Highlights and subsequent events
* Golar LNG Limited ("Golar" or "the Company") reports Q2 2023 Net income of
$7 million, and Adjusted EBITDA(1) of $83 million, inclusive of $72 million
of non-cash items.
* Total Golar Cash(1) of $884 million, inclusive of $113 million of restricted
cash.
* Executed amendments to existing Hilli debt facility that reduce debt service
cost.
* Exercised option to acquire 2004 built LNG carrier Fuji LNG targeted for
conversion to a 3.5mtpa MKII FLNG.
* Agreed to sell 1977 built LNG carrier Gandria for net consideration of $15
million.
* Signed heads of terms with Nigeria National Petroleum Corporation ("NNPC")
for joint development of gas fields using FLNG, expanding on the Memorandum
of Understanding ("MOU") signed in April 2023.
* FLNG Gimi conversion works 97% complete. Yard departure scheduled for
September 2023.
* Repurchased 1.4 million shares at an average cost of $21.06 per share.
106.0 million shares issued and outstanding as of June 30, 2023.
* Declared dividend of $0.25 per share for the quarter.
FLNG Hilli: Maintained strong operational performance throughout the quarter. Q2
2023 Distributable Adjusted EBITDA(1) from FLNG Hilli was $83 million, of which
Golar's share was $79 million, an $11 million decrease compared to Q1 2023, due
to lower Brent oil and Dutch Title Transfer Facility ("TTF") prices. For the
remainder of 2023 and 2024, the locked in TTF Distributable Adjusted EBITDA(1
)as a result of the effective unwinding of prior TTF hedges, which will be
additional to Golar's share of tolling fees and market linked Brent oil and TTF
fee exposures, will be allocated as follows:
* July-December 2023: 100% of TTF linked production unwound securing
approximately $46 million of Distributable Adjusted EBITDA(1) equivalent
to approximately $23 million for each of quarters 3 and 4; and
* Full year 2024: 50% of TTF linked production unwound securing
approximately $49 million of Distributable Adjusted EBITDA(1) equivalent
to approximately $12 million per quarter in 2024.
As the TTF hedges have been effectively unwound and secured, Golar remains fully
exposed to TTF prices, with additional Distributable Adjusted EBITDA(1) of $18
million expected for the remainder of 2023 based on a forward price of
$14.7/MMBtu, increasing or decreasing by $1.4 million for every +/- $1.0 change
in TTF. Similarly for 2024, based on a forward price of $17.2/MMBtu, Golar
expects additional Distributable Adjusted EBITDA(1) of $46 million, increasing
or decreasing by $3.2 million per annum for every dollar change in TTF.
Amendments to improve the existing sale and leaseback financing for FLNG Hilli
through reducing the margin and extending the amortization profile and term were
executed during the quarter. Effective June 2023, FLNG Hilli's annual debt
service cost will reduce from around $126 million, to around $93 million, of
which Golar's 94.6% share is $88 million. The amended terms extend the facility
maturity from 2028 to 2033.
FLNG Gimi: Is scheduled to leave the yard in September 2023. Final checks,
storing up and sea trials will then take place in Singapore ahead of her voyage
to Mauritania and Senegal, expected to commence around the end of
September/early October.
A contract interpretation dispute between Golar and BP regarding parts of the
pre-commissioning contractual cash flows remains and arbitration proceedings
have been initiated. This does not impact the wider execution of the 20-year
project that is expected to unlock around $3 billion of Adjusted EBITDA
Backlog(1) to Golar, equivalent to Annual Adjusted EBITDA(1) of around $151
million.
FLNG business development: Strong progress with the potential deployment of
Golar's FLNG vessels to various gas fields in Nigeria has been made since
signing the MOU with NNPC in April. Under a further heads of terms signed with
NNPC on August 1, 2023, Golar and NNPC have agreed an integrated contractual
framework for the joint development of specific gas fields towards potential
FLNG projects. The relevant fields could fully utilize FLNG Hilli following the
end of her current contract in mid-2026, or utilize a MKII FLNG.
