow generative and constructive progress is being made with respect to utilization of its spare capacity.
  • The underlying recovery in the shipping market.
  • Golar Power's Sergipe power project and FSRU Golar Nanook are fully financed and less than 11 months from contractual start-up.
  • The award by BP of a 20-year FLNG contract that is expected to deliver annual contracted revenues less forecasted operating costs of approximately $215 million.
  • Forecasted Gross Contract Earnings Backlog1 for the Golar group of companies of $10.3 billion comprised of $3.5 billion from Golar, $4.9 billion from Golar Power and $1.9 billion from the Partnership. Total forecasted Contract Earnings backlog1,including our proportionate share from equity investments, is $6.6 billion, comprised of $2.5 billion from Golar Power, $0.6 billion from Golar Partners and $3.5 billion from Golar.

Mild weather in key Asian markets is suppressing Asian LNG prices and preventing inter-basin trading activity. Close to half of the 2019 newbuild vessels are also scheduled to deliver in 1Q. Together, this is contributing to a rise in prompt vessel availability and falling spot rates. Headline TFDE spot rates are currently assessed at around $50,000 per day. Based on fixtures to date Golar expects 1Q 2019 TCE will be significantly reduced from 4Q and clearly below mid-cycle rates. Although spot rates may be prone to further periods of volatility, 2019 is expected to report a shipping deficit. This deficit is expected to increase in 2020.

New FLNG opportunities are appearing and others are developing on the back of a strong operational performance from Hilli Episeyo and the award of the BP contract. FLNG is progressing into a mainstream LNG technology application and Golar remains the leader in terms of operating experience, project development skills and ability to work with project owners in order to get their projects to a FID.

The Company expects 2019 operating income to continue to improve, driven by a stronger shipping market and the first full year of FLNG Hilli Episeyo operations. In 2020 operations will commence at Sergipe and further production growth from Hilli Episeyo is anticipated.

The Board is pleased to see Golar lever its strong LNG industry foothold, technology and significant experience to establish a market leading position across the LNG value chain from well to grid.  Through the provision of cheaper and cleaner energy the LNG market will likely take market share from coal and oil and sustain industry growth levels of around 10% for the foreseeable future.

 

Non-GAAP measures

Adjusted EBITDA: Adjusted EBITDA is calculated by taking net income before interest, tax, unrealized mark-to-market movements on the oil derivative instrument, depreciation and amortization. We believe that the exclusion of these items enables investors and other users of our financial information to assess our sequential and year over year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of business performance. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net (loss) income or any other indicator of Golar's performance calculated in accordance with US GAAP. The table below reconciles net (loss) income, the most directly comparable US GAAP measure, to Adjusted EBITDA.

  2018 2018 2018 2017
(in thousands of $) Oct-Dec Jul-Sep Jan-Dec Jan-Dec
Net (loss) income attributable to Golar LNG Limited (312,957 ) 66,212      

Golar LNG enters into an agreement to supply a FLNG unit to BP for phase 1 of the Greater Tortue / Ahmeyim Project, West Africa

Company news

2019-02-26 15:10:01

Golar LNG Limited ("Golar" or "the Company") (NASDAQ: GLNG) announces today that Gimi MS Corporation ("Gimi MS"), a newly incorporated subsidiary of the Company, has entered into a 20-year Lease and Operate Agreement ("LOA") with BP for the charter of an FLNG unit, Gimi, to service the Greater Tortue Ahmeyim project. 

Expected to commence production in 2022, the FLNG Unit Gimi will liquefy gas as part of the first phase of the Greater Tortue Ahmeyim project and be located at an innovative nearshore hub located on the Mauritania and Senegal maritime border. FLNG Gimi is designed to produce an average of approximately 2.5 million tonnes of LNG per annum, using the Black & Veatch "Prico" liquefaction process, with the total gas resources in the field estimated to be around 15 trillion cubic feet.

Concurrent with its entry into the LOA, Gimi MS has entered into a Subscription Agreement (subject to closing conditions) with First FLNG Holdings Pte. Ltd., an indirect wholly-owned subsidiary of Keppel Capital, in respect of their participation in a 30% share of FLNG Gimi.  Gimi MS will construct, own and operate FLNG Gimi and First FLNG Holdings Pte. Ltd. will subscribe for 30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30% of the project cost. LNG carrier Gimi has been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to commence soon.

Construction of FLNG Gimi is expected to cost approximately $1.3 billion, excluding financing costs. Once accepted under the contract, annual earnings before interest, tax, depreciation and amortization of approximately $215 million with potential upside for over performance are expected.  Golar is also in the final stages of receiving an underwritten credit commitment for a $700 million long-term financing facility from a syndicate of international banks that will be available during construction.  Golar's plan is that together with other financing facilities, by the end of the 4-year construction period the anticipated maximum total equity contribution from the Company in respect of its 70% stake will be approximately $300 million.

Commenting on the LOA, Golar CEO Iain Ross said, "This landmark 20-year agreement with BP, which is Golar's second FLNG tolling agreement, is the culmination of a lot of hard work and commitment from the project and commercial teams that commenced late 2017.  The potential of Golar's floating LNG solution was reinforced by FLNG Hilli Episeyo's proof of concept, Heads of Terms were agreed with BP and its partners in April 2018 and work has been ongoing via the previously reported Limited Notice to Proceed.  Golar is delighted to have the opportunity to demonstrate the safe and reliable operation, quality and value of its FLNG offering to such a world class energy company as BP and looks forward to safely delivering and building on this long-term relationship over the decades ahead".

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:

  • our inability and that of our counterparty to meet our respective obligations under the Lease and Operate agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project;
  • changes in our relationships with our counterparties, including our major chartering parties;
  • failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;
  • changes in our ability to obtain additional financing on acceptable terms or at all;
  • increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance as well as the cost of constructing the FLNG Gimi;
  • changes in general domestic and international political conditions, particularly where FLNG Gimi will operate;
  • a decline or continuing weakness in the global financial markets; and
  • other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

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.

Hamilton, Bermuda

February 26, 2019

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q4 2018 results presentation

Company news

2019-02-12 13:20:01

Golar LNG's 4th Quarter 2018 results will be released before the NASDAQ opens on Wednesday February 27, 2019. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, February 27, 2019. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 2071 928 000

UK Free call 0800 376 7922

US Toll +1 631 510 7495

USA Free call 866 966 1396
Norway Toll +47 23 96 02 64

Norway Free call 800 51874

The participants will be asked for their name and conference ID. The Golar conference ID is 1981406

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 3333 009 785

United States +1 917 677 7532

Norway +47 21 03 42 35

- followed by replay access number 1981406.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG receives Limited Notice to Proceed for an FLNG vessel for Phase 1 of the Greater Tortue / Ahmeyim Project, West Africa

Company news

2018-12-17 12:20:01

Hamilton, Bermuda, December 17, 2018 - Golar LNG Limited ("Golar LNG" or "Golar") announced today that it has received a Limited Notice to Proceed ("LNTP") from BP Mauritania Investments Ltd and BP Senegal Investments Ltd, (together "BP") in their capacity as block operators, in respect of the provision of a Floating Liquefaction Vessel (" FLNG") to support the development of Phase 1 of the Greater Tortue / Ahmeyim field, located offshore Mauritania and Senegal. 

The LNTP is in furtherance of the Preliminary Agreement and Heads of Terms for a Charter Agreement with BP which was announced by Golar on April 19, 2018.

The vessel conversion would take place at Keppel Shipyard Ltd ("Keppel") building on Keppel's delivery of the FLNG Hilli Episeyo, utilizing Black and Veatch Corporation's PRICO technology.  Discussions regarding a minority investment in the vessel are also being progressed.

 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

December 17, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Avenir LNG Limited - Private Placement Successfully Completed

Company news

2018-11-13 18:00:02

Bermuda, 13 November 2018 - Reference is made to the stock exchange release on 1 October 2018 where Stolt-Nielsen Limited, Golar LNG Limited and Höegh LNG Holdings Limited (collectively the 'Sponsors') announced a combined investment commitment of USD 182 million in Avenir LNG Ltd ('Avenir' or the 'Company') and a contemplated subsequent equity raise in the Company (the 'Private Placement'). The investment will be contributed as cash and equity-in-kind and will partly fund the construction of four 7,500cbm small-scale LNG carriers currently under construction at Keppel Singmarine in Nantong, China, two 20,000cbm small-scale LNG carriers on order from Sinopacific Offshore Engineering in Nantong, China and 80% ownership in an LNG terminal and distribution facility under development in the Italian port of Oristano, Sardinia.

Avenir LNG has the ambition to become the leading provider of small scale LNG for the Power, Bunkering, Trucking and Industrial markets through supplying low-cost LNG using innovative technology and leveraging from its Sponsors' know-how and existing LNG infrastructure.

The Company is pleased to announce that the first step in the capitalisation of Avenir, a Private Placement of 110,000,000 new shares (the 'Offer Shares') at a par price of USD 1.00 per share, which has now been successfully completed at a subscription price of USD 1.00 per share.

This placement was split in two tranches. Tranche A consisted of 99,000,000 new shares that were subscribed for by Stolt-Nielsen Ltd (through Stolt-Nielsen LNG Holdings Ltd.), (49,500,000 Shares), Golar LNG Limited (24,750,000 Shares) and Höegh LNG Holdings Ltd (24,750,000 Shares). This Tranche has closed.

Tranche B consisted of 11,000,000 new shares and was placed with a group of institutional and other professional investors on 8 November. Tranche B will close today, 13 November 2018.

The Company will, once Tranche B is closed, have an issued share capital of USD 110,000,000 divided into 110,000,000 common shares, each with a nominal value of USD 1.00. Stolt-Nielsen LNG Holdings Ltd. will hold 45% of the shares, each of Golar LNG Limited and Höegh LNG Holdings Limited will hold 22.5% while the remainder will be initially held by the subscribers in Tranche B.

The Company's shares will be listed on the N-OTC list with effect from 14 November 2018.

Clarksons Platou Securities AS, Danske Bank Norwegian branch, DNB Markets, a part of DNB Bank ASA, Fearnley Securities AS, Nordea Bank Abp. Filial Norge, Pareto Securities AS, Swedbank Norge, branch of Swedbank AB (Publ.) in cooperation with Kepler Cheuvreux and Skandinaviska Enskilda Banken AB (publ.) (Oslo Branch) acted as managers in the Private Placement.

 

About Avenir LNG Limited:

Avenir LNG Limited is a Bermuda registered company established for the purpose of developing the small scale global LNG market by sourcing, shipping, storing and distributing LNG to the end customer in areas of stranded demand.

 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

 

Hamilton, Bermuda

November 13, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Graham Robjohns

Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2018-11-05 18:50:01

Reference is made to the third quarter 2018 report released on November 5, 2018. Golar LNG has declared a total dividend of $0.15 per share to be paid on January 3, 2019. The record date will be December 14, 2018.

Golar LNG Limited
Hamilton, Bermuda
5 November, 2018





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 30 September 2018

Company news

2018-11-05 14:40:01

Highlights

  • Golar LNG Limited ("Golar" or "the Company") reports net income of $66.2 million for the third quarter of 2018 ("3Q").
  • Total operating revenues of $123.1 million reported for the quarter.
  • Adjusted EBITDA1 of $83.5 million for the quarter excluding $77.5 million of unrealized Brent oil linked mark-to-market derivative instrument income.
  • Net financial expenses of $37.8 million including mark-to-market derivatives related to interest and equity swaps of $10.7 million.
  • Completed the sale of initial equity interest in Golar Hilli LLC to Golar LNG Partners LP ("Golar Partners" or the "Partnership").
  • Joint venture Golar Power Limited ("Golar Power") closed $235.5 million financing facility for FSRU Golar Nanook and took delivery of vessel.
  • The shipping fleet records Time Charter Equivalent1 ("TCE") earnings of $41,200 per day ($48,100 for TFDE vessels and $11,000 for steam vessels).

 

Subsequent Events

  • Established small-scale LNG entity Avenir LNG Limited ("Avenir") in conjunction with Stolt-Nielsen Limited ("Stolt-Nielsen") and Höegh LNG Holdings Limited ("Höegh").
  • FLNG Hilli Episeyo maintains 100% commercial uptime following acceptance. Export of the vessel's 10th LNG cargo currently in progress.
  • Shipping market improvement continues. Expected 4Q 2018 TCE1 based on fixtures to date in range of $70,000 - $80,000 for all ships and $85,000 - $95,000 for TFDE vessels.
  • The Board approved an increase in the quarterly dividend to $0.15 cents per share in light of a solid cash position, a significantly improved shipping market and the successful startup of Hilli Episeyo.

Financial Review

Business Performance

  2018
  Jul-Sep Apr-Jun
(in thousands of $) Vessel and other operations FLNG Total Vessel and other operations FLNG Total
Total operating revenues 68,577   54,524   123,101   40,797   18,577   59,374  
Vessel operating expenses (16,785 ) (12,065 ) (28,850 ) (16,940 ) (3,556 ) (20,496 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (23,280 ) (1,457 ) (24,737 ) (16,030 ) (453 ) (16,483 )
Administrative expenses(2) (14,804 ) 29   (14,775 ) (13,257 ) (99 ) (13,356 )
Project development expenses(2) (1,037 ) (4,704 ) (5,741 ) (1,145 ) (6,798 ) (7,943 )
Realized gain on oil derivative instrument(3) -   11,270   11,270   -   3,048   3,048  
Other operating gains (losses) 26,000   (2,740 ) 23,260   10,000   (9,982 ) 18  
Adjusted EBITDA(1) 38,671   44,857   83,528   3,425   737   4,162  
             
Reconciliation to operating income (loss)            
Unrealized gain on oil derivative instrument(3) -   77,470   77,470   -   94,700   94,700  
Depreciation and amortization (16,477 ) (12,051 ) (28,528 ) (16,366 ) (4,091 ) (20,457 )
Operating income (loss) 22,194   110,276   132,470   (12,941 ) 91,346   78,405  

(2) With effect from the quarter ended June 30, 2018, we presented a new line item, "Project development expenses", which includes costs associated with pursuing future contracts and developing our pipeline of activities that have not met our internal threshold for capitalization. Previously, these costs were presented within "Administrative expenses" along with our general overhead costs. This presentation change has been retrospectively adjusted in prior periods.

(3)With effect from the quarter ended September 30, 2018, we have split the line item "Realized and unrealized gain on oil derivative instrument" relating to income from the FLNG Hilli Episeyo Liquefaction Tolling Agreement into two line items, "Realized gain on oil derivative instrument" and "Unrealized gain on oil derivative instrument". The unrealized component includes a mark-to-market movement of $77.5 million (June 30, 2018: $94.7 million) on the oil embedded derivative, which represents the estimate of expected receipts under the remainder of the Brent oil linked clause of the Hilli Episeyo Liquefaction Tolling Agreement. The realized component amounts to $11.3 million (June 30, 2018: $3.0 million) and represents the income in relation to the Hilli Episeyo Liquefaction Tolling Agreement receivable in cash. This presentation change has been retrospectively adjusted in prior periods.

 

Including Golar Partners' interest in FLNG Hilli Episeyo, which is consolidated by Golar, the Company reports today 3Q 2018 operating income of $132.5 million compared to $78.4 million in 2Q 2018 ("2Q").

Total operating revenues net of voyage, charterhire and commission expenses increased from $42.9 million in 2Q to $98.4 million in 3Q. Of the 3Q total, $45.3 million is derived from vessel and other operations and $53.1 million is from FLNG operations.

Revenues from vessel and other operations, including management fee income, net of voyage, charterhire and commission expenses increased by $20.5 million to $45.3 million in 3Q. Revenue was negatively impacted by one vessel dry-docking during the quarter. Rising LNG production and ton miles together with a seasonal increase in trading activity absorbed vessels resulting in improving utilization and increasing charter rates. Fleet utilization increased from 62% in 2Q to 86% in 3Q. Daily TCE1 earnings increased from $19,600 in 2Q to $41,200 in 3Q.

FLNG Hilli Episeyo completed its first full quarter of operations. Operating revenues of $54.5 million include base tolling fees and amortization of pre-acceptance amounts recognized. Assuming uninterrupted operations, future quarterly operating revenues should be consistent at around the $54 million level recorded in 3Q.

Total vessel operating expenses increased by $8.4 million to $28.9 million in 3Q. FLNG operating costs for Hilli Episeyo were slightly higher than expected average operating costs for the vessel.

At $14.8 million for the quarter, total administrative expenses were $1.4 million higher than 2Q. Additional employment costs, including non-cash share option expenses which totaled $3.7 million, together with higher property and office expenses as a result of an office move account for the increase.

Project development expenses include costs associated with the pursuit of potential projects and contracts. These expenses decreased from $7.9 million in 2Q to $5.7million in 3Q. Reduced engineering fees incurred in respect of the BP-Kosmos Tortue FLNG conversion and Mark II FLNG Front End Engineering and Design ("FEED") studies account for the decrease.

The Brent oil linked component of Hilli Episeyo's fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Billing of this component is based on a three month look-back at average Brent Crude prices. Amounting to $11.3 million in 3Q, the realized gain on the oil derivative instrument was up $8.2 million on 2Q. The increase in this hire component is predominantly a function of the vessel's first full quarter in service, but also a result of higher oil prices.

The fair value of the derivative asset (i.e. the value at September 30 of the potential future cash flow from the oil linked hire component) increased by $77.5 million during the quarter, with a corresponding unrealized gain of the same amount recognized in the income statement. The fair value increase was driven by an upward movement in the future market for Brent Oil.

Other operating gains and losses reported a 3Q gain of $23.3 million for the quarter. A cash recovery of $26.0 million was made during the quarter as a result of proceedings in respect of a former contract for the Golar Tundra. Proceedings are expected to end shortly. Mitigating the 3Q cash recovery in respect of Golar Tundra were FLNG related costs of $2.7 million in connection with the dissolution of OneLNG. Future costs in connection with this dissolution are expected to be minimal.

Depreciation and amortization increased by $8.1 million to $28.5 million in 3Q. The increase is once again due to the FLNG Hilli Episeyo, which was a depreciating asset for three months in 3Q versus one month in 2Q.

 

Net Income Summary

  2018 2018
(in thousands of $) Jul-Sep Apr-Jun
Operating income 132,470   78,405  
Interest income 3,106   2,100  
Interest expense (32,645 ) (24,014 )
Losses on derivative instruments(4) (10,730 ) (85 )
Other financial items, net(4) 2,499   1,916  
Income taxes (156 ) (490 )
Equity in net earnings (losses) of affiliates 2,668   (4,674 )
Net income attributable to non-controlling interests (31,000 ) (16,839 )
Net income attributable to Golar LNG Limited 66,212   36,319  

(4) With effect from the quarter ended September 30, 2018, we presented a new line item, "(Losses) gains on derivative instruments", which relates to the movement of our derivative instruments. Previously, these items were presented within "Other financial items, net" along with our general finance costs. This presentation change has been retrospectively adjusted in prior periods.

 

In 3Q, the Company generated net income of $66.2 million. In addition to the increase in Operating Income, other items contributing to the $29.9 million increase in 3Q are summarized as follows:

  • Interest expense increased by $8.6 million to $32.6 million mainly due to a full quarter's interest expense in respect of Hilli Episeyo. These costs had been capitalized up until the vessel's acceptance on May 31.
  • 3Q recorded a $10.7 million loss on derivative instruments compared to a 2Q loss of $0.1 million.  This includes mark-to-market valuations on the Total Return Swap ("TRS"), interest rate swaps ("IRS") and the Golar Partners Earn-Out Units derivative.
  • Other financial items reported a 3Q gain of $2.5 million compared to a 2Q gain of $1.7 million. This includes cash settled undesignated swap receipts together with foreign exchange gains and losses.
  • The $2.7 million 3Q equity in net earnings of affiliates is primarily comprised of the following:
    • a $4.1 million loss in respect of Golar's 50% share in Golar Power; and
    • income of $6.9 million in respect of Golar's stake in Golar Partners.
  • Net income attributable to non-controlling interests represents external interests in the Hilli Episeyo and the finance lease variable interest entities ("VIEs").

Commercial Review

LNG Shipping

Increasing US LNG production and start-up of Yamal T2 together with strong Asian demand and rising ton miles prompted a number of multi-month and multi-year charters ahead of the summer cooling season. Vessel availability declined and rates increased, briefly surpassing their 2017 winter highs. Activity then eased over the summer months before regaining its positive momentum in September as strong end-user demand and rising oil prices fed through to increasing LNG prices, vessel fixtures, and spot rates approaching $100,000 per day. Newbuild deliveries also began to decline and commercial terms for Pacific basin fixtures exceeded those in the Atlantic for the first time since 3Q 2014. JKM and European gas prices ended the quarter up 86% and 43% respectively year-on-year, once again driven by strong demand from China and Korea.  Comprised of a TCE1 of $48,100 in respect of its TFDE fleet (taking into account the dry-docking of one vessel during the quarter) and $11,000 for its two steam vessels, Golar recorded a 3Q 2018 TCE1 of $41,200 per day, up 210% on the $13,300 per day achieved in 3Q 2017 and 110% on the $19,600 achieved in 2Q 2018.     

Dominated by new US volumes, LNG trade is expected to increase by 10% per annum from 290 million tons in 2017 to around 388 million tons in 2020. According to industry analysts, ton mile demand is expected to increase by 40+% over the same time frame. Annual fleet growth of 5% through to 2020, will, according to industry analysts, not be sufficient to meet this demand. Leading brokers continue to expect a 30-40 vessel shortfall. As of today there are minimal prompt available vessels worldwide and it is no longer possible to order a vessel for delivery before 2021. Multi-month and multi-year contracts continue to present themselves adding upward pressure on rates. The reactivated steam vessel Golar Viking is in the process of concluding an 11-month charter at a rate that is expected to improve the Adjusted EBITDA1 of the company by $17 million relative to the vessel's layup position. Spot rates in excess of $100,000 are now routinely being achieved for TFDE vessels with some vessels being fixed on short-duration voyages at substantially higher rates.

As previously indicated, Golar is working with other ship owners to establish a consolidated structure that will allow LNG shipping investors more direct exposure to the LNG shipping market. Some progress with these discussions has been made in the last quarter.

 

Golar Partners (a non-consolidated affiliate of Golar LNG)

Triggered by the dry-docking of Golar Freeze on July 19, all remaining revenues receivable in respect of a prior contract for the FSRU were recognized during the quarter contributing to a significant improvement in the Partnership's 3Q results. Dry-dock and modifications necessary to service Golar Freeze's new 15-year contract were completed on October 20. By virtue of its 50% interest in Hilli Episeyo's common units, the Partnership is entitled to 50% of the net earnings of Hilli Episeyo attributable to common unit holders after July 12 when the acquisition closed. The Partnership's reported share of net earnings in 3Q amounted to a loss of $0.1 million which includes non-cash charges of $7.3 million related to the depreciation and amortization of fair value adjustments made upon acquisition of the common units.

In line with what was communicated in 2Q, management completed its review of the Partnership's distribution capacity on October 23. After a thorough review, the Partnership's Board approved a quarterly distribution going forward of $0.4042 per unit, effective 3Q 2018. Based on the conservative assumptions used for recontracting the Partnership believes that this level of distribution, which represents a 30% cut, is sustainable for the foreseeable future. Reflective of a vessel dry-dock during the quarter and less than a full quarter's contribution from Hilli Episeyo, but excluding the additional revenues recognized during 3Q in respect of Golar Freeze's prior contract, 3Q distribution coverage1 increased to 1.02, from 0.56 in 2Q.

As a result of the cut, annual cash distributions to Golar in respect of its 31.8% interest in the Partnership will be reduced by approximately $15.7 million. Scope for improvement exists should the shipping market outperform moderate positive expectations or should the FSRU Golar Spirit find employment. There are also acquisition opportunities for the Partnership including Hilli Episeyo Train 2, the FSRU Golar Nanook, cash flows from the Sergipe project and a pipeline of potential carriers and FSRUs available for long-term fixtures. These opportunities are, however, to a large extent dependent on more effectively priced Golar Partners equity or realization of a flatter debt amortization profile that better reflects the economic life of the Partnership's assets.

 

FLNG

FLNG Hilli Episeyo continues to operate with 100% commercial availability. Currently in the process of exporting its 10th LNG cargo, the vessel's proof of concept continues to add momentum to both existing and new opportunities under discussion. Discussions also continue with field operator Perenco as to the timing of utilization of Hilli Episeyo's excess capacity.

On July 12, Golar and affiliates of Keppel Shipyard Limited and Black and Veatch closed the sale of 50% of the common units in Golar Hilli LLC to the Partnership. Although Golar continues to consolidate Golar Hilli LLC, after this transaction, net of non-controlling interests, Golar is entitled to 44.6% of cash flows from the initially contracted toll fee under the liquefaction tolling agreement, 89.1% of the Brent oil linked cash flows and 86.9% of any future cash flows from the vessel's expansion capacity. Annual cash generation to Golar based on current Brent Crude prices of $73bbl is expected to amount to approximately $40 million.

FEED work for the provision of a FLNG vessel to service the BP operated Greater Tortue/Ahmeyim project offshore Mauritania and Senegal has made significant progress and is in its final stages. BP has previously communicated to their shareholders that they expect to take FID on the project before the end of 2018. Golar remains ready to support this.

Golar has also spent considerable time developing the Mark II FLNG vessel design. This work has been done in conjunction with other Asian yards. Significant progress has been made on the 3mtpa design and indications are that this will be cost competitive with the Mark I (Hilli Episeyo) design. These yards, in combination with export credit agencies and domestic banks, are likely to offer more attractive financing packages. The Mark II concept has applications that include the US Gulf Coast Delfin LNG ("Delfin") project and Fortuna.

Recent changes in leadership and sponsorship put the Delfin project on a clear path to FID and see the project take on an increased level of activity for Golar. When connected to Delfin's existing pipeline infrastructure, the Mark II FLNG solution is expected to deliver the lowest cost liquefaction solution in North America giving Delfin and Golar an early mover advantage marketing a relatively small parcel of LNG into a demand driven market. Further to the Joint Development Agreement signed in June 2017, Golar and Delfin are now working to finalize terms for the establishment of a joint venture company to own and develop the first floating liquefaction vessel.

 

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners non-consolidated downstream joint venture) 

Construction of the Sergipe power plant and associated FSRU mooring, pipeline and transmission line infrastructure continues to plan and remains on track for commencement of operations on January 1, 2020. Over 2,000 workers are currently on site.

Assuming no dispatch under the Power Purchase Agreements ("PPA"), forecast annual Adjusted EBITDA1 including inflation uplifts to date from the power project (of which Golar is entitled to a 25% interest which will be included within "equity in net earnings of affiliates" in the consolidated statements of income) is BRL 1.16 billion, equivalent to approximately US$313 million at a USD/BRL rate of 3.7. Payments under the executed PPA are inflation indexed over the 25-year term and provide for pass-through of fuel costs when the power plant is called upon to dispatch. Around 94% of the project finance facility is also BRL denominated. Net debt1 equates to approximately $1.24 billion at the same USD/BRL rate, thus creating a natural hedge for currency movements.

Additional to the forecast annual Adjusted EBITDA1 from the power project, the FSRU is expected to generate annual US CPI Adjusted EBITDA1 of approximately US$41.0 million (of which Golar is entitled to a 50% interest which will be included within "equity in net earnings of affiliates" in the consolidated statements of income). The modified FSRU Golar Nanook was delivered from the shipyard on September 27. Upon delivery a $235.5 million China Construction Bank Financial Leasing sale and leaseback facility was drawn down and used to settle the final yard installment of $174.6 million. Of the remaining $60.9 million liquidity released to Golar Power, $21.6 million was paid to project developer Genpower in October as part consideration for the acquisition of Genpower's initial 25% share in the power station. A final payment of approximately $10.0 million will be payable to Genpower upon commencement of commercial operations in January 2020. Remaining liquidity will be used to fund Golar Power working capital requirements through to commencement of operations at Sergipe.

Commencing in approximately 14 months, Golar's share of annual run rate Adjusted EBITDA1 less debt service from the fully financed Sergipe Power project and FSRU is expected to amount to approximately $45 million in 2020 assuming no dispatch. Golar Power is examining several alternate projects that could utilize the FSRU's 65% spare capacity and further augment cash generation.

Although the generic FSRU market remains over supplied and very competitive, Golar Power has invested heavily in securing licenses that allow it to bid at future Brazilian power auctions, of which there are usually 2-4 per annum. In addition to creating attractive new markets for LNG, these potential projects are expected to create more appealing opportunities to deploy Golar FSRUs.

 

Avenir (25% interest in LNG small-scale venture, a non-consolidated affiliate)

Building on a teaming agreement previously signed with Stolt-Nielsen, Golar announced on October 1, 2018 an investment of $24.8 million in small-scale LNG services provider Avenir. This investment represents part of a combined commitment of up to $182.0 million from initial shareholders Stolt-Nielsen (50%), Höegh (25%) and Golar (25%). Golar's overall commitment to Avenir, which plans to list on the Oslo OTC market, is therefore $45.5 million. Small-scale opportunities to be pursued by Avenir include delivery of LNG to areas of stranded demand, development of LNG bunkering services and supply of LNG to the transportation sector. Savings as a result of high-margin oil-to-gas switching, policy changes including IMO2020, and the environmental merits of LNG relative to other fossil fuels are all expected to generate significant growth in this sector.

Avenir has taken FID and has started to build a LNG receiving terminal in Sardinia and is targeting distribution of LNG locally. Avenir may also be able to support future FSRU projects being pursued by two of its sponsors. Spare capacity on board FSRUs could be utilized to develop small-scale LNG distribution opportunities. Markets developed by Avenir together with demand for regasified LNG from an anchor tenant could then collectively support an otherwise marginal FSRU project. The company believes that early access to small-scale ship capacity might be critical to a tailor made solution for an oil-to-gas switch for potential customers. Avenir has ordered four 7,500cbm vessels and is in the process of committing to significantly more shipping capacity. Logistics and shipping services provided by Avenir may also be utilized in the event that Golar Power elects to use some of the spare capacity on board the FSRU Golar Nanook to break-bulk LNG in Sergipe.

Golar will equity account for its interest in Avenir. A shorter capex cycle relative to traditional LNG infrastructure means that this business has the potential to be generating cash flows as early as 2020.

 

Financing Review

Golar's total current cash position as at September 30 was $764.2 million (including long-term restricted cash), of which $306.4 million was unrestricted and $175.5 million relates to the Hilli Episeyo letter of credit. This is after having settled amounts due to non-controlling (10.89%) shareholders Keppel and Black and Veatch following the final debt draw down and subsequent drop down of 50% of the common units of Golar Hilli LLC to Golar Partners. Of the $175.5 million restricted cash securing the Hilli Episeyo letter of credit, approximately $126.2 million is expected to be released to free cash1 between 2019 and 2021.

During the quarter amendments to the existing margin loan facility, secured by units in Golar Partners, were agreed. Subject to the satisfaction of certain covenants, no further principal repayments will be required ahead of loan maturity in March 2020. As at September 30, $100 million was outstanding against this facility.

During 4Q 2018 to date, $24.8 million has been paid to Avenir in respect of Golar's 25% investment and an expected $38.0 million representing final sums due in respect of the Hilli Episeyo conversion will be settled. Against this, a further $14.0 million has been received from former charterers of the FSRU Golar Tundra.

Included within the $830.9 million current portion of long-term debt and short-term debt is $799.0 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo. Of the balance associated with VIE financings, one facility amounting to $134.8 million is due for refinancing by the end of 2018. Refinancing discussions are progressing.

 

Corporate and Other Matters

As at September 30, 2018, there were 101.3 million shares outstanding, including 3.0 million TRS shares that had an average price of $44.55 per share. The TRS was marked-to-market as of September 30, 2018 when the closing price was $27.80 per share. There were also 4.0 million outstanding stock options in issue with an average price of $36.37.

Over recent quarters Golar has focused on strengthening its balance sheet. As of today a solid cash and cash flow position have created a strong financial platform to equity finance a new FLNG project.

In light of the successful start-up of Hilli Episeyo and strong improvement in the shipping market the Board has approved an increase in the quarterly dividend from $0.125 to $0.15. It is the Board's intention to continue to grow the distribution. The size of this growth will be dependent on the development of the LNG shipping market as well as the equity required to finance further FLNG projects.

At Golar's Annual General Meeting on September 26, 2018, Thorleif Egeli was appointed as a Director, replacing Fredrik Halvorsen. Thorleif brings to Golar a wealth of upstream experience gained predominantly from a long career at Schlumberger.

 

Outlook

FLNG Hilli Episeyo, operational for its first full quarter, delivered consolidated Adjusted EBITDA1 exclusive of unrealized oil derivative related income of $52.3 million. Charterers Perenco and SNH are pleased with the vessel's performance and discussions have commenced with Perenco on the utilization of the vessel's spare capacity. Golar anticipates being able to have some clarity of when the additional capacity will be taken up around the end of 4Q 2018. The Company also remains focused on being able to support BP on their Tortue project, and developing its pipeline of other FLNG opportunities.

Illustrative economics of shipping rate scenarios that only a few months ago may have appeared ambitious are beginning to materialize. Third quarter Adjusted EBITDA1 from vessel and other operations amounted to $38.7 million. For every $10,000 increase in TCE, Adjusted EBITDA1 from ships trading in the spot market will increase by approximately $40 million on an annual basis. 4Q TCE1 in the range of $70,000 - $80,000 is expected based on current fixtures which includes TFDE vessels in the range of $85,000 - $95,000. A strengthening market together with the resumption of trading by the Golar Viking during December are expected to result in further improvements to Adjusted EBITDA1 and net cash generation in 1Q 2019.

Golar Power is now less than 14 months away from commencing regas and power generation operations at its Sergipe power plant. Upon commencement in January 2020 and assuming no dispatch, this is expected to generate approximately $99 million in annual run rate Adjusted EBITDA1 based on a BRL/USD rate of 3.7, and approximately $45 million after the deduction of debt service.

The Board is particularly pleased with the way management is executing complex projects using new technology in a cost effective and efficient manner. The strong operational track record from these projects gives Golar unique credibility and a market leading position in the fast growing integrated LNG market.

A prolonged period of investment of around $4 billion worth of LNG infrastructure, including carriers, FSRUs, Hilli Episeyo and the Sergipe project is drawing to a close. Although it has been a challenge in the low oil price environment to carry this through without dilution to equity holders, concepts and investments are finally being transformed into operations and cash flows. Commencement of Hilli Episeyo, a resurgent shipping market and the pending start-up of Sergipe have transformed Golar into a fully financed cash generative company. It is the Board's intention to use part of the cash flow to grow the Company further, and to increase the distribution to the Company's shareholders.

 

Non-GAAP measures

Adjusted EBITDA: Adjusted EBITDA is defined as operating income before interest, tax, unrealized mark-to-market movements on the oil derivative instrument, depreciation and amortization. We believe Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. The exclusion of the unrealized mark-to-market movements on the oil derivative instrument enables comparability to prior period performance and trend analysis. Management's definition of Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance.

 

Distribution coverage ratio: The Partnership presents distributable cash flow which represents Adjusted EBITDA adjusted for the cash components of interest, derivatives, tax and earnings from affiliates. The Partnership also includes an adjustment for maintenance and replacement expenditures (including dry docking). Maintenance and replacement capital expenditures, including expenditure on dry-docking, represent capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by, the Partnership's capital assets. The Partnership's share of equity accounted affiliate's distributable cash flow net of estimated capital expenditures represents the Partnership's proportionate share of Adjusted EBITDA adjusted for the cash components of interest, tax and replacement expenditure. Distributable cash flow is a quantitative standard used by investors in publicly-traded partnerships to assist in evaluating a partnership's ability to make quarterly cash distributions to common unitholders, general partners and incentive distribution rights. Distributable cash flow is a non-GAAP financial measure and should not be considered as an alternative to net income or any other indicator of the Partnership's performance calculated in accordance with US GAAP. Refer to the Partnership's most recent quarterly earnings release on its investor relations section on the Partnership's website (www.golarlngpartners.com) for a reconciliation to the most directly comparable financial measure under US GAAP.