Development of commercial opportunities also continues outside Nigeria for FLNG
Hilli and our prospective MKII FLNG, including commercial term negotiations with
gas resource owners and government interaction in potential countries of
operation. The complexity of offshore gas developments drives the timeline for
potential announcements of binding terms for incremental FLNG work. We continue
to develop our potential MKII FLNG project with an annual capacity of 3.5MTPA.
The cost of a converted FLNG Fuji is expected to be around $2.0 billion,
equivalent to approximately $570 per ton. Financing proposals for between $1.2
to $1.5 billion, that are not contingent on an employment contract are being
discussed.
FSRU: Costs associated with the Development Agreement to assist Snam S.p.A
("Snam") with FSRU Tundra's drydocking, site commissioning and hook-up amounted
to $9 million in Q2 2023, included in project development expenses. This project
together with its service revenue ended on May 30, 2023. Golar entered into a
six month Operation and Services Agreement for FSRU Tundra commencing May
31, 2023 for which Golar will receive a daily service fee.
Snam's deadline for issuing a Notice to Proceed with the FSRU conversion of the
Golar Arctic expired during the quarter. Capitalized engineering and
professional services for the conversion have therefore been charged to project
development expenses, with a corresponding recognition of compensation received
from Snam under other operating income. Golar is considering alternatives for
the vessel including other conversion projects, chartering or sale.
Buyback and dividends: During the quarter 1.4 million shares were repurchased
and cancelled at an average cost of $21.06 per share, leaving 106.0 million
shares issued and outstanding as of June 30, 2023. Of the $150.0 million
approved share buyback scheme, $120.5 million remains available for further
repurchases which will continue to be opportunistically pursued.
Golar's Board of Directors approved a total Q2 2023 dividend of $0.25 per share
to be paid on or around August 29, 2023. The record date will be August
21, 2023.
Financial Summary
+--------------------+---------+---------+--------+---------+---------+--------+
|(in thousands of $) | Q2 2023 | Q2 2022 |% Change|YTD 2023 |YTD 2022 |% Change|
| +---------+---------+--------+---------+---------+--------+
|Net income/(loss) | 6,910 | 286,538 | (98)% |(85,659) | 696,552 | (112)% |
| | | | | | | |
|Net (loss)/income | | | | | | |
|attributable to | | | | | | |
|Golar LNG Ltd | (4,545) | 230,032 | (102)% |(106,408)| 575,214 | (118)% |
| | | | | | | |
|Total operating | | | | | | |
|revenues | 77,530 | 67,227 | 15% | 151,498 | 140,165 | 8% |
| | | | | | | |
|Adjusted EBITDA (1) | 82,815 | 100,917 | (18)% | 166,963 | 190,575 | (12)% |
| | | | | | | |
|Golar's share of | | | | | | |
|Contractual Debt (1)|1,176,630|1,002,228| 17% |1,176,630|1,002,228| 17% |
+--------------------+---------+---------+--------+---------+---------+--------+
Financial Review
Business Performance:
+---------------------------+---------------------------------+----------------+
| | 2023 | 2022 |
| +----------------+----------------+----------------+
| | Apr-Jun | Jan-Mar | Apr-Jun |
| +----------------+----------------+----------------+
|(in thousands of $) | Total | Total | Total |
+---------------------------+----------------+----------------+----------------+
|Net income/(loss) | 6,910| (92,569)| 286,538|
| | | | |
|Income taxes | 1,445| 252| (212)|
+---------------------------+----------------+----------------+----------------+
|Net income/(loss) before | | | |
|income taxes | 8,355| (92,317)| 286,326|
| | | | |
|Depreciation and | | | |
|amortization | 12,450| 12,577| 13,122|
| | | | |
|Impairment of long-lived | | | |
|assets | 5,021| -| 76,155|
| | | | |
|Unrealized loss/(gain) on | | | |
|oil and gas derivative | | | |
|instruments | 76,646| 115,011| (181,548)|
| | | | |
|Realized and unrealized | | | |
|mark-to-market losses on | | | |
|investment in listed equity| | | |
|securities | -| 62,308| 49,001|
| | | | |
|Other non-operating | | | |
|expense/(income), net | 1,305| (11,128)| (3,887)|
| | | | |
|Interest income | (11,836)| (11,482)| (921)|
| | | | |
|Interest expense | 610| 362| 5,279|
| | | | |
|(Gains)/losses on | | | |
|derivative instruments, net| (11,673)| 9,376| (16,341)|
| | | | |
|Other financial items, net | 464| 911| 4,198|
| | | | |
|Net losses/(income) from | | | |
|equity method investments | 1,577| (1,281)| (4,065)|
| | | | |
|Net income from | | | |
|discontinued operations | (104)| (189)| (126,402)|
+---------------------------+----------------+----------------+----------------+
|Adjusted EBITDA ((1)) | 82,815| 84,148| 100,917|
+---------------------------+----------------+----------------+----------------+
+-----------------+-------------------------------------------------------------------------------------------------+
| | 2023 |
| +---------------------------------------------+---------------------------------------------------+
| | Apr-Jun | Jan-Mar |
| +----------+------------+------------+--------+------------+------------+------------+------------+
|(in thousands of | | Corporate | | | | Corporate | | |
|$) | FLNG | and other | Shipping | Total | FLNG | and other | Shipping | Total |
+-----------------+----------+------------+------------+--------+------------+------------+------------+------------+
|Total operating | | | | | | | | |
|revenues | 60,373| 11,697| 5,460| 77,530| 56,221| 12,347| 5,400| 73,968|
| | | | | | | | | |
|Vessel operating | | | | | | | | |
|expenses | (15,869)| (7,006)| (1,834)|(24,709)| (15,643)| (2,664)| (266)| (18,573)|
| | | | | | | | | |
|Voyage, | | | | | | | | |
|charterhire & | | | | | | | | |
|commission | | | | | | | | |
|expenses | (150)| -| (74)| (224)| (150)| (19)| (67)| (236)|
| | | | | | | | | |
|Administrative | | | | | | | | |
|(expenses)/income| (42)| (7,962)| 10| (7,994)| (50)| (10,017)| (1)| (10,068)|
| | | | | | | | | |
|Project | | | | | | | | |
|development | | | | | | | | |
|expenses | (1,965)| (16,590)| -|(18,555)| (272)| (18,123)| -| (18,395)|
| | | | | | | | | |
|Realized gain on | | | | | | | | |
|oil and gas | | | | | | | | |
|derivative | | | | | | | | |
|instruments ((2))| 46,451| -| -| 46,451| 57,452| -| -| 57,452|
| | | | | | | | | |
|Other operating | | | | | | | | |
|income ((3) (4)) | 2,499| 7,817| -| 10,316| -| -| -| -|
+-----------------+----------+------------+------------+--------+------------+------------+------------+------------+
|Adjusted EBITDA | | | | | | | | |
|((1)) | 91,297| (12,044)| 3,562| 82,815| 97,558| (18,476)| 5,066| 84,148|
+-----------------+----------+------------+------------+--------+------------+------------+------------+------------+
(2) The line item "Realized and unrealized (loss)/gain on oil and gas derivative
instruments" in the Unaudited Consolidated Statements of Operations relates to
income from the Hilli Liquefaction Tolling Agreement ("LTA") and the natural gas
derivative which is split into: "Realized gain on oil and gas derivative
instruments" and "Unrealized (loss)/gain on oil and gas derivative instruments".
(3) The line item "Other operating income" in the Unaudited Consolidated
Statements of Operations includes FLNG Hilli's overproduction of $2.5 million,
which together with $4.1 million included in "Liquefaction services revenue"
amounts to $6.6 million.