 

Free cash: Free cash is defined as "cash and cash equivalents" as presented on the consolidated balance sheets.

 

Net debt: Net debt is defined as the sum of "Current portion of long-term debt and short-term debt" plus "Long-term debt" less "Cash and cash equivalents" less "Restricted cash and short-term deposits" less "Restricted cash".

 

TCE: The average TCE rate of our fleet is a measure of the average daily revenue performance of a vessel. TCE is calculated only in relation to our vessel operations. For time charters, TCE is calculated by dividing total operating revenues (including revenue from the Cool Pool, but excluding vessel and other management fees and liquefaction services revenue), less any voyage expenses, by the number of calendar days minus days for scheduled off-hire. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry-docking. TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in an entity's performance despite changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. We include average daily TCE, a non-GAAP measure, as we believe it provides additional meaningful information in conjunction with total operating revenues, the most directly comparable GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Our calculation of TCE may not be comparable to that reported by other entities. Refer to our most recent quarterly earnings release on our investor relations section on our website (www.golar.com) for a reconciliation to the most directly comparable financial measure under US GAAP.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other fac

   

Golar LNG Limited - Q3 2018 results presentation date change

Company news

2018-10-30 19:10:01

As a result of ongoing efforts to speed up its quarterly reporting process Golar LNG Limited is pleased to be able to report its 3rd quarter 2018 results earlier than previously advised.  Golar LNG's 3rd quarter 2018 results will now be released before the NASDAQ opens on Monday November 5, 2018. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Monday, November 5, 2018. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 330 336 9411

UK Free call 0800 279 7204

US Toll +1 646 828 8193

USA Free call 888 220 8474
Norway Free call 800 14947
Norway Toll +47 2350 0296

The participants will be asked for their name and conference ID. The Golar conference ID is 7348722

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 7348722.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q3 2018 results presentation

Company news

2018-10-24 18:10:01

Golar LNG's 3rd Quarter 2018 results will be released before the NASDAQ opens on Wednesday November 14, 2018. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, November 14, 2018. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 330 336 9411

UK Free call 0800 279 7204

US Toll +1 646 828 8193

USA Free call 888 220 8474
Norway Free call 800 14947
Norway Toll +47 2350 0296

The participants will be asked for their name and conference ID. The Golar conference ID is 7348722

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

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This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Stolt-Nielsen Limited, Golar LNG Ltd and Höegh LNG Holdings Ltd Announce Joint $182 Million Investment in Avenir LNG Ltd

Company news

2018-10-01 15:10:01

Hamilton, Bermuda, 01 October 2018 - Golar LNG Limited ("Golar LNG" or "Golar") announced today an investment of USD 24.75 million in Avenir LNG Ltd. The investment is part of a combined commitment of up to USD 182 million from Stolt-Nielsen Ltd. ("Stolt-Nielsen"), Höegh LNG Holdings Ltd. ("Höegh LNG") and Golar for the pursuit of opportunities in small-scale LNG, including the delivery of LNG to areas of stranded demand, the development of LNG bunkering services and supply to the transportation sector.

Avenir LNG intends to utilize the best-in-class capabilities of its anchor investors to build a global presence as the leading provider of small-scale LNG, and it will be among the first movers in this market with a fleet of small-scale LNG carriers and terminals. The market for small-scale LNG is rapidly expanding, with great potential to be realized in the off-grid power, transportation and bunkering markets because of high-margin oil-to-gas switching, policy changes and environmental benefits of consuming LNG relative to alternative fossil fuels. The forthcoming IMO 2020 regulations are one of many driving factors for increased small-scale LNG consumption, and Avenir LNG plans to introduce safe and efficient ship-to-ship bunkering services at key strategic ports to meet and develop demand for LNG as a marine fuel.

Avenir LNG was originally formed by Stolt-Nielsen in 2017 to provide LNG to markets lacking access to LNG pipelines. Stolt-Nielsen will consolidate all its LNG activities into Avenir, including four small-scale LNG carriers currently under construction at Keppel Singmarine in Nantong, China, and an LNG terminal and distribution facility under development in the Italian port of Oristano, Sardinia. Avenir LNG plans to source and ship LNG to the terminal using small LNG carriers, and distribute the LNG in trucks and through regasification into the local gas grid. 

Golar LNG and Höegh LNG will each hold an initial share of 25% of Avenir LNG, while Stolt-Nielsen will remain the largest shareholder with ownership of 50%. Subsequent to the initial capital raise, Avenir LNG contemplates a public listing on the Oslo Over-The-Counter market during 2018.

Commenting on the transaction, Iain Ross, Chief Executive Officer of Golar LNG, said, "Small scale LNG transportation and distribution represents an exciting new market with significant growth prospects.   Avenir is the right vehicle for this market entry and its formation builds on the teaming agreement signed with Stolt-Nielsen in June 2015.  The addition of Höegh LNG will allow Avenir to create a business with the experience and scale to tackle all aspects of small scale LNG."

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

October 1, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Graham Robjohns

Stuart Buchanan





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 30 June 2018

Company news

2018-09-27 15:40:01

Highlights

  • Golar LNG Limited ("Golar" or "the Company") reports net income of $36.3 million for the second quarter of 2018 ("2Q").
  • EBITDA1 for the quarter was $98.9 million, including $94.7 million of unrealized Brent oil linked mark-to-market derivative income related to the FLNG Hilli Episeyo contract and $10.0 million of costs in connection with the dissolution of OneLNG S.A. ("OneLNG").
  • Golar Power Limited's ("Golar Power") affiliate, CELSE, closed a $1.34 billion financing facility for the Sergipe project.
  • The Company entered into an agreement and exchanged Heads of Terms with BP for delivery of a Tortue project FLNG vessel.
  • Received an interim payment of $10.0 million from former charterers of the FSRU Golar Tundra.
  • The shipping fleet records Time Charter Equivalent1 ("TCE") earnings of $19,600 per day.
  • FLNG Hilli Episeyo commenced operations. Acceptance certificate signed by charterers Perenco and SNH on June 2, effective May 31.
  • Closed FLNG Hilli Episeyo post-acceptance $960 million lease financing, an increase of $320 million from the pre-delivery financing.
  • Dividend payment for 2Q increased from $0.05 to $0.125 per share reflecting commencement of Hilli Episeyo contract, reduced overall capital commitments, and stronger financial position.

 

Subsequent Events

  • Completed the sale of initial equity interest in Golar Hilli LLC to Golar LNG Partners LP ("Golar Partners" or the "Partnership").
  • FLNG Hilli Episeyo achieved 100% commercial uptime following acceptance. Offload of 6th cargo expected shortly.
  • Strong improvement in shipping market. Expected, 3Q 2018 TCE1 to at least double 2Q TCE1.

 

Financial Review

Business Performance

  2018
  Apr-Jun Jan-Mar
(in thousands of $) Vessel and other operations FLNG Total Total
Total operating revenues 40,797   18,577   59,374   66,190  
Vessel operating expenses (16,940 ) (3,556 ) (20,496 ) (18,415 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (16,030 ) (453 ) (16,483 ) (24,521 )
Administrative expenses2 (13,257 ) (99 ) (13,356 ) (10,736 )
Project development expenses2 (1,145 ) (6,798 ) (7,943 ) (3,280 )
Realized and unrealized gain on FLNG derivative instrument -   97,748   97,748   13,600  
Other operating gains (losses) 10,000   (9,982 ) 18   -  
EBITDA1 3,425   95,437   98,862   22,838  
Depreciation and amortization (16,366 ) (4,091 ) (20,457 ) (16,409 )
Operating (loss) income (12,941 ) 91,346   78,405   6,429  

2. With effect from the quarter ended June 30, 2018, we presented a new line item, "Project development expenses", which includes costs associated with pursuing future contracts and developing our pipeline of activities that have not met our internal threshold for capitalization. Previously, these costs were presented within "Administrative expenses" along with our general overhead costs. This presentation change has been retrospectively adjusted in prior periods.

 

Golar reports today 2Q 2018 operating income of $78.4 million compared to $6.4 million in 1Q 2018 ("1Q").

Total operating revenues net of voyage, charterhire and commission expenses increased from $41.7 million in 1Q to $42.9 million in 2Q. Of the 2Q total, $24.8 million is derived from vessel and other operations and $18.1 million is from FLNG operations.

Revenues from vessel operations net of voyage, charterhire and commission expenses, decreased by $16.9 million to $24.8 million in 2Q. The significant reduction was expected and was the result of a seasonal softening in shipping market activity. Fleet utilization fell from 77% in 1Q to 62% in 2Q. Rates also dropped during the quarter. Collectively this resulted in a $16,400 reduction in daily TCE1 earnings, from $36,000 in 1Q to $19,600 in 2Q.

FLNG Hilli Episeyo was accepted with effect from May 31 and earnings under the contract commenced at this point. Included in the $18.6 million revenue is $17.5 million of base tolling fees (equivalent to a daily rate of approximately $560,000) and $1.1 million amortization of the deferred pre-acceptance amounts recognized.

Total vessel operating expenses increased by $2.1 million to $20.5 million in 2Q. FLNG operating costs for Hilli Episeyo's first month in operation amounted to $3.6 million, which is in line with expectations. Operating costs for the rest of the fleet dropped by $1.5 million to $16.9 million in 2Q, with first quarter costs having been inflated by the cost of moving Gandria from layup to Keppel Shipyard.

At $13.4 million for the quarter, total administrative expenses were $2.6 million higher than 1Q. The increase relates to increased salaries and benefits and share option expenses.

Project development expenses include costs associated with the pursuit of specific potential projects and contracts. These costs were formerly included as part of administrative expenses. Project development expenses increased from $3.3 million in 1Q to $7.9 million in 2Q. FLNG project development expenses of $6.8 million are predominantly represented by Front End Engineering and Design ("FEED") expenses together with legal and professional fees incurred in respect of the FLNG conversion project for the BP-Kosmos Tortue project. Most of the $1.1 million vessel and other operations related project costs are recharged to affiliates Golar Power and Golar Partners.

The Brent-linked component of Hilli Episeyo's invoiced fees generates additional annual operating cash flows of approximately $3 million for every dollar increase in Brent Crude prices between $60.00 per barrel and the contractual ceiling. Monthly billing of this component is based on a three month look-back at average Brent Crude prices. This hire component for June amounted to $3.0 million and was paid in July. The fair value of the derivative asset (i.e. the value at June 30 of the potential future cash flow from the oil linked hire component) increased by $94.7 million during the quarter, with a corresponding unrealized gain of the same amount. The fair value increase was driven by changes in market expectations of future oil prices. Together with the realized movement of $3.0 million, this results in a $97.7 million realized and unrealized gain on the FLNG derivative instrument.

Other operating gains and losses includes an other operating gain of $10.0 million. This relates to a cash recovery during the quarter following ongoing proceedings in respect of a former contract for the Golar Tundra. Golar continues to pursue its rights under this contract. Offsetting this are FLNG related costs of $10.0 million in connection with the dissolution of OneLNG.

Depreciation and amortization increased by $4.0 million to $20.5 million in 2Q. Having commenced commercial service, the Hilli Episeyo became a depreciating asset. Depreciation in relation to the rest of the fleet was in line with the prior quarter.

Net Income (Loss) Summary

  2018 2018
(in thousands of $) Apr-Jun Jan-Mar
Operating income 78,405   6,429  
Interest income 2,100   1,944  
Interest expense (24,014 ) (13,998 )
Other financial items, net 1,831   (1,237 )
Income taxes (490 ) 6  
Equity in net earnings (losses) of affiliates (4,674 ) (1,541 )
Net income attributable to non-controlling interests (16,839 ) (12,605 )
Net income (loss) attributable to Golar LNG Limited 36,319   (21,002 )

In 2Q, the Company generated net income of $36.3 million. In addition to the increase in Operating Income, other items contributing to the $57.3 million increase in 2Q are summarized as follows:

      ·         Interest expense increased by $10.0 million to $24.0 million mainly due to the interest on borrowing costs in respect of Hilli Episeyo no longer being capitalizable after acceptance, a general increase in LIBOR rates and an increase in the amortization of debt related expenses.

      ·         Other financial items reported a 2Q gain of $1.8 million. This includes mark-to-market valuations on the Total Return Swap ("TRS"), interest rate swaps ("IRS") and the Golar Partners Earn-Out Units derivative.

      ·         The $4.7 million 2Q equity in net losses of affiliates is primarily comprised of the following:

                    ·         a $8.0 million loss in respect of Golar's 50% share in Golar Power;

                    ·         a $0.5 million loss in respect of Golar's 51% share in OneLNG; and

                    ·         income of $3.8 million in respect of Golar's stake in Golar Partners. Cash distributions received from the Partnership are in line with prior quarters.

Commercial Review 

LNG Shipping

Golar achieved a TCE1 of $19,600 per day in 2Q compared to $36,000 per day in 1Q and $14,600 per day in 2Q 2017. A reduction in rates from 1Q was anticipated and is the result of a seasonal softening in activity and utilization and a corresponding reduction in rates. The market reached its seasonal trough in early May, with around 30 available vessels in the spot market before strengthening as a result of increasing LNG prices driven by strong demand from China and Korea. As of today, JKM and European gas prices are up 84% and 61%, respectively, year-on-year. Charterers seeking winter coverage have also entered the market and interest in multi-month and multi-year charters is picking up.

New production continues to deliver. Projects with a nameplate capacity of 72mtpa, equivalent to approximately 23% of current LNG production, are expected to commence operations over the next 24 months. New production will come from the start-up of new facilities and new trains at existing facilities, including Yamal, Ichthys, Prelude, Corpus Christi, Sabine Pass, Cameron and Freeport. This is expected to require in excess of 100 vessels for transportation. Over the same time horizon, 66 vessels are scheduled to deliver. Leading brokers currently estimate that the market will be under supplied by 40 vessels in 2020.

During June, Dynagas left the Cool Pool as a result of prior long-term charter commitments for their ships. Golar and GasLog will continue to operate the pool, which is currently marketing 15 TFDE carriers for fixtures with durations of up to one year. The Company also continues to investigate options to restructure its shipping business to capture more upside for shareholders from the forthcoming recovery.

 

Golar Partners (affiliate)

The Partnership's 2Q results improved as expected, predominantly due to a full quarter's scheduled hire in respect of the FSRU Golar Igloo. Albeit from a low base, distribution coverage improved as a result, from 0.32 in 1Q to 0.56 in 2Q. Further improvement is expected following the acquisition of the initial interest in Hilli Episeyo on July 12 and as a result of the improving shipping market.  Golar and the Partnership have also resumed discussions with respect to the potential dropdown of additional common units in Golar Hilli LLC.

Indicative of the recovering shipping market, the Golar Maria has secured a 10-month charter that commences in August and will contribute additional distributable cash through to 2Q 2019.

The Golar Freeze, which has been nominated to service the 15-year Atlantic FSRU opportunity, entered Dubai Dry Docks for her scheduled drydock and requisite modifications. The Atlantic FSRU contract is expected to commence around year end.

 

FLNG

By late April, stable levels of production were being achieved on board Hilli Episeyo. A commissioning cargo was subsequently offloaded. Official acceptance testing commenced thereafter and completed on May 31. The acceptance certificate was signed shortly afterwards on June 2. All four trains have been commissioned and tested to at or above nameplate capacity and the vessel has been operating with 100% commercial availability. The vessel is currently on schedule to export its 6th cargo.

Vessel acceptance was also a key trigger for the final drawdown against the $960 million CSSCL sale and leaseback facility and closing of the previously agreed dropdown to Golar Partners. Final drawdown against the sale and leaseback facility was completed on June 20. Golar and affiliates of Keppel Shipyard Limited and Black and Veatch closed the sale of 50% of the common units in Golar Hilli LLC to the Partnership with effect from July 12. After this transaction, net of non-controlling interests, Golar will be entitled to 44.6% of cash flows from the initially contracted toll fee under the liquefaction tolling agreement, 89.1% of the Brent-linked cash flows and 86.9% of any future cash flows from the vessel's expansion capacity.

During April, Golar entered into a Preliminary Agreement and exchanged Heads of Terms with BP for a FLNG vessel similar to the Hilli Episeyo to service the BP-operated Greater Tortue/Ahmeyim project. Executed on April 19, the Heads of Terms represents a commitment between Golar and BP to translate key commercial terms into a full commercial agreement and to proceed with FEED work for the provision of a FLNG vessel to service the project offshore Mauritania and Senegal. Draft commercial, construction and financing agreements as well as FEED work are being progressed at pace in order to meet the required timetable for a potential Final Investment Decision ("FID"). BP has communicated to their shareholders that they expect to take FID on the project before the end of 2018 and that production is targeted to commence before the end of 2021.

The dissolution of OneLNG commenced in early July and the project pipeline of FLNG opportunities has now been handed over to Golar. A number of high potential opportunities are being pursued with Hilli Episeyo's proof of concept adding momentum to these discussions.


Golar Power (50/50 Golar/Stonepeak Infrastructure Partners downstream joint venture)

On April 19, CELSE, the 50% Golar Power owned project company responsible for delivering the Sergipe I power project, executed a US$1.34 billion non-recourse project finance facility. Excluding the FSRU facility, proceeds will fund remaining interest costs and capital expenditures for the project. Equity contributions from CELSE's controlling partners, including Golar Power, have also been fully paid in. Assuming no dispatch under the Power Purchase Agreements, forecast annual EBITDA1 from the power project (of which Golar is entitled to a 25% interest which will be reported as "equity in net earnings of affiliates" in the consolidated statements of income) including inflation uplifts to date is BRL 1.16 billion, equivalent to approximately US$306 million at a USD/BRL rate of 3.8. Payments under the executed PPA are inflation indexed over the 25-year term and provide for pass-through of fuel costs when the power plant is called upon to dispatch. Around 94% of the project finance facility is also BRL denominated. This reduces net debt to $1.21 billion at the same USD/BRL rate, thus creating a natural hedge for currency movements.

The project, 66% complete by the end of July, is on schedule to commence operations on January 1, 2020. In excess of 2,000 workers are currently on site which is operating 24/7. Prefabricated GE modules, including generators and boilers, are being installed, transmission lines and pylons are being erected and the pipeline connecting the power station to the FSRU mooring is currently being laid.

Additional to the forecast annual EBITDA1 from the power project, the FSRU is expected to generate annual US CPI adjusted EBITDA1 of approximately US$41.0 million (of which Golar is entitled to a 50% interest which will be reported as "equity in net earnings of affiliates" in the consolidated statements of income). A financing commitment for the FSRU Nanook, due to deliver from the yard shortly, has been received and documentation is in its final stages. Net of the final FSRU delivery installment, the facility is expected to release approximately $70 million of cash to Golar Power.

The FSRU Nanook will, when it commences operations in 2019, represent the only entry point for LNG into Brazil outside Petrobras. Access to significant spare FSRU capacity could facilitate the supply of gas directly into the Brazilian grid as well as support a distribution hub for small scale distribution of LNG. The Company sees a number of very attractive opportunities to substitute expensive fuel based energy demand with cheaper and more environmentally friendly LNG solutions. The initial focus will be to target diesel to LNG conversions in the trucking industry as well as tailor-made LNG logistics solutions for the large mining and industrial market. Based on existing infrastructure in Sergipe, Golar Power is also well placed to participate in future Brazilian power auctions, with a clear competitive edge given that capital expenditure linked to the FSRU and grid connection has been substantially covered by the first phase of the project.

 

Financing Review

Golar and its affiliates, Golar Power and Golar Partners, currently have no unfunded capital commitments, given the financing commitment recently received for the FSRU Nanook.

Golar's total cash position as at June 30 was $651.4 million, of which $375.1 million was unrestricted. This is after having drawn the post-acceptance $960 million lease financing facility provided by CSSCL and having repaid the $640 million construction financing facility.

During 3Q 2018, approximately $130 million is expected to be paid to settle the final Hilli Episeyo capital commitments as well as amounts due to non-controlling (10.89%) shareholders Keppel and Black and Veatch as a result of the June 20 debt draw down and subsequent drop down of 50% of the common units of Golar Hilli LLC to Golar Partners on July 12. Of the $175 million restricted cash securing the Hilli Episeyo Letter of Credit, approximately $129 million is expected to be released to free cash1 between 2019 and 2021.

During July, amendments to the existing margin loan facility, secured by units in Golar Partners, were agreed. Although most of the existing terms remain substantially unchanged, the facility will no longer amortize. As of June 30, this facility amounted to $98 million. Subject to the satisfaction of certain covenants, no further principal repayments will be required ahead of loan maturity in March 2020. The value of the secured position as of August 22 was $322 million.

Included within the $868.7 million current portion of long-term debt is $836.9 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with 8 sale and leaseback financed vessels, including the Hilli Episeyo. Of the balance associated with VIE financings, one facility amounting to $143.5 million is due for refinancing by the end of 2018. Discussions with the bank regarding an extension have been initiated.

 

Corporate and Other Matters

As at June 30, 2018, there were 101.1 million shares outstanding, including 3.0 million TRS shares that had an average price of $44.13 per share. The TRS was marked to market as of June 30, 2018 when the closing price was $29.46 per share. There were also 4.1 million outstanding stock options in issue.

Golar's Annual General Meeting is scheduled for September 26, 2018 in Bermuda. The record date for voting was August 1, 2018.

Reflecting the commencement of the Hilli Episeyo contract, reduced overall capital commitments, and a stronger financial position, the Board has increased the dividend payment from $0.05 for 1Q 2018 to $0.125 per share for 2Q 2018.

 

Outlook

Golar is now an integrated energy company delivering LNG upstream, midstream and downstream solutions.

Evidence shows that gas is cheaper to produce than oil and that it also delivers significant environmental benefits relative to traditional fuel products. The Company's target is to maximize profitability by offering integrated LNG logistical solutions that not only improve the environment but also deliver significant energy savings to our customers and profits to Golar's shareholders. As part of this strategy, Golar will also focus on securing access to low cost stranded gas reserves that can be monetized via the cost effective FLNG and FSRU solutions it has developed.

The secular growth thesis for LNG is real. LNG's share of total gas trade is forecast to grow from 33% to ~ 40% in 2023, with emerging Asian markets accounting for half of LNG imports in 2023. Chinese demand alone is up around 50% year-to-date. The LNG commodity market is now expected to balance in 2022, with a supply demand gap reaching ~ 50mtpa by 2025. Much of this will likely be provided by new US export projects, however significant investment in quick delivering infrastructure is also needed. Golar is well placed to deliver this.

Increasing production, rising ton miles and a structural shortage of ships will support sustained improvements in the shipping market. The escalation of rates noted in late May and June ahead of the summer cooling season will be reflected in 3Q 2018 earnings. Charterers keen to lock in rates before they go higher continue to approach the market for multi-month and multi-year charters ahead of what is expected to be a strong winter market. Similar dynamics to those that played out in 2H 2010 are being repeated today. Based on current supply-demand dynamics, Golar expects to generate solid free cash flow from the shipping fleet over the coming 2-3 years.

Hilli Episeyo's successful start-up and acceptance is a transformative event that substantially de-risks the Golar investment case. It also introduces Cameroon as a LNG exporting nation. Representing the culmination of over 20 million man hours, few, if any LNG liquefaction projects have delivered within budget, as quickly and as close to their originally intended start-up date.

The binding Heads of Terms with BP to service the Tortue field offshore Mauritania and Senegal is a significant step both for the Company and this project. Assuming FID, Tortue should be delivering new LNG in 2021/2. Golar continues to pursue other FLNG projects capable of delivering LNG at around the same time and is actively pursuing several investment opportunities alone and with partners, including the economically attractive Fortuna project. An industry wide reluctance to accept new solutions including FLNG, excess levels of bureaucracy, and difficulty securing competitive construction and exit financing represent hurdles for many of these projects. The successful start-up of Hilli Episeyo is expected to lower some of these hurdles. Golar is also in the process of evaluating alternative shipyards that offer more attractive payment terms and long-term financing packages.

A prolonged period of investment of close to $4 billion in LNG carriers, FSRUs, Hilli Episeyo and the Sergipe project is now in the final stages. Strong improvements in the shipping market and the commencement of long-term contracts for Hilli Episeyo and soon, Sergipe, are starting to generate significant cash flow. The opportunity to contract Hilli Episeyo trains 3 and 4 represents further potential upside without the need for additional capital expenditure. Similarly, optionality exists to utilize the spare capacity at the Sergipe terminal. Based on the current strength of the LNG market, monetization of both opportunities should be a realistic target for the next 2 years.

Based on existing contracts, the Golar Board looks forward to sustained improvements in earnings and cashflows in the years to come. Results in 3Q 2018 will be positively influenced by a full quarter's operations of Hilli Episeyo and a shipping market that will deliver a materially better result relative to 2Q. Supported by these solid fundamentals, a fully financed balance sheet and a self-funding Golar Power, the Board has decided to increase the quarterly dividend from $0.05 to $0.125. Further dividend growth should be expected as the shipping market improves and cash flows from long-term contracts in Golar Power commence.

 

Non-GAAP measures

EBITDA: EBITDA is a non-GAAP measure. EBITDA is defined as operating income before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

Free cash: Free cash is defined as "cash and cash equivalents" as presented on the consolidated balance sheets.

TCE: The average TCE rate of our fleet is a measure of the average daily revenue performance of a vessel. TCE is calculated only in relation to our vessel operations. For time charters, TCE is calculated by dividing total operating revenues (including revenue from the Cool Pool but excluding vessel and other management fees and liquefaction services revenue), less any voyage expenses, by the number of calendar days minus days for scheduled off-hire. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during drydocking. TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in an entity's performance despite changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. We include average daily TCE, a non-GAAP measure, as we believe it provides additional meaningful information in conjunction with total operating revenues, the most directly comparable GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Our calculation of TCE may not be comparable to that reported by other entities. Refer to our most recent quarterly earnings release on our investor relations section on our website (www.golar.com) for a reconciliation to the most directly comparable financial measure under US GAAP.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. 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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: 

·         changes in liquefied natural gas, or LNG, carrier, floating storage and regasification unit, or FSRU, or floating liquefaction natural gas vessel, or FLNG, market trends, including charter rates, vessel values or technological advancements;

·         changes in our ability to retrofit vessels as FSRUs or FLNGs and in our ability to obtain financing for such conversions on acceptable terms or at all;

·        changes in our ability to close the sale of additional equity interests in Golar Hilli LLC on a timely basis or at all;

·        our inability to meet our obligations under the Heads of Terms agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project, prior to FID, which will result in extensive termination fees;

·         changes in the supply of or demand for LNG carriers, FSRUs or FLNGs;

·         a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs;

·         changes in the performance of the pool in which certain of our vessels operate and the performance of our joint ventures;

·         changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs;

·         changes in the supply of or demand for LNG or LNG carried by sea;

·         changes in commodity prices;

·         changes in the supply of or demand for natural gas generally or in particular regions;

·         failure of our contract counterparties, including our joint venture co-owners, to comply with their agreements with us;

·         changes in our relationships with our counterparties, including our major chartering parties;

·         changes in the availability of vessels to purchase and in the time it takes to construct new vessels;

·         failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;

·         our ability to integrate and realize the benefits of acquisitions;

·         changes in our ability to sell vessels to Golar Partners or our joint venture, Golar Power;

·         changes in our relationship with Golar Partners or Golar Power;

·         changes to rules and regulations applicable to LNG carriers, FSRUs, FLNGs or other parts of the LNG supply chain;

·         our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs and FLNGs, particularly through our innovative FLNG strategy and our joint ventures;

·         actions taken by regulatory authorities that may prohibit the access of LNG carriers, FSRUs or FLNGs to various ports;

·         changes in our ability to obtain additional financing on acceptable terms or at all;

·         increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance;

·         changes in general domestic and international political conditions, particularly where we operate;

·         a decline or continuing weakness in the global financial markets;

·         challenges by authorities to the tax benefits we previously obtained under certain of our leasing agreements; and

·         other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

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.

 

August 23, 2018

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited +44 207 063 7900

Iain Ross - Chief Executive Officer

Graham Robjohns - Chief Financial Officer and Deputy Chief Executive Officer

Stuart Buchanan - Head of Investor Relations




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend information

Company news

2018-09-27 15:40:01

Golar LNG Dividend Information
Reference is made to the second quarter 2018 report released on August 23, 2018. Golar LNG has declared a total dividend of $0.125 per share to be paid on October 3, 2018. The record date will be September 6, 2018.

Golar LNG Limited
Hamilton, Bermuda
23 August, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

2018 Annual General Meeting-Notice Amendment

Company news

2018-09-27 15:40:01

Dear Shareholder,

You were recently sent your proxy materials for Golar LNG Limited's Annual General Meeting being held on September 26, 2018. Within the proxy statement you physically received or were sent instructions on how to view, Mr. Stolt-Nielsen was omitted from the disclosure information regarding independent directors on page 3.

The second paragraph under "Company Proposals" on page 3 should fully read:

Mr. Rabun, Mr. Steen, Ms Wheeler Naess, Mr. Egeli and Mr. Stolt-Nielsen meet the independence standards for directors established by the United States Securities and Exchange Commission and by the NASDAQ Stock Market on which the Company is listed. 

 

 

Thank you for your attention to this matter, your vote is very important to us.

 

Yours Faithfully

Golar LNG Limited

September 11, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Graham Robjohns

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

2018 Annual General Meeting-Notice Amendment

Company news

2018-09-27 15:40:01

Dear Shareholder,

You were recently sent your proxy materials for Golar LNG Limited's Annual General Meeting being held on September 26, 2018. Within the proxy statement you physically received or were sent instructions on how to view, Mr. Stolt-Nielsen was omitted from the disclosure information regarding independent directors on page 3.

The second paragraph under "Company Proposals" on page 3 should fully read:

Mr. Rabun, Mr. Steen, Ms Wheeler Naess, Mr. Egeli and Mr. Stolt-Nielsen meet the independence standards for directors established by the United States Securities and Exchange Commission and by the NASDAQ Stock Market on which the Company is listed. 

 

 

Thank you for your attention to this matter, your vote is very important to us.

 

Yours Faithfully

Golar LNG Limited

September 11, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Graham Robjohns

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited: 2018 AGM Results Notification

Company news

2018-09-27 15:40:01

Golar LNG Limited (the "Company") advises that the 2018 Annual General Meeting of the Company was held on September 26, 2018 at 9:00 a.m. at Rosewood Tucker's Point, 60 Tucker's Point Drive, Hamilton Parish, Bermuda.  The audited consolidated financial statements for the Company for the year ended December 31, 2017 were presented to the Meeting.

The following resolutions were passed:

1)     To re-elect Tor Olav Trøim as a Director of the Company.

2)     To re-elect Daniel Rabun as a Director of the Company.

3)     To elect Thorleif Egeli as a Director of the Company.

4)   To re-elect Carl Steen as a Director of the Company.

5)   To re-elect Niels G. Stolt-Nielsen as a Director of the Company.

6)   To re-elect Lori Wheeler Naess as a Director of the Company.

7)   To re-elect Michael Ashford as a Director of the Company.

8)  To re-appoint Ernst & Young LLP of London, England as auditors and to authorise the Directors to determine their remuneration.

9)  To approve the remuneration of the Company's Board of Directors of a total amount of fees not to exceed US$1,750,000 for the year ended December 31, 2018.

Hamilton, Bermuda

September 27, 2018





This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

2018 Annual General Meeting

Company news

2018-08-17 15:10:02

Further to the press release of July 5, 2018 giving notice that the Golar LNG Limited 2018 Annual General Meeting will be held on September 26, 2018, a copy of the Notice of Annual General Meeting and associated information including the Company's Annual Report on Form 20-F can be found on our website at http://www.golarlng.com and in the attachments below.

Golar LNG Limited

Hamilton, Bermuda

August 17, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q2 2018 results presentation

Company news

2018-08-14 18:10:02

Golar LNG's 2nd Quarter 2018 results will be released before the NASDAQ opens on Thursday August 23, 2018. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Thursday, August 23, 2018. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 330 336 9411

UK Free call 0800 279 7204

US Toll +1 646 828 8143

USA Free call 800 263 0877
Norway Free call 800 14947
Norway Toll +47 2350 0296

The participants will be asked for their name and conference ID. The Golar conference ID is 7187080

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 7187080.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Completion of sale of equity interest in Golar Hilli LLC

Company news

2018-07-12 19:20:01

We refer to the press release dated August 16, 2017, which announced the transaction to sell an equity interest in Golar Hilli LLC, the indirect owner of the FLNG Hilli Episeyo, to Golar LNG Partners LP (the "Partnership"). Golar LNG Limited and affiliates of Keppel Shipyard Limited and Black and Veatch have now closed the previously announced sale of 50% of the common units in Golar Hilli LLC to the Partnership with effect from July 12, 2018. 

Hamilton, Bermuda

July 12, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

2018 Annual General Meeting

Company news

2018-07-05 16:40:01

Golar LNG Limited advises that its 2018 Annual General Meeting will be held on September 26, 2018.  The record date for voting at the Annual General Meeting is set to August 1, 2018.  The notice, agenda and associated material will be distributed prior to the meeting.

Golar LNG Limited

Hamilton, Bermuda

July 5, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

FLNG Hilli Episeyo - Closing of Post Acceptance Debt Financing

Company news

2018-06-21 16:20:02

Golar LNG Limited ("Golar" or "The Company") announces today that following the June 4th announcement of commercial acceptance of Hilli Episeyo, the Company has repaid the $640 million drawn under the $700 million construction financing facility and drawn down on the post acceptance $960 million lease financing facility provided by CSSC Leasing. After the closing therefore an additional $320 million of liquidity has been received by Golar.

The net increase in liquidity to Golar after settling remaining Hilli Episeyocapital commitments as well as amounts due to minority (10.89%) shareholders Keppel and Black and Veatch as a result of the debt draw down, is expected to be approximately $200 million. This is based upon the expectation that a significant amount of the contingency fund will not be required.

The drop down of 50% of the base tolling income to Golar LNG Partners L.P. is expected to be concluded shortly. The additional added contribution of approximately $82 million in effective EBITDA* and effective EBITDA  backlog of $650million, given the 8 year contract term, will significantly strengthening the MLP's financial position and supporting the distribution going forward.

Golar CEO Iain Ross commented: "We are delighted to have closed this financing and with the support and good relationship we have with CSSC leasing. With the announcement in April of the closing of the Sergipe financing we are now in a position that all our major capital commitments are fully funded, with the only exception being the FSRU Nanook which has a 25 year charter and on which financing discussions are well advanced. In addition to being fully funded the Company's liquidity is also significantly improved."

*EBITDA: earnings before interest, tax, depreciation and amortization; is a non GAAP measure and is defined as being equivalent to revenues less operating expenses for the purposes of this press release. Golar LNG Partners does not expect to initially consolidate Golar Hilli LLC or Hilli Corp and so will reflect its share of net income on its income statement as "equity in net earnings of affiliates."

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda
June, 21 2018
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG :FLNG Hilli Episeyo - Customer Acceptance

Company news

2018-06-04 15:40:01

Golar LNG Limited confirms today that that FLNG Hilli Episeyo has been accepted under its Liquefaction Tolling Agreement with Perenco Cameroon SA and Societe Nationale Des Hydrocarbures and is now in full commercial operation.

 

The commissioning tests included the requirement to produce a set quantity of LNG in a period of 16 days of continuous production from minimum 2 trains at a level of 7500 m3 per day on average.

 

The commercial tolling rate commencing will immediately add approximately $164 million in EBITDA* of base tolling income per year plus an additional $45 million operating cash flow per year based on the oil price linked element of the contract (assuming that Brent remains at an average of $75/bbl).

 

As a consequence of the commencement of commercial operations Golar is now able to draw on the $960 million lease financing facility that will replace the existing loan.  It is estimated that a minimum of approximately $140 million in additional free cash will be released from this facility after meeting maximum remaining capital costs and net of minority interests. 