(4) The line item "Other operating income" in the Unaudited Consolidated
Statements of Operations includes the first advance payment of $7.8 million
received in 2022, pursuant to the Arctic SPA. As of June 30, 2023, the option to
exercise the notice to proceed lapsed, consequently, we retained and recognized
the non-refundable first advance payment as income.
+------------------+-----------------------------------------------------------+
| | 2022 |
| +-----------------------------------------------------------+
| | Apr-Jun |
| +---------------+---------------+---------------+-----------+
|(in thousands of | | Corporate and | | |
|$) | FLNG | other | Shipping | Total |
+------------------+---------------+---------------+---------------+-----------+
|Total operating | | | | |
|revenues | 60,527| 6,700| -| 67,227|
| | | | | |
|Vessel operating | | | | |
|expenses | (14,972)| (1,439)| (1,685)| (18,096)|
| | | | | |
|Voyage, | | | | |
|charterhire & | | | | |
|commission | | | | |
|expenses | (150)| (25)| (569)| (744)|
| | | | | |
|Administrative | | | | |
|income/(expenses) | 13| (10,038)| 71| (9,954)|
| | | | | |
|Project | | | | |
|development | | | | |
|(expenses)/income | (3,462)| 761| -| (2,701)|
| | | | | |
|Realized gain on | | | | |
|oil and gas | | | | |
|derivative | | | | |
|instruments | 55,019| -| -| 55,019|
| | | | | |
|Other operating | | | | |
|income | 10,166| -| -| 10,166|
+------------------+---------------+---------------+---------------+-----------+
|Adjusted | | | | |
|EBITDA((1)) | 107,141| (4,041)| (2,183)| 100,917|
+------------------+---------------+---------------+---------------+-----------+
Golar reports today Q2 2023 net income of $7 million, before non-controlling
interests, inclusive of $72 million non-cash items, comprised of:
* TTF and Brent oil unrealized mark-to-market losses of $77 million;
* impairment of Gandria of $5 million; and
* mark-to-market gain on interest rate swaps of $10 million.
The Brent oil linked component of FLNG Hilli's fees generates additional annual
cash of approximately $3.1 million (Golar share equivalent to $2.7 million) for
every dollar increase in Brent Crude prices between $60 per barrel and the
contractual ceiling. Billing of this component is based on a three-month look-
back at average Brent Crude prices. A $16 million realized gain on the oil
derivative instrument was recorded in Q2 2023. Golar has an effective 89.1%
interest in this. A Q2 2023 realized gain of $7 million was also recognized in
respect of fees for the TTF linked production. Golar has an effective 89.4%
interest in this. A $23 million realized gain (100% of which is attributable to
Golar) on the hedged component of the quarter's TTF linked fees was also
recognized during the quarter. Collectively a $46 million Q2 2023 realized gain
on oil and gas derivative instruments was recognized as a result.
The non-cash mark-to-market accounting fair value of the FLNG Hilli Brent oil
linked derivative asset decreased by $34 million during the quarter, with a
corresponding unrealized loss of the same amount recognized in the unaudited
consolidated statement of operations. Similarly, the non-cash mark-to-market
accounting fair value of the FLNG Hilli TTF natural gas derivative asset
decreased by $21 million during the quarter with a corresponding unrealized loss
of the same amount recognized in the unaudited consolidated statement of
operations. A $22 million unrealized loss in respect of the economically hedged
portion of the Q2 2023 TTF linked FLNG Hilli production was also recognized
during the quarter. Collectively this resulted in a $77 million Q2 2023
unrealized loss on oil and gas derivative instruments.
Balance Sheet and Liquidity:
As of June 30, 2023, Total Golar Cash(1) was $884 million, comprised of $771
million of cash and cash equivalents and $113 million of restricted cash. Of the
$132 million of restricted cash, $19 million is attributable to the FLNG Hilli
consolidated lessor-owned VIE.