 

The drop down of 50% of the base tolling income to Golar LNG Partners L.P. is expected to be concluded shortly. The additional added contribution of approximately $82 million in effective EBITDA* and effective EBITDA  backlog of $650million, given the 8 year contract term, will significantly strengthening the MLP's financial position and supporting solid distribution going forward.

 

FLNG Hilli Episeyo is the world's first FLNG vessel that has been developed as a conversion project from an LNG carrier.  This conversion approach adds value through its accelerated time to first LNG production and cost competitive pricing.

 

The commencement of commercial operations of Hilli Episeyo took place in less than 4 years after speculative contracts were signed with Keppel Shipyard.  The project cost is expected to be approximately $70 million under budget. 

 

The Board wishes to thank all employees for an impressive job and a very well executed project.  The commencement of Hilli puts Golar in an unchallenged position as a reliable provider of low cost FLNG technology.

 

 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

 

*EBITDA: earnings before interest, tax, depreciation and amortization; is a non GAAP measure and is defined as being equivalent to revenues less operating expenses for the purposes of this press release. Golar LNG Partners does not expect to initially consolidate Golar Hilli LLC or Hilli Corp and so will reflect its share of net income on its income statement as "equity in net earnings of affiliates."

 

Hamilton, Bermuda

04 June, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

 

Stuart Buchanan

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend information

Company news

2018-05-31 14:10:01

Reference is made to the first quarter 2018 report released on May 31, 2018. Golar LNG has declared a total dividend of $0.05 per share to be paid on July 5, 2018. The record date will be June 14, 2018.

Golar LNG Limited
Hamilton, Bermuda
31 May, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Interim Results for the period ended 31 March 2018

Company news

2018-05-31 14:00:01

Highlights

  • Golar LNG Limited ("Golar" or "the Company") reports operating income and EBITDA1 in the quarter of $6.4 million and $22.8 million, respectively, compared to 4Q 2017 operating income and EBITDA1 of $2.8 million and $19.4 million, respectively.
  • FLNG Hilli Episeyo commences LNG production.

 

Subsequent Events

  • CELSE, Golar Power's affiliate, closed a $1.34 billion financing facility for the Sergipe project.
  • FLNG Hilli Episeyo delivers first two LNG cargoes, progresses commissioning and commences acceptance testing with customers Perenco and SNH.
  • Entered into a preliminary agreement and exchanged Heads of Terms with BP for Tortue project FLNG vessel.
  • Fortuna FLNG project facing significant delay due to lack of acceptable financing solution.
  • Golar and Schlumberger plan to wind down OneLNG.
  • Significant year-on-year strengthening of LNG prices.

 

Financial Review

Business Performance

  2018 2017
(in thousands of $) Jan-Mar Oct-Dec
Total operating revenues 66,190   57,587  
Vessel operating expenses (18,415 ) (17,076 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (24,521 ) (19,464 )
Administrative expenses (14,016 ) (16,763 )
Unrealized gain on FLNG derivative instrument 13,600   15,100  
EBITDA1 22,838   19,384  
Depreciation and amortization (16,409 ) (16,585 )
Operating income 6,429   2,799  

1 EBITDA is defined as operating income before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

 

Golar reports today 1Q 2018 operating income of $6.4 million compared to $2.8 million in 4Q 2017. Further improvements in hire rates and round-trip economics contributed to a $3.6 million increase in total operating revenue net of voyage, charterhire and commissioning expenses, from $38.1 million in 4Q 2017 to $41.7 million in 1Q 2018. Vessel operating expenses increased by $1.3 million to $18.4 million in 1Q 2018. Most of the increase is due to additional crew, repairs and maintenance and logistics expenses in respect of the recently reactivated Golar Viking.

Administrative expenses are lower by $2.7 million, from $16.8 million in 4Q 2017 to $14.0 million in 1Q 2018.

The derivative asset, representing the fair value of the estimated discounted cash flows of payments due in respect of FLNG Hilli Episeyo as a result of the Brent Crude price moving above $60.00 per barrel over the contract term, increased from $94.7 million to $108.3 million during the quarter. As a result, an unrealized fair value gain of $13.6 million was recorded under other operating income.

Net Income Summary

  2018 2017
(in thousands of $) Jan-Mar Oct-Dec
Operating income 6,429   2,799  
Interest income 1,944   1,186  
Interest expense (13,998 ) (6,220 )
Other financial items, net (1,237 ) 24,122  
Other non-operating loss -   (189 )
Income taxes 6   (435 )
Equity in net earnings (losses) of affiliates (1,541 ) (6,348 )
Net income attributable to non-controlling interests (12,605 ) (11,092 )
Net (loss) income attributable to Golar LNG Limited (21,002 ) 3,823  

In 1Q 2018, the Company generated a net loss of $21.0 million. Notable contributors to the $24.8 million decrease in 1Q 2018 are summarized as follows:

  • Interest expense increased by $7.8 million to $14.0 million, the 4Q 2017 expense having been reduced by higher capitalized interest on borrowing costs in respect of Hilli Episeyo.
  • Other financial items reported a 1Q 2018 loss of $1.2 million. This non-cash loss was predominantly the result of a mark-to-market loss of $9.2 million on the three million Total Return Swap ("TRS") shares following a $2.45 quarter-on-quarter decrease in the Company's share price, partly offset by a gain of $7.3 million in respect of mark-to-market valuations of interest rate swaps ("IRS"). This compared to a mark-to-market gain of $20.5 million in respect of the TRS and a mark-to-market gain of $5.6 million on IRS's in the previous quarter.
  • The $1.5 million 1Q 2018 equity in net earnings (losses) of affiliates is primarily comprised of the following:
    • a $4.8 million loss in respect of Golar's 50% share in Golar Power Limited ("Golar Power");
    • a $1.5 million loss in respect of Golar's 51% share in OneLNG S.A. ("OneLNG"); and
    • income of $4.8 million in respect of Golar's stake in Golar LNG Partners LP ("Golar Partners" or the "Partnership"). Cash distributions received from the Partnership are in line with prior quarters.

 

Commercial Review

LNG Shipping

Steady rates and charter activity into the new-year were supported by strong underlying demand for LNG that helped sustain firm Asian prices and prolong arbitrage opportunities through to February. The proportion of US exports destined for Asia in January and February was 57% and 67%, respectively, with resultant high ton miles supporting rates up to $85kpd during January. A seasonal softening in activity resulted in falling LNG prices and an end to inter-basin trading opportunities in late February. Charter rates dropped accordingly to around $65kpd. March fixtures for US cargoes to Asia declined to 40%, with ton miles and rates falling further as a result. By early April, carrier rates were around $45kpd. Delays to the start-up of the 5.25mtpa US Cove Point facility and production interruptions at the 6.9mtpa Papua New Guinea ("PNG") facility accentuated the negative impact of seasonality.

Exports from Cove Point have now commenced and PNG has restarted production. Wheatstone train 2 ("T2") and Ichthys LNG are also scheduled to commence production, whilst both Yamal T2 and T3 are now expected to start producing before year end. This, together with a recent step-up in period cover requirements, has resulted in a sharp reduction in available vessels. Rates are improving once again and indicate a solid year-on-year improvement.

Looking further ahead, a 9-month delay to the start-up of the 13.2mtpa Freeport LNG plant has been confirmed. Ship broker research indicates that the 2018 newbuild delivery schedule is adjusting to accommodate this. Approximately 49 carrier deliveries are now scheduled to deliver in 2018 and liquefaction trains with a nameplate capacity of approximately 31mtpa are expected to commence and ramp up production. A further 29 mtpa of new production is expected to commence in 2019 and 33 mtpa in 2020. Against this, 32 conventional newbuild vessels are expected to be delivered in 2019 and 20 in 2020. Despite a recent spike in vessel orders for delivery in 2020/1, the market remains structurally short by approximately 25 vessels over the next 2-3 years. Material improvements in September-March average winter rates, which increased from around $40kpd in 2016/2017 to around $60kpd in 2017/2018, can also be expected over the coming years.  Strengthening European and Japanese LNG prices (up around 50%) indicate strong demand for LNG and create good opportunities for US exports where Henry Hub prices are lower than 2017 levels.

 

Golar Partners (affiliate)

On January 19 the Partnership executed a 15-year charter with an energy and logistics company for the provision of an FSRU in the Atlantic Basin. The capital element of the charter rate will vary according to demand for regasification throughput, but includes a cap and a floor that is expected to generate annual operating income, before depreciation and amortization, of between approximately $18 and $22 million. The charter also includes certain termination and extension options.

As anticipated, the Partnership's 1Q 2018 results were negatively impacted by the contractual seasonal offhire of the FSRU Golar Igloo, materially lower rates and levels of utilization achieved by the Golar Mazo and Golar Maria in the carrier spot market and a full quarter's trading by the Golar Grand at a reduced daily rate. Distribution coverage was particularly low as a result. Improvements from 2Q 2018 are expected with the closing of the Hilli Episeyo dropdown and start-up of the Atlantic FSRU opportunity. The anticipated strengthening of the shipping market should also contribute increased earnings and distribution coverage.

 

FLNG

Commissioning of gas treatment systems and refrigerant trains on board FLNG Hilli Episeyo continued throughout the quarter and first LNG was produced on March 12. Minor issues encountered after March 12 did, however, interrupt the commissioning of additional trains and the ramp up of production. By late April stable levels of production were being achieved and a 138,000cbm commissioning cargo destined for China was subsequently offloaded. Official acceptance testing has commenced and a second cargo has now been offloaded.  Based on the current schedule the Contract is expected to fully commence in the coming days.

Commissioning fees billed to date amount to $33.7 million. These will be recognized as deferred revenue on the balance sheet and released to revenue over the contract term.

Vessel acceptance is also a key trigger for the final drawdown against the $960 million CSSCL sale and leaseback facility and closing of the previously agreed dropdown to Golar Partners. Final drawdown against this facility and closure of the sale to Golar Partners are expected to take place during June.

Commercial start-up of the world's first low cost FLNG facility has generated significant interest from gas companies and led to several new commercial enquires.

Based on experience gained from developing and constructing Hilli Episeyo, Golar entered into a Preliminary Agreement and exchanged Heads of Terms with BP Mauritania Investments Ltd and BP Senegal Investments Ltd (together "BP") for a FLNG vessel similar to the Hilli Episeyo to service the BP operated Greater Tortue/Ahmeyim project. Executed on April 19, the Heads of Terms represents a commitment between Golar and BP to translate key commercial terms into a full commercial agreement and to proceed with Front End Engineering Design ("FEED") on the provision of a FLNG vessel to service the project offshore Mauritania and Senegal.

The Preliminary Agreement creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018 onwards; which would be contingent on a Project final investment decision ("FID"), expected by the end of 2018. The Preliminary Agreement also includes an option, but not an obligation, for BP on a second FLNG vessel. Customary termination fees apply in the event that FID is not taken.

 

OneLNG (51/49 Golar/Schlumberger upstream joint venture)

Recent LNG price increases enhance the already solid financial returns expected from the Fortuna project. Despite an agreed development plan and extensive efforts over the last twelve months by OneLNG and Ophir management, it has not been possible to finalize an attractive debt financing package. This, together with other capital and resource priorities, has resulted in a decision from Schlumberger to end their participation in the project. Golar and Schlumberger, as a result of this, and based on the structure of the BP project, plan to wind down OneLNG and work on FLNG projects as required on a case-by-case basis.

Efforts to find the optimum capital structure that maximizes value for all Fortuna project stakeholders, including the government of Equatorial Guinea, continue. Golar does not see extensive issuance of new equity at current share price levels as an attractive financing solution. Use of alternative yards that are able to provide financing and the potential introduction of a new industrial partner are, however, being considered. No guarantee can be given that attractive financing for the project can be achieved and Golar does not intend to provide any further market updates before any possible financing alternative is fully committed.

 

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners downstream joint venture)

On April 19, CELSE, the 50% Golar Power owned project company responsible for delivering the 1.5GW Porto de Sergipe I power project, executed a US$1.34 billion BRL based non-recourse project finance facility. Facility proceeds will fund remaining capital expenditures for the power plant, connecting transmission lines, FSRU mooring infrastructure and a connecting gas pipeline. Excluding the FSRU, but including interest costs during construction and a $123 million cash reserve, all-in project Capex is now estimated at $1.74 billion. The increase in project Capex is the result of higher than expected financing, cash reserve, terminal EPC and transmission line costs together with foreign exchange movements. As of April 19, all-in equity of approximately $400 million had been paid in by CELSE's controlling partners. Forecast annual EBITDA1 from the power project (of which Golar is entitled to a 25% interest), assuming no dispatch, is BRL based and equivalent to approximately US$300 million at current exchange rates. Payments under the executed PPA are inflation indexed over the 25-year term and provide for pass-through of fuel costs when the power plant is called upon to dispatch.

Concurrent with financial close, Golar Power also executed contracts with CELSE to charter the FSRU Golar Nanook for 26 years. The additional year provides for the commissioning period ahead of project start-up in January 2020 during which commissioning hire will accrue. The operating cost component will be paid in 2019, whilst the capital component will accrue and be paid over the remaining 25 years commencing January 2020. Annual EBITDA1 accruing to Golar Power from the FSRU is projected to be approximately US$41 million, with annual escalation indexed to US-CPI. Further upside potential accrues to Golar Power in the event that it is able to contract the remaining two-thirds of the FSRU capacity not utilized by Sergipe I. Strategically located in NNE Brazil, and within 20km of the main gas distribution network, the FSRU has the potential to unlock future LNG distribution opportunities into Brazil.

Having executed Time Charter Agreements, Golar Power is now in a position to conclude financing discussions, which are well progressed, for the FSRU Golar Nanook.

Other FSRU conversion prospects are also being pursued.

 

Financing Review

Golar's unrestricted cash position as at March 31, 2018 was $172.4 million. Equity contributions to Golar Power, predominantly represented by installments for the Sergipe project and FSRU Golar Nanook modification costs, resulted in a cash outflow of $40.0 million during 1Q 2018. A further capital contribution payment of $15.0 million was made to Golar Power in April which included the final equity installment for the Sergipe project.

The Hilli Episeyo conversion and commissioning remains within budget. As at March 31, 2018, $1,047.5 million had been incurred ($1,212.8 million including the original vessel and capitalized interest) and $640.0 million had been drawn against the CSSCL pre-delivery facility. Vessel acceptance is the trigger that permits drawdown against the pre-agreed sale and leaseback facility. Upon satisfaction of this milestone, Golar expects to draw down a further $320 million against the sale and leaseback facility during June. After all remaining Capex, including full contingency, the net cash inflow is expected to be approximately $160 million. Of the $175.0 million restricted cash securing the Letter of Credit, approximately $32 million and $97 million, respectively, is expected to be released to free cash 12 and 34 months after customer acceptance of Hilli Episeyo.

Included within the $1,368.3 million current portion of long-term debt is $699.7 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with seven sale and leaseback financed vessels. Of the balance associated with VIE financings, two facilities amounting to $302.7 million are due for refinancing by the end of 2018. Management have received confirmation from one of the facility lenders, representing approximately $160 million, that they will, subject to documentation, extend until at least June 2019 and longer if a term charter is entered into in the meantime. The remaining current portion of long-term debt is predominantly comprised of the $640.0 million Hilli Episeyo CSSCL pre-delivery facility. This is expected to be replaced during June 2018 by the fully drawn long-term $960 million CSSCL sale and leaseback facility.

 

Corporate and Other Matters

As at March 31, 2018, there were 101.1 million shares outstanding, including 3.0 million TRS shares that had an average price of $43.71 per share. There were also 4.5 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter.

Graham Robjohns was appointed CFO and Deputy CEO in March 2018. Mr. Robjohns was previously the CEO of Golar LNG Partners.

 

Outlook

The acceptance of Hilli Episeyo will validate Golar's low cost FLNG solution. Valuable lessons learned during conversion and commissioning also create opportunities to further enhance the process. Golar now has a significant lead in this very profitable business.

Post acceptance, hire at the full rate is expected to generate approximately $164 million of base level annual EBITDA1, 50% of which will accrue to Golar Partners. Assuming the current price of $76.63/bbl is sustained, the Brent link associated with contracted trains 1 and 2 would add approximately $50 million in additional annual cashflows, all of which would accrue to Golar. Trains 3 and 4 represent an attractive commercial opportunity for Perenco and SNH and other proximate resource holders, and the Company is optimistic that these will be utilized in due course.

Executing a binding Heads of Terms with BP for up to two FLNG units to service the Tortue field offshore Mauritania and Senegal enhances the credibility of Golar's FLNG offering and is a significant and very positive step both for the Company and this long-anticipated project. FEED work is being progressed at pace in order to meet the required timetable for FID at the end of 2018. Work on the draft commercial and construction agreements and financing has also commenced. Preliminary financing discussions indicate a good appetite from a wide variety of lenders.

The 25-year Sergipe power project is now fully funded. It is anticipated that the remaining delivery installment for the Golar Nanook will be financed by a new debt facility. Based on current exchange rates, Golar's share of annual EBITDA2 from its effective interest in the power station and FSRU is expected to be around $100 million. Options to monetize the FSRU Golar Nanook's 65% spare capacity, including the supply of gas directly into the Brazilian national grid, are also being pursued. Demand for competitively priced FSRU conversions remains robust and Golar also has a strong lead in this market.

The seasonal softening of the shipping market was anticipated. This will negatively impact 2Q 2018 TCE, which is expected to be around half 1Q 2018 levels. The underlying thesis of a sustainable recovery in the shipping market from 3Q 2018 does, however, remain intact. This is supported by new production and rising ton miles as well as the large price differential between European and Asian LNG prices and US gas prices.

Start-up of Hilli Episeyo and financial close for the Sergipe project are two significant steps toward de-risking the Golar investment case. Earnings from Hilli Episeyo and a resurgent carrier market are expected to result in significant and sustained improvements to earnings from 2H 2018 forward. The Board is pleased with Golar's transformation over the last five years from a LNG shipping and FSRU company to a more integrated Gas to Power company. The strategic platform created, including the long-term FLNG and Power contracts, represents a solid basis for long-term value creation.

2 EBITDA is a non-GAAP financial measure that is defined as operating income before interest, tax, depreciation and amortization. Golar's share of annual EBITDA from its effective interest in the Sergipe power station and the FSRU Golar Nanook will be reported as "equity in net earnings of affiliates" in the consolidated statements of income.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: 

  • changes in liquefied natural gas, or LNG, carrier, floating storage and regasification unit, or FSRU, or floating liquefaction natural gas vessel, or FLNG, market trends, including charter rates, vessel values or technological advancements;
  • changes in our ability to retrofit vessels as FSRUs or FLNGs and in our ability to obtain financing for such conversions on acceptable terms or at all;
  • changes in the timeliness of the Hilli Episeyo acceptance by the charterer;
  • changes in our ability to close the sale of certain of our equity interests in Hilli Episeyo on a timely basis or at all;
  • our inability to meet our obligations under the Heads of Terms agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project, prior to FID, which will result in extensive termination fees;
  • changes in the supply of or demand for LNG carriers, FSRUs or FLNGs;
  • a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs;
  • changes in the performance of the pool in which certain of our vessels operate and the performance of our joint ventures;
  • changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs;
  • changes in the supply of or demand for LNG or LNG carried by sea;
  • changes in commodity prices;
  • changes in the supply of or demand for natural gas generally or in particular regions;
  • failure of our contract counterparties, including our joint venture co-owners, to comply with their agreements with us;
  • changes in our relationships with our counterparties, including our major chartering parties;
  • changes in the availability of vessels to purchase and in the time it takes to construct new vessels;
  • failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;
  • our ability to integrate and realize the benefits of acquisitions;
  • changes in our ability to sell vessels to Golar Partners or our joint venture, Golar Power;
  • changes in our relationship with Golar Partners or Golar Power;
  • changes to rules and regulations applicable to LNG carriers, FSRUs, FLNGs or other parts of the LNG supply chain;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNG strategy and our joint venture;
  • actions taken by regulatory authorities that may prohibit the access of LNG carriers, FSRUs or FLNGs to various ports;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through our innovative FLNG strategy, or FLNG, and our joint venture;
  • changes in our ability to obtain additional financing on acceptable terms or at all;
  • our ability to make additional equity funding payments to Golar Power to meet our obligations under  the shareholders agreement;
  • increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance;
  • changes in general domestic and international political conditions, particularly where we operate;
  • a decline or continuing weakness in the global financial markets;
  • challenges by authorities to the tax benefits we previously obtained under certain of our leasing agreements; and
  • other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

 

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.

 

May 31, 2018

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited +44 207 063 7900

Iain Ross - Chief Executive Officer

Graham Robjohns - Chief Financial Officer and Deputy Chief Executive Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q1 2018 results presentation

Company news

2018-05-21 19:10:01

Golar LNG's 1st Quarter 2018 results will be released before the NASDAQ opens on Thursday May 31, 2018. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Thursday, May 31, 2018. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 330 336 9411

UK Free call 0800 279 7204

US Toll +1 646 828 8143

USA Free call 800 347 6311
Norway Free call 800 14947
Norway Toll +47 2350 0296

The participants will be asked for their name and conference ID. The Golar conference ID is 5093207

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 5093207.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG enters into a Preliminary Agreement and exchanges Heads of Terms for an FLNG vessel for Phase 1A of the Greater Tortue / Ahmeyim Project, West Africa

Company news

2018-04-19 20:10:01

Golar LNG Limited ("Golar") announces today that it has entered into a Preliminary Agreement and exchanged Heads of Terms ("HoT") for a Charter Agreement with BP Mauritania Investments Ltd and BP Senegal Investments Ltd, (together "BP") in their capacity as block operators.  The HoT represents a commitment between the Parties to translate the key commercial terms into a full agreement and proceed with Front End Engineering Design (FEED) on the provision of an FLNG vessel to support the development of Phase 1A of the Greater Tortue / Ahmeyin field, located offshore Mauritania and Senegal. 

The Preliminary Agreement creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018 onwards; which would be contingent on Project FID, expected end 2018. The vessel conversion would take place at Keppel Shipyard Ltd ("Keppel") building on Keppel's delivery of the FLNG Hilli Episeyo, utilizing Black and Veatch Corporation's PRICO technology. The Preliminary Agreement also includes an option, but not an obligation, for BP on a second FLNG vessel. In the event that FID is not taken customary termination fees apply.

Golar CEO Iain Ross commented "This agreement with BP underscores the value that Golar's unique FLNG proposition brings to monetizing gas reserves to LNG at competitive prices.  The FLNG contract shows solid long-term economics on an unleveraged basis.  We are looking forward to building on the successful conversion of the Hilli Episeyo for Greater Tortue / Ahmeyin."

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission.  

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

19 April, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar Power reaches Financial Closing on 1.5GW Sergipe Power Project

Company news

2018-04-19 13:50:01

April 19, 2018 - Golar LNG Limited ("Golar") announces today that Golar Power Limited ("Golar Power"), a joint venture with Stonepeak Infrastructure Partners, has reached financial closing on the 1.5GW Porto de Sergipe I Power Project (the "Project" or "Sergipe TPP"). Located in Sergipe, NNE of Brazil, the Project will be the largest and most efficient thermoelectric power plant in Latin America and the Caribbean upon its completion.

CELSE (Centrais Elétricas de Sergipe S.A.), the Project company 50% controlled by Golar Power, will receive US$1.340 billion under a non-recourse project financing structure. Total proceeds from the financing will be used to fund remaining capital expenditures of the Project, including: the 1.5GW Power Plant, a dedicated 34km 500KV high-voltage transmission line, and associated gas pipeline and mooring infrastructure required for the integrated LNG import terminal facility.

Total Project capex including taxes and financing costs is estimated at US$1.740 billion. The total equity contribution of approximately US$400 million has been fully paid-in and includes US$123 million in cash reserve accounts that were pre-funded by the project sponsors. The power project will generate a forecasted annual EBITDA of US$323 million at current exchange rates, prior to any dispatch. Commencement of power station commercial operations is scheduled for January 1st, 2020. Payments under the executed PPA are inflation indexed and provide for pass-through of fuel costs to the PPA counterparties.

Golar Power CEO Eduardo Antonello commented: "This innovative financing represents a key milestone in the development of Golar Power infrastructure projects globally, establishing a precedent for financing in local currency in support of projects receiving revenues in local currency which are adjusted based on inflation. The Project bond issuance has attracted the interest of multiple international investors and opens a new horizon of opportunities for infrastructure development. With this experience, we believe Golar Power is uniquely positioned to help deliver these opportunities globally to new and underserved customers and geographies.

With the Sergipe TPP we have developed a fully flexible and highly efficient natural gas fired plant that will enable Brazil to increase its energy security while continuing to expand its development of renewable energy resources, including solar and wind."

In connection with financial close of the Project, Golar Power has also executed final agreements with CELSE to charter the Golar Nanook, a fully customized new-build 170,000m3 FSRU, for 26 years. The annual EBITDA contribution for Golar Power is currently projected to be approximately US$41 million, with annual escalation indexed to US-CPI, and upside potential for Golar Power through use of the remaining two-thirds of FSRU capacity not utilized by the Project. The terminal is located in a strategic entry point to the NNE of Brazil, within 20km of the main gas distribution network, and has the potential to unlock future LNG distribution opportunities into Brazil.


 FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and the operations, performance and financial condition of Golar and its joint ventures. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Golar and its partners. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

19 April, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Announcement of filing of Form 20-F Annual Report

Company news

2018-04-16 20:50:01

Golar LNG Limited announces that it has filed its Form 20-F for the year ended December 31, 2017 with the Securities and Exchange Commission in the U.S.

Form 20-F can be downloaded from the link below, is available on our website (www.golarlng.com) and shareholders may receive a hard copy free of charge upon request. 

April 16, 2018
The Board of Directors
Hamilton, Bermuda
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited & Golar LNG Partners L.P. announce organizational changes

Company news

2018-03-19 12:40:01

Golar LNG Limited ("Golar") and Golar LNG Partners L.P. ("Golar Partners") announce today changes to the roles of their respective officers Brian Tienzo and Graham Robjohns, both of whom have held their current positions for approximately 7 years. With immediate effect Brian Tienzo will step down as CFO of Golar and will take up the position of CEO and CFO of Golar LNG Partners, he will also retain certain responsibilities for Group financing activities. Graham Robjohns will step down as CEO of Golar Partners and take up the role of CFO and Deputy CEO of Golar LNG.

Hamilton, Bermuda

March 19, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

FLNG Hilli Episeyo and Gandria update

Company news

2018-03-12 09:00:01

Further to the trading update provided as part of the recent 4Q 2017 results presentation, Golar LNG Limited confirms that first production of LNG has successfully commenced from Hilli Episeyo offshore Cameroon and that the Golar Gandria has been removed from layup and is now at Keppel Shipyard in Singapore. 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.


Hamilton, Bermuda
March 12, 2018

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend information

Company news

2018-02-28 14:30:02

Reference is made to the fourth quarter 2017 report released on February 28, 2018. Golar LNG has declared a total dividend of $0.05 per share to be paid on or about April 4, 2018. The record date will be March 14, 2018.

Golar LNG Limited
Hamilton, Bermuda
28 February, 2018





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited preliminary fourth quarter and financial year 2017 results

Company news

2018-02-28 14:20:01

Highlights

  • Golar LNG Limited ("Golar" or "the Company") reports operating income and EBITDA* in the quarter of $2.8 million and $19.4 million, respectively, compared to 3Q 2017 losses of $22.9 million and $5.5 million, respectively.
  • Golar LNG Partners L.P. ("Golar Partners" or "the Partnership") issues first 50% of Incentive Distribution Right reset Earn-Out Units to Golar.
  • FLNG Hilli Episeyo arrives on site in Cameroon, hooks up to mooring, tenders Notice of Readiness and commences commissioning.
  • Shipping market recovery gathers momentum.

 

Subsequent Events

  • Golar Partners secures a 15-year contract for one of its two available FSRUs.
  • Initiate process of mobilizing LNG carrier Gandria from layup.

 

Financial Review

Business Performance

  2017 2017
(in thousands of $) Oct-Dec Jul-Sep
Total operating revenues (including revenue from collaborative arrangement) 57,587   32,432  
Vessel operating expenses (17,076 ) (13,827 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (19,464 ) (13,091 )
Administrative expenses (16,763 ) (11,025 )
Unrealized gain on FLNG derivative instrument 15,100   -  
EBITDA* 19,384   (5,511 )
Depreciation and amortization (16,585 ) (17,385 )
Operating income (loss) 2,799   (22,896 )

* EBITDA is defined as operating income (loss) before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

 

Golar reports today 4Q 2017 operating income of $2.8 million compared to a 3Q 2017 loss of $22.9 million. Further improvements in vessel utilization, hire rates, improving round-trip economics and expiry on November 1, 2017 of the obligation to charter in the Golar Grand from Golar Partners all contributed to an $18.8 million increase in total revenue net of voyage expenses, from $19.3 million in 3Q 2017 to $38.1 million in 4Q 2017.

Vessel operating expenses increased $3.2 million to $17.1 million in 4Q 2017. Most of the increase is due to repairs, maintenance and crew expenses together with costs associated with reactivating the Gandria from layup.

Additional employment, legal and professional costs and Mark II FEED study expenses caused administrative expenses to increase by $5.8 million, from $11.0 million in 3Q 2017 to $16.8 million in 4Q 2017.

Liquefaction services revenue in respect of the FLNG Hilli Episeyo will be recognized after customer acceptance of the vessel. A derivative asset of $79.6 million, representing the fair value of the estimated discounted cash flows of payments due as a result of the Brent crude price moving above the contractual floor of $60.00 per barrel over the contract term, was recognized in December 2017 on commencement of commissioning. The derivative asset is adjusted to fair value at each balance date and, on December 31, 2017, the value of this asset increased to $94.7 million. This resulted in the recognition of an unrealized fair value gain of $15.1 million under other operating income in the income statement. Movements in the price of Brent crude will cause the derivative asset and resulting fair value movements to fluctuate.

 

Net Income Summary

  2017 2017
(in thousands of $) Oct-Dec Jul-Sep
Operating income (loss) 2,799   (22,896 )
Interest income 1,186   1,792  
Interest expense (6,220 ) (13,375 )
Other financial items, net 24,122   4,433  
Other non-operating loss (189 ) (98 )
Taxes (435 ) (423 )
Equity in net losses of affiliates (6,348 ) (5,907 )
Net income attributable to non-controlling interests (11,092 ) (7,401 )
Net income (loss) attributable to Golar LNG Limited 3,823   (43,875 )

In 4Q 2017, the Company generated net income of $3.8 million. Notable contributors to the $47.7 million increase in 4Q 2017 are summarized as follows:

  • Interest expense decreased by $7.2 million to $6.2 million. The decrease is mainly attributable to deemed interest capitalized in respect of Hilli Episeyo in 4Q 2017.
  • Other financial items reported 4Q 2017 income of $24.1 million. This non-cash income was derived from a mark-to-market gain on the three million Total Return Swap ("TRS") shares following a $7.20 quarter-on-quarter increase in the Company's share price and further increases in swap rates resulting in mark-to-market interest rate swap gains.
  • The $6.3 million 4Q 2017 equity in net losses of affiliates is primarily comprised of the following:
    • a $6.3 million loss in respect of Golar's 50% share in Golar Power Ltd ("Golar Power");
    • a $2.9 million loss in respect of Golar's 51% share in OneLNG S.A. ("OneLNG"); and
    • income of $2.5 million in respect of Golar's stake in Golar Partners.

Golar's $7.4 million 4Q 2017 share of net earnings in the Partnership is offset by amortization, principally of the fair value gain on deconsolidation of Golar Partners, currently equivalent to $4.9 million. Cash distributions received from the Partnership are in line with prior quarters.

 

Commercial Review

LNG Shipping

The LNG shipping market continued to tighten as a result of 2017 demand increasing 11% (as a function of higher volumes and longer voyages) contrasting with shipping supply increasing by only 5%. Strong LNG import demand from China, Korea and India together with rising coal and oil prices helped absorb cargoes and push the LNG spot price higher. Faster than expected coal-to-gas switching saw China demand grow by 48% to overtake South Korea as the second largest market for LNG imports. By year end the JKM price was $11.2/mmbtu, NBP was $6.9 and Henry Hub was $2.9. This price differential created a good export opportunity for US gas into the Asian market, placing further upward pressure on ton miles: 69% of 4Q 2017 US volumes went to Asia compared to 48% in 4Q 2016. TFDE carrier spot rates increased from around $45kpd at the beginning of the quarter to three year highs of around $80-85kpd (plus round trip economics) at year end. A dramatic reduction in prompt available vessels also resulted in improving rates and utilization for steam turbine vessels. In response, the Company reactivated the ST carrier Golar Viking, which entered the spot market during February 2018.

Steady rates and charter activity into the new year were supported by strong underlying demand for LNG that helped sustain firm Asian prices and prolong arbitrage opportunities through to mid-February 2018. More recently, there has been a seasonal softening of rates for TFDEs to around $65kpd and corresponding reductions in utilization.

Over the course of 2018, liquefaction trains with a nameplate capacity of approximately 35mtpa are expected to commence and ramp up production. Approximately 55 carrier deliveries are currently scheduled for 2018. A further 33 mtpa of new production is expected to commence in 2019 and 24 mtpa in 2020. Against this, 30 newbuild vessels are expected to deliver in 2019 whilst 10 carriers are currently scheduled to deliver in 2020. Independent shipping research firms estimate that the current market looks to be structurally short by 30-35 vessels over the next 2-3 years.

Golar Partners (affiliate)

On October 31, 2017, the Partnership closed a 5.52 million $25.0 per unit 8.75% Series A Preferred Unit offering raising net proceeds of $133.0 million. Trading from an At-The-Market facility established in September 2017 was also initiated during the quarter. To date, this facility has generated net proceeds to the Partnership of $17.8 million on the sale of 779,165 common and General Partner units. Collectively, these two facilities are expected to fund a significant portion of the Partnership's potential acquisition of the remaining 50% of Hilli Episeyo's contracted capacity.

On January 19, 2018 the Partnership executed a 15-year charter with an energy and logistics company for the provision of an FSRU in the Atlantic Basin. The Partnership can nominate either of its two available FSRUs to service the contract provided that the nominated unit satisfies certain technical specifications ahead of project start-up, expected in the fourth quarter of 2018. The capital element of the charter rate will vary according to demand for regasification throughput, but includes a cap and a floor that is expected to generate annual operating income before depreciation and amortization of between approximately $18 and $22 million.   The charter includes an option after 3 years for the charterer to terminate the contract and seek an alternative regasification solution, but only in the event that certain throughput targets have not been met. Additionally, Golar Partners will have a matching right to provide such alternative solution. The charter also includes a 5-year extension option.

The Partnership is working on a number of other requirements compatible with the remaining FSRU as well as a conversion opportunity for one of its available carriers.

 

FLNG

FLNG Hilli Episeyo arrived in Cameroon in late November 2017. Customs clearance, positioning, mooring hook-up and connection to the riser and umbilicals followed shortly thereafter. In early December 2017, a Notice of Readiness, which triggers the commissioning process, was tendered to Perenco and SNH. A ship-to-ship transfer of cool down LNG with the Golar Bear was completed in mid-December 2017, followed by the introduction of feed gas from the onshore processing plant. Full commissioning of the gas treatment systems is now substantially complete and they are running satisfactorily. Commissioning of the refrigerant trains continued through to February 2018 and first LNG production is expected to commence in the coming days. Although Golar reiterates the importance of taking the time it needs to safely commission the vessel, at this time final commissioning, followed by acceptance testing, remains on track for mid-April 2018. Vessel acceptance will trigger the final drawdown against the $960 million CSSCL facility.

Commissioning hire at a reduced toll rate began to accrue from January 4, 2018: $9.8 million has now been received in respect of January 2018 and a further $11.1 million will shortly be billed in respect of February 2018.

 

OneLNG (51/49 Golar/Schlumberger upstream joint venture)

Financing for the Fortuna project remains outstanding despite an approved Umbrella Agreement, a preferred off-taker, and EPC and EPCIC contracts for midstream and upstream infrastructure all being in place. Whilst Hilli Episeyo's imminent proof of concept should assist current financing discussions, market leading economic returns give Golar the confidence that financing can be achieved. As a result, the Company is in the process of moving the Gandria from layup for positioning to Singapore's Keppel Shipyard.

Other OneLNG projects are also making good progress and there is a high degree of confidence that further projects will be advanced this year.

 

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners downstream joint venture)

Construction of the Sergipe power project continues to plan. A full financing package for the project remains on track to close within 1Q 2018. Civil and earthworks are complete and power plant infrastructure modules have started to arrive on site. The FSRU Golar Nanook remains on track for a September 2018 delivery and will be required on site in 1Q 2019 ahead of project commissioning. Required modifications to the FSRU will result in an all-in delivered cost of approximately $285 million. Golar Power will be compensated for the cost of these modifications by a higher daily rate that is expected to increase the 25-year annual EBITDA from $39 million to $41 million. Financing discussions for the FSRU are at an advanced stage.

A number of other FSRU opportunities are also being pursued. Where mutually beneficial, Golar Power will work with other Golar affiliates to utilize suitably sized conversion candidates and develop opportunities. The market for low cost, mid-sized FSRUs has increased in terms of activity. One of Golar Power's available carriers has been committed for one such opportunity and clarification on this project is expected around mid-April 2018.

 

Financing Review

FLNG Hilli Episeyo financing

The Hilli Episeyo remains within budget. As at December 31, 2017, $1,030.0 million has been incurred ($1,177.5 million including the original vessel and capitalized interest). At year-end, $525.0 million had been drawn against the CSSCL facility and, as of today, $640.0 million has been drawn. A further $60.0 million of the pre-delivery facility is therefore available to meet remaining pre-acceptance costs over the coming weeks. Up to a further $260.0 million can be used for remaining bills and to augment liquidity after acceptance. Net of non-controlling interests and final costs, drawdown of this facility is expected to add approximately $140.0 million to Golar's 2Q 2018 liquidity and investment capacity.

Liquidity

Golar's unrestricted cash position as at December 31, 2017 was $214.9 million. An early debt repayment in respect of the Golar Tundra and an equity contribution to Golar Power collectively resulted in a cash outflow of $54.5 million during the quarter. Offsetting this was $57.2 million released from short-term restricted cash during 4Q 2017 following a 3Q 2017 agreement between Golar and the charterers of FLNG Hilli Episeyo to reduce the LC from $400 to $300 million. Of the original $400 million LC, $231.9 million, or approximately 58%, had been cash backed by Golar. After release of the $57.2 million, the cash backed share of the reduced $300 million LC remains unchanged at $174.7 million. Of this, approximately $32 million and $97 million, respectively, is expected to be released to free cash 12 months and 34 months after customer acceptance of Hilli Episeyo.

Included within the $1,384.9 million current portion of long-term debt is $833.7 million relating to lessor-owned VIE subsidiaries that Golar is required to consolidate in connection with seven sale and leaseback financed vessels. Of the balance associated with VIE financings, $341.3 million is due for refinancing by the end of 2018. Management has received indicative financing terms for this. The remaining current portion of long-term debt is predominantly comprised of the $525.0 million Hilli Episeyo CSSCL facility which will be replaced by the pre-arranged $960 million sale and leaseback facility after vessel acceptance.

 

Corporate and Other Matters

As at December 31, 2017, there were 101.1 million shares outstanding, including 3.0 million TRS shares that had an average price of $43.30 per share. There were also 4.0 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter.

 

Outlook

Hilli Episeyo is now a cash generating asset. Whilst slower than initially anticipated, commissioning has been relatively straightforward to date. Final commissioning is currently expected in late March 2018, with customer acceptance testing scheduled for completion in mid-April 2018. Hire will be receivable at the full rate thereafter. The 3rd and 4th trains and the Brent-linked cash flows attached to the 1st and 2nd trains represent further upside. Assuming current prices are sustained, the Brent link alone is worth around $15 million in additional annual cashflows at $65/bbl.

Our experience from Hilli Episeyo's conversion and commissioning is being applied to the Fortuna project. Proof of concept following acceptance of Hilli Episeyo is also expected to speed up and open a wider variety of financing alternatives. Some of those alternatives are being actively worked. Initiation of yard works to the Gandria should therefore be viewed as indicative of the Company's confidence in a FID being reached.

The Sergipe project is expected to be cashflow generative in 2020, ahead of Fortuna. At current exchange rates, the Company expects to record $105 million in annual EBITDA* in respect of its 25% effective interest in the power station and 50% interest in the FSRU. Options to monetize the FSRU Nanook's 65% spare capacity represent additional upside for Golar Power.

Shipping returns are expected to increase over the course of 2018 as a function of an improved supply-demand balance which can be expected to result in higher rates and utilization. This should materially improve cash generation going forward. Against this positive backdrop, the Company is investigating options to restructure its shipping business to capture more upside for shareholders from the forthcoming market recovery.

TCE rates achieved for 1Q 2018 are marginally up on 4Q 2017. Due to seasonality of the business and timing of new production coming on stream, shareholders should not expect a significant improvement in rates before 3Q 2018.

With a strong underlying LNG Carrier market, the imminent acceptance of Hilli Episeyo, solid progress on the Sergipe power project and the potential for several FLNG/FSRU projects to reach FID, Golar expects significant earnings growth over the coming years.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:

  • changes in liquefied natural gas, or LNG, carrier, floating storage and regasification unit, or FSRU, or floating liquefaction natural gas vessel, or FLNG, market trends, including charter rates, vessel values or technological advancements;
  • changes in our ability to retrofit vessels as FSRUs or FLNGs and in our ability to obtain financing for such conversions on acceptable terms or at all;
  • changes in the timeliness of the Hilli Episeyo commissioning and acceptance by the charterer;
  • changes in the supply of or demand for LNG carriers, FSRUs or FLNGs;
  • a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs;
  • changes in the performance of the pool in which certain of our vessels operate and the performance of our joint ventures;
  • changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs;
  • changes in the supply of or demand for LNG or LNG carried by sea;
  • changes in commodity prices;
  • changes in the supply of or demand for natural gas generally or in particular regions;
  • failure of our contract counterparties, including our joint venture co-owners, to comply with their agreements with us;
  • changes in our relationships with our counterparties, including our major chartering parties;
  • changes in the availability of vessels to purchase and in the time it takes to construct new vessels;
  • failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;
  • our ability to integrate and realize the benefits of acquisitions;
  • changes in our ability to  close the sale of the equity interest in Hilli Episeyo on a timely basis or at all;
  • changes in our ability to sell vessels to Golar Partners, or our joint ventures Golar Power and OneLNG;
  • changes in our relationship with Golar Partners, Golar Power or our joint venture OneLNG;
  • changes to rules and regulations applicable to LNG carriers, FSRUs, FLNGs or other parts of the LNG supply chain;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNG strategy and our JVs;
  • actions taken by regulatory authorities that may prohibit the access of LNG carriers, FSRUs or FLNGs to various ports;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through our innovative FLNG strategy, or FLNG, and our joint ventures;
  • changes in our ability to obtain additional financing on acceptable terms or at all;
  • our ability to make additional equity funding payments to Golar Power and OneLNG to meet our obligations under  each of the respective shareholders' agreements;
  • increases in costs, including, among other things, wages, insurance, provisions, repairs and maintenance;
  • changes in general domestic and international political conditions, particularly where we operate;
  • a decline or continuing weakness in the global financial markets;
  • challenges by authorities to the tax benefits we previously obtained under certain of our leasing agreements; and
  • other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

 

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.

 

February 28, 2018

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

 

Questions should be directed to:

Golar Management Limited +44 207 063 7900

Iain Ross - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q4 2017 results presentation

Company news

2018-02-15 15:30:02

Golar LNG's 4th Quarter 2017 results will be released before the NASDAQ opens on Wednesday February 28, 2018. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, February 28, 2018. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 330 336 9105

UK Free call 0800 358 6377

US Toll +1 646 828 8157

USA Free call 866 548 4713
Norway Free call 800 51084
Norway Toll +47 2100 2610

The participants will be asked for their name and conference ID. The Golar conference ID is 7775511

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 7775511.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2017-11-30 15:30:01

Reference is made to the third quarter 2017 report released on November 30, 2017. Golar LNG has declared a total dividend of $0.05 per share to be paid on or about January 4, 2018. The record date will be December 14, 2017.

Golar LNG Limited
Hamilton, Bermuda
30 November, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 30 September 2017

Company news

2017-11-30 14:10:02

Highlights

·         Operating Loss and EBITDA* in the quarter reported a loss of $22.9 million and $5.5 million, respectively, compared to a 2Q 2017 loss of $24.0 million and $6.6 million, respectively.

·         Committed to sell an interest in the FLNG Hilli Episeyo ("Hilli") to Golar LNG Partners ("Golar Partners").

·         Iain Ross appointed as CEO.

Subsequent Events

  • Golar Partners closes a Series A Preferred Unit offering raising net proceeds of $134 million.
  • Golar Partners issues first 50% of Incentive Distribution Right reset Earn-Out Units to Golar.
  • LNG shipping market shows solid signs of recovery in 4Q.
  • FLNG Hilli on site in Cameroon with production expected to commence shortly.

 

Financial Review

Business Performance

  2017 2017
(in thousands of $) Jul-Sep Apr-Jun
Total operating revenues (including revenue from collaborative arrangement) 32,432   28,408  
Vessel operating expenses (13,827 ) (12,099 )
Voyage, charterhire & commission expenses (including expenses from collaborative arrangement) (13,091 ) (11,808 )
Administrative expenses (11,025 ) (11,105 )
EBITDA* (5,511 ) (6,604 )
Depreciation and amortization (17,385 ) (17,366 )
Operating loss (22,896 ) (23,970 )

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

 

Golar reports today a 3Q 2017 operating loss of $22.9 million as compared to a 2Q 2017 loss of $24.0 million.  A pick-up in utilization toward the end of the quarter resulted in a small rise in time charter revenues which increased $1.0 million to $25.0 million in 3Q 2017. Voyage expenses increased from $11.8 million in 2Q 2017 to $13.1 million in 3Q 2017, with the increase largely attributable to repositioning and cool-down costs for the Golar Tundra which departed Ghana in September and prepared for service as an LNG carrier.

As a result of higher fleet management and general vessel maintenance costs, vessel operating expenses increased $1.7 million to $13.8 million in 3Q 2017. Administration and depreciation and amortization costs at $11.0 million and $17.4 million, respectively, were in line with 2Q 2017.

Net Income Summary

  2017 2017
(in thousands of $) Jul-Sep Apr-Jun
Operating loss (22,896 ) (23,970 )
Interest income 1,792   1,888  
Interest expense (13,375 ) (20,453 )
Other financial items, net 4,433   (22,384 )
Other non-operating (loss) income (98 ) 144  
Taxes (423 ) (458 )
Equity in net (losses) earnings of affiliates (5,907 ) 704  
Net income attributable to non-controlling interests (7,401 ) (9,279 )
Net loss attributable to Golar LNG Limited (43,875 ) (73,808 )

In 3Q 2017 the Company generated a net loss of $43.9 million. Notable contributors to this are summarized as follows:

      ·         The $7.1 million decrease in interest expense is the result of an adjustment to reflect capitalization of deemed interest of $7.4 million in connection with Golar's equity investment in Golar Power. This has been partly offset by additional interest charges as a result of an increase in LIBOR.

      ·         Other financial items reported 3Q 2017 income of $4.4 million. This non-cash income was derived from a mark-to-market gain on the three million Total Return Swap ("TRS") shares following a $0.36 quarter-on-quarter increase in the Company's share price, an increase in swap rates resulting in mark-to-market interest rate swap gains and a $2.5 million mark-to-market gain on the IDR Earn-Out Units derivative.

      ·         The $5.9 million 3Q 2017 equity in net losses of affiliates is primarily comprised of the following:

                    -       a $5.0 million loss in respect of Golar's 50% share in Golar Power;

                    -       a $2.1 million loss in respect of Golar's 51% share in OneLNG; and

                    -       income of $1.1 million in respect of Golar's stake in Golar Partners.

Golar Partners reported a substantial drop in 3Q 2017 net income, primarily due to recognition of the Golar Spirit termination fee in 2Q 2017 and the loss of earnings from this FSRU post June 23, 2017. Golar's $8.4 million 3Q 2017 share of net earnings in the Partnership is offset by amortization, principally of the fair value gain on deconsolidation of Golar Partners, currently equivalent to $7.3 million. At $12.9 million, the quarterly cash distribution received from the Partnership is in line with prior quarters.

 

Commercial Review

LNG Shipping

The shipping market recovery is underway. Shipping demand has exceeded supply growth for the first time since 2013. Demand growth has been supported by a combination of additional liquefaction volumes and rising ton miles. Eight liquefaction trains with nameplate capacity of 34 million tons that commenced operations in 2016 continue to ramp up. A further six trains including Sabine Pass T4 and Wheatstone and Yamal T1 with a collective nameplate capacity of 28 million tons have commenced operations during 2017 to date. Start-up of the 5 million ton Cove Point facility is anticipated around year-end. After four years of declining ton miles, the advent of US volumes and the commencement of contracts with their Far Eastern off-takers are also contributing to rising sailing distances. Year to September 2017 ton miles increased 10% relative to 2016. This upward trajectory should continue given that new 2018-2021 liquefaction will be dominated by US volumes.

During September vessels began to pull out of the spot market to service dedicated volumes. Rising LNG prices in the East in response to significant demand from China and Korea also resulted in additional arbitrage opportunities and ton miles as more US volumes headed further eastward. Approximately 1.9 vessels are required to carry US volumes to Asia, more than twice the number required to deliver Australian volumes. Spot rates have steadily increased from 2-year highs in early October to 3-year highs today with sentiment continuing to improve as we move into peak winter gas demand. LNG prices have also surprised to the upside. Current JKM prices at around $9.80 per mmbtu compare to $7.10 this time last year. Similarly, European prices of $7.70 compare to $5.90 last year. The increase in Asia has, to a large extent, been driven by very strong Chinese demand where year to October imports are up approximately 48%, to 29 million tons.

Looking to 2018, around 45 vessels are scheduled for delivery, equivalent to 10% of the current fleet. This compares to more than 12% expected production growth for the year. Growth in ton miles is expected to further tighten the market and this sentiment is translating into a notable increase in enquiries for term charters.

Golar Partners

On August 15, 2017, Golar entered into a Purchase and Sale Agreement ("PSA") with Golar Partners for the sale of equity interests in the Hilli. The sold interests represent the equivalent of 50% of the two liquefaction trains, out of four, that have been contracted to Perenco Cameroon SA ("Perenco") and Societe Nationale Des Hydrocarbures ("SNH") for an eight-year term. The sold interest includes a 5% stake in any future incremental earnings generated by the currently uncontracted expansion capacity, but does not include exposure to the oil linked component of Hilli's current revenue stream. The agreed sale price was $658 million less net lease obligations under the vessel financing facility that are expected to be between $468 and $480 million, which represents 50% of the Hilli post-delivery facility. Concurrent with execution of the PSA, the Partnership paid a $70 million deposit to Golar, on which the Partnership receives interest at a rate of 5% per annum. Closing of the sale is expected to take place on or before April 30, 2018.

On October 24, 2017, the Partnership priced a 4.8 million $25.0 per unit 8.75% Series A Preferred Unit offering. After exercise of the Underwriters Option for a further 0.72 million units, net proceeds received at closing on October 31, 2017 amounted to approximately $134 million. This capital raising positions the Partnership to acquire additional assets from Golar.

On October 31, 2017, Golar's obligation to sub-charter the Golar Grand from the Partnership expired. From November 1, 2017, all daily hire from the vessel's oil major charterer accrues to the Partnership.

Having paid the minimum quarterly distribution in respect of each of the four preceding quarters ended September 30, 2017, the Incentive Distribution Right ("IDR") Exchange Agreement required that the Partnership issue to Golar 50% of the Earn-Out Units withheld at the time of the IDR reset in October 2016.  Accordingly, on November 16, 2017, Golar Partners issued to Golar 374,295 common units and 7,639 General Partner units. The agreement also required the Partnership to pay Golar the distributions that it would have been entitled to receive on these units in respect of each of those four preceding quarters. Therefore, concurrent with the issuance of the above Earn-Out Units, Golar also received $0.9 million in cash. The Partnership will issue the remaining 50% of the Earn-Out Units in 4Q 2018, provided that it has paid a distribution equivalent to $0.5775 for each of the four quarters up to September 30, 2018. As of today, Golar owns 21,226,586 common units and 1,420,870 General Partner units in the Partnership which in total have a current market value of approximately $470 million.

FLNG

The Hilli conversion and pre-commissioning is now complete. The vessel departed Keppel Shipyard on October 1, 2017 and left Singapore for Cameroon with 108 crew on board on October 12, 2017. The Hilli arrived in Cameroon on November 20, 2017 and hook-up and connection to risers and umbilicals is now underway.  The next period will see tendering of a Notice of Readiness, which triggers commissioning rate toll fees. A ship-to-ship transfer of LNG for commissioning purposes will be undertaken followed by commencement of the full commissioning process. As part of this process, Golar anticipates production of first commercial LNG to take place around year end. Final commissioning is expected to complete during the second half of 1Q 2018 and the project remains well within budget.

The Mark II FEED study, a key pre-requisite to reaching a Final Investment Decision ("FID") on the four 3.2mtpa FLNG unit US Gulf Coast Delfin LNG project is continuing on schedule and is on track to complete at the end of 1Q 2018.

OneLNG (51/49 Golar/Schlumberger upstream joint venture)

On August 21, 2017, the Fortuna project participants agreed the LNG sales structure and selected Gunvor Group Ltd. ("Gunvor") as preferred off-taker. Principal commercial terms have been agreed with Gunvor for a sale and purchase agreement covering 1.1mtpa of LNG over a 10-year term. The LNG will be sold on a Brent-linked FOB basis. For two years immediately following FID the LNG offtake structure also permits the Fortuna project participants to market the remaining 1.1mtpa to higher priced gas markets. The sellers also have the option to put up to 1.1mtpa to Gunvor at a price lower than the firm price, exercisable during the two year period following FID. 

On October 2, 2017, Fortuna project partner Ophir awarded an upstream construction contract to Subsea Integration Alliance, a partnership between OneSubsea, a Schlumberger company, and Subsea 7. The award is structured as an engineering, procurement, construction, installation and commissioning ("EPCIC") contract for the sub-sea umbilicals, risers and flowlines and for the sub-sea production systems scope of work. The EPCIC schedule is consistent with the planned delivery of first gas in 2021, and work will commence after FID.

With the Umbrella Agreement approved, a preferred off-taker and offtake structure agreed, and EPC and EPCIC contracts for midstream and upstream infrastructure now in place, the critical outstanding requirement for full FID remains financing. Progress has been made on bank and alternative financing approaches over the last month. Based on the solid economics of this project, the Board expects to approve a FID in the first part of 2018.

OneLNG is making very good progress with its remaining portfolio of FLNG projects and expects further projects to be concluded during 2018.

Golar Power (50/50 Golar/Stonepeak Infrastructure Partners downstream joint venture)

Development of the power project in Sergipe is progressing according to plan. A full financing package for the project is on track to close in 1Q 2018. There are now more than 1,200 workers on the ground with civil and earthworks nearing completion. Turbine, transformer and heat recovery steam generation modules are scheduled for delivery to site during 1Q 2018. Sapura Energy have been engaged in an EPCI contract for offshore works.

Golar Power's agreement to provide the Sergipe project with an FSRU for 25-years has also been formalized in the form of a Time Charter Party and Operating Services Agreement for the Golar Nanook, the effectiveness of each being subject to financial close. The vessel remains on track for a September 2018 yard delivery ahead of commencement of commissioning activities offshore Sergipe in early-mid 2019.

Several projects have been targeted for the FSRU conversion candidate Golar Celsius and yards are being shortlisted for the conversion project. The standalone FSRU market remains highly competitive and challenging. Golar is therefore focusing on more profitable integrated gas to power projects where barriers to entry are higher.

 

Financing Review 

FLNG Hilli Episeyo financing

The Hilli remains well within budget. As at September 30, 2017, $912.1 million has been incurred ($1,032.1 million including the original vessel and capitalised interest). As of today, $525 million has been drawn against the CSSCL debt facility. A further $175 million is available to draw to meet remaining pre-acceptance costs and up to a further $260 million can be used for remaining bills and to augment liquidity after acceptance. Drawdown of this facility is likely to significantly improve Golar's liquidity and investment capacity. An agreement has also been reached with Perenco and SNH to reduce the LC from $400 million to $300 million and this too is expected to release additional liquidity.

Liquidity

Golar's unrestricted cash position as at September 30, 2017 was $286.6 million. Discussions have been initiated with Golar Partners with respect to the possible dropdown of the second 50% of Hilli's contracted capacity. The Partnership is financially well positioned for this following completion of its Series A Preferred Unit offering.

Included within the $1,102.6 million current portion of long-term debt is $702.1 million relating to lessor-owned subsidiaries that Golar is required to consolidate in connection with seven sale and leaseback financed vessels. The Company's underlying exposure is therefore $400.5 million. Of this, the majority relates to the Hilli CSSCL facility, which will be replaced by the pre-arranged $960 million sale and leaseback facility after vessel acceptance.

 

Corporate and Other Matters

On September 21, 2017, Iain Ross was appointed to replace interim CEO Oscar Spieler, who remains available in an advisory capacity to support the Hilli project. Iain joins Golar from project delivery firm WorleyParsons where he has held a wide range of Executive positions, most notable amongst them, responsibility for their global hydrocarbons, power, infrastructure and mining sectors.

At Golar's Annual General Meeting on September 27, 2017, Tor Olav Trøim was appointed Chairman, replacing Dan Rabun. Dan remains a Director of Golar. Michael Ashford, Golar's Company Secretary, was also appointed as a Director, replacing Andrew Whalley.

As at September 30, 2017, there were 101 million shares outstanding, including 3.0 million TRS shares that had an average price of $42.94 per share. There were also 4.2 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter.

 

Outlook

The Board is pleased with the transformation the company has undertaken since ordering FLNG Hilli in June 2014. Golar is currently going through a process that will see it transition from a mid-stream shipping company into a fully integrated gas to wire energy company.

Key building blocks to this transformation are as follows:

  • The delivery and start-up of FLNG Hilli, a vessel that will generate base operating cashflows under its tolling agreement of approximately $164 million per year over the coming 8 years. Trains 3 and 4, yet to be contracted, represent further potential upside. Trains 1 and 2 also have Brent-linked upside which can generate additional annual operating cash flows of approximately $3 million for every dollar increase in Brent prices between $60 and $102;
  • The project development of the Fortuna field, organized through the OneLNG joint venture with Schlumberger and Ophir, is expected to reach FID in the first part of 2018. With its particularly robust field economics, this project will give Golar direct access to reserves in the ground;
  • The development of the power project in Sergipe is progressing according to plan. Commencing in January 2020, this project is expected to generate annual operating cash flows of approximately $330 million based on current exchange rates. Of this, 50% is controlled by Golar Power, in which Golar has a 50% interest. The project infrastructure attractively positions Golar Power for further expansion opportunities at a low incremental cost;
  • The FSRU Golar Nanook is committed to the Sergipe project for 25 years with annual operating cash flows of approximately $39 million accruing to Golar Power. Further FSRU opportunities in the final stages of negotiation are expected to yield additional business for Golar Power and Golar Partners;
  • The shipping market is showing strong signs of improving. As of today, the effective time charter rates being achieved in 4Q are more than twice that recorded in 3Q. An improving trend is expected to continue into 2018-2019 when shipping supply should lag demand created by increased production. At full utilization, every $10,000 increase in shipping rates equates to approximately $40 million additional annual operating cash flows across the entire fleet;
  • The outlook for Golar Partners has improved having taken steps to secure its current distribution by way of its initial acquired interest in FLNG Hilli. Improving spot rates for its ships also provide a more supportive backdrop for their re-contracting; and
  • Supported by the successful execution of existing projects and contributions from key joint venture partners OneLNG and Golar Power, the project portfolio for the Golar group of companies continues to grow. This unique combination provides a differentiated and competitive value proposition in the gas to wire energy sector. 

As a result of the above, Golar is a company likely to increase its earnings significantly over the coming three years. These results will be underpinned by secured contracts currently in execution, further augmented by a strengthening shipping market and a solid portfolio of projects that are expected to translate into new contracts. The company looks forward to providing confirmation of the above over the forthcoming quarters.

The Board recognizes the hard work invested in transforming Golar LNG into a fully integrated and uniquely positioned energy company, driven by a strong focus on technology and execution. The Board expects that this effort will translate into significant shareholder value as the various projects commence over the years ahead.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: 

  • changes in liquefied natural gas, or LNG, carrier, floating storage and regasification unit, or FSRU, or floating liquefaction natural gas vessel, or FLNG, market trends, including charter rates, vessel values or technological advancements;
  • changes in our ability to retrofit vessels as FSRUs or FLNGs and in our ability to obtain financing for such conversions on acceptable terms or at all;
  • changes in the timeliness of the Hilli Episeyo (the "Hilli") commissioning;
  • changes in the supply of or demand for LNG carriers, FSRUs or FLNGs;
  • a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs;
  • changes in the performance of the pool in which certain of our vessels operate and the performance of our joint ventures;
  • changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs;
  • changes in the supply of or demand for LNG or LNG carried by sea;
  • changes in the supply of or demand for natural gas generally or in particular regions;
  • failure of our contract counterparties, including our joint venture co-owners, to comply with their agreements with us;
  • changes in our relationships with our counterparties, including our major chartering parties;
  • changes in the availability of vessels to purchase and in the time it takes to construct new vessels;
  • failures of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all;
  • our ability to integrate and realize the benefits of acquisitions;
  • changes in our ability to  close the sale of the equity interests in Hilli on a timely basis or at all;
  • changes in our ability to sell vessels to Golar Partners, or our joint venture Golar Power Limited ("Golar Power");
  • changes in our relationship with Golar Partners, Golar Power or our joint venture OneLNG S.A;
  • changes to rules and regulations applicable to LNG carriers, FSRUs, FLNGs or other parts of the LNG supply chain;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNG strategy and our JVs;
  • actions taken by regulatory authorities that may prohibit the access of LNG carriers, FSRUs or FLNGs to various ports;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through our innovative FLNG strategy, or FLNG, and our joint ventures;
  • changes in our ability to obtain additional financing on acceptable terms or at all;
  • our ability to make additional equity funding payments to Golar Power and OneLNG to meet our obligations under  each of the respective shareholders' agreements;
  • increases in costs, including, among other things, crew wages, insurance, provisions, repairs and maintenance;
  • changes in general domestic and international political conditions, particularly where we operate;
  • a decline or continuing weakness in the global financial markets;
  • challenges by authorities to the tax benefits we previously obtained under certain of our leasing agreements; and
  • other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F.

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.

 

November 30, 2017

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited +44 207 063 7900

Iain Ross - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q3 2017 results presentation

Company news

2017-11-10 13:10:01

Golar LNG's 3rd Quarter 2017 results will be released before the NASDAQ opens on Thursday November 30, 2017. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Thursday, November 30, 2017. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investors, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 20 3427 1910

UK Free call 0800 279 5736

US Toll +1 212 444 0895

USA Free call 1877 280 2342
Norway Free call 800 56054
Norway Toll +47 2316 2771

The participants will be asked for their name and conference ID. The Golar conference ID is 3696989

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investors, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 3696989.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

FLNG Hilli Episeyo departs Singapore

Company news

2017-10-12 18:30:01

Golar LNG Limited announces today that the FLNG Hilli Episeyo departed Singapore at 10:00 local time on October 12. The earlier than anticipated departure reflects an operational decision to complete LNG bunkering in Cameroon rather than in Singapore.  The voyage to Cameroon is expected to take between 32 and 40 days. 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.


Hamilton, Bermuda
October 12, 2017

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

FLNG Hilli Episeyo departs Keppel Shipyard

Company news

2017-10-02 11:10:01

Golar LNG Limited announces today that the FLNG Hilli Episeyo, in line with previous guidance, departed Keppel Shipyard on Sunday October 1st. Having successfully reached mechanical completion the vessel has been moved to deep-water anchorage where Keppel Shipyard will complete final marine commissioning.   Hilli Episeyo is currently expected to leave Singapore between October 15 and October 20.      

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.


Hamilton, Bermuda
October 2, 2017

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited: 2017 AGM results notification

Company news

2017-09-28 00:40:01

 

Golar LNG Limited (the "Company") advises that the 2017 Annual General Meeting of the Company was held on September 27, 2017 at 9:00 a.m. at Rosewood Tucker's Point, 60 Tucker's Point Drive, Hamilton Parish, Bermuda.  The audited consolidated financial statements for the Company for the year ended December 31, 2016 were presented to the Meeting.

 

The following resolutions were passed:

    1      To re-elect Tor Olav Trøim as a Director of the Company.

    2      To re-elect Daniel Rabun as a Director of the Company.

    3      To re-elect Fredrik Halvorsen as a Director of the Company.

    4      To re-elect Carl Steen as a Director of the Company.

    5      To re-elect Michael Ashford as a Director of the Company. 

    6      To re-elect Niels G. Stolt-Nielsen as a Director of the Company.

    7      To re-elect Lori Wheeler Naess as a Director of the Company.

    8      To re-appoint Ernst & Young LLP of London, England as auditors and to authorise the Directors to determine their remuneration.

    9      To approve the remuneration of the Company's Board of Directors of a total amount of fees not to exceed US$1,750,000 for the year ended December 31, 2016.

The Company also advises that with effect from today Mr. Tor Olav Troim has succeeded Mr. Dan Rabun as Chairman of the Board; Mr. Rabun will however continue as a member of the Board.

 

Golar LNG Limited
Hamilton, Bermuda
27 September 2017

 

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Organisational Changes at Golar

Company news

2017-09-21 09:10:02

 

Golar LNG Limited ("Golar" or the "Company") announces today that it has appointed Iain Ross to replace Oscar Spieler as CEO.  Oscar's main remit on becoming CEO has always been the successful delivery of FLNG Hilli Episeyo and a search for his successor to follow shortly thereafter. Having substantially executed his responsibility to deliver the FLNG Hilli Episeyo, Oscar will nevertheless remain with the group and fulfil the role of Executive Advisor and assist Mr Ross until charterers Perenco and SNH accept the FLNG Hilli Episeyo.  The Board of Golar wishes to thank Oscar for his crucial role in conceiving the project, the progress to date and ultimately delivering this transformational project so close to schedule and within budget.

 

Identification and appointment of Oscar's successor was expected to coincide more closely with the Hilli Episeyo's acceptance however the earlier than anticipated opportunity to secure the services of Mr. Ross has accelerated this process. Mr. Ross joins Golar most recently from project delivery firm WorleyParsons Limited where he held various executive level positions since 2002 including Group Managing Director, Development, an ExCo position with responsibility for leadership of the Global Hydrocarbons, Power, Infrastructure and Mining Sectors; the development of the group Strategy, Mergers & Acquisitions (including integration of acquired companies) and finally as leader of the Digital Technology start-up.   With 34 years of broad industry and geographic experience and a focus on sustainable growth of businesses, Iain brings to Golar a strong leadership skill set across strategic, technical, commercial and relationship development disciplines. Iain has a bachelor's degree in Mechanical Engineering from Heriot-Watt University, is a Fellow of Engineers Australia and certified International Director from INSEAD.  This skill-set is expected to serve Golar well as it seeks to move out along the LNG value chain to develop a growing subset of gas to power opportunities. 

 

The Board of Golar wishes both Oscar and Iain well for the future.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Golar LNG Limited
Hamilton, Bermuda
21 September 2017

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Dividend Information Correction

Company news

2017-09-11 15:10:01

On August 30, 2017 Golar LNG Limited ("the Company") issued a press release containing dividend information for the quarter ended June 30, 2017. The Company announced an ex-dividend trading date of September 12, 2017 and a record date of September 14, 2017.  Nasdaq has recently announced, however, that effective September 7, 2017 and due to the shortening of the settlement cycle for transactions in U.S. securities from trade date plus three business days (T+3) to trade date plus two business days (T+2), that the ex-dividend date must now be one business day before the record date. As such, the Company's new ex-dividend date will be September 13, 2017. The record date of September 14, 2017 remains unchanged.

Golar LNG Limited
Hamilton, Bermuda
11 September, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG dividend information

Company news

2017-08-30 15:10:01

Reference is made to the second quarter 2017 report released on August 30, 2017. Golar LNG will be trading ex-dividend of a total dividend of $0.05 per share on September 12, 2017. The record date will be September 14, 2017 and the dividend will be paid on or about October 4, 2017.

Golar LNG Limited
Hamilton, Bermuda
30 August, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 30 June 2017

Company news

2017-08-30 14:30:01

Highlights

·         Operating Loss and EBITDA* in the quarter reported a loss of $24.0 million and $6.6 million, respectively, compared to a 1Q loss of $41.4 million and $16.2 million.

·         OneLNG's Fortuna joint venture executes Umbrella Agreement with the Republic of Equatorial Guinea to establish the fiscal and legal framework for the Fortuna FLNG project. Project final investment decision ("FID") now expected 2H 2017.

·         Put Option in respect of FSRU Golar Tundra exercised by Golar LNG Partners L.P ("Golar Partners" or "the Partnership").

·         Golar LNG Limited ("Golar" or "the Company") and Golar Partners enter into a purchase option agreement for Golar Partners to acquire up to a 25% interest in FLNG Hilli Episeyo.

·         OneLNG enters into a Memorandum of Understanding with the Republic of Equatorial Guinea to find a monetization solution for stranded gas focusing on Blocks O and I offshore Malabo.

·         Golar and Delfin Midstream sign agreement to jointly develop the Delfin LNG Project in the US Gulf of Mexico.

Subsequent Events

·         Entered into a Purchase and Sale Agreement for the sale of an interest in the Hilli Episeyo.

·         LNG bunkers ordered for mid-September delivery to Hilli Episeyo ahead of departure for Cameroon in late September/early October.

·         Fortuna joint venture awards LNG offtake to Gunvor Group Ltd.

Financial Review

Business Performance

  2017 2017
(in thousands of $) Apr-Jun Jan-Mar
Total operating revenues (including revenue from collaborative arrangement) 28,408   25,110  
Vessel operating expenses (12,099 ) (12,944 )
Voyage, charterhire & commission expenses (3,372 ) (12,593 )
Voyage, charterhire & commission expenses - collaborative arrangement (8,436 ) (4,336 )
Administrative expenses (11,105 ) (11,441 )
EBITDA* (6,604 ) (16,204 )
Depreciation and amortization (17,366 ) (25,186 )
Operating loss (23,970 ) (41,390 )

 

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

Golar reports today a 2Q 2017 operating loss of $24.0 million as compared to a 1Q loss of $41.4 million.  As expected, the shipping market remained relatively flat for most of 2Q. A pick-up in utilization toward the end of the quarter did, however, contribute to a small rise in time charter revenues which increased from $20.1 million in 1Q to $24.0 million in 2Q. Voyage expenses declined from $16.9 million in 1Q to $11.8 million in 2Q, 1Q having been inflated by a non-cash accounting provision triggered by the February execution of a new charter for the chartered-in Golar Grand. Golar's obligation to charter-in the Golar Grand will expire in October 2017. Thereafter, Golar Partners will receive hire payments from the vessel's new charterer.

Vessel operating expenses decreased $0.8 million to $12.1 million in 2Q. Administration costs at $11.1 million were in line with 1Q. Depreciation and amortization at $17.4 million for 2Q was $7.8 million lower than 1Q, 1Q having been inflated by a 15 month catch-up charge in respect of the FSRU Golar Tundra which was not depreciated whilst accounted for as an asset held-for-sale.