Within the $322 million current portion of long-term debt and short-term debt as
at June 30, 2023 is $315 million in respect of the FLNG Hilli lessor-owned VIE
subsidiary that Golar is required to consolidate. Golar's share of Contractual
Debt(1 )amounts to $1,177 million as of June 30, 2023. Deducting Total Golar
Cash(1) of $884 million from Golar's share of Contractual Debt(1) of $1,177
million leaves debt of $293 million.
During Q2 2023, $16 million of the Unsecured Bonds were repurchased, reducing
the outstanding balance to $139 million as of June 30, 2023. On May 25, 2023,
bondholders agreed to amend certain bond terms in order to allow for earlier
payment of dividends and for additional share buybacks in exchange for a 3.75%
consent fee.
Inclusive of $18 million of capitalized interest, $107 million was invested in
FLNG Gimi during the quarter, with the total FLNG Gimi asset under development
balance as at June 30, 2023 amounting to $1.3 billion. Of this, $620 million was
drawn against the $700 million debt facility secured by FLNG Gimi. Subsequent to
the quarter end, a final pre-acceptance tranche of $10 million was drawn and the
debt facility now stands at $630 million. Both the investment and debt drawn to
date are reported on a 100% basis. Golar's share of remaining capital
expenditure to be funded out of equity, net of the Company's share of remaining
undrawn debt amounts to $167 million.
Expenditure on long-lead items, engineering services and deposits paid on
conversion candidate Fuji LNG for the MKII FLNG amounted to $113 million as of
June 30, 2023, and is included in other non-current assets.
Sale of the Gandria was agreed for net consideration of $15 million and is
expected to complete in early Q4 2023. As a result, Gandria was classified as a
vessel held for sale and written down to fair value less cost to sell resulting
in the recognition of a non-cash $5 million impairment charge in Q2 2023.
Non-GAAP measures
In addition to disclosing financial results in accordance with U.S. generally
accepted accounting principles (US GAAP), this earnings release and the
associated investor presentation contains references to the non-GAAP financial
measures which are included in the table below. We believe these non-GAAP
financial measures provide investors with useful supplemental information about
the financial performance of our business, enable comparison of financial
results between periods where certain items may vary independent of business
performance, and allow for greater transparency with respect to key metrics used
by management in operating our business and measuring our performance.
This report also contains certain forward-looking non-GAAP measures for which we
are unable to provide a reconciliation to the most comparable GAAP financial
measures because certain information needed to reconcile those non-GAAP measures
to the most comparable GAAP financial measures is dependent on future events
some of which are outside of our control, such as oil and gas prices and
exchange rates, as such items may be significant. Non-GAAP measures in respect
of future events which cannot be reconciled to the most comparable GAAP
financial measure are calculated in a manner which is consistent with the
accounting policies applied to Golar's unaudited consolidated financial
statements.
These non-GAAP financial measures should not be considered a substitute for, or
superior to, financial measures and financial results calculated in accordance
with GAAP. Non-GAAP measures are not uniformly defined by all companies, and may
not be comparable with similarly titled measures and disclosures used by other
companies. The reconciliations as at June 30, 2023 and for the six month period
ended June 30, 2023, from these results should be carefully evaluated.