Net Income Summary

  2017 2017
(in thousands of $) Apr-Jun Jan-Mar
Operating loss (23,970 ) (41,390 )
Interest income 1,888   1,024  
Interest expense (20,453 ) (19,257 )
Other financial items, net (22,384 ) 14,456  
Other non-operating income 144   62  
Taxes (458 ) (189 )
Equity in net earnings (losses) of affiliates 704   (13,897 )
Net income attributable to non-controlling interests (9,279 ) (6,652 )
Net loss attributable to Golar LNG Ltd (73,808 ) (65,843 )

In 2Q the Company generated a net loss of $73.8 million. Notable contributors to this are summarized as follows:

·         The $1.2 million increase in interest expense is primarily due to the cost of servicing additional debt assumed in conjunction with a February 2017 issued $402.5 million convertible bond that refinanced the balance of a $250 million March 2017 maturing convertible bond together with a $150 million margin loan drawn down in early March 2017.

·         Other financial items reported a 2Q expense of $22.4 million, most of which was derived from a mark-to-market loss on the three million Total Return Swap ("TRS") shares following a $5.68 quarter-on-quarter decrease in the Company's share price. Swap rates also decreased resulting in non-cash mark-to-market interest rate swap losses.

·         The $0.7 million 2Q equity in net earnings of affiliates is primarily comprised of the following:

-       a $3.3 million loss in respect of Golar's 50% share in Golar Power;

-       a $1.9 million loss in respect of Golar's 51% share in OneLNG;

-       income of $5.8 million in respect of Golar's stake in Golar Partners.

Although Golar Partners reported a higher than normal net income, primarily due to recognition of the Golar Spirit termination fee, equity in net earnings of the Partnership reported by Golar is reduced by the amortization of a 2012 fair value gain on deconsolidation. Quarterly amortization of this non-cash gain will vary in response to events including, amongst others, charter terminations, curtailments and dilution of Golar's stake in the Partnership after follow-on equity offerings. At $12.9 million, the quarterly cash distribution received from the Partnership is, however, in line with prior quarters. 

Commercial Review

LNG Shipping

As previously guided, the 2Q shipping market showed no material improvement. The quarter commenced with intense competition for fixtures in both basins which continued to be reflected in poor rates and minimal compensation for positioning and ballast legs. A tightening market was, however, highlighted toward the end of the quarter as reduced redeliveries in both the Atlantic and Middle East culminated in an isolated six figure voyage rate being secured.

Looking ahead, the 15.6mtpa Gorgon project is now producing at nameplate capacity. Cheniere's 4.5mtpa Train 3 continues to ramp up whilst T4 has recently commenced the commissioning of a further 4.5mtpa. Start-up of Wheatstone's 4.5mtpa T1 is imminent with commissioning now underway. A further 4.5mtpa should follow in 7-9 months with T2. Novatek has started commissioning the first of its three 5.5mtpa Yamal liquefaction trains and the 5mtpa Cove Point plant is on track to commence service in 4Q. Ichthys LNG is due to initiate production from the first of its two 4.5mtpa liquefaction trains in 1Q 2018 and Shell's 3.5mtpa Prelude FLNG facility recently arrived offshore Australia. In addition to the above, US exports are expected to ramp up sharply over the course of 2018 and 2019 with further capacity growth of close to 45mtpa.

Subsequent to 2Q, and as anticipated, chartering activity has improved as some of the above-mentioned projects commence and ramp up production. Owner expectations are firming in response and this is contributing to a gradual recovery in shipping rates, the re-emergence of round trip economics and a widening bid-ask spread for 2018 fixtures. Whilst approximately 55 vessels are expected to deliver in 2017, the tonnage required to meet incremental production is greater. The disconnect between vessel deliveries and increasing LNG production is expected to positively widen in 2018.

To date, the Cool Pool has succeeded in securing many more voyages compared to the same period in 2016. As a more balanced market approaches and the number of prompt available vessels declines its market share will increase, further strengthening rate expectations.

Golar Partners

Dry-dock of the LNG carrier Golar Grand was completed on April 14, 2017. On May 5, 2017, the vessel commenced a firm two-year charter with a high quality oil and gas major. Golar will continue to sub-charter the Golar Grand from the Partnership until October 31, 2017, when its obligation expires. Between May 5, 2017 and October 31, 2017, daily hire from the new charter accrues to Golar.

Golar Spirit was redelivered by Petrobras on June 23, 2017. Having fully discharged her charter obligations, a termination payment received from Petrobras was recognised in the Partnership's 2Q results. In anticipation of potential future re-deployment in the Northern Hemisphere, the vessel departed Brazil for Greece where it has now entered temporary layup.

On July 12, 2017, the Partnership agreed with the Dubai Supply Authority ("DUSUP") to amend the FSRU Golar Freeze charter. In return for agreeing to shorten the charter by one year, DUSUP have forgone their termination for convenience rights as well as extension option rights at a significantly lower daily rate. In the event that the FSRU is re-deployed on new business ahead of April 2019, the Partnership has also secured the right to terminate its obligations under the charter whilst continuing to receive the capital element of the charter. This presents the possibility of simultaneous remuneration from two charterers for a short period.

The Partnership has been pleasantly surprised at the levels of niche and emerging market interest in mid-sized 1-2mtpa FSRUs where the cost of unutilized capacity on larger FSRUs can undermine the economics of a switch to gas. Golar Partners, as a dominant player in this mid-sized market, is confident that at least one of its two available FSRUs will be re-contracted in the coming months.

On August 16, 2017, Golar entered into a Purchase and Sale Agreement for the sale of equity interests in Golar Hilli LLC to Golar Partners and affiliates of Keppel and Black and Veatch. The sold interests represent the equivalent of 50% of the two liquefaction trains, out of four, that have been contracted to Perenco. The agreed sale price was $658 million less net lease obligations under the vessel financing facility that are expected to be between $468 and $480 million, which represents 50% of the Hilli Episeyo facility. Concurrent with execution of the Purchase and Sale Agreement, the Partnership paid a $70 million deposit to Golar, on which the Partnership will receive interest at a rate of 5% per annum.

The closing of the sale is expected to take place on or before April 30, 2018. Prior to closing, Golar, Keppel and Black and Veatch will contribute their equity interests in Golar Hilli Corporation, the entity that owns the Hilli Episeyo, to a newly formed Golar Hilli LLC in return for equity interests in Golar Hilli LLC.  Membership interests in Golar Hilli LLC will be represented by three classes of units: Common Units; Series A Special Units; and Series B Special Units. Common Units will be entitled to cash flows from the first 50% of contracted capacity after deduction of operating costs but will not be exposed to the oil-linked pricing elements of the tolling fee or any earnings associated with trains 3 and 4 expansion capacity. Oil and capacity expansion linked earnings will accrue to Series A and B Special Unit holders, respectively. In connection with this transaction, the Partnership will only acquire 50% of the Common Units. Golar and its minority partners will retain the remaining Common Units and all of the Series A and B Special Units.

Upon closing of the sale of 50% of the Common Units to the Partnership, the Partnership will make a net payment of between approximately $178 and $190 million. The Partnership will apply the $107 million deferred purchase price receivable from Golar in connection with the Tundra Put Sale and the $70 million deposit referred to above against the net purchase price and will pay the balance with cash on hand. Based on US GAAP accounting principals, Golar expects to continue consolidating Golar Hilli LLC. As a result, the interest that the Partnership intends to acquire has not been classified as an asset held-for-sale in Golar's balance sheet.

Downstream - Golar Power

The Sergipe project that will deliver LNG fueled power to 26 committed power off-takers from 2020 is continuing to plan and financial close remains on track for 4Q 2017. Important permits have been received in the last quarter, including an environmental license to proceed with civil construction through to completion. There are currently around 600 construction workers on site and work remains on schedule. Discussions with Samsung regarding the requisite modifications to the FSRU have been concluded and the modified vessel will now deliver in September 2018. Thereafter, the vessel will proceed to Brazil ahead of hook-up to a soft yoke mooring in mid-1Q 2019 when GE have indicated they expect to be ready to initiate hot commissioning of the power plant.

The strengthening Brazilian currency against the US dollar, together with a more attractive financing solution than originally anticipated, are further enhancing what was already a most attractive expected project return.

A growing pipeline of LNG-to-power projects is developing across Latin America, the Caribbean, West Africa, the Indian Subcontinent and South East Asia. Most of the potential projects in these regions are also in countries not already importing LNG thus potentially adding to overall market demand. Involvement levels range from equity interests in new power plants together with an FSRU and associated infrastructure through to the simple provision of an FSRU where the power plant and associated infrastructure is being developed by third parties.

The Golar Celsius ship-to-FSRU conversion is on track and will be able to commence work during 2H 2018.

FLNG

The Hilli Episeyo conversion is nearing completion and no major issues have been identified. All equipment has been installed and pre-commissioning work is well underway. Golar is focused on doing as much testing as possible in the yard and at anchorage in order to minimize the risk of issues being encountered in Cameroon. The extra days spent in Singapore are expected to reduce the time required for commissioning on site. FLNG Hilli Episeyo is scheduled to leave Singapore for Cameroon at the end of September or beginning of October.  LNG bunkering has been booked for mid-September. All going well, the voyage between Singapore and Cameroon is expected to take 32 to 40 days allowing the Company to tender its Notice of Readiness during the first half of November, at which point commissioning hire becomes receivable. The mooring system has been installed in Cameroon ahead of schedule, within budget and is ready for hook up. The Company has until mid-April 2018 to complete the commissioning process ahead of charterer acceptance and full hire becoming receivable. The Black and Veatch commissioning team will include engineers who have previously commissioned identical barge mounted liquefaction equipment. Two spare liquefaction trains will provide further redundancy during the commissioning process both in terms of backup capacity should issues be experienced with another train, and as additional capacity that can support a more rapid ramp-up to the required production equivalent of 1.2mtpa.

Perenco are on track with their scope of works. The Hilli conversion remains materially under budget and Keppel have experienced no lost time incidents during the 18+ million man hours worked on the project.

Delfin FLNG

On June 21, 2017, Golar and Delfin Midstream signed a Joint Development Agreement to develop the Delfin LNG Project offshore Cameron Parish, Louisiana. Delfin LNG is a brownfield deep-water port that requires minimal additional infrastructure investment to support up to four FLNG vessels collectively producing up to 13mtpa of LNG. Individual FLNG vessels are expected to have capacity in excess of 3mtpa and will be based on the Mark II concept currently being developed by Golar. In addition to greater liquefaction and storage capacity, the Mark II solution is being designed to operate in the less benign met-ocean conditions characteristic of the US Gulf Coast. Subject to completion of a FEED study, the expectation is that the cost per ton of LNG produced by the Mark II solution will be lower than its Mark I predecessor and the lowest cost in North America.

Upstream - OneLNG

On May 2, 2017, Ophir Energy, OneLNG, GEPetrol and The Republic of Equatorial Guinea (Fortuna "project participants") signed a detailed Umbrella Agreement that defines the full legal and fiscal framework for the 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. Subsequent to the quarter end, the Fortuna project participants also agreed the LNG sales structure and selected Gunvor Group Ltd. ("Gunvor") as off-taker.  Principal commercial terms have been agreed with Gunvor for a sale and purchase agreement covering 2.2mtpa of LNG over a 10-year term. The LNG will be sold on a Brent-linked FOB basis. The LNG offtake structure also permits the Fortuna project participants to market up to 1.1mtpa of the above 2.2mtpa to higher priced gas markets and to share in any resultant profits. Fortuna's project participants have two years post FID to secure alternative markets for this 1.1mtpa after which any unsold portion will revert to Gunvor.  Financing has taken longer and been more challenging than expected and remains critical for FID which is now expected before year-end.

On May 29, 2017, OneLNG entered into a binding Memorandum of Understanding with the Ministry of Mines and Hydrocarbons of Equatorial Guinea to explore the liquefaction and commercialization of natural gas in Blocks O and I. Agreement terms place obligations on both parties to find an FLNG based technical and commercial solution to monetize gas that is either stranded or being re-injected in liquids production. The parties seek to reach definitive agreements no later than December 2018.

OneLNG is currently working on 3-4 specific projects, each involving one or more FLNG unit.

Financing Review

FLNG Hilli Episeyo financing

The Hilli Episeyo remains well within budget. As at June 30, 2017, $775.3 million has been spent ($855.9 million including capitalised interest) and $375 million has been drawn against the $960 million CSSCL facility. A material portion of the outstanding capital expenditure will be paid upon the vessel's imminent departure from the yard with a further tranche representing the outstanding balance payable around acceptance test. Settlement of this installment will closely coincide with drawdown of the final tranche of the debt facility which is drawable upon the earlier of vessel acceptance or after three months full-hire has been received. At this point, likely to be 1Q 2018, the company expects to release approximately $140 million of equity, net of the Keppel and Black and Veatch minority interests. An estimated $87 million of the outstanding $232 million letter of credit will be released a year after acceptance.

Liquidity

Golar's unrestricted cash position as at June 30, 2017 was $343.2 million. Subsequent to the quarter end, a further $62.4 million net of minority interests was received in respect of Golar's sale of the part-interest in Hilli Episeyo. Cash on hand will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its remaining commitments to Golar Power, and for general corporate purposes.

Included within the $919.9 million current portion of long-term debt net of deferred charges is $513.9 million relating to lessor owned subsidiaries that Golar is required to consolidate in connection with seven sale and leaseback financed vessels. The Company's underlying exposure is therefore $406.0 million. Of this, $375 million relates to the CSSCL Hilli Episeyo project financing facility which will be replaced by the pre-arranged $960 million sale and leaseback facility after vessel acceptance.

Corporate and Other Matters

As at June 30, 2017, there are 101 million shares outstanding including 3.0 million TRS shares that have an average price of $42.63 per share. There are also 3.9 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter.

Golar's Annual General Meeting is scheduled for September 27, 2017 in Bermuda. The record date for voting was August 4, 2017.

Outlook

In order to avoid and minimize start-up problems in Cameroon, Golar will perform all possible testing and pre-commissioning work before the vessel leaves Singapore. The Company takes comfort in the fact that no significant issues have been identified. Latest estimations indicate that the vessel will leave Singapore at the end of September/beginning of October. Preparation in Singapore should reduce the time required to commission the vessel in Cameroon, thus substantially mitigating the impact of a delayed arrival on timing of vessel acceptance and commencement of full-hire.

Whilst good progress has been made on offtake and terms for governmental participation in the Fortuna midstream, concluding the financing facility based on the original termsheet provided by the banks is taking longer than anticipated. The consortium of Chinese lenders is working hard to conclude outstanding issues. Attractive economics in a much more adverse commodity price environment, leverage which even at current LNG prices equates to less than 3 times EBITDA* together with solid governmental support and progress to date do, however, leave project participants in no doubt that the Fortuna project will prevail despite near-term delays.

Having agreed terms for the dropdown of an interest in Hilli Episeyo, Golar Partners has secured access to an asset that will add significant revenue backlog and mitigate much of its re-contracting risk, thus helping it to sustain its current distribution. In return, and in addition to the $107 million deferred purchase price already received in connection with the Golar Tundra put option, Golar received $62.4 million of new liquidity in 3Q, net of minority interests. A structure is also now in place that allows Golar to execute future FLNG dropdowns as and when market conditions permit.            

The predicted 3Q upturn in the shipping business is now underway and appears to be on a more sustainable footing. July 2017 represented the most active month for spot voyages on record. Although partly driven by seasonal factors, the recovery is being supported by a step-up in new liquefaction, an increase in the number of 1, 3 and 5+ year tenders and a widening bid-ask spread for 2018 charters.

The demand case for LNG continues to defy earlier expectations. Chinese 1H imports are up 38% on 2016. South Korea, the world's second largest LNG market, is positioning itself to take additional LNG as it moves away from coal and nuclear. India and frontier markets such as Pakistan are also proposing aggressive increases in LNG imports. With identified access to the US export market in addition to its West African presence, Golar is now firmly positioned to meet this rising demand for liquefaction with the lowest cost solution in both markets.

While the short term outlook for the Company has been negatively influenced by the indicated 6-week delay to Hilli Episeyo's start-up and financing delays in respect of the Fortuna FLNG project, Golar's long-term outlook has improved considerably. Solid execution of the first FLNG project together with OneLNG's progress on Fortuna and other FLNG projects, Golar Power's progress on the Sergipe project and a tightening shipping market collectively provide a sound basis upon which to realize the vision of a fully integrated LNG based energy company backed up by valuable long-term contracts. Several of these projects are also expected to represent attractive acquisition targets/growth opportunities for the Company's financing vehicle, Golar Partners.

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:

  • changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements;
  • changes in the supply and demand for LNG;
  • changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels;
  • changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels;
  • increases in costs;
  • changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives;
  • changes in the ability of Golar to obtain additional financing;
  • changes in Golar's relationships with major chartering parties;
  • changes in Golar's ability to sell vessels to Golar LNG Partners LP or Golar Power Limited;
  • Golar's ability to integrate and realize the benefits of acquisitions;
  • changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels;
  • our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNG strategy and our JVs;
  • changes in domestic and international political conditions, particularly where Golar operates;
  • as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements.

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.

 

August 30, 2017

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited - +44 207 063 7900

Oscar Spieler - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q2 2017 results presentation

Company news

2017-08-23 12:10:02

Golar LNG's 2nd Quarter 2017 results will be released before the NASDAQ opens on Wednesday August 30, 2017. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, August 30, 2017. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investor Relations, Results Centre section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:

International call +44 20 3427 1902

UK Free call 0800 279 5736

US Toll +1 646 254 3388

USA Free call 1877 280 1254
Norway Free call 800 56054
Norway Toll +47 2316 2787

The participants will be asked for their name and conference ID. The Golar conference ID is 9755516

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investor Relations) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investor Relations, Results Centre), or listen to a playback by dialling:

United Kingdom +44 20 7660 0134

United States +1 719 457 0820

Norway +47 23 50 00 77

- followed by replay access number 9755516.   This service will be available for the 7 days immediately following the scheduled event.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited: Fortuna FLNG Offtake Awarded to Gunvor

Company news

2017-08-21 14:10:02

The Ministry of Mines and Hydrocarbons ("MMH"), Ophir Equatorial Guinea (Block R) Ltd, OneLNG SA and La Compania Nacional De Petroleos De Guinea Ecuatorial ("GEPetrol") have nominated Gunvor Group Ltd ("Gunvor") as its preferred LNG Buyer for offtake from the Fortuna FLNG project. All parties have agreed the principal commercial terms subject to finalising a Sale and Purchase Agreement ("SPA") for the offtake ahead of the Final Investment Decision ("FID") on the Fortuna FLNG project.

Gunvor is committed to take the full contract capacity of the Gandria FLNG vessel of 2.2 MMTPA which will be purchased on a Brent-linked, Free on Board ("FOB") basis for a 10 year term. The contract structure allows flexibility for up to 1.1mmtpa of the Fortuna capacity to be marketed on an alternate basis. Consequently the agreement gives the Fortuna partners alongside the State of Equatorial Guinea,  the potential to sell volumes to higher priced gas markets in Africa and beyond, whilst retaining a share in the profits of such onward marketing.

With the identification of a preferred LNG Buyer now achieved, the last significant milestone prior to the FID of the Fortuna FLNG project is the completion of the project funding, with FID remaining on track for 2017.

His Excellency, Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for the Republic of Equatorial Guinea, commented: "The selection of Gunvor sets a landmark moment in the development of the Fortuna Project. The partnership with Gunvor also paves the way for the government's objective to deliver important projects that monetize our gas, promotes local content and brings world-class petroleum technology to Equatorial Guinea. The Fortuna Project will target becoming the first choice supplier of LNG for the LNG to Africa initiative, furthering Equatorial Guinea's leadership position in Africa as an LNG exporter."

Nick Cooper, Chief Executive of Ophir, commented: "We thank those parties that participated in the competitive tender process for the offtake and welcome Gunvor to the Fortuna FLNG Project. Gunvor's involvement is a further addition to a strong partnership along the Fortuna value chain. Our focus is now on completing the financing package and debt facility". With Golar's sister vessel, the Hilli Episeyo, nearing completion and with Petronas FLNG having recently delivered commercial cargoes, FLNG is now entering the mainstream".

Jeff Goodrich, CEO OneLNG SA commented: "OneLNG, along with the State of Equatorial Guinea and Ophir, would like to take the opportunity to welcome Gunvor to the Fortuna family. We look forward to working together to set the new performance benchmark in FLNG".

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to: the timeliness of the Hilli Episeyo conversion, commissioning and delivery; Golar's future revenues, expenses, financial condition and results of operations; Golar's ability to draw down on existing debt facilities and the amounts drawn thereon, to refinance debt, to incur additional debt and the terms thereof; covenants and financial ratios imposed by Golar's debt facilities; Golar's ability to make additional borrowings and to access debt and equity markets; customer acceptance and termination dates and extensions of charters; and other factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

August 21, 2017

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited 2017 Annual General Meeting

Company news

2017-08-18 15:10:02

Further to the press release of July 5, 2017 giving notice that the Golar LNG Limited 2017 Annual General Meeting will be held on September 27, 2017, a copy of the Notice of Annual General Meeting and associated information including the Company's Annual Report on Form 20-F can be found on our website at http://www.golarlng.com and in the attachments below.

Golar LNG Limited

Hamilton, Bermuda

August 18, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Sale of an Interest in the FLNG, Hilli Episeyo

Company news

2017-08-16 15:10:01

Golar LNG Limited (NASDAQ: GLNG) ("Golar") announced today that it and affiliates of Keppel Shipyard Limited ("Keppel") and Black and Veatch ("B&V") have entered into a purchase and sale agreement (the "PSA") for the sale (the "Sale") of equity interests (the "Interests") in Golar Hilli LLC to Golar LNG Partners L.P. (the "Partnership"), which will, on the closing date of the Sale, indirectly own the Hilli Episeyo (the "Hilli"), a floating liquefied natural gas vessel.  The Acquired Interests represent the equivalent of 50% of the two liquefaction trains, out of a total of four, that have been contracted to Perenco Cameroon SA and Societe Nationale Des Hydrocarbures (together, the "Customer") for an eight-year term. The sale price for the Interests, as described below, is $658 million less net lease obligations under the financing facility for the Hilli (the "Hilli Facility") that are expected to be between $468 and $480 million.  Concurrent with the execution of the PSA, the Partnership paid a $70 million deposit to Golar, on which the Partnership will receive interest at a rate of 5% per annum. 

The closing of the Sale (the "Closing") is subject to the satisfaction of certain closing conditions which include, among others, receiving the consent of the lenders under the Hilli Facility, the closing of the previously announced put-sale closing with respect to the Golar Tundra (the "Tundra Put Sale"), the delivery to and acceptance by the Customer of the Hilli, the commencement of commercial operations under the liquefaction tolling agreement (the "LTA") and the formation of Golar Hilli LLC and the related Pre-Closing Contributions as described further below.

Prior to the Closing, Golar, Keppel and B&V will contribute their equity interests in Golar Hilli Corporation ("Hilli Corp"), the entity that owns the Hilli, to the newly formed Golar Hilli LLC (the "Pre-Closing Contributions") in return for equity interests in Golar Hilli LLC.  Membership interests in Golar Hilli LLC will be represented by three classes of units: Common Units ("Common Units"); Series A Special Units ("Series A Units"); and Series B Special Units ("Series B Units").  Common Units will be entitled to cash flows from the first 50% of contracted capacity, initially contracted to the Customer under the LTA.  Common Units will not be exposed to the oil-linked pricing elements of the tolling fee under the LTA but will bear the operating costs of the Hilli, with only incremental costs ("Incremental Costs") accruing to the Series B Units and the interest costs of the Hilli Facility.  Series A Units will only be entitled to cash flows associated with oil price linked elements of the tolling fee under the LTA, net of incremental tax expenses and their pro rata portion of any costs that may arise as a result of the underperformance of the Hilli ("Underperformance Costs").  Holders of Series B Units will be entitled to the cash flows associated with any expansion of contracted capacity of the Hilli beyond the first 50%, net of Incremental Costs arising as a result of making available more than the first 50% of production capacity of the Hilli, Underperformance Costs and any reduction in revenue attributable to the first 50% of LNG production capacity as a result of making more than 50% of capacity available under the LTA.  Through the Sale, the Partnership will only acquire 50% of the Common Units and none of the Series A Units or Series B Units.

Upon the Closing, which is expected to occur on or before April 30, 2018, Golar, Keppel and B&V will sell 50% of the Common Units to the Partnership in return for the payment of the net purchase price of between approximately $178 and $190 million.  The Partnership will apply the $107 million deferred purchase price receivable from Golar in connection with the Tundra Put Sale and the $70 million deposit referred to above against the net purchase price and will pay the balance with cash on hand.

The Hilli conversion is nearing completion and no major issues have been identified.  All equipment has been installed and pre-commissioning work is well underway.  Golar is focused on doing as much testing as possible in the yard and at anchorage in order to minimise the risk of issues being encountered in Cameroon. The extra days spent in Singapore are expected to reduce the time required for commissioning on site. The Hilli is scheduled to leave Singapore for Cameroon at the end of September or beginning of October.  LNG bunkering has been booked for mid-September.  The mooring system has been installed in Cameroon and is ready for hook up of Hilli.  All going well, the voyage between Singapore and Cameroon is expected to take 32 to 40 days allowing Golar to tender its notice of readiness during the first half of November. The Customer remains on track with its scope of works and the Hilli conversion currently remains materially under budget.

Golar will draw down the final tranche of the Hilli Facility upon Customer acceptance of the vessel.  After settlement of all outstanding conversion costs, Golar currently expects to receive approximately $140 million, net of the Keppel and B&V minority interests, which is additional to the sale proceeds from the Partnership as described above.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to: Golar's ability to consummate the Sale on a timely basis or at all, and to realise the expected benefits from the Sale; the timeliness of the Hilli conversion, commissioning and delivery; Golar's future revenues, expenses, financial condition and results of operations; Golar's ability to draw down on existing debt facilities and the amounts drawn thereon, to refinance debt, to incur additional debt and the terms thereof; covenants and financial ratios imposed by Golar's debt facilities; Golar's ability to make additional borrowings and to access debt and equity markets; customer acceptance and termination dates and extensions of charters; and other factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

August 16, 2017

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

2017 Annual General Meeting

Company news

2017-07-05 14:20:01

Golar LNG Limited advises that its 2017 Annual General Meeting will be held on September 27, 2017.  The record date for voting at the Annual General Meeting is set to August 4, 2017.  The notice, agenda and associated material will be distributed prior to the meeting.

Golar LNG Limited

Hamilton, Bermuda

July 5, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG and Delfin Midstream sign agreement to jointly develop the Delfin LNG Project in the US Gulf of Mexico

Company news

2017-06-21 14:00:02

LONDON, June 21st, 2017 - Delfin Midstream ("Delfin"), and Golar LNG Limited ("Golar"), announce that they have signed a Joint Development Agreement to develop the Delfin LNG project ("Delfin LNG"), off the coast of Cameron Parish, Lousiana utilising Golar's FLNG technology.  The joint development agreement will facilitate the financing, marketing, construction, development and operation of Delfin LNG.  

Delfin LNG is the first and only permitted floating LNG export project in the United States.  Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 million tonnes of LNG per annum.  Delfin purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014 and submitted its Deepwater Port license application in 2015.  Delfin LNG received a positive record of decision from MARAD on March 13th, 2017. On June 1st 2017 Delfin received approval from the Department of Energy for long-term exports of LNG to countries that do not have a Free Trade Agreement with the United States.

Golar has successfully designed, financed, contracted, and built its first FLNG vessel, the FLNG Hilli Episeyo, which is scheduled to sail away from Keppel shipyard in Q3 2017. A second vessel of the same FLNG design, the FLNG Gandria, is soon to be converted subject to a Final Investment Decision ("FID") by the Fortuna project partners. Golar is currently developing the Mark II next-generation floating liquefaction solution that is based on its industry leading Hilli and Gandria designs.  The Mark II solution, as used at the Delfin LNG project, will have >3.0 mmtpa of liquefaction capacity and will be the lowest cost liquefaction solution in North America.

It is expected that FID on the Delfin project will take place in 2018 with first LNG to be delivered in 2021/22.  Delfin LNG is uniquely positioned in the North American LNG market as a proven low cost solution, modular, scalable, requiring limited additional investments in fixed infrastructure, and having already completed its environmental permitting and received Non-FTA export authorizations.

Oscar Spieler, Chief Executive of Golar, commented: "Golar's proven execution model will allow Delfin to deliver the lowest cost liquefaction solution in the North American market with a construction time of less than 3 years. Golar's low cost modular floating technology will allow Delfin to make Final Investment Decisions in 3.0 mmtpa increments at a lower unit cost than large land-based projects."

Frederick Jones, CEO and Chairman of Delfin commented: "We look forward to working with Golar to deliver the first floating liquefaction project in North America and lead the second wave of US LNG projects. Golar's flexible, floating liquefaction model has proven to be the world's lowest cost liquefaction solution allowing Delfin to offer innovative commercial solutions with reduced credit requirements, mid-term offtake contracts (approximately 10 years) and FOB and DES LNG pricing based on fixed price, S curves or tied to a variety of energy indexes."

 FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

 

For further enquiries please contact:

Delfin Midstream                                                        

+ 1 713 703 6698

Golar LNG                                                                  

+44 (0)20 7063 7900

Stuart Buchanan, Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG dividend information

Company news

2017-05-31 14:40:01

Reference is made to the first quarter 2017 report released on May 31, 2017. Golar LNG will be trading ex-dividend of a total dividend of $0.05 per share on June 14, 2017. The record date will be June 16, 2017 and the dividend will be paid on or about July 5, 2017. 

Golar LNG Limited
Hamilton, Bermuda
31 May, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim results for the period ended 31 March 2017

Company news

2017-05-31 14:00:02

Highlights

·         Operating Loss and EBITDA* in the quarter reported a loss of $41.4 million and $16.2 million, respectively, compared to a 4Q loss of $32.7 million and $15.9 million.

·         Issued a $402.5 million 2.75% five-year unsecured convertible bond with a capped call that gives an effective conversion premium and price of 75% and $48.86, respectively.

·         Repaid balance of the 2012 five-year convertible bond and refinanced the debt facility in respect of LNG carrier Golar Crystal.

·         Secured firm two-year contract for Golar Grand commencing 2Q 2017 and a 12-month contract for a carrier commencing 1Q 2018.

Subsequent Events

·         OneLNG's Fortuna joint venture executes Umbrella Agreement with the Republic of Equatorial Guinea to establish the fiscal and legal framework for the Fortuna FLNG project.

·         Fortuna midstream EPC construction contracts awarded. Project on track for mid-2017 final investment decision ("FID").

·         Put Option in respect of FSRU Golar Tundra exercised by Golar Partners.

·         The Company and Golar Partners enter into a purchase option agreement for Golar Partners to acquire up to a 25% interest in FLNG Hilli Episeyo.

·        OneLNG enters into a Memorandum of Understanding with the Republic of Equatorial Guinea to find a monetisation solution for stranded gas focusing on Blocks O and I offshore Malabo.

 

Financial Review

Business Performance

  2017 2016
(in thousands of $) Jan-Mar Oct-Dec
Total operating revenues (including revenue from collaborative arrangement) 25,110   23,063  
Vessel operating expenses (12,944 ) (11,424 )
Voyage, charterhire & commission expenses (12,593 ) (7,918 )
Voyage, charterhire & commission expenses - collaborative arrangement (4,336 ) (4,715 )
Administrative expenses (11,441 ) (14,887 )
EBITDA* (16,204 ) (15,881 )
Depreciation and amortization (25,186 ) (16,826 )
Operating loss (41,390 ) (32,707 )

 

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP. 

Golar reports today a 1Q 2017 operating loss of $41.4 million as compared to a 4Q loss of $32.7 million.  As expected, the observed improvements in shipping rates and activity levels during the final weeks of 4Q and into January translated into a modest improvement in 1Q 2017 operating revenues. Contrary to expectations, this additional spot market activity together with reduced payments to Golar Partners in respect of the dry-docked Golar Grand did not result in a reduction to reported voyage expenses. Of the $16.9 million 1Q voyage expenses, $9.6 million represents the cost of chartering the Golar Grand from Golar Partners.  This compares to a 4Q charge of $4.9 million. Execution of a new charter-party for the vessel in February triggered an additional non-cash accounting provision that will be released to voyage expenses between February and October 31, when the obligation to charter-in the vessel from Golar Partners expires.

Vessel operating expenses increased $0.7 million to $12.9 million in 1Q. Operating costs in 4Q were positively impacted by settlement of an insurance claim in respect of the Golar Viking. Administration costs decreased $2.7 million from $14.1 million in 4Q to $11.4 million in 1Q. Prior quarter costs were negatively impacted by legal and professional fees together with the write off of deferred financing costs. Of this $11.4 million, a total of $5.0 million of fleet management costs and costs directly attributable to affiliates OneLNG, Golar Power and Golar Partners have been recharged. Depreciation and amortisation at $25.2 million is $8.4 million higher than 4Q following a 15-month catch-up charge, equivalent to $9.7 million, in respect of the FSRU Golar Tundra which was not depreciated whilst accounted for as an asset held-for-sale. This was offset by reduced depreciation in respect of the LNG carrier Gimi which reached the end of its accounting useful life in December 2016.

Net Income Summary

  2017 2016
(in thousands of $) Jan-Mar Oct-Dec
Operating loss (41,390 ) (32,707 )
Interest income 1,024   1,442  
Interest expense (19,257 ) (17,684 )
Other financial items 14,456   23,670  
Gain on loss of control of Golar Power -   3,701  
Other non-operating income (expenses) 62   (132 )
Taxes (189 ) (450 )
Equity in net earnings of affiliates (13,897 ) 37,760  
Net income attributable to non-controlling interests (6,652 ) (6,976 )
Net (loss) income attributable to Golar LNG Ltd (65,843 ) 8,624  

In 1Q the Company generated a net loss of $65.8 million. Notable contributors to this are summarised as follows:

·         Interest expense has increased $1.6 million primarily due to the cost of servicing the February issued $402.5 million convertible bond that replaces the balance of a $250 million convertible bond repaid in early March.

·         Other financial items reported 1Q income of $14.5 million, most of which was derived from mark-to-market gains on the 3 million Total Return Swap ("TRS") shares following a $4.99 quarter on quarter increase in the Company's share price. Swap rates also continued to increase, albeit at a slower pace, resulting in further non-cash mark-to-market interest rate swap gains.

·         Gain on loss of control of Golar Power in 4Q pertains to a $3.7 million adjustment to the provisional 3Q $12.2 million non-cash loss recognised on disposal of Golar Power. No further adjustments were recorded in 1Q.

·        The loss of $13.9 million 1Q equity in net earnings of affiliates is primarily comprised of the following:

-       a $4.1 million loss in respect of Golar's 50% share in Golar Power;

-       a $1.2 million loss in respect of Golar's 51% share in OneLNG;

-       a $8.7 million loss in respect of Golar's stake in Golar Partners.

This represents a significant fall relative to overall 4Q earnings of $37.8 million. Golar Partners earnings in 1Q declined as a result of scheduled off-hire of the FSRU Golar Igloo and dry-dock off-hire for the carrier Golar Grand. The Golar Partners contribution also includes a non-cash loss on deemed disposal of $17.0 million, being the dilutive impact on our ownership interest due to further issuances of common units by Golar Partners in February 2017.

 

Commercial Review

LNG Shipping

Despite showing some improvement over the prior quarter, the shipping market remained weak in 1Q. Fleet TCE(1) increased from 10,893 in 4Q to 14,189 in 1Q. The improvement was partly driven by a number of vessels in the Cool Pool that secured short-term charters in the $30k per day range.

The underlying trend remains positive as new liquefaction projects continue to deliver. Gorgon and Cheniere Trains 3 have exported their commissioning cargoes and are now in ramp-up mode, Cheniere T4 remains on track for a 2017 start, Petronas exported the world's first FLNG cargo from their PFLNG Satu facility in early April, Wheatstone has affirmed the mid-year start-up of T1 to be followed 6-8 months later by T2, and Yamal LNG remains on track for an early October start-up. In addition to this, Malaysia's T9 and now Gorgon T2 both continue to ramp up production.

Approximately 34 million tons of new LNG is expected to come on line in 2017 representing 13% growth against 2016 global production. Against this, shipping capacity is expected to grow by approximately 9%. This mismatch is expected to have a positive impact on shipping over the same time frame. Consensus among ship-owners of a sustained recovery from 3Q has firmed, aided by a notable increase in inquiries for medium to long-term vessel requirements, particularly for the lifting of open US volumes. With this in mind, and in addition to the charter secured by Golar Partners for the Golar Grand, the Golar group has also fixed a vessel to a Far Eastern utility. Scheduled to start in 1Q 2018, the 12-month charter at rates close to cash break-even, comes with a six-month extension option and flexibility to nominate the closest vessel at the time to the required delivery point.

(1) Non-U.S. GAAP Financial Measure: Time charter equivalent, or TCE, rate is a measure of the average daily performance of a vessel. For time charters, this is calculated by dividing total operating revenues (excluding vessel and other management fee), less any voyage expenses, by the number of calendar days minus days for scheduled off-hire.

Golar Partners

Golar Spirit, which is scheduled to be redelivered by Petrobras in June, is being marketed for new opportunities. The market for smaller low cost FSRUs is quite active as the cost of significant unutilised capacity on larger FSRUs can undermine the economics of a switch to gas in certain niche markets. Smaller units like the Golar Spirit are therefore able to provide a more economic solution.

During the quarter, Golar Partners secured new business for the LNG carrier Golar Grand. The vessel was removed from lay-up on February 14 for repairs and relocated to Singapore for dry-dock, which completed on April 14. On May 5, the vessel commenced a firm two-year charter with a high quality oil and gas major.  Golar will continue to sub-charter the Golar Grand from the Partnership until October 31, 2017, when its obligation expires. Between May 5 and October 31, daily hire from the new charter will accrue to Golar.

The FSRU Golar Tundra remains anchored off the coast of Ghana. Charterer, West Africa Gas Limited, has made no further progress with the construction of supporting land-based infrastructure. Golar has been granted an interim arbitration award of $23.3 million which the company is now actively pursuing. This covers the period up to December 31, 2016. Since then, a further $22.0 million has become due and this will also be pursued through the arbitration process, in addition to amounts accruing thereafter. The Company is now seeking an award against the guarantor.

Golar Partners has now exercised its right ("Put Right") to require Golar to repurchase the company ("Tundra Corp"), the disponent owner and operator of the FSRU Golar Tundra, at a price equal to the original purchase price (the "Put Sale") paid by the Partnership in its acquisition of Tundra Corp in May 2016 (the "Purchase Price").

In connection with the exercise of the Put Right, the Partnership and Golar have entered into an agreement pursuant to which the Partnership has agreed to sell Tundra Corp to Golar on the date of the closing of the Put Sale (the "Put Sale Closing Date") in return for Golar's promise to pay an amount equal to approximately $107 million (the "Deferred Purchase Price") plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the "Additional Amount"). The Deferred Purchase Price and the Additional Amount shall be due and payable by Golar on the earlier of (a) the date of the closing of the acquisition of the Hilli Shares and (b) March 31, 2018. The closing of the Put Sale is expected to occur in June 2017, subject to customary closing conditions. In addition to the Deferred Purchase Price, Golar will be liable for the charterhire payments due under the sale and leaseback financing arrangement. 

The Partnership has agreed to accept the Deferred Purchase Price and the Additional Amount in lieu of a cash payment on the Put Sale Closing Date in exchange for Golar granting to the Partnership the option (the "Golar Hilli Episeyo Purchase Option") to purchase, at fair market value, up to a 25% equity interest (the "Hilli Shares") in Golar Hilli Corp. ("Hilli Corp"), the owner of the FLNG vessel Hilli Episeyo.

Under the new agreement with Golar, the Partnership has the ability to exercise the Golar Hilli Episeyo Purchase Option at any time on or before March 31, 2018. There can be no assurance that the Partnership will exercise the Hilli Purchase Option or that it will consummate an acquisition of the Hilli Shares. The acquisition by the Partnership of the Hilli Shares will be subject to, among other things, the approval by the Conflicts Committee of the Partnership's board of directors of the decision to purchase the Hilli Shares, the fair market value to be paid for the Hilli Shares and the other terms of the purchase.

In addition, the purchase agreement for the Hilli Shares will provide that the Partnership will not be required to consummate the purchase of the Hilli Shares if, among other things, the Golar Hilli Episeyo shall not have been delivered to and accepted by Perenco Cameroon SA and Societe Nationale Des Hydrocarbures ("Perenco") and commenced its commercial operation under the eight year Liquefaction Tolling Agreement with Perenco for the first two of four liquefaction trains of Golar Hilli Episeyo. The purchase price to be paid by the Partnership for the Hilli Shares would be reduced by the sum of the unpaid Deferred Purchase Price plus the unpaid Additional Amounts on the date of the closing of the Hilli Shares.

A 25% interest in the Hilli Shares is effectively 50% of the first two of a total of four liquefaction trains. It is not expected, in the event a purchase is agreed, that the Partnership would be acquiring exposure to any oil price linked elements of the tariff under the Perenco contract or to the potential expansion capacity of Hilli Episeyo. It is expected that Golar Partners can fund the equity component of the purchase without the need for raising additional funds.

 

Downstream - Golar Power

The Sergipe project that will deliver LNG fuelled power to 26 committed power off-takers from 2020 is proceeding to plan. Site works are substantially complete with foundations for the gas turbines now in place and the General Electric sponsored EPC project continues on schedule and budget. With regards to the required project debt financing credit approvals are also progressing, with financial closing expected before 2017 year-end. Permitting of the regas terminal, which represents the greatest challenge so far, is progressing well. 

Construction of the FSRU Golar Nanook, that will support the Sergipe project, is on schedule for delivery towards year-end. In the event that builders Samsung are selected to carry out the requisite modifications, delivery will likely be pushed back by around ten months, limiting the time available for trading prior to its mid-2019 start-up. A decision on this is expected shortly, as is a fully executed 25-year time charter party, both of which will facilitate the FSRU delivery installment financing process.

A significant portion of the 115 mtpa of new LNG supply currently under construction will soon become available in the market. It is expected that much of this will likely end up in frontier markets that favour low cost, flexible, quick delivering FSRUs. Several FSRU projects with award potential over the next two years have been identified, a few of which could potentially be awarded this year and commence operations in 2018. Although gas is becoming an increasingly attractive component of the global energy matrix and the market for FSRUs is growing, most initiatives are being sponsored by private enterprises that require additional technical and financial support. Golar Power is therefore looking to capitalise on and replicate the experience of Sergipe to offer unique support to those developing LNG-to-power projects.

The regas module for the first of its modern LNG carrier conversions is scheduled to deliver in early 2018, positioning it to support any project with a requirement for a 2H 2018 FSRU. Several opportunities are being pursued that fit with this time-frame.

 

FLNG

The FLNG Hilli Episeyo conversion is nearing completion. All equipment has been installed and testing and pre-commissioning work is underway and will continue in Singapore until departure from the yard, which is expected to be in around 6 weeks. Seawater trials, storing-up and potentially LNG bunkering in Singapore will follow redelivery from the yard. A naming ceremony has been scheduled for July 2. The mooring has now been completed and is en-route to Cameroon in advance of hook-up and initiation of commissioning and production at the end of September. Perenco are on track with their scope of works.

More than 16 million man hours have been worked by Keppel to date and approximately 4,000 workers are expected to remain on-board the vessel through to completion. Provided that remaining works progress according to current plans and no unforeseen issues arise, the schedule to meet the end-September start in Cameroon is tight but achievable. The FLNG Hilli Episeyo conversion remains within budget.

Upstream - OneLNG

On May 2, Ophir Energy, OneLNG, GEPetrol and The Republic of Equatorial Guinea signed a detailed Umbrella Agreement that defines the full legal and fiscal framework for the 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. Concluding this multi-year exercise represents a critical step toward FID.  Contingent upon the Umbrella Agreement are two other key milestones, including draw-down against a financing facility and sale of LNG offtake.  A third identified milestone, namely the award of upstream EPCIC and midstream EPC contracts, has since been part satisfied following Golar's execution of an amended EPC contract for the conversion of the LNG vessel Gandria.  The effectiveness of the EPC contract executed by Golar does however remain subject to a FID.

Including upstream and midstream development capital expenditure, the Fortuna project is expected to cost approximately $2.0 billion to develop. Of this, approximately $1.5 billion will be needed to convert the FLNG Gandria and $0.5 billion will cover upstream work. Documentation for a midstream facility of up to $1.2 billion with a consortium of Chinese lenders is ongoing and now remains the time-critical input for FID.  Should the Equatorial Guinea government elect to invest in up to 30% of the mid-stream as they are entitled to, the ownership structure of the Fortuna joint venture would remain unchanged, however its stake in the FLNG Gandria would reduce.

OneLNG continues to make good progress exploring other projects. On May 29 it entered into a binding Memorandum of Understanding with the Ministry of Mines and Hydrocarbons of Equatorial Guinea to explore the liquefaction and commercialisation of natural gas. Efforts will be focused on Blocks O and I offshore Malabo. Agreement terms place obligations on both parties to find a technical and commercial solution to monetise gas that is either stranded or being re-injected in liquids production. That commercial solution is to include the provision of an FLNG vessel, associated infrastructure and the creation of an LNG sales vehicle. The parties seek to reach definitive agreements to proceed by December 2017 but no later than December 2018. In addition to this, OneLNG is also working on 3-4 additional projects, each involving one or more FLNG unit.

Following last year's successful barge-based commissioning of identical liquefaction technology to that used on Hilli Episeyo, Petronas have recently exported the world's first LNG cargo from an FLNG unit offshore Malaysia. Whilst proof of quite different concepts, both examples help build support for FLNG amongst an inherently conservative audience.

 

Financing Review

FLNG Hilli Episeyo financing

As at March 31, 2017, $710.0 million has been spent on the Hilli Episeyo conversion ($774.8 million including capitalised interest) and $300 million has been drawn against the $960 million CSSCL facility. A material portion of the outstanding capital expenditure is payable upon charterer acceptance of the vessel. This will closely coincide with receipt of a final $260 million tranche of debt which is drawable upon the earlier of vessel acceptance or after three months hire has been received. At this point, likely to be early 2018, the company expects to release approximately $160 million of equity. A further $87 million of the outstanding $232 million letter of credit will be released a year after acceptance. 

The $300 million drawn to date against the project financing facility has been reclassified as short-term debt and will be replaced by the pre-arranged $960 million sale and leaseback facility after vessel acceptance, expected within 12-months.

Convertible bonds

On February 17, the Company closed a new $402.5 million senior unsecured five-year 2.75% convertible bond with an initial conversion price of $37.69. To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions have an initial strike price of $37.69 and an initial cap price of $48.86, the cap price of $48.86 being a proxy for the revised conversion price and representing a 75% premium. The conversion price will be adjusted for future dividends paid. Bond proceeds, net of fees, and the cost of the capped call amounted to $360.2 million.

On March 4, the company drew down on a three-year $150 million margin loan secured by 20.9 million Golar Partners common units and, on March 7, the outstanding $220 million balance of the 2012 five-year $250 million convertible bond was repaid.

Golar Crystal refinancing

On March 14, Golar drew down $112 million against a ten-year sale and leaseback facility agreed with a subsidiary of COSCO Shipping in respect of the LNG carrier Golar Crystal. Concurrent to this, an existing 2019 maturing $101 million Korean ECA backed facility was repaid. This transaction released approximately $18.9 million including restricted cash to 1Q liquidity.

Liquidity

Golar's unrestricted cash position as at March 31, 2017 was $456.7 million. This will be used to fund the Company's initial equity participation in the Fortuna FLNG project, expected to be approximately $47 million in 2017, to meet its remaining commitments to Golar Power, expected to be approximately $75 million in 2017, and for general corporate purposes.

 

Corporate and Other Matters

As at March 31, there are 101 million shares outstanding including 3.0 million TRS shares that have an average price of $42.03 per share. There are also 3.9 million outstanding stock options in issue. The dividend will remain unchanged at $0.05 per share for the quarter.

 

Outlook

The conversion of Hilli Episeyo is progressing to a tight but achievable schedule. Transit to Cameroon and commissioning will be the next milestones. The mooring is expected to be ready for connection to Perenco's onshore processing facilities during July and Perenco are on track with their infrastructure responsibilities.

Recent discussions with key stakeholders in Cameroon represent grounds for optimism that train three will be utilised soon after the vessel has been accepted and demonstrated itself to be operationally stable.

Good progress has been made with the Fortuna project. Execution of an Umbrella Agreement that provides for government participation in the LNG mid-stream ensures the crucial alignment of key stakeholder interests.  This together with progress on financing and offtake agreements provides the belief that a mid-2017 FID is an achievable objective.  Further co-operation with the government of Equatorial Guinea to commercialise gas reserves elsewhere in the country via an additional FLNG unit is cause for optimism and further underscores the benefits of good stakeholder alignment.

Having raised gross proceeds of approximately $119.4 million in February and exchanged its interest in the FSRU Golar Tundra, Golar Partners now has the capital it needs to acquire one train, approximately 50% of currently contracted fixed cashflows of the Hilli Episeyo. Associated operating income over 8 years will add significant revenue backlog and substantially mitigate the Partnerships current re-contracting risk.             

Although the shipping business is expected to remain disappointing in 2Q, the increased term charter activity and additional volumes arriving in 2H17 represent grounds for cautious optimism.

Recent financing exercises have strengthened the balance sheet.  Golar's liquidity position will be strengthened further if the Hilli Episeyo transaction with Golar Partners is executed as planned. Having strategically positioned itself as a low cost provider of infrastructure solutions to an increasingly cost sensitive industry with significant growth prospects, the foundations are now in place to deploy this competitive strength.

 

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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP or Golar Power Limited; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements.

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.

 

May 31, 2017

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited - +44 207 063 7900

Oscar Spieler - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q1 2017 results presentation

Company news

2017-05-23 22:40:02

Golar LNG's 1st Quarter 2017 results will be released before the NASDAQ opens on Wednesday May 31 2017. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, May 31 2017. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investor Relations section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:
Norway Free call 800 56054
Norway Toll +47 2316 2787

International call +44 20 3427 1913

UK Free call 0800 279 4977

US Toll +1 212 444 0896

USA Free call 1877 280 1254

The participants will be asked for their name and conference ID. The Golar conference ID is 1832220

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investor Relations) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investor Relations), or listen to a playback by dialling:

International call +44 20 3427 0598

USA Toll +1 347 366 9565

Norway Toll +47 2100 0498

UK Free call 0800 358 7735

USA Free call 1866 932 5017

- followed by replay access number 1832220.   This service will be available until 15:00 UKT on June 7, 2017.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Ophir Energy & OneLNG: Execution of the Fortuna Umbrella Agreement

Company news

2017-05-02 08:10:02

The Republic of Equatorial Guinea, Ophir Holdings & Ventures Ltd, a subsidiary of Ophir Energy  ("Ophir"), OneLNGSA and La Compañía Nacional De Petróleos De Guinea Ecuatorial ("GEPetrol") have signed a detailed Umbrella Agreement ("UA") that  establishes the full legal and fiscal framework for the Fortuna FLNG Project, Africa's first deepwater FLNG project.

The UA reconfirms the participation rights of GEPetrol as partners for 20% of the upstream portion of the project, and for a future potential participation of up to 30% ownership of the midstream FLNG vessel by the Republic of Equatorial Guinea or a designated State company. These participations create alignment with the EG Government throughout the project value chain from upstream through to LNG marketing. Signing the UA was one of the key milestones to be delivered ahead of Final Investment Decision ("FID"). The Fortuna FLNG Project FID is on schedule for mid-2017 with first gas expected in mid-2020.

Project Update

The execution of the UA completes one of the four key milestones required for FID. The other three milestones are: (i) the award of construction contracts for the upstream and midstream vessel, (ii) the completion of the project finance facility and (iii) a decision on the amount of gas to be termed at FID and signature of resulting LNG SPAs. With respect to these milestones:

      (i)                  The impending award of construction contracts is well progressed and on schedule.

      (ii)                Term sheets have been agreed with a consortium of China-based lenders. The counter-parties to the financing have now entered into final documentation stage.

      (iii)               The Fortuna partners will decide in the coming weeks the amount of the expected 2.5MMTPA to put under contract at FID from the several offtake options available.

As previously announced the expected total capital expenditure for the integrated project is approximately $2 billion to reach first gas. Approximately $1.2 billion is expected to be debt financed, with full drawdown by the start of commercial operations.

His Excellency, Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for the Republic of Equatorial Guinea, commented: "This agreement is in line with the government's objective to deliver important projects that monetizes our gas, promotes local content and brings world-class petroleum technology to Equatorial Guinea. It also has brought us one crucial step closer to realizing the historic Fortuna FLNG project. The participation of Equatorial Guinea's national companies was critical to Fortuna's success and to maximizing the project's value at every level of the gas supply chain. The Fortuna Project targets becoming the first choice supplier of LNG for the Gulf of Guinea region."

Nick Cooper, Chief Executive of Ophir, commented: "The Umbrella Agreement is the important foundation agreement which formalises the value chain economics for the Government of Equatorial Guinea and the project participants. We welcome the introduction of Equatorial Guinea's national companies as project partners and the alignment of interests that this brings.

The remaining milestones of the construction contract awards, the finalisation of debt and the LNG offtake are as advanced as we had wanted them to be at this stage. The Fortuna FLNG Project therefore remains firmly on schedule for an FID by mid-year."

Jeff Goodrich, CEO of OneLNG commented: "Signing of the Umbrella Agreement is a significant milestone.  It represents an innovative way of doing business, brings alignment throughout the entire value chain to all of the Project Stakeholders, and provides clear line of sight to FID for the project. The Fortuna project remains on track to become Africa's first deepwater FLNG project."

 

This announcement has been determined to contain inside information.

For further enquiries please contact:

Ophir Energy plc                                                                                     + 44 (0) 20 7811 2400

Nick Cooper, CEO

Tony Rouse, CFO

Geoff Callow, Head of IR and Corporate Communications

OneLNG                                                                                                    +44 (0)20 7063 7900

Stuart Buchanan, Head of Investor Relations

Brunswick (PR Adviser to Ophir)                                                         +44 (0)20 7404 5959                   

Patrick Handley

Wendel Verbeek            

About the Umbrella Agreement:

As previously communicated, final State Approval of the overall project, including the Umbrella Agreement, is the final milestone at FID.

About OneLNG:

OneLNG is joint venture between Golar LNG Limited and Schlumberger to rapidly develop low cost gas reserves to LNG. The combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, with Golar's low cost FLNG solution offers gas resource owners a faster and lower cost development solution that increases the net present value of their asset.

About Ophir:

Ophir Energy is an independent Upstream oil and gas exploration and production company focused on Africa and Asia. It is listed on the London Stock Exchange.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Announcement of filing of Form 20-F Annual Report

Company news

2017-05-01 15:00:02

Golar LNG Limited ("Golar" or the "Company") announces that it has filed its Form 20-F for the year ended December 31, 2016 with the Securities and Exchange Commission in the U.S.

Form 20-F can be downloaded from the link below.

 

May 1, 2017
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2017-02-28 15:40:01

Reference is made to the fourth quarter 2016 report released on February 28, 2017. Golar LNG will be trading ex-dividend of a total dividend of $0.05 per share on March 13, 2017. The record date will be March 15, 2017 and the dividend will be paid on or about April 3, 2017.

Golar LNG Limited
Hamilton, Bermuda
28 February, 2017





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Preliminary Fourth Quarter and Financial Year 2016 Results

Company news

2017-02-28 14:40:01

Highlights

  • Net income improved from a loss of $23.9 million in 3Q to a loss of $13.7 million in 4Q.  EBITDA* and Operating Loss in the quarter reported a loss of $15.9 million and $32.7 million respectively compared to a 3Q loss of $11.3 million and $28.3 million.
  • Ophir and OneLNG agreed to form a joint venture to commercialise the 2.6Tcf Fortuna reserves in Equatorial Guinea using FLNG technology.
  • Golar Power reached a Final Investment Decision ("FID") on its Sergipe power project, signed a 25-year FSRU agreement and entered into a long-term sale and purchase agreement for the supply of LNG.
  • The Incentive Distribution Rights ("IDRs") in Golar LNG Partners ("Golar Partners" or "the Partnership") were reset. Golar LNG received 3.8 million new units including earn-out units as consideration.
  • Raised $170 million net of fees in new equity through the issue of 7.5 million new shares and received commitment for a $150 million margin loan.  March 2017 maturing convertible bond fully funded.

 

Subsequent Events

  • Fortuna joint venture secures signed financing term-sheet and makes substantial progress toward obtaining necessary governmental approvals.
  • Issued a $402.5 million 2.75% 5-year unsecured convertible bond with a capped call that gives an effective conversion price of $48.86. 

 

Financial Review

Business Performance

  2016 2016
(in thousands of $) Oct-Dec Jul-Sep
Total operating revenues 23,063   22,267  
Vessel operating expenses (11,424 ) (12,102 )
Voyage, charterhire & commission expenses (7,918 ) (8,031 )
Voyage, charterhire & commission expenses - collaborative arrangements (4,715 ) (3,621 )
Administrative expenses (14,887 ) (9,808 )
EBITDA* (15,881 ) (11,295 )
Depreciation and amortization (16,826 ) (16,997 )
Operating loss (32,707 ) (28,292 )

 

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

Golar reports today a 4Q 2016 operating loss of $32.7 million as compared to a 3Q loss of $28.3 million.  As stated in the 3Q report, the observed improvements in shipping rates and activity levels during the final weeks of 4Q will not translate into improved net revenues until 1Q 2017.  Utilisation and voyage expenses during 4Q remained relatively stable at 39% and $12.6 million respectively (versus 37% and $11.7 million in 3Q). Included in voyage, charter-hire and commission expenses is $4.9 million in respect of the cost of chartering the Golar Grand from Golar Partners.

Vessel operating expenses decreased a further $0.7 million to $11.4 million in 4Q following settlement of a 2014 insurance claim in respect of the Golar Viking. Administration costs on the other hand reflected a $5.1 million increase over 3Q to $14.9 million in 4Q.  Increases in non-cash share option charges following the awards made in November 2016 and project costs due to increased project development activity make up the majority of the movement from 3Q.  Depreciation and amortisation at $16.8 million is in line with 3Q.

Relative to 3Q the above resulted in a $4.6 million increase in EBITDA* losses from a loss of $11.3 million in 3Q to a loss of $15.9 million in 4Q and a $4.4 million increase in operating losses from a loss of $28.3 million in 3Q to a loss of $32.7 million in 4Q.

Net Income Summary

  2016 2016
(in thousands of $) Oct-Dec Jul-Sep
Operating loss (32,707 ) (28,292 )
Interest income 528   436  
Interest expense (15,455 ) (15,564 )
Other financial items 20,832   22,772  
Loss on disposal 3,701   (12,184 )
Other non-operating expenses (132 ) -  
Taxes (450 ) (246 )
Equity in net earnings of affiliates 15,457   15,681  
Net income attributable to non-controlling interests (5,453 ) (6,546 )
Net loss attributable to Golar LNG Ltd (13,679 ) (23,943 )

In 4Q the Company generated a net loss of $13.7 million. Notable contributors to this are summarised as follows:

  • Interest income, expense and other financial items are each in line with the prior quarter.
  • A $3.7 million adjustment was made in 4Q to reduce the provisional 3Q $12.2 million non-cash loss recognised on disposal of Golar Power. 
  • Golar accounts for its interests in Golar Partners and Golar Power using the equity method of accounting and reports their contribution under equity in net earnings of affiliates. The $15.5 million 4Q equity in net earnings of affiliates is primarily comprised of a $9.1 million loss in respect of Golar's 50% share in Golar Power and net earnings of $25.0 million from the Company's stake in Golar Partners.  Distributions received from the Partnership amounted to $15.1 million during the quarter.

The reported financial results contained herein for the fourth quarter of 2016 are preliminary in particular in relation to two outstanding items as explained further below

Golar Power -Status of affiliate's valuation exercise

In October 2016, the Company's affiliate, Golar Power elected to buy out the project developer's, Genpower, 50% equity interest in the entity which holds the investment in the Sergipe project company. Accordingly, Golar Power has accounted for this step acquisition as a business combination. The initial accounting requires a valuation exercise to be performed in order to reflect all identifiable assets and liabilities acquired at fair value. This valuation exercise is in progress and is expected to be finalized by the time the Company's Form 20-F is filed. Adjustments arising from this valuation, which are expected to result in a gain, will impact the following line items in the financial statements, "investments in affiliate" and "Equity in net earnings in affiliates" in the Company's balance sheet and income statement, respectively. There will be no impact on the Company's reported net cashflows. The Company's preliminary fourth quarter results presented herein exclude all fair value adjustments arising from this transaction and the valuation exercise.

IDR Reset

In October 2016, the Company received 3.7 million common units and 0.1 million general partner units (inclusive of 0.8 million earn-out units) in exchange for enabling Golar Partners to reset its IDRs. The accounting for this transaction is complex.  As a result the Company is still in the process of completing its assessment as to the appropriate accounting treatment under US GAAP for this transaction.  With regard to the Company's preliminary fourth quarter results, no gain or loss has been recognized in the Company's statement of income in respect of this transaction and the Company has presented all interests exchanged in Golar Partners on a historical carrying value basis. The alternative accounting treatment would be to recognize this transaction on a fair value basis. Accordingly, the potential impact, once the final accounting has been determined may be quantitatively material to the Company's income statement and balance sheet. However, this would not impact the Company's reported net cash flows. Any adjustment to reflect the final conclusion will be made in the financial statements included when the form 20-F is filed. 


Commercial Review

LNG Shipping

LNG chartering activity was light for the first half of the quarter.  Into December fixing activity increased as stronger Asian demand coincided with supply outages at Gorgon T1 and Brunei.  Asian LNG prices quickly responded rising steeply toward $10mmbtu. This widened the export spread for US cargoes, many of which were redirected from their more proximate markets of South America, Europe, the Middle East and India toward the Far East.  The resultant increase in ton miles combined with thin tonnage availability resulted in a step-up in rates for available Atlantic based vessels. The increase in ton miles was also sufficient to negate the negative impact of supply outages in the Pacific basin where rates also responded to firming expectations.

Into January, a cold snap in Europe saw European LNG prices ramp up to equalise with Eastern indices.  Inter-basin arbitrage opportunities closed and spot LNG prices in both basins subsequently declined in lock-step as Gorgon production resumed and European temperatures rose.  Vessel rate expectations have since eased back.

Seasonal fluctuations and supply outages aside, new production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass now in ramp-up mode. Gorgon T3 and Sabine Pass T3 & 4 together with Wheatstone are all on track for start-up this year. Consensus estimates indicate that approximately 35 million tons of new LNG will reach the market in 2017, more than twice the new production delivered in 2016. It is however important to note that a material portion (approximately 24 million tons) of the new 2017 production is due to commence in the second half of the year and that this will not therefore influence the shipping balance until the end of the year.  All in, approximately 125 million tonnes of new production equivalent to 47% of current LNG production is expected to deliver between now and 1Q 2021.

Although the market remains long, prompt available shipping is approximately half what it was in January 2016.  Increased activity in the market for short to medium term charter arrangements from the major operators has been noted.

Golar Partners

The existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 4Q operations.

On December 23, Golar Partners received notice of Petrobras' intention to terminate the FSRU Golar Spirit charter in June 2017, 14 months ahead of schedule.  Current rainfall is supporting reliable hydro power in Brazil which in turn has facilitated Petrobras' inclusion of its nearest expiring FSRU contract in its cost savings program.  The Partnership will receive a termination fee approximately equivalent to 62% of EBITDA* which would have otherwise been earned between June 2017 and August 2018.  Golar Spirit is now being actively marketed for new opportunities with particular focus on smaller scale developments.

The FSRU Golar Tundra remains at anchor off the coast of Ghana. Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their gas sales agreement in October and have commenced some works but the major construction works of a connecting pipeline, jetty and breakwater are yet to be completed.  Until this infrastructure is in place the FSRU cannot commence operations. While Golar remains in dialogue with WAGL regarding an alteration of the existing charter agreement, including a later start-up and an extension of the charter period, we are actively protecting our legal right with regard to collection of  amounts due under the charter.  In order to mitigate the consequences of non-payment, Golar has requested and awaits WAGLs permission to trade the ship in the short term market. 

Golar Partners right to put the vessel back to Golar expires in late May.  In view of the current situation, if a mutually agreeable alternative arrangement cannot be found there is a risk that the vessel will be put back.   This being the case, the Company will assume legal ownership of the vessel and repay approximately $107 million to the Partnership.

Downstream - Golar Power

On October 17, CELSE, a project company 50% owned by Golar Power and 50% by Ebrasil, reached a FID on its 25 year Brazilian FSRU-to-power project.  CELSE subsequently entered into two agreements:

1) A lump-sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5GW combined cycle power station, and

2) A flexible Sale and Purchase Agreement with Ocean LNG Limited, an affiliate of Qatar Petroleum and ExxonMobil to provide the power station with LNG.

All-in capital expenditure for the power station and supporting infrastructure is expected to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion.  Additional returns can be earned if the power station is called upon to dispatch.

Good development progress is now being made and the project remains on track to distribute power to its 26 committed off takers from January 2020. Site groundworks and offshore engineering together with procurement, licencing, logistic and permitting activities necessary to bring the 90+ large modules to site and import the new build FSRU Nanook are all underway.

When called upon to dispatch, the FSRU Nanook will be approximately 35% utilised. Remaining capacity can be used for an expansion of the Sergipe power complex.  This is actively being developed to be offered into future energy auctions. Structures for commercialising the remaining FSRU capacity via its integration into the Brazilian grid are also being independently pursued by Golar Power and CELSE.  Any returns generated from this will be additional to the FSRUs 25-year $39 million annual EBITDA*, all of which accrues to Golar Power.

Long-lead items for Golar Power's first FSRU conversion were ordered in January. This enables Golar Power to commit to provide an FSRU for a project start-up as early as May 2018.  Several commercial leads with the potential to crystallise into time charters by mid-2017 are in the pipeline.

LNG prices remain competitive on a burn parity basis even after seasonal uplifts. The scale of new production soon to arrive can be expected to place a de-facto lid on LNG prices until new markets have been opened up to absorb the uncontracted length.  Inexpensive LNG can therefore be expected to remain very supportive of the FSRU business for at least the next 2-3-years.  Golar Power is actively pursuing several specific integrated LNG to power opportunities globally.

FLNG

The FLNG Hilli conversion is proceeding to plan and remains under budget. During recent months approximately 4,500 contractors have been working on the vessel. Testing and pre-commissioning has commenced and will continue in Singapore until the vessel is scheduled for redelivery from the yard in May.  Commissioning and production are scheduled to start by the end of September.  Perenco are on track with their scope of works in Cameroon and SNH are firmly committed to their stake in the project.  The Government is also supportive of opportunities to draw upon neighbouring stranded gas reserves to increase utilisation of the FLNG Hilli, recently renamed Hilli Episeyo.

Upstream - OneLNG

On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a joint venture to commercialise Ophir's 2.6Tcf Fortuna gas reserves, offshore Equatorial Guinea. The joint venture, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own both Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years.

A signed term-sheet with a syndicate of Far Eastern banks has been received and documentation is now progressing.  Good progress toward securing the requisite governmental approvals has also been made. As previously communicated, FID is expected to be taken within the first half of 2017 and the Gandria is now positioning to Keppel shipyard where refurbishment work will be initiated.

Including upstream and midstream development CAPEX, the project is expected to cost $2.0 billion to develop. Of this, approximately $1.5 billion will be used to convert the FLNG Gandria and $0.5 billion will cover upstream work necessary to bring gas from ground to vessel. After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. With respect to its $332 million share, Golar can expect to receive credit for the LNG carrier Gandria and associated down payments already made to Keppel.  Any credit receivable with respect to the Company's intellectual property contribution and guarantees provided will likely be reflected in a greater than 51% share of OneLNG's 66.2% stake in the joint venture accruing to Golar. The national gas company of Equatorial Guinea, Sonagas, has also expressed interest in taking a stake in the midstream FLNG Gandria. Although this would not change the ownership structure of the joint venture, it would reduce its stake in the FLNG Gandria.  Investment by Sonagas would further improve stakeholder alignment and reduce the above equity contributions required from OneLNG and Ophir.

OneLNG is working actively on 4-5 additional projects, each involving 1 or more FLNG unit. The structures of these opportunities range from fully integrated projects where OneLNG will also be reserve holders to projects where FLNG units are rented on a tariff basis to major gas companies.

 

Financing Review

Liquidity

Golar's unrestricted cash position as at December 31, 2016 was $224.2 million. Subsequent to February's convertible bond issue, the cash position is approximately $543 million today. Of the outstanding $250 million March maturing convertible bond, $30 million was purchased prior to year-end. The $220 million balance will be serviced by the undrawn $150 million margin loan and proceeds raised from other financing activities.

FLNG Hilli Episeyo financing

As at December 31, 2016, $678 million has been spent on the Hilli Episeyo conversion ($732 million including capitalised interest) and $250 million has been drawn against the $960 million CSSCL facility. A further $34.5 million of restricted cash associated with the Perenco Letter of Credit was released to liquidity in 4Q reducing the restricted cash tied up in this facility to $232 million as at December 31.

Convertible financing

On February 17 the Company closed a new $402.5 million senior unsecured 5-year 2.75% convertible bond.  The conversion rate for the bonds will initially equal 26.5308 common shares per $1,000 principle amount of the bonds. This is equivalent to an initial conversion price of $37.69 per common share or a 35% premium on the February 13 closing share price of $27.92.  The conversion price is subject to adjustment for dividends paid.  To mitigate the dilution risk of conversion to common equity, the Company also entered into capped call transactions costing approximately $31.2 million. The capped call transactions cover approximately 10,678,647 common shares, have an initial strike price of $37.69 and an initial cap price of $48.86. The cap price of $48.86, which is a proxy for the revised conversion price, represents a 75% premium to the February 13 closing price.  Including the $31.2 million cost of the capped call the all-in cost of the bond is approximately 4.3%. Bond proceeds net of fees and the cost of the capped call amount to $360.2 million.

Proceeds from the convertible bond will be used to fund the Company's initial equity participation in the Fortuna FLNG project, to meet its commitments to Golar Power and for general corporate purposes.

Concluding the new convertible bond affords Golar the flexibility to manage timing differences between investment commitments and the release of other identified sources of funding without being exposed to the risk of delays, unsupportive market conditions or working capital shortfalls.

The Company anticipates that significant cash will be released during the first year following start-up of Hilli Episeyo.  Major components of this include $160 million equity released from the final loan draw-down, $87 million released from the letter or credit in favour of Perenco and $170 million in expected EBITDA* from operations.

Corporate and Other Matters

As at December 31 there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $42.03 per share. There are also 3.8 million outstanding stock options in issue.

The dividend will remain unchanged at $0.05 per share for the quarter.

Outlook

The Company now has access to the capital it needs to support its legacy shipping business, deliver FLNG Hilli Episeyo, meet its share of Golar Power's equity contribution to the Sergipe project and take a Final Investment Decision on the Fortuna FLNG project without further recourse to equity markets. Having recovered its 'equity currency', the Partnership successfully completed in February an underwritten public offering raising gross proceeds of approximately $119.4 million. Golar Partners now has the capital it needs to contemplate the acquisition of a share of the FLNG Hilli Episeyo.  A further $107 million will be available to Golar Partners should the FSRU Tundra be put back at the end of May. This share in Hilli Episeyo could therefore be increased.  Golar and the Partnership are continuing their discussions with regard to the Hilli deal structure and valuation and expect to make a decision later this year.               