+------------------+------------------+---------------------+------------------+
| | |Adjustments to | |
| |Closest equivalent|reconcile to primary | |
|Non-GAAP measure |US GAAP measure |financial statements | |
| | |prepared under US |Rationale for|
| | |GAAP |adjustments |
+------------------+------------------+---------------------+------------------+
|Performance measures |
+------------------+------------------+---------------------+------------------+
|Adjusted EBITDA |Net income/(loss) | +/- Income taxes |Increases the |
| | | + Depreciation and |comparability of |
| | |amortization |total business |
| | |+/- Impairment of |performance from |
| | |long-lived assets |period to period |
| | | +/- Unrealized |and against the |
| | |(gain)/loss on oil |performance of |
| | |and gas derivative |other companies by|
| | |instruments |excluding the |
| | |+/- Other non- |results of our |
| | |operating |equity |
| | |(income)/losses |investments, |
| | |+/- Net financial |removing the |
| | |(income)/expense |impact of |
| | |+/- Net |unrealized |
| | |(income)/losses from |movements on |
| | |equity method |embedded |
| | |investments |derivatives, |
| | |+/- Net loss/(income)|depreciation, |
| | |from discontinued |financing costs, |
| | |operations |tax items and |
| | | |discontinued |
| | | |operations. |
+------------------+------------------+---------------------+------------------+
|Distributable |Net income/(loss) | +/- Income taxes |Increases the |
|Adjusted EBITDA | | + Depreciation and |comparability of |
| | |amortization |our operational |
| | |+/- Impairment of |FLNG, Hilli from |
| | |long-lived assets |period to period |
| | | +/- Unrealized |and against the |
| | |(gain)/loss on oil |performance of |
| | |and gas derivative |other companies by|
| | |instruments |removing the non- |
| | |+/- Other non- |distributable |
| | |operating |income of Hilli, |
| | |(income)/losses |project |
| | |+/- Net financial |development costs |
| ||(income)/expense |and the operating |
| | |+/- Net |costs of the |
| | |(income)/losses from |Gandria and Gimi. |
| | |equity method | |
| | |investments | |
| | |+/- Net loss/(income)| |
| | |from discontinued | |
| | |operations | |
| | |- Amortization of | |
| | |deferred | |
| | |commissioning period | |
| | |revenue | |
| | |- Amortization of Day| |
| | |1 gains | |
| | |- Accrued | |
| | |overproduction | |
| | |revenue | |
| | |+ Overproduction | |
| | |revenue received | |
| | |- Accrued | |
| | |underutilization | |
| | |adjustment | |
+------------------+------------------+---------------------+------------------+
|Liquidity measures |
+------------------+------------------+---------------------+------------------+
|Contractual debt |Total debt |'+/- Debt within |During the year, |
|((1)) |(current and non- |liabilities held for |we consolidate a |
| |current), net of |sale net of deferred |lessor VIE for our|
| |deferred finance |finance charges |Hilli sale and |
| |charges |+/-VIE consolidation |leaseback |
| | |adjustments |facility. This |
| | |+/-Deferred finance |means that on |
| | |charges |consolidation, our|
| | |+/-Deferred finance |contractual debt |
| | |charges within |is eliminated and |
| | |liabilities held for |replaced with the |
| | |sale |lessor VIE debt. |
| | | | |
| | | | |
| | | | |
| | | |Contractual debt |
| | | |represents our |
| | | |debt obligations |
| | | |under our various |
| | | |financing |
| | | |arrangements |
| | | |before |
| | | |consolidating the |
| | | |lessor VIE. |
| | | | |
| | | | |
| | | | |
| | | |The measure |
| | | |enables investors |
| | | |and users of our |
| | | |financial |
| | | |statements to |
| | | |assess our |
| | | |liquidity and the |
| | | |split of our debt |
| | | |(current and non- |
| | | |current) based on |
| | | |our underlying |
| | | |contractual |
| | | |obligations. |
| | | |Furthermore, it |
| | | |aids comparability|
| | | |with our |
| | | |competitors. |
+------------------+------------------+---------------------+------------------+
|Total Golar Cash |Golar cash based |-VIE restricted cash |We consolidate a |
| |on GAAP measures: |and short-term |lessor VIE for our|
| | |deposits |sale and leaseback|
| | | |facility. This |
| | | |means that on |
| |+ Cash and cash | |consolidation, we |
| |equivalents | |include restricted|
| | | |cash held by the |
| | | |lessor VIE. |
| | | | |
| |+ Restricted cash | | |
| |and short-term | | |
| |deposits (current | |Total Golar Cash |
| |and non-current) | |represents our |
| | | |cash and cash |
| | | |equivalents and |
| | | |restricted cash |
| | | |and short-term |
| | | |deposits (current |
| | | |and non-current) |
| | | |before |
| | | |consolidating the |
| | | |lessor VIE. |
| | | | |
| | | | |
| | | | |
| | | |Management believe|
| | | |that this measure |
| | | |enables investors |
| | | |and users of our |
| | | |financial |
| | | |statements to |
| | | |assess our |
| | | |liquidity and aids|
| | | |comparability with|
| | | |our competitors. |
+------------------+------------------+---------------------+------------------+
(1) Please refer to reconciliation below for Golar's share of Contractual Debt
Adjusted EBITDA backlog: This is a non-U.S. GAAP financial measure and
represents the share of contracted fee income for executed contracts less
forecast operating expenses for these contracts. Adjusted EBITDA backlog should
not be considered as an alternative to net income or any other measure of our
financial performance calculated in accordance with U.S. GAAP.