 

The results of the shipping business are expected to show some improvement in Q1 2017 relative to Q4 2016. Any major improvement in shipping rates should not however be expected before 2H 2017 when a further 24 million tons of new LNG are expected to reach the market.

Although the immediate priority of Golar is firmly on delivering and commissioning the FLNG Hilli Episeyo on time and on budget, the Board is pleased that the Company is now on track to become a fully integrated clean energy well to grid company in 2020.


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 "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "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 subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.  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.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU and  floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels' useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar's relationships with major chartering parties; changes in Golar's ability to sell vessels to Golar LNG Partners LP; Golar's ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; accounting adjustments relating to Golar's ownership in Golar Power; accounting adjustments relating to the accounting treatment of general partner units Golar holds in Golar LNG Partners LP; as well as other factors discussed in Golar's most recent Form 20-F filed with the Securities and Exchange Commission. In particular, there is no guarantee that any expectations set forth in "Golar Power - Status of affiliate's valuation exercise" and "IDR Reset" will have the impact on our balance sheet or income statement described therein. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements.

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.

 

February 28, 2017

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited - +44 207 063 7900

Oscar Spieler - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q4 2016 results presentation

Company news

2017-02-22 11:40:01

Golar LNG's 4th Quarter 2016 results will be released before the NASDAQ opens on Tuesday February 28 2017. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Tuesday, February 28 2017. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investor Relations section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:
Norway Free call 800 56053
Norway Toll +47 2316 2729

International call +44 20 3427 1914

UK Free call 0800 279 5004

US Toll +1 646 254 3364

USA Free call 1877 280 2296

The participants will be asked for their name and conference ID. The Golar conference ID is 9167169

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investor Relations) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investor Relations), or listen to a playback by dialling:

International call +44 20 3427 0598

USA Toll +1 347 366 9565

Norway Toll +47 2100 0498

UK Free call 0800 358 7735

USA Free call 1866 932 5017

- followed by replay access number 9167169.   This service will be available until 23:59 UKT on March 6, 2017.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Closes $402.5 Million of 2.75% Convertible Senior Notes Due 2022

Company news

2017-02-17 16:50:01

Hamilton, Bermuda, February 17, 2017 -- Golar LNG Limited (the "Company") (NASDAQ: GLNG) announced today the closing of its previously announced offering of 2.75% Convertible Senior Notes due 2022 (the "Notes"), in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act").  The Company sold $402.5 million aggregate principal amount of the Notes, including $52.5 million aggregate principal amount of the Notes sold pursuant to the initial purchasers' exercise in full of their 30-day option to purchase additional Notes in connection with the offering.

The Notes are senior, unsecured obligations of the Company, bear interest at a rate of 2.75% per annum, are payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2017, mature on February 15, 2022, and are convertible into the Company's common shares, cash, or a combination of shares and cash, at the Company's election. The conversion rate for the Notes initially equals 26.5308 common shares per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $37.69 per common share, and is subject to adjustment.

The Company used approximately $31.2 million of the net proceeds from the sale of the Notes to fund the cost of the capped call transactions described below, including $4.1 million to fund the cost of capped call transactions related to the sale of the additional Notes, and will use the remaining funds for other general corporate purposes.  

In connection with the offering of the Notes, including the additional Notes, the Company entered into capped call transactions with one or more of the initial purchasers of the Notes or their affiliates (the "option counterparties").  The capped call transactions have an initial strike price of approximately $37.69 per share and an initial cap price of $48.86 per share, subject to certain adjustments.  The capped call transactions cover, subject to customary adjustments, approximately 10,678,647 common shares of the Company. The capped call transactions are expected to reduce the potential dilution to the Company's common shares upon and/or offset the cash payments the Company is required to make in excess of the principal amount of converted Notes, with such reduction and/or offset subject to a cap.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful. Any offer of the Notes will be made only by means of a private offering memorandum.

The Notes and the shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold absent registration or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
February 17, 2017
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Announces Pricing of $350 Million of 2.75% Convertible Senior Notes Due 2022

Company news

2017-02-14 15:30:01

Hamilton, Bermuda, February 14, 2017 -- Golar LNG Limited (the "Company") (NASDAQ: GLNG) announces today the pricing of $350 million aggregate principal amount of its 2.75% Convertible Senior Notes due 2022 (the "Notes"), in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The Company has also granted the initial purchasers of the Notes a 30-day option to purchase up to an additional $52.5 million aggregate principal amount of the Notes in connection with the offering, solely to cover overallotments.  The offering is expected to close on February 17, 2017, subject to the satisfaction of certain customary closing conditions.

The Notes will be senior, unsecured obligations of the Company, bear interest at a rate of 2.75% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2017, mature on February 15, 2022, and be convertible into the Company's common shares, cash, or a combination of shares and cash, at the Company's election. The conversion rate for the Notes will initially equal 26.5308 common shares per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $37.69 per common share, and is subject to adjustment.

The Company will use approximately $27.1 million of the net proceeds from the sale of the Notes to fund the cost of the initial capped call transactions described below and use the remaining funds for other general corporate purposes.  

In connection with the offering of the Notes, the Company entered into capped call transactions with one or more of the initial purchasers of the Notes or their affiliates (the "option counterparties").  The capped call transactions have an initial strike price of approximately $37.69 per share and an initial cap price of $48.86 per share, subject to certain adjustments.  The capped call transactions cover, subject to customary adjustments, approximately 9,285,780 common shares of the Company. The capped call transactions are expected to reduce the potential dilution to the Company's common shares upon and/or offset the cash payments the Company is required to make in excess of the principal amount of converted Notes, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional Notes, the Company may enter into additional capped call transactions with the option counterparties.  In connection with establishing their initial hedge of the capped call transactions, the Company expects that the option counterparties will enter into various derivative transactions with respect to the Company's common shares concurrently with or shortly after the pricing of the Notes and may unwind these various derivative transactions and purchase the Company's common shares in open market transactions shortly following the pricing of the Notes.  These activities could have the effect of increasing, or reducing the size of a decline in, the market price of the Company's common shares or Notes concurrently with, or shortly following, the pricing of the Notes.  In addition, the option counterparties (and/or their respective affiliates) may modify their hedge positions by entering into or unwinding various derivatives with respect to the Company's common shares and/or purchasing or selling the Company's common shares or other securities of the Company in secondary market transactions following the pricing of the notes and prior to the maturity of the notes.  Any of these activities could cause or avoid an increase or a decrease in the market price of the Company's common shares or the Notes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful. Any offer of the Notes will be made only by means of a private offering memorandum.

The Notes and the shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold absent registration or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
February 14, 2017
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Announces Proposed Offering of $350 Million of Convertible Senior Notes due 2022

Company news

2017-02-13 22:10:01

Hamilton, Bermuda - February 13, 2017- Golar LNG Limited (the "Company") (NASDAQ:GLNG) announces today that it intends to offer, subject to market and other conditions, $350 million aggregate principal amount of Convertible Senior Notes due 2022 (the "Notes") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The Company also intends to grant the initial purchasers of the Notes a 30-day option to purchase up to an additional $52.5 million aggregate principal amount of the Notes in connection with the offering, solely to cover overallotments.

The Notes will be senior, unsecured obligations of the Company, pay interest semiannually in arrears on February 15 and August 15, mature on February 15, 2022, and be convertible into the Company's common shares, cash, or a combination of shares and cash, at the Company's election.

The Company intends to use a portion of the net proceeds from the sale of the Notes to fund the cost of the initial capped call transactions described below and use the remaining funds for other general corporate purposes.

In connection with the offering of the Notes, the Company also intends to enter into capped call transactions with one or more of the initial purchasers of the Notes or their affiliates (the "option counterparties").  The capped call transactions are expected to reduce the potential dilution to the Company's common shares upon and/or offset the cash payments the Company is required to make in excess of the principal amount of converted Notes, with such reduction and/or offset subject to a cap.  If the initial purchasers exercise their option to purchase additional Notes, the Company may enter into additional capped call transactions with the option counterparties.  In connection with establishing their initial hedge of the capped call transactions, the Company expects that the option counterparties will enter into various derivative transactions with respect to the Company's common shares concurrently with or shortly after the pricing of the Notes and may unwind these various derivative transactions and purchase the Company's common shares in open market transactions shortly following the pricing of the Notes. These activities could have the effect of increasing, or reducing the size of a decline in, the market price of the Company's common shares or Notes concurrently with, or shortly following, the pricing of the Notes. In addition, the option counterparties (and/or their respective affiliates) may modify their hedge positions by entering into or unwinding various derivatives with respect to the Company's common shares and/or purchasing or selling the Company's common shares or other securities of the Company in secondary market transactions following the pricing of the notes and prior to the maturity of the notes.  Any of these activities could cause or avoid an increase or a decrease in the market price of the Company's common shares or the Notes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful. Any offer of the Notes will be made only by means of a private offering memorandum.

The Notes and the shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold absent registration or an applicable exemption from registration requirements under the Securities Act and applicable state securities laws.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
February 13, 2017
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Dividend Information

Company news

2016-11-30 18:50:01

Reference is made to the third quarter 2016 report released on November 30, 2016. Golar LNG will be trading ex-dividend of a total dividend of $0.05 per share on December 12, 2016. The record date will be December 14, 2016 and the dividend will be paid on or about January 6, 2017.

Golar LNG Limited
Hamilton, Bermuda
30 November, 2016





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim Results for the Period Ended 30 September 2016 (with correct attachment)

Company news

2016-11-30 15:20:02

Highlights

  • EBITDA* and Operating Loss in the quarter reported a loss of $11.3 million and $28.3 million compared to a 2Q loss of $17.5 million and $37.2 million, respectively.
  • Golar LNG Limited ("Golar" or "the Company") and Schlumberger formed OneLNG, a joint venture that will offer an integrated upstream and midstream solution for the development of low cost gas reserves to LNG.
  • Closed Golar Power transaction with Stonepeak to capitalise on downstream opportunities.
  • Shipping market shows positive signs with improving utilisation, rates and the re-appearance of round-trip economics.

 

Subsequent Events

  • Ophir and OneLNG agreed to form a Joint Operating Company to develop the 2.6Tcf Fortuna reserves in Equatorial Guinea using FLNG technology.
  • Golar Power reached a Final Investment Decision ("FID") on Sergipe power project, signed a 25-year FSRU agreement and entered into a long-term sale and purchase agreement for the supply of LNG.
  • The Incentive Distribution Rights ("IDRs") in Golar LNG Partners ("Golar Partners" or "the Partnership") were reset. Golar LNG received 3.8 million new units as consideration.
  • Raised $176 million in new equity through issue of 7.5 million new shares.

 

Financial Review

Business Performance

  2016 2016
(in thousands of $) Jul-Sep Apr-Jun
Total operating revenues 22,267   18,370  
Vessel operating expenses (12,102 ) (14,064 )
Voyage, charterhire & commission expenses (8,031 ) (9,826 )
Voyage, charterhire & commission expenses - collaborative arrangements (3,621 ) (2,331 )
Administrative expenses (9,808 ) (9,689 )
EBITDA* (11,295 ) (17,540 )
Depreciation and amortization (16,997 ) (19,705 )
Operating loss (28,292 ) (37,245 )

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

 

The Golar Power transaction closed on July 6. Effective from this date, the results of the LNG carriers, Golar Penguin and Golar Celsius, together with the Company's interest in the 2017 delivering FSRU new-build Nanook and the Company's investment in the Sergipe power project have been deconsolidated. The Company will use equity accounting for Golar Power from July 6 and results of this business unit are included within Equity in net earnings of affiliates in the Statement of Income discussed below.

Golar reported today a 3Q operating loss of $28.3 million as compared to a loss of $37.2 million in 2Q 2016. Both shipping rates and utilisation improved during the quarter with utilisation increasing from 31% in 2Q to 37% in 3Q and rates for TFDE tonnage approaching and in cases exceeding $40k/day. Total operating revenues increased from $18.4 million in 2Q to $22.3 million in 3Q. Voyage, charter-hire and commission expenses including those from the Cool Pool collaboration recorded a slight decrease from $12.2 million in 2Q to $11.7 million this quarter reflecting the small increase in utilisation. As in prior quarters, included in voyage, net charter-hire and commission expenses is $5.8 million in respect of the cost of chartering the Golar Grand.

Vessel operating expenses decreased $2.0 million to $12.1 million. Deconsolidation of post July 6 costs in respect of the Celsius and Penguin accounts for most of the reduction however lower insurance costs across the fleet also contributed positively in 3Q. Administration costs at $9.8 million were in line with 2Q.  Depreciation and amortisation decreased $2.7 million to $17.0 million in 3Q, again due to deconsolidation of Golar Penguin and Celsius.

Relative to 2Q the above resulted in a $6.2 million decrease in EBITDA* losses from a loss of $17.5 million in 2Q to a loss of $11.3 million in 3Q and an $8.9 million decrease in Operating losses from a loss of $37.2 million in 2Q to a loss of $28.3 million in 3Q.


Net Income Summary

  2016 2016
(in thousands of $) Jul-Sep Apr-Jun
Operating loss (28,292 ) (37,245 )
Interest income 436   196  
Interest expense (15,564 ) (13,331 )
Other financial items 22,772   (27,471 )
Loss on disposal (12,184 ) -  
Taxes (246 ) 609  
Equity in net earnings of affiliates 15,681   2,053  
Net income attributable to non-controlling interests (6,546 ) (9,412 )
Net loss attributable to Golar LNG Ltd (23,943 ) (84,601 )

In 3Q the Company generated a net loss of $23.9 million. Notable contributors to this are summarised as follows:

  • After stripping out Golar Power assets, consolidated Variable Interest Entities in respect of the six sale and leaseback financed vessels and non-cash capitalised interest adjustments, underlying 3Q interest expense is consistent with 2Q.
  • Other Financial Items report a gain of $22.8 million compared to a $27.5 million charge in 2Q.  A 2Q mark to market loss on the Company's Total Return Swap became a $16.5 million gain in 3Q following an increase in Golar's share price from $15.50 on June 30 to $21.20 on September 30. Increases in long-term swap rates also converted a 2Q $5.9 million mark-to-market loss on the valuation of interest rate swaps into a 3Q gain of $10.7 million.
  • A $12.2 million non-cash loss was recognised on disposal of Golar Power, of which approximately half is expected to be recovered upon finalisation of the purchase price adjustment. This loss is based on estimates and is thus subject to change.
  • Following a change in accounting treatment of the Company's stake in Golar Partners, Golar now accounts for its Common Units, General Partner Units and IDRs in the same way it has previously accounted for its Subordinated Units under the equity method of accounting. The Partnerships 3Q 2016 contribution to Golar's results is included together with the Company's 50% share of Golar Power in equity in net earnings of affiliates. The $15.7 million 3Q equity in net earnings of affiliates is comprised of a $2.7 million loss in respect of Golar's 50% share in Golar Power and net earnings of $18.3 million from the Company's stake in Golar Partners. However, the change in accounting treatment of the various units does not impact the distributions receivable by the Company so that its receipt of $13.2 million in cash distributions in respect of its investment in Golar Partners is consistent with recent quarters.

 

Commercial Review

LNG Shipping

The third quarter began in much the same way as the first half of the year with excess tonnage weighing heavily on rates. This was followed by increased activity in August that resulted in a step up in rates and utilisation, particularly for owners with open tonnage in the Atlantic basin where spot rates in excess of $40k/day were achieved. Both chartering activity and rates have since eased but levels remain well above the lows reached in the first half of 2016. The Pacific market continued to be typified by higher liquidity with an abundance of available shipping as well as spot demand from projects, utilities and traders. Spot charters have typically been for short durations, maintaining liquidity but limiting significant rate increases. Atlantic activity on the other hand has been more sporadic with thin tonnage availability and limited demand occasionally interrupted by sudden waves of requirements that clear out this available tonnage and result in improved rates.

New production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass set to start during 4Q. Looking to 2017, significant additional production is expected from Gorgon and Sabine Pass together with new production from Whetstone. The FLNG Hilli is also set to start producing. All in, approximately 135 million tonnes of new production equivalent to 52% of current LNG production is expected to deliver between now and 1Q 2021. During recent months a number of market participants have chosen to take shipping coverage for 2017. Up to 16 vessels in the global spot fleet have been fixed for periods of 6-18 months starting between September and February. Golar believes that this tightens the outlook for structural availability into 2017. As new LNG arrives and prompt availability of shipping tonnage declines, charterer interest in period contracts is expected to grow bringing the shipping business ever closer to its inflection point.

Discipline among ship owners continues to be maintained with only 6 LNG carriers (approximately 1% of the global fleet) ordered this year to date.

FSRUs

Golar's existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 99.3% availability during scheduled 3Q operations.

The FSRU Golar Tundra remains at anchor off the coast of Ghana. On October 19, Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their 10-year gas sales agreement with the government of Ghana. Golar has commenced legal proceedings in order to collect amounts due under the charter. The Company does however maintain dialogue with WAGL to find a mutually agreeable way forward that bridges the original and later start date required and on November 29 the Company received its first payment from WAGL for amounts outstanding under the charter.  The Company has not recognised any revenue from the WAGL charter in its 3Q Income Statement. 

Downstream - Golar Power

On October 17, Golar Power reached a FID on its first integrated FSRU-to-power project.  Together with  joint venture partners Ebrasil, Golar Power have formed a project company, CELSE, which has entered into a lump-sum turn-key EPC agreement with General Electric who will build, maintain and operate a 1.5GW combined cycle power station in Sergipe, Brazil. The power station will provide power to 26 committed off-takers for 25 years commencing January 2020. All-in capital expenditure for the power station and supporting infrastructure is estimated to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion. Additional returns can be earned if the power station is called upon to dispatch and CELSE has entered into a flexible long-term LNG Sale and Purchase Agreement with an affiliate of Qatar Petroleum and ExxonMobil to support this.

In connection with FID, Golar Power has also elected to buy out project developer Genpower. This will increase its ownership in the Sergipe Project from 25% to 50%. Golar Power had previously committed to finance Genpower's equity contribution to the project so acquisition of this stake should not increase Golar Power's equity contribution beyond the previously anticipated $165 million, a small portion of which has already been invested.

Golar Power has nominated its 2017 delivering FSRU newbuild, Nanook, to service the Sergipe project and has entered into a 25-year agreement to charter the FSRU to CELSE. This agreement affords the flexibility to switch to an FSRU conversion candidate ahead of start-up to accommodate other Golar Power business opportunities as required. Annual EBITDA* generated by the FSRU is projected to be $39.0 million (100% for the account of Golar Power) starting January 1, 2020. When called upon to dispatch, the Sergipe power station will utilise approximately 35% of the FSRUs regas capacity. Golar Power will therefore look to augment this $39 million EBITDA* by seeking out other proximate users or integrate a project into the Brazilian gas grid.

Other FSRU projects are currently being actively pursued. These require a range of solutions from large new-build FSRUs to small, modern and new-build carrier conversions. Golar has recently agreed to participate in a Total led consortium developing an integrated FSRU-to-power project in the Ivory Coast.

Although LNG prices have increased in recent months, they remain extremely competitive on a burn parity basis and by historical standards. The Company believes that this together with an expectation that LNG prices will remain low is driving demand growth that is supporting FSRU opportunities. China and India continue to report high double digit demand growth with an estimated 40-50 mtpa of incremental demand being filled by these two markets alone. Other emerging markets are currently expected to fill a further 30-40mtpa of incremental demand, much of it via FSRUs.

FLNG

The FLNG Hilli conversion project continues apace and remains on schedule, within budget and on track to deliver within its stipulated delivery window. Virtually all heavy equipment is on-board and over 4,000 contractors are now working on the vessel on a daily basis. The mooring system is on schedule and limited testing of systems has started.  The Company is encouraged by two recent developments in the FLNG business, namely:

  • Commencement of operations on the worlds first FLNG vessel, the PFLNG Satu in Malaysia.
  • Black & Veatch successfully commissioning, in a marine environment, an Exmar designed FLNG barge with a small-scale version of the same liquefaction technology used on FLNG Hilli.

There are significant other stranded gas reserves in the area neighbouring the Kribi field in Cameroon as well as additional reserves within the field itself. Golar is currently having discussions with the Government and Perenco and is soliciting interest from independent third parties with the target of increasing utilisation of the FLNG Hilli. The Company remains cautiously optimistic that further utilisation will be achieved after start-up.

Upstream - OneLNG

On July 25 Golar and Schlumberger formalised their co-operation by announcing the creation of OneLNG, a joint venture 51% owned by Golar and 49% by Schlumberger that will combine the respective strengths of each shareholder to offer gas resource holders a faster and lower cost LNG development solution.  OneLNG will have first right of refusal for all gas-to-LNG projects that draw upon services provided by Schlumberger and FLNG expertise provided by Golar. The joint venture also contemplates an equitable contribution mechanism that takes account of Golar's FLNG intellectual property.  Any credit that Golar receives for this intellectual property will be agreed on a case-by-case basis. Jeff Goodrich, formerly Chief Operating Officer at Perenco has been appointed CEO of OneLNG and key resources from both Golar and Schlumberger have been seconded to the venture which now operates out of a shared London office. 

On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a Joint Operating Company ("JOC") to develop Ophir's 2.6Tcf Fortuna gas reserves, in Block R, offshore Equatorial Guinea. The JOC, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. The shareholders agreement and a Final Investment Decision are contingent on 3 key milestones - namely, agreement of final terms and execution of documentation for project debt financing, approval by the shareholders of Ophir Energy plc, and, approval by the government of Equatorial Guinea. OneLNG is responsible for concluding the project debt financing and Ophir is responsible for securing requisite government and shareholder approvals.

As well as aligning interests, the JOC structure allows the project to offer both its FLNG unit and its stake in the gas field as security to lenders. This additional security together with shareholder support is expected to facilitate the drawdown of up to $1.2 billion of debt from FID to commencement of operations. Including both upstream and midstream development the project is expected to cost $2.0 billion to develop and is currently expected to generate an annual EBITDA* of $560 million assuming a $6.0mmbtu free on-board gas price.

After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. Golar has a range of funding options available to meet its share of this OneLNG equity in the 2017-2020 period. Credit can be expected for both the intellectual property and the LNG carrier Gandria contributed by Golar. The Company is also looking to agree payment profiles with key contractors Keppel and Black & Veatch to help accommodate the gap between release of up to $160 million of post operational equity from the Hilli and milestone payments required for the Gandria conversion.  Other potential sources of funding during this three-year period include cash generated from the operation of FLNG Hilli, potential proceeds from a sale of a tranche of the FLNG Hilli to Golar Partners for which discussions have commenced, leveraging of further Common units in Golar Partners and the 2018 release of approximately $110 million of cash tied up in the FLNG Hilli cash-collateralised letter of credit. Delay of the Fortuna FID to 1H 2017 also reduces the gap between equity requirements for the project and equity released from the FLNG Hilli.

In addition to the Fortuna Project, OneLNG is reviewing a comprehensive list of other projects that suit its offering.  Whilst there remains a West African bias to the current shortlist, OneLNG is also working on several projects in other parts of the world.  The Company believes that there is additional demand for its FLNG solutions and is encouraged by the way OneLNG has been received by the market.

 

Financing Review

Liquidity

Golar's total cash position as at September 30 was $137.9 million.

FLNG Hilli financing

As at September 30, 2016, $600 million has been spent on the FLNG Hilli conversion ($695 million including the vessel and capitalised interest) and $200 million had been drawn against the $960 million CSSCL FLNG Hilli facility. As the project remains well within its $1.2 billion budget, all remaining conversion and site specific costs for the FLNG Hilli are expected to be satisfied by this facility.  After a bank syndication exercise and a reduction in mark-to-market swaps a further $13.9 million of the $280 million cash backed Letter of Credit ("LC") to Perenco was released to 3Q liquidity. As at September 30, restricted cash tied up in this LC stood at $266.1 million. A further $34.8 million of this LC restricted cash has been released to liquidity so far in 4Q.

In addition to the above the following have been concluded:

  • Golar Power transaction closed - released $103 million of cash.
  • IDR Reset - received 3.7 million new Common units and 0.1 million General Partner units in Golar Partners (including 0.8 million earn-out units).
  • Margin Loan - secured $150 million commitment from Citibank to be secured by certain Golar Partners units.
  • Equity Issue - raised $170 million net of fees following the issue of 7.5 million new shares.

 

Corporate and Other Matters

After the recent offering there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $41.10 per share. There are also 3.9 million outstanding stock options in issue with current strike prices ranging from $1.48 to $57.00 per share.

The dividend will remain unchanged at $0.05 per share for the quarter.


Outlook

A total of around 300 spot fixtures are expected to be concluded in 2016, a significant step up from around 190 voyages in 2015. New LNG supply trains are delivering on an almost quarterly basis, gradually eroding the overcapacity in the shipping market. There are clear signs of tightening in the spot market and this improvement is encouraging charterer interest in longer term contracts. Based on fixture activity thus far, 4Q shipping results are expected to be approximately in line with 3Q. The current market strengthening is already pushing 1Q 2017 utilisation toward 3Q 2016 levels. Shareholders can therefore expect a positive improvement in1Q revenues.

Both Golar Power and OneLNG, have, within 6-months of their formation, identified and taken substantial steps to advance their first project opportunities. FID has been taken on the Sergipe project. Key service companies have been engaged for Golar Power's first 25-year integrated FSRU-to-power project. The main ground-work permit was received on November 28 and ground preparations are now underway. Similarly, OneLNG has signed a shareholder agreement with Ophir that makes both the financing and development of this world class gas resource manifestly more digestible. Both of these projects are long-term (20-25 years), show good profitability and are expected to add material EBITDA* backlog to the Golar group, assuming successful execution of the two projects. Golar's share in the currently expected EBITDA* backlog will be in excess of $6.0 billion over the life of the projects based on current forward prices.  This creates a solid long-term foundation for the Company. 

From a financing perspective, Golar is pleased to have delivered a solution to the March maturing convertible bond and to have strengthened the Company's liquidity position. Attention is now focused on concluding the financing of the FLNG Gandria which is progressing well.

Based on Golar's experience with the first converted FSRU, successful execution of the Hilli project is likely to increase interest in the Company's FLNG solutions. FLNG Hilli continues to progress on budget and is scheduled to commence operations in Cameroon in ten months. A key objective of the Company will be to monetise the equity investment in, and the cashflow generated by, FLNG Hilli, in the best possible way and use this to create profitable growth going forward. Formation of OneLNG and Golar Power, recruitment of personnel and the deals already concluded have strengthened the Company's ability to execute large projects.  When combined with the positive trend we now see in the shipping market, the Company's strategic and financial position today is considered to be considerably better relative to the same time last year.


Forward Looking Statements

This press release contains certain forward-looking statements that reflect management's current expectations, estimates and projections.  Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  Words such as  "anticipate," "believe," "estimate," "expect, " "forecast," "intend," "may," "pending," "plan," "predict," "project," "potential," "should" and similar expressions identify forward-looking statements.  These statements are not guarantees of future performance and are based upon assumptions and estimates that are inherently subject to significant known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Among the important factors that could cause actual outcomes and results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU or FLNG market trends, including charter rates, vessel values and technological advancements; changes in the Company's ability to retrofit vessels as FSRUs or FLNGs and in the Company's ability to obtain financing for such conversions or its joint ventures on acceptable terms or at all; changes in the supply of or demand for LNG carriers, FSRUs or FLNGs; a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs; changes in the performance of the pool in which certain of the Company's vessels operate and the performance of the Company's joint ventures; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs; changes in the supply of or demand for LNG or LNG carried by sea; changes in the supply of or demand for natural gas generally or in particular regions; the failure of the Company's contract counterparties, including its joint venture co-owners, to comply with their agreements with the Company; changes in the Company's relationships with its counterparties, including its major chartering parties; changes in the availability of vessels to purchase and in the time it takes to construct new vessels;  failure of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all; the Company's ability to integrate and realize the benefits of acquisitions; changes in the Company's ability to sell vessels to Golar Partners or Golar Power Limited; changes in the Company's relationship with Golar Partners, Golar Power Limited OneLNG S.A.; the Company's inability to achieve successful utilization of its expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through its innovative FLNG strategy and its joint ventures; changes in the Company's ability to obtain additional financing on acceptable terms or at all; as well as other factors discussed in the Company's most recent Form 20-F filed with the Securities and Exchange Commission.  Unpredictable or unknown factors also could have material adverse effects on forward-looking statements.

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.

 

November 30, 2016

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited - +44 207 063 7900

Oscar Spieler - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Interim Results for the Period Ended 30 September 2016

Company news

2016-11-30 15:10:01

Highlights

  • EBITDA* and Operating Loss in the quarter reported a loss of $11.3 million and $28.3 million compared to a 2Q loss of $17.5 million and $37.2 million, respectively.
  • Golar LNG Limited ("Golar" or "the Company") and Schlumberger formed OneLNG, a joint venture that will offer an integrated upstream and midstream solution for the development of low cost gas reserves to LNG.
  • Closed Golar Power transaction with Stonepeak to capitalise on downstream opportunities.
  • Shipping market shows positive signs with improving utilisation, rates and the re-appearance of round-trip economics.

Subsequent Events

  • Ophir and OneLNG agreed to form a Joint Operating Company to develop the 2.6Tcf Fortuna reserves in Equatorial Guinea using FLNG technology.
  • Golar Power reached a Final Investment Decision ("FID") on Sergipe power project, signed a 25-year FSRU agreement and entered into a long-term sale and purchase agreement for the supply of LNG.
  • The Incentive Distribution Rights ("IDRs") in Golar LNG Partners ("Golar Partners" or "the Partnership") were reset. Golar LNG received 3.8 million new units as consideration.
  • Raised $176 million in new equity through issue of 7.5 million new shares.

 

Financial Review

Business Performance

  2016 2016
(in thousands of $) Jul-Sep Apr-Jun
Total operating revenues 22,267   18,370  
Vessel operating expenses (12,102 ) (14,064 )
Voyage, charterhire & commission expenses (8,031 ) (9,826 )
Voyage, charterhire & commission expenses - collaborative arrangements (3,621 ) (2,331 )
Administrative expenses (9,808 ) (9,689 )
EBITDA* (11,295 ) (17,540 )
Depreciation and amortization (16,997 ) (19,705 )
Operating loss (28,292 ) (37,245 )

* EBITDA is defined as operating loss before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. A non-GAAP financial measure is generally defined by the Securities and Exchange Commission as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We have presented EBITDA as we believe it provides useful information to investors because it is a basis upon which we measure our operations and efficiency. EBITDA is not a measure of our financial performance under U.S. GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with U.S. GAAP.

 

The Golar Power transaction closed on July 6. Effective from this date, the results of the LNG carriers, Golar Penguin and Golar Celsius, together with the Company's interest in the 2017 delivering FSRU new-build Nanook and the Company's investment in the Sergipe power project have been deconsolidated. The Company will use equity accounting for Golar Power from July 6 and results of this business unit are included within Equity in net earnings of affiliates in the Statement of Income discussed below.

Golar reported today a 3Q operating loss of $28.3 million as compared to a loss of $37.2 million in 2Q 2016. Both shipping rates and utilisation improved during the quarter with utilisation increasing from 31% in 2Q to 37% in 3Q and rates for TFDE tonnage approaching and in cases exceeding $40k/day. Total operating revenues increased from $18.4 million in 2Q to $22.3 million in 3Q. Voyage, charter-hire and commission expenses including those from the Cool Pool collaboration recorded a slight decrease from $12.2 million in 2Q to $11.7 million this quarter reflecting the small increase in utilisation. As in prior quarters, included in voyage, net charter-hire and commission expenses is $5.8 million in respect of the cost of chartering the Golar Grand.

Vessel operating expenses decreased $2.0 million to $12.1 million. Deconsolidation of post July 6 costs in respect of the Celsius and Penguin accounts for most of the reduction however lower insurance costs across the fleet also contributed positively in 3Q. Administration costs at $9.8 million were in line with 2Q.  Depreciation and amortisation decreased $2.7 million to $17.0 million in 3Q, again due to deconsolidation of Golar Penguin and Celsius.

Relative to 2Q the above resulted in a $6.2 million decrease in EBITDA* losses from a loss of $17.5 million in 2Q to a loss of $11.3 million in 3Q and an $8.9 million decrease in Operating losses from a loss of $37.2 million in 2Q to a loss of $28.3 million in 3Q.


Net Income Summary

  2016 2016
(in thousands of $) Jul-Sep Apr-Jun
Operating loss (28,292 ) (37,245 )
Interest income 436   196  
Interest expense (15,564 ) (13,331 )
Other financial items 22,772   (27,471 )
Loss on disposal (12,184 ) -  
Taxes (246 ) 609  
Equity in net earnings of affiliates 15,681   2,053  
Net income attributable to non-controlling interests (6,546 ) (9,412 )
Net loss attributable to Golar LNG Ltd (23,943 ) (84,601 )

In 3Q the Company generated a net loss of $23.9 million. Notable contributors to this are summarised as follows:

  • After stripping out Golar Power assets, consolidated Variable Interest Entities in respect of the six sale and leaseback financed vessels and non-cash capitalised interest adjustments, underlying 3Q interest expense is consistent with 2Q.
  • Other Financial Items report a gain of $22.8 million compared to a $27.5 million charge in 2Q.  A 2Q mark to market loss on the Company's Total Return Swap became a $16.5 million gain in 3Q following an increase in Golar's share price from $15.50 on June 30 to $21.20 on September 30. Increases in long-term swap rates also converted a 2Q $5.9 million mark-to-market loss on the valuation of interest rate swaps into a 3Q gain of $10.7 million.
  • A $12.2 million non-cash loss was recognised on disposal of Golar Power, of which approximately half is expected to be recovered upon finalisation of the purchase price adjustment. This loss is based on estimates and is thus subject to change.
  • Following a change in accounting treatment of the Company's stake in Golar Partners, Golar now accounts for its Common Units, General Partner Units and IDRs in the same way it has previously accounted for its Subordinated Units under the equity method of accounting. The Partnerships 3Q 2016 contribution to Golar's results is included together with the Company's 50% share of Golar Power in equity in net earnings of affiliates. The $15.7 million 3Q equity in net earnings of affiliates is comprised of a $2.7 million loss in respect of Golar's 50% share in Golar Power and net earnings of $18.3 million from the Company's stake in Golar Partners. However, the change in accounting treatment of the various units does not impact the distributions receivable by the Company so that its receipt of $13.2 million in cash distributions in respect of its investment in Golar Partners is consistent with recent quarters.

 

Commercial Review

LNG Shipping

The third quarter began in much the same way as the first half of the year with excess tonnage weighing heavily on rates. This was followed by increased activity in August that resulted in a step up in rates and utilisation, particularly for owners with open tonnage in the Atlantic basin where spot rates in excess of $40k/day were achieved. Both chartering activity and rates have since eased but levels remain well above the lows reached in the first half of 2016. The Pacific market continued to be typified by higher liquidity with an abundance of available shipping as well as spot demand from projects, utilities and traders. Spot charters have typically been for short durations, maintaining liquidity but limiting significant rate increases. Atlantic activity on the other hand has been more sporadic with thin tonnage availability and limited demand occasionally interrupted by sudden waves of requirements that clear out this available tonnage and result in improved rates.

New production continues to deliver with T9 of Malaysia LNG, Petronas FLNG1 and train 2 operations of Gorgon and Sabine Pass set to start during 4Q. Looking to 2017, significant additional production is expected from Gorgon and Sabine Pass together with new production from Whetstone. The FLNG Hilli is also set to start producing. All in, approximately 135 million tonnes of new production equivalent to 52% of current LNG production is expected to deliver between now and 1Q 2021. During recent months a number of market participants have chosen to take shipping coverage for 2017. Up to 16 vessels in the global spot fleet have been fixed for periods of 6-18 months starting between September and February. Golar believes that this tightens the outlook for structural availability into 2017. As new LNG arrives and prompt availability of shipping tonnage declines, charterer interest in period contracts is expected to grow bringing the shipping business ever closer to its inflection point.

Discipline among ship owners continues to be maintained with only 6 LNG carriers (approximately 1% of the global fleet) ordered this year to date.

 

FSRUs

Golar's existing fleet of six operating FSRUs, all of which reside within Golar Partners but are managed by the Company, have maintained operational excellence achieving 99.3% availability during scheduled 3Q operations.

The FSRU Golar Tundra remains at anchor off the coast of Ghana. On October 19, Charterer, West Africa Gas Limited ("WAGL") received parliamentary approval for their 10-year gas sales agreement with the government of Ghana. Golar has commenced legal proceedings in order to collect amounts due under the charter. The Company does however maintain dialogue with WAGL to find a mutually agreeable way forward that bridges the original and later start date required and on November 29 the Company received its first payment from WAGL for amounts outstanding under the charter.  The Company has not recognised any revenue from the WAGL charter in its 3Q Income Statement.

 

Downstream - Golar Power

On October 17, Golar Power reached a FID on its first integrated FSRU-to-power project.  Together with  joint venture partners Ebrasil, Golar Power have formed a project company, CELSE, which has entered into a lump-sum turn-key EPC agreement with General Electric who will build, maintain and operate a 1.5GW combined cycle power station in Sergipe, Brazil. The power station will provide power to 26 committed off-takers for 25 years commencing January 2020. All-in capital expenditure for the power station and supporting infrastructure is estimated to be BRL4.3 billion. After deducting the cost of chartering in the FSRU and assuming no dispatch of power, the Sergipe project is expected to generate a projected annual EBITDA* of BRL1.1 billion. Additional returns can be earned if the power station is called upon to dispatch and CELSE has entered into a flexible long-term LNG Sale and Purchase Agreement with an affiliate of Qatar Petroleum and ExxonMobil to support this.

In connection with FID, Golar Power has also elected to buy out project developer Genpower. This will increase its ownership in the Sergipe Project from 25% to 50%. Golar Power had previously committed to finance Genpower's equity contribution to the project so acquisition of this stake should not increase Golar Power's equity contribution beyond the previously anticipated $165 million, a small portion of which has already been invested.

Golar Power has nominated its 2017 delivering FSRU newbuild, Nanook, to service the Sergipe project and has entered into a 25-year agreement to charter the FSRU to CELSE. This agreement affords the flexibility to switch to an FSRU conversion candidate ahead of start-up to accommodate other Golar Power business opportunities as required. Annual EBITDA* generated by the FSRU is projected to be $39.0 million (100% for the account of Golar Power) starting January 1, 2020. When called upon to dispatch, the Sergipe power station will utilise approximately 35% of the FSRUs regas capacity. Golar Power will therefore look to augment this $39 million EBITDA* by seeking out other proximate users or integrate a project into the Brazilian gas grid.

Other FSRU projects are currently being actively pursued. These require a range of solutions from large new-build FSRUs to small, modern and new-build carrier conversions. Golar has recently agreed to participate in a Total led consortium developing an integrated FSRU-to-power project in the Ivory Coast.

Although LNG prices have increased in recent months, they remain extremely competitive on a burn parity basis and by historical standards. The Company believes that this together with an expectation that LNG prices will remain low is driving demand growth that is supporting FSRU opportunities. China and India continue to report high double digit demand growth with an estimated 40-50 mtpa of incremental demand being filled by these two markets alone. Other emerging markets are currently expected to fill a further 30-40mtpa of incremental demand, much of it via FSRUs.

 

FLNG

The FLNG Hilli conversion project continues apace and remains on schedule, within budget and on track to deliver within its stipulated delivery window. Virtually all heavy equipment is on-board and over 4,000 contractors are now working on the vessel on a daily basis. The mooring system is on schedule and limited testing of systems has started.  The Company is encouraged by two recent developments in the FLNG business, namely:

  • Commencement of operations on the worlds first FLNG vessel, the PFLNG Satu in Malaysia.
  • Black & Veatch successfully commissioning, in a marine environment, an Exmar designed FLNG barge with a small-scale version of the same liquefaction technology used on FLNG Hilli.

There are significant other stranded gas reserves in the area neighbouring the Kribi field in Cameroon as well as additional reserves within the field itself. Golar is currently having discussions with the Government and Perenco and is soliciting interest from independent third parties with the target of increasing utilisation of the FLNG Hilli. The Company remains cautiously optimistic that further utilisation will be achieved after start-up.

 

Upstream - OneLNG

On July 25 Golar and Schlumberger formalised their co-operation by announcing the creation of OneLNG, a joint venture 51% owned by Golar and 49% by Schlumberger that will combine the respective strengths of each shareholder to offer gas resource holders a faster and lower cost LNG development solution.  OneLNG will have first right of refusal for all gas-to-LNG projects that draw upon services provided by Schlumberger and FLNG expertise provided by Golar. The joint venture also contemplates an equitable contribution mechanism that takes account of Golar's FLNG intellectual property.  Any credit that Golar receives for this intellectual property will be agreed on a case-by-case basis. Jeff Goodrich, formerly Chief Operating Officer at Perenco has been appointed CEO of OneLNG and key resources from both Golar and Schlumberger have been seconded to the venture which now operates out of a shared London office.

On November 10, OneLNG signed a binding Shareholders Agreement with Ophir Holdings and Ventures Limited to establish a Joint Operating Company ("JOC") to develop Ophir's 2.6Tcf Fortuna gas reserves, in Block R, offshore Equatorial Guinea. The JOC, 66.2% and 33.8% owned by OneLNG and Ophir respectively, will own Ophir's share of the Block R licence and the FLNG vessel Gandria which are collectively expected to produce between 2.2-2.5mtpa of LNG over 15-20 years. The shareholders agreement and a Final Investment Decision are contingent on 3 key milestones - namely, agreement of final terms and execution of documentation for project debt financing, approval by the shareholders of Ophir Energy plc, and, approval by the government of Equatorial Guinea. OneLNG is responsible for concluding the project debt financing and Ophir is responsible for securing requisite government and shareholder approvals.

As well as aligning interests, the JOC structure allows the project to offer both its FLNG unit and its stake in the gas field as security to lenders. This additional security together with shareholder support is expected to facilitate the drawdown of up to $1.2 billion of debt from FID to commencement of operations. Including both upstream and midstream development the project is expected to cost $2.0 billion to develop and is currently expected to generate an annual EBITDA* of $560 million assuming a $6.0mmbtu free on-board gas price.

After Ophir's injection of up to $150 million and assuming debt of $1.2 billion, OneLNG will be expected to contribute approximately $650 million. Golar has a range of funding options available to meet its share of this OneLNG equity in the 2017-2020 period. Credit can be expected for both the intellectual property and the LNG carrier Gandria contributed by Golar. The Company is also looking to agree payment profiles with key contractors Keppel and Black & Veatch to help accommodate the gap between release of up to $160 million of post operational equity from the Hilli and milestone payments required for the Gandria conversion.  Other potential sources of funding during this three-year period include cash generated from the operation of FLNG Hilli, potential proceeds from a sale of a tranche of the FLNG Hilli to Golar Partners for which discussions have commenced, leveraging of further Common units in Golar Partners and the 2018 release of approximately $110 million of cash tied up in the FLNG Hilli cash-collateralised letter of credit. Delay of the Fortuna FID to 1H 2017 also reduces the gap between equity requirements for the project and equity released from the FLNG Hilli.

In addition to the Fortuna Project, OneLNG is reviewing a comprehensive list of other projects that suit its offering.  Whilst there remains a West African bias to the current shortlist, OneLNG is also working on several projects in other parts of the world.  The Company believes that there is additional demand for its FLNG solutions and is encouraged by the way OneLNG has been received by the market.

 

Financing Review

Liquidity

Golar's total cash position as at September 30 was $137.9 million.

 

FLNG Hilli financing

As at September 30, 2016, $600 million has been spent on the FLNG Hilli conversion ($695 million including the vessel and capitalised interest) and $200 million had been drawn against the $960 million CSSCL FLNG Hilli facility. As the project remains well within its $1.2 billion budget, all remaining conversion and site specific costs for the FLNG Hilli are expected to be satisfied by this facility.  After a bank syndication exercise and a reduction in mark-to-market swaps a further $13.9 million of the $280 million cash backed Letter of Credit ("LC") to Perenco was released to 3Q liquidity. As at September 30, restricted cash tied up in this LC stood at $266.1 million. A further $34.8 million of this LC restricted cash has been released to liquidity so far in 4Q.

In addition to the above the following have been concluded:

  • Golar Power transaction closed - released $103 million of cash.
  • IDR Reset - received 3.7 million new Common units and 0.1 million General Partner units in Golar Partners (including 0.8 million earn-out units).
  • Margin Loan - secured $150 million commitment from Citibank to be secured by certain Golar Partners units.
  • Equity Issue - raised $170 million net of fees following the issue of 7.5 million new shares.

 

Corporate and Other Matters

After the recent offering there are 101 million shares outstanding including 3.0 million Total Return Swap ("TRS") shares that have an average price of $41.10 per share. There are also 3.9 million outstanding stock options in issue with current strike prices ranging from $1.48 to $57.00 per share.

The dividend will remain unchanged at $0.05 per share for the quarter.


Outlook

A total of around 300 spot fixtures are expected to be concluded in 2016, a significant step up from around 190 voyages in 2015. New LNG supply trains are delivering on an almost quarterly basis, gradually eroding the overcapacity in the shipping market. There are clear signs of tightening in the spot market and this improvement is encouraging charterer interest in longer term contracts. Based on fixture activity thus far, 4Q shipping results are expected to be approximately in line with 3Q. The current market strengthening is already pushing 1Q 2017 utilisation toward 3Q 2016 levels. Shareholders can therefore expect a positive improvement in1Q revenues. 

Both Golar Power and OneLNG, have, within 6-months of their formation, identified and taken substantial steps to advance their first project opportunities. FID has been taken on the Sergipe project. Key service companies have been engaged for Golar Power's first 25-year integrated FSRU-to-power project. The main ground-work permit was received on November 28 and ground preparations are now underway. Similarly, OneLNG has signed a shareholder agreement with Ophir that makes both the financing and development of this world class gas resource manifestly more digestible. Both of these projects are long-term (20-25 years), show good profitability and are expected to add material EBITDA* backlog to the Golar group, assuming successful execution of the two projects. Golar's share in the currently expected EBITDA* backlog will be in excess of $6.0 billion over the life of the projects based on current forward prices.  This creates a solid long-term foundation for the Company.

From a financing perspective, Golar is pleased to have delivered a solution to the March maturing convertible bond and to have strengthened the Company's liquidity position. Attention is now focused on concluding the financing of the FLNG Gandria which is progressing well.

Based on Golar's experience with the first converted FSRU, successful execution of the Hilli project is likely to increase interest in the Company's FLNG solutions. FLNG Hilli continues to progress on budget and is scheduled to commence operations in Cameroon in ten months. A key objective of the Company will be to monetise the equity investment in, and the cashflow generated by, FLNG Hilli, in the best possible way and use this to create profitable growth going forward. Formation of OneLNG and Golar Power, recruitment of personnel and the deals already concluded have strengthened the Company's ability to execute large projects.  When combined with the positive trend we now see in the shipping market, the Company's strategic and financial position today is considered to be considerably better relative to the same time last year.

 

Forward Looking Statements

This press release contains certain forward-looking statements that reflect management's current expectations, estimates and projections.  Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  Words such as  "anticipate," "believe," "estimate," "expect, " "forecast," "intend," "may," "pending," "plan," "predict," "project," "potential," "should" and similar expressions identify forward-looking statements.  These statements are not guarantees of future performance and are based upon assumptions and estimates that are inherently subject to significant known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control and are difficult to predict.  Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Among the important factors that could cause actual outcomes and results to differ materially from those in the forward-looking statements are:  changes in LNG carriers, FSRU or FLNG market trends, including charter rates, vessel values and technological advancements; changes in the Company's ability to retrofit vessels as FSRUs or FLNGs and in the Company's ability to obtain financing for such conversions or its joint ventures on acceptable terms or at all; changes in the supply of or demand for LNG carriers, FSRUs or FLNGs; a material decline or prolonged weakness in rates for LNG carriers, FSRUs or FLNGs; changes in the performance of the pool in which certain of the Company's vessels operate and the performance of the Company's joint ventures; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs or FLNGs; changes in the supply of or demand for LNG or LNG carried by sea; changes in the supply of or demand for natural gas generally or in particular regions; the failure of the Company's contract counterparties, including its joint venture co-owners, to comply with their agreements with the Company; changes in the Company's relationships with its counterparties, including its major chartering parties; changes in the availability of vessels to purchase and in the time it takes to construct new vessels;  failure of shipyards to comply with delivery schedules or performance specifications on a timely basis or at all; the Company's ability to integrate and realize the benefits of acquisitions; changes in the Company's ability to sell vessels to Golar Partners or Golar Power Limited; changes in the Company's relationship with Golar Partners, Golar Power Limited OneLNG S.A.; the Company's inability to achieve successful utilization of its expanded fleet or inability to expand beyond the carriage of LNG and provision of FSRUs, particularly through its innovative FLNG strategy and its joint ventures; changes in the Company's ability to obtain additional financing on acceptable terms or at all; as well as other factors discussed in the Company's most recent Form 20-F filed with the Securities and Exchange Commission.  Unpredictable or unknown factors also could have material adverse effects on forward-looking statements.

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.

 

November 30, 2016

The Board of Directors

Golar LNG Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Management Limited - +44 207 063 7900

Oscar Spieler - Chief Executive Officer

Brian Tienzo - Chief Financial Officer

Stuart Buchanan - Head of Investor Relations





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Q3 2016 results presentation

Company news

2016-11-21 19:30:01

Golar LNG's 3rd Quarter 2016 results will be released before the NASDAQ opens on Wednesday November 30 2016. In connection with this a webcast presentation will be held at 3:00 P.M (London Time) on Wednesday, November 30 2016. The presentation will be available to download from the Investor Relations section at www.golarlng.com

This webcast will be immediately followed by a Q&A session. Participants will be able to join the webcast by dialling-in using the following details:

a. Webcast

Go to the Investor Relations section at www.golarlng.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you need to have a sound card on your computer.

b. Teleconference

Call-in numbers:
Norway Free call 800 56053
Norway Toll +47 2316 2771

International call +44 20 3427 1904

UK Free call 0800 279 4992

US Toll +1 212 444 0481

USA Free call 1877 280 1254

The participants will be asked for their name and conference ID. The Golar conference ID is 9199630

There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

Please download the presentation material from www.golarlng.com (Investor Relations) to view it while listening to the conference.

If you are not able to participate at the time of the call, you can either listen to a replay of the conference call on www.golarlng.com (Investor Relations), or listen to a playback by dialling:

International call +44 20 3427 0598

USA Toll +1 347 366 9565

Norway Toll +47 2100 0498

UK Free call 0800 358 7735

USA Free call 1866 932 5017

- followed by replay access number 9199630.   This service will be available until 23:59 UKT on December 6, 2016.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Successfully Closes Upsized Public Follow-On Common Stock Offering

Company news

2016-11-18 17:30:02

Hamilton, Bermuda - (November 18, 2016) - Golar LNG Limited (the "Company") (NASDAQ: GLNG) announced today that it has closed its upsized registered offering of 7,475,000 shares of its common stock, which included 975,000 common shares purchased pursuant to the underwriters' previously announced option to purchase additional common shares. The proceeds of the offering are expected to be used to partly fund the settlement of the Company's outstanding convertible bonds and will augment a recently received commitment from Citibank N.A. to finance the remainder of the amounts outstanding under the Company's convertible bonds through a new term loan credit facility of up to $150 million.  

Citigroup acted as sole book-running manager.  Clarksons Platou Securities, Danske Markets and Evercore ISI acted as joint lead managers in the offering.   

The Company has filed an effective shelf registration statement (including a base prospectus) with the Securities and Exchange Commission (the "SEC") related to the offering. Before you invest, you should read the base prospectus in that registration statement, the prospectus supplement related to the offering and the other documents incorporated by reference therein, which the Company has filed with the SEC, for more complete information about the Company and the offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (800) 831-9146.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.  This offering may only be made by means of a prospectus supplement and related base prospectus.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in the prospectus supplement relating to the offering and from time to time in the reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
November 18, 2016
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - 2016 share option plan

Company news

2016-11-17 14:40:01

Prior to the Nasdaq opening on November 15, 2016, the Board of Golar LNG Limited ("Golar" or the "Company") authorized the issuance of 1,499,650 options to purchase shares to all employees of the Company and its subsidiaries under the Company's existing share option scheme. The issued options have a strike price of $23.50 per share, which is consistent with the closing price of the Company's recent follow-on offering. The strike price will be adjusted for each time the Company pays dividends. One third of recipients' allotted options will vest on November 15, 2017, the second third will vest one year later and the final third will vest on November 15, 2019. The option period is five years.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from  those expressed or implied by such forward-looking statements.

Hamilton, Bermuda

November 17, 2016

Enquiries:

Golar Management Limited: +44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Announces Pricing of Upsized Public Follow-On Common Stock Offering

Company news

2016-11-15 04:20:01

Hamilton, Bermuda - (November 14, 2016) - Golar LNG Limited (the "Company") (NASDAQ: GLNG) announced today that it has increased the size of its previously announced registered offering by 800,000 shares to 6,500,000 shares of its common stock.  In addition, the Company announced the pricing of the upsized offering, at a public offering price of $23.50 per share.  As part of this offering, the underwriters are selling 212,765 common shares to a member of the Company's board of directors at the public offering price. The Company granted the underwriters a 30 day option to purchase up to an additional 975,000 common shares.  The proceeds of the offering are expected to be used to partly fund the settlement of the Company's outstanding convertible bonds and will augment a recently received commitment from Citibank N.A. to finance the remainder of the amounts outstanding under the Company's convertible bonds through a new term loan credit facility of up to $150 million.  The offering is scheduled to close on November 18, 2016.

Citigroup is acting as sole book-running manager.  Clarksons Platou Securities, Danske Markets and Evercore ISI are acting as joint lead managers in the offering.   

The Company has filed an effective shelf registration statement (including a base prospectus) with the Securities and Exchange Commission (the "SEC") related to the offering. Before you invest, you should read the base prospectus in that registration statement, the prospectus supplement related to the offering and the other documents incorporated by reference therein, which the Company has filed with the SEC, for more complete information about the Company and the offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (800) 831-9146.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.  This offering may only be made by means of a prospectus supplement and related base prospectus.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in the prospectus supplement relating to the offering and from time to time in the reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
November 14, 2016
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited Launches Public Follow-On Offering of its Common Stock

Company news

2016-11-14 22:10:01

Hamilton, Bermuda - (November 14, 2016) - Golar LNG Limited (the "Company") (NASDAQ: GLNG) announced today the commencement of a registered offering of 5,700,000 shares of its common stock.  As part of this offering, the underwriters are selling 215,000 common shares to a member of the Company's board of directors.  The Company expects to grant the underwriters a 30 day option to purchase up to an additional 855,000 common shares.  The proceeds of the offering are expected to be used to partly fund the settlement of the Company's outstanding convertible bonds and will augment a recently received commitment from Citibank N.A. to finance the remainder of the amounts outstanding under the Company's convertible bonds through a new term loan credit facility of up to $150 million.   

Citigroup is acting as sole book-running manager.  Clarksons Platou Securities, Danske Markets and Evercore ISI are acting as joint lead managers in the offering.   

The Company has filed an effective shelf registration statement (including a base prospectus) with the Securities and Exchange Commission (the "SEC") related to the offering. Before you invest, you should read the base prospectus in that registration statement, the prospectus supplement related to the offering and the other documents incorporated by reference therein, which the Company has filed with the SEC, for more complete information about the Company and the offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (800) 831-9146.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.  This offering may only be made by means of a prospectus supplement and related base prospectus.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements.  The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.  These statements involve known and unknown factors and are based upon a number of assumptions and estimates that are inherently subject to significant risks and uncertainties, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those risks and uncertainties described in the prospectus supplement relating to the offering and from time to time in the reports and other documents the Company files with the United States Securities and Exchange Commission, including the Company's most recent Annual Report on Form 20-F.  New factors emerge from time to time, and it is not possible for the Company to predict all of these factors.  As a result, you are cautioned not to rely on any 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.

Hamilton, Bermuda
November 14, 2016
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar Power enters into long term SPA with Qatar Petroleum Affiliate Ocean LNG Limited

Company news

2016-11-14 15:30:02

DOHA, Qatar · 14 November 2016 - Golar Power reached a new milestone in the Sergipe Project with the signing of a long-term LNG sale and purchase agreement (SPA) between QP's affiliate, Ocean LNG Limited, and Brazil based CELSE-Centrais Elétricas de Sergipe S.A. ("CELSE"), a joint venture between Golar Power and Ebrasil.

Under the terms of the agreement, Ocean LNG, which was established for the purpose of marketing QP's international LNG supply portfolio sourced outside of the State of Qatar, will supply 1.3 million tons per annum of LNG to CELSE, on an Ex-Ship basis. The shipments, which will begin in 2020 will be for use at CELSE's Porto de Sergipe power project near Aracaju, in the Brazilian state of Sergipe. 

Golar Power CEO, Mr. Eduardo Antonello, "This is an important milestone in the development of the Porto de Sergipe power plant. Golar Power is proud to partner with LNG industry pioneers Qatar Petroleum and ExxonMobil and their newly formed Ocean LNG joint venture as its long-term fuel supplier."

Ocean LNG Limited is a joint venture company owned by a QP affiliate (70%) and an ExxonMobil affiliate (30%), and has established a branch office in the Qatar Financial Centre (QFC) in Doha to manage and undertake its activities.

 

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda

November 14, 2016

Enquiries:

Golar Management Limited: + 44 207 063 7900

Brian Tienzo

Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited - Announcement of filing of amendment to the 2015 Annual Report on Form 20-F/A

Company news

2016-11-11 15:20:01

Hamilton, Bermuda, November 10, 2016-Golar LNG Limited ("Golar" or the "Company") announces that it has filed a Form 20-F/A for the year ended December 31, 2015 with the U.S. Securities and Exchange Commission (the "SEC") reporting its restated historical results for the periods set forth therein.

The restatement relates to a technical accounting amendment relating to Golar's accounting for its investment in Golar LNG Partners L.P. ("Golar Partners") and follows a review of the Company's accounting for its investment in Golar Partners in light of recent clarifications contained in comment letters from the Staff of the Securities and Exchange Commission ("SEC").

The Company had previously accounted for its various interests in Golar Partners differently. It accounted for its Common Units as available-for-sale securities; its Subordinated Units under the equity method as investments in affiliates and its General Partner Units and Incentive Distribution Rights under the cost method.

As a result of the Company's review it has now restated its consolidated financial statements and has accounted for its Common Units, General Partner Units and Incentive Distribution Rights in the same way it has accounted for its Subordinated Units as noted above, under the equity method of accounting. The Company has also made certain other related adjustments as described more fully in its recently filed Form 20-F/A which may be accessed as noted below.

The change in accounting for the Company's investment in Golar Partners does not affect the market value of Golar's investment, its cash flows, its covenant compliance or its liquidity.

The book entries that were required to give effect to this restatement have resulted in a change to the net income for the years ended December 31, 2013, 2014 and 2015 as follows (in thousands of $):

  2015 2014 2013
Net (Loss) Income as previously reported (178,501 ) (41,466 ) 135,713  
Net Income amendment gain/(loss) 26,513   (4,896 ) (26,158 )
Net (Loss) Income after restatement (151,988 ) (46,362 ) 109,555  

The Form 20-F/A may be accessed on the Company's website, www.golarlng.com, or in the link below. It is also available on the SEC's website, www.sec.gov.

November 11, 2016
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Ophir and OneLNG to form a Joint Operating Company to develop Fortuna FLNG Project

Company news

2016-11-10 08:10:01

LONDON, November 10, 2016 - Ophir Holdings & Ventures LTD ("Ophir"), a wholly owned subsidiary of Ophir Energy plc, and OneLNGSM, a joint venture between subsidiaries of Golar LNG Limited and Schlumberger, announce that they have signed a binding Shareholders' Agreement to establish a Joint Operating Company ("JOC") to develop the Fortuna project, in Block R, offshore Equatorial Guinea utilising Golar's FLNG technology.

OneLNG and Ophir will have 66.2% and 33.8% ownership of the JOC respectively (with economic entitlements materially consistent with the equity interest in the JOC1). The JOC will facilitate the financing, construction, development and operation of the integrated Fortuna project and, from Final Investment Decision ("FID"), will own Ophir's share of the Block R licence and the Gandria FLNG vessel. This innovative structure aligns investment across the value chain and provides a framework to promptly deliver a fully financed project.  

The Shareholders' Agreement and FID are subject to, amongst other things:

  • agreement of final terms and execution of documentation for the project debt financing
  • approval by the shareholders of Ophir Energy plc
  • approval by the government of Equatorial Guinea

FID is now expected to take place in 1H 2017 with first gas anticipated in 1H 2020. Initial offtake is expected to be 2.2-2.5 mtpa for a duration of between 15 and 20 years which will monetise around 2.6 Tcf of the discovered resource.

The expected total capital expenditure for the integrated project is approximately $2 billion to reach first gas.  Approximately $1.2 billion is expected to be debt financed, with full drawdown by the start of commercial operations. Prior to FID, a decision will be taken as to the final offtake pricing mechanism. Shortlisted proposals from potential offtakers will be evaluated on the basis of value maximisation.  At an assumed FOB gas price of $6/mmbtu the JOC will generate approximately $560 million in cash flow (pre debt service) per annum. 

Nick Cooper, Chief Executive of Ophir, commented: "Formation of the Fortuna JOC provides the framework for FID and clear line of sight to first gas. This progress is due to the innovative partnering between OneLNG and Ophir, the quality of the resource base, the excellent project economics and support from the Government of Equatorial Guinea.

"Ophir's committed future expenditure to first gas will not exceed $150 million and certain other commercial exposures have been limited. We will now be able to advance the project while preserving our balance sheet strength."

Jeff Goodrich, CEO of OneLNG commented: "OneLNG was formed to provide an integrated approach to operators to reduce risk and costs and accelerate the time to monetize stranded gas reserves, and thereby transforming the economic viability of such projects. We are pleased to sign a shareholders' agreement with Ophir for the formation of the Fortuna JOC.  We look forward to working with Ophir and all of the other stakeholders to deliver OneLNG's and Africa's first deep-water FLNG project."

1 - Except in a higher price environment.

About OneLNG:

OneLNG is joint venture between Golar LNG Limited and Schlumberger to rapidly develop low cost gas reserves to LNG. The combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, with Golar's low cost FLNG solution offers gas resource owners a faster and lower cost development solution that increases the net present value of their asset.

About Ophir:

Ophir Energy is an independent Upstream oil and gas exploration and production company focused on Africa and Asia. It is listed on the London Stock Exchange.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

For further enquiries please contact:

Ophir Energy plc                                                                 + 44 (0) 20 7811 2400

Nick Cooper, CEO

Tony Rouse, CFO

Geoff Callow, Head of IR and Corporate Communications

OneLNG                                                                                 +44 (0)20 7063 7900

Stuart Buchanan, Head of Investor Relations

Brunswick (PR Adviser to Ophir)                                   +44 (0)20 7404 5959                     

Patrick Handley

Wendel Verbeek       





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar Power reaches a Final Investment Decision on Sergipe Power Project and signs 25 year FSRU agreement

Company news

2016-10-17 14:30:01

The board of Golar Power is pleased to announce that it has approved taking a Final Investment Decision on the Porto de Sergipe Project, thereby enabling CELSE, the project company, to enter into a lump sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5 GW combined cycle power plant in Brazil. The executed EPC contract with General Electric, which makes up approximately 80% of the project cost, has been structured on a non-recourse basis to the sponsors Golar Power and Ebrasil with all liabilities limited to the project level (CELSE).  

Located near Aracaju, the state capital of Sergipe, the 1,516 megawatt power station will be the largest thermal power station in South America. The project will supplement hydropower during dry seasons and help to meet growing demand for electricity in the region.  Capital expenditure for the power station and terminal including taxes and financing costs is estimated at BRL4.3 billion, equal to US$1.3 billion at current exchange rates. Scheduled to deliver power to 26 committed off-takers for 25 years from 2020 in accordance with previously executed PPA contracts awarded by the Brazilian government in 2015, the power project will generate a projected annual EBITDA of BRL1.1 billion based on no dispatch with further upside based on dispatch. Payments under the executed PPA are inflation indexed and provide for pass through changes in commodity prices to the PPA counterparties.

In connection with the Sergipe FID, Golar Power has entered into an Agreement to charter Golar Nanook, the November 2017 delivering new-build FSRU, for 25 years. The annual EBITDA contribution for Golar Power is currently projected to be US$39 million with upside potential for Golar Power from FSRU capacity not utilised by the Sergipe power plant.

Golar Power has also increased its ownership in the Sergipe Project from 25% to 50%. The final price to be paid for the shares will depend on the performance of the project and the structure includes an option, which if exercised, limits the price to US$50 million. As Golar Power had previously committed to finance the selling shareholders' equity contribution in the project, the ownership uplift is expected to have a limited cash impact on Golar Power during construction.  The total equity funding from Golar Power remains unchanged at an expected US$165 million.

Golar LNG Limited has a 50% ownership interest in Golar Power. The remaining 50% is held by Stonepeak Infrastructure Partners. Golar Power will own 50% of the Sergipe project and 100% of the associated FSRU.

Golar Power CEO Eduardo Antonello commented "We are very enthusiastic with the FID of Porto de Sergipe and fully committed to deliver the plant and terminal in accordance with the original budget and schedule. The project shows very solid economics and provides a strong financial foundation for Golar Power. Through this project, Golar Power is developing a very robust and replicable structure to enable the most comprehensive, cost-efficient and flexible integrated gas-to-power solutions globally. We see a huge market to develop cheaper and cleaner energy solutions."

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda
October 17, 2016
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo
Stuart Buchanan





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Exchange of Golar LNG Partners LP Incentive Distribution Rights

Company news

2016-10-14 14:40:01

Golar LNG Limited (NASDAQ: GLNG) and Golar GP LLC (collectively, "Golar") announced today that they have entered into an agreement with Golar LNG Partners L.P. ("Golar Partners" or "the Partnership") to exchange all of the existing incentive distribution rights ("Old IDRs") for (i) the issuance of a new class of incentive distribution rights ("New IDRs") and an aggregate of 2,994,364 common units and an aggregate of 61,109 general partner units on the closing date of the exchange (the "Closing") and (ii) an aggregate of up to 748,592 additional common units and up to 15,278 additional general partner units (collectively, the "Earn-Out Units") that may be issued subject to certain conditions described below  (collectively, the "Transaction").  The Earn-Out Units represent an aggregate of 20% of the total units to be issued in connection with the Transaction.  If the Partnership issues the Earn-Out Units, the Partnership will have issued to Golar an aggregate of 3,742,956 common units and 76,387 general partner units in connection with the Transaction.

The Partnership will issue to Golar 50% of the Earn-Out Units if the Partnership pays a distribution of available cash from operating surplus pursuant to the terms of the Partnership's agreement of limited partnership, as amended and restated in connection with the Transaction (the "Partnership Agreement"), on each of the outstanding common units of the Partnership (the "Common Units") equal to or greater than $0.5775 per Common Unit in respect of each of the quarterly periods ended December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017.  The Partnership will issue to Golar the remaining 50% of the Earn-Out Units if the Partnership has issued the first 50% of the Earn-Out Units and the Partnership pays a distribution of available cash from operating surplus pursuant to the terms of the Partnership Agreement on each of the outstanding Common Units equal to or greater than $0.5775 per Common Unit in respect of each of the quarterly periods ended December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018.

The terms of the New IDRs are effective with respect to the distribution for the quarter ended December 31, 2016, payable in February 2017.  The New IDRs provide for distribution "splits" between the IDR holders and the holders of Common Units equal to those applicable to the Old IDRs, which have been cancelled. However, the New IDRs provide for higher target distribution levels, as set forth in the table below. In addition, in connection with the Transaction, the minimum quarterly distribution will be $0.5775 per common unit (or $2.31 per unit on an annualized basis).

The following table compares the target distribution levels and distribution splits between the general partner and the holders of Common Units under the Old IDRs and under the New IDRs:

 

Old IDRs (Cancelled)

New IDRs

 

Total Quarterly Distribution Target Amount

Marginal Percentage Interest in Distributions

Total Quarterly Distribution Target Amount

Marginal Percentage Interest in Distributions

 

Common Unitholders

General Partner

IDR Holders

Common Unitholders

General Partner

IDR Holders

Minimum Quarterly Distribution $0.3850 98% 2% 0% $0.5775 No Change
First Target Distribution Up to $0.4428 98% 2% 0% Up to $0.6641
Second Target Distribution Above $0.4428 up to $0.4813 85% 2% 13% Above $0.6641 up to $0.7291
Third Target Distribution Above $0.4813 up to $0.5775 75% 2% 23% Above $0.7291 up to $0.8663
Thereafter Above $0.5775 50% 2% 48% Above $0.8663

After this reset Golar will have a total of 22,934,678 units including common and general partner units and including a total of 763,870 Earn-Out Units.  Based on the October 13, 2016 closing price the value of this stake is in excess of $470 million. The common units and the associated annual distribution income receivable from Golar Partners of approximately of $49.9 million per annum, provides an attractive security package for a potential commercial bank refinancing of the whole or the major part of the convertible bond due in March 2017.

For the Partnership this Transaction reduces its cost of equity and better positions it to pursue acquisitions from Golar that add revenue backlog, reduce exposure to expiring time charters and grow its distribution capacity. As a holder of 33% of the common units in Golar Partners, Golar is likely to benefit from these developments.

Golar expects to enter into preliminary discussions with Golar Partners regarding the potential acquisition of an interest in the FLNG unit, the Golar Hilli, which is on schedule to commence its 8 year contract with Perenco Cameroon by September 30, 2017.

However, there can be no assurance that the Partnership will acquire an interest in the Golar Hilli. Any such acquisition would be dependent on the attractiveness of the overall financing package, including the pricing of any equity financing, and the approval of the boards of directors of the Partnership and Golar.

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially include, but are not limited to, those factors listed from time to time in the reports and other documents Golar files with the United States Securities and Exchange Commission. 

New factors emerge from time to time, and it is not possible for Golar to predict all of these factors. Further, Golar cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Golar does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Hamilton, Bermuda
October14, 2016
Enquiries:
Golar Management Limited: + 44 207 063 7900
Brian Tienzo

Stuart Buchanan




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golar LNG via Globenewswire

   

Golar LNG Limited: 2016 AGM Results Notification

Company news

2016-09-29 12:40:01

Golar LNG Limited (the "Company") advises that the 2016 Annual General Meeting of the Company was held on September 28, 2016 at 9:00 a.m. at Rosewood Tucker's Point, 60 Tucker's Point Drive, Hamilton Parish, Bermuda.  The audited consolidated financial statements for the Company for the year ended December 31, 2015 were presented to the Meeting.

The following resolutions were passed:

  1. To re-elect Tor Olav Trøim as a Director of the Company.
     
  2. To re-elect Daniel Rabun as a Director of the Company.
     
  3. To re-elect Fredrik Halvorsen as a Director of the Company.

    4.   To re-elect Carl Steen as a Director of the Company.

  1. To re-elect Andrew J.D. Whalley as a Director of the Company.
     
  2. To re-elect Niels G. Stolt-Nielsen as a Director of the Company.
     
  3. To re-elect Lori Wheeler Naess as a Director of the Company.
     
  4. To re-appoint Ernst & Young LLP of London, England as auditors and to authorise the Directors to determine their remuneration.
     
  5. To approve the remuneration of the Company's Board of Directors of a total amount of fees not to exceed US$1,750,000 for the year ended December 31, 2016.

Hamilton, Bermuda
September 29, 2016