Abbreviations used:
FLNG: Floating Liquefaction Natural Gas Vessel
FSRU: Floating Storage Regasification Unit
MKII FLNG: Mark II FLNG
MMBtu: Million British Thermal Units
mtpa: Million Tons Per Annum
Reconciliations - Liquidity Measures
Contractual Debt
+---------------------+------------------+------------------+------------------+
|(in thousands of $) | June 30, 2023| December 31, 2022| June 30, 2022|
+---------------------+------------------+------------------+------------------+
|Total debt (current | | | |
|and non-current) net | | | |
|of deferred finance | | | |
|charges | 1,189,278| 1,189,324| 1,382,277|
| | | | |
|VIE consolidation | | | |
|adjustments | 177,440| 152,133| 132,790|
| | | | |
|Deferred finance | | | |
|charges | 29,672| 20,955| 24,444|
+---------------------+------------------+------------------+------------------+
|Total Contractual | | | |
|Debt | 1,396,390| 1,362,412| 1,539,511|
| | | | |
|Less: Golar Partners'| | | |
|((1)), Keppel's and | | | |
|B&V's share of the | | | |
|FLNG Hilli | | | |
|contractual debt | (33,760)| (358,484)| (376,783)|
| | | | |
|Less: Keppel's share | | | |
|of the Gimi debt | (186,000)| (160,500)| (160,500)|
+---------------------+------------------+------------------+------------------+
|Golar's share of | | | |
|Contractual Debt | 1,176,630| 843,428| 1,002,228|
+---------------------+------------------+------------------+------------------+
Please see Appendix A for a capital repayment profile for Golar's Contractual
Debt.
(1) On March 15, 2023, we completed the reacquisition of Golar Partners' Common
Units of Hilli LLC from New Fortress Energy Inc ("NFE"). As a result GLNG's
share of FLNG Hilli's Contractual Debt increased from 44.6% to 94.6%.
Total Golar Cash
+-----------------+---------------------------------+--------------------------+
|(in thousands of | | |
|$) | June 30, 2023| December 31, 2022|
+-----------------+---------------------------------+--------------------------+
|Cash and cash | | |
|equivalents | 770,567| 878,838|
| | | |
|Restricted cash | | |
|and short-term | | |
|deposits (current| | |
|and non-current) | 132,219| 134,043|
| | | |
|Less: VIE | | |
|restricted cash | | |
|and short-term | | |
|deposits | (18,804)| (21,691)|
+-----------------+---------------------------------+--------------------------+
| | | |
|Total Golar Cash | 883,982| 991,190|
+-----------------+---------------------------------+--------------------------+
Forward Looking Statements
This press release contains forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) which reflects
management's current expectations, estimates and projections about its
operations. All statements, other than statements of historical facts, that
address activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as "if," "subject to,"
"believe," "assuming," "anticipate," "intend," "estimate," "forecast,"
"project," "plan," "potential," "will," "may," "should," "expect," "could,"
"would," "predict," "propose," "continue," or the negative of these terms and
similar expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are based upon
various assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although we believe that these assumptions were reasonable when made,
because these assumptions are inherently subject to significant uncertainties
and contingencies which are difficult or impossible to predict and are beyond
our control, we cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking
statements. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Unless
legally required, Golar undertakes no obligation to update publicly any forward-
looking statements whether as a result of new information, future events or
otherwise. Other important factors that could cause actual results to differ
materially from those in the forward-looking statements include but are not
limited to:
* our ability and that of our counterparty to meet our respective obligations
under the 20-year lease and operate agreement (the "LOA") entered into in
connection with the Greater Tortue/Ahmeyim Project (the "GTA Project"),
including the timing of various project infrastructure deliveries to sites
such as the floating production, storage and offloading unit and our FLNG,
the FLNG Gimi (the "Gimi"). Delays to contracted deliveries to sites could
result in incremental costs to both parties to the LOA, delay commissioning
works and the unlocking of FLNG Gimi adjusted EBITDA backlog(1);
* that an attractive deployment opportunity, or any of the opportunities under
discussion for the MKII, one of our FLNG designs, will be converted into a
suitable contract. Failure to do this in a timely manner or at all could
expose us to losses on our investments in long-lead items and engineering
services to date. Assuming a satisfactory contract is secured, changes in
project capital expenditures, foreign exchange and commodity price
volatility could have a material impact on the expected magnitude and timing
of our return on investment;
* our ability to close the sale of the liquefied natural gas ("LNG") carrier
Gandria on a timely basis or complete the acquisition of LNG carrier Fuji
LNG on a timely basis or at all;
* continuing uncertainty resulting from potential future claims from our
counterparties of purported force majeure under contractual arrangements,
including but not limited to our construction projects (including the GTA
Project) and other contracts to which we are a party;
* failure of shipyards to comply with delivery schedules or performance
specifications on a timely basis or at all;
* failure of our contract counterparties to comply with their agreements with
us or other key project stakeholders;
* our ability to meet our obligations under the liquefaction tolling agreement
(the "LTA") entered into in connection with the Hilli Episeyo ("FLNG
Hilli");
* our expectation that we will produce the 2023 contract year capacity
pursuant to the LTA during 2023. Failure to produce this contracted capacity
will require settlement of the resulting production shortfall at the 2023
average excess tolling fee as a reduction to our final LTA billing in 2026;
* continuing uncertainty resulting from our claim for certain pre-
commissioning contractual prepayments that we believe we are entitled to
receive from BP Mauritania Investments Limited ("BP") pursuant to the LOA,
including timing of eventual resolution, whether our claim will be upheld,
any eventual recovery or amounts that we may be required to settle;
* our inability to expand our FLNG portfolio through our innovative FLNG
growth strategy;
* our ability to recontract the FLNG Hilli once her current contract ends, and
other competitive factors in the FLNG industry;
* our ability to close potential future transactions in relation to equity
interests in our vessels, including the Golar Arctic, FLNG Hilli and Gimi or
to monetize our remaining equity holdings in Avenir LNG Limited ("Avenir")
on a timely basis or at all;
* increases in costs as a result of inflation, including but not limited to
salaries and wages, insurance, crew provisions, repairs and maintenance;
* continuing volatility in the global financial markets, including but not
limited to commodity prices and interest rates;
* changes in our relationship with our equity method investments and the
sustainability of any distributions they pay us;
* claims made or losses incurred in connection with our continuing obligations
with regard to NFE, Floating Infrastructure Holdings Finance LLC
("Energos"), Cool Company Ltd ("CoolCo") and Snam S.p.A ("Snam");
* the ability of Energos, CoolCo and Snam to meet their respective obligations
to us, including indemnification obligations;
* changes in our ability to retrofit vessels as FLNGs or FSRUs and our ability
to secure financing for such conversions on acceptable terms or at all;
* changes to rules and regulations applicable to LNG carriers, FLNGs or other
parts of the LNG supply chain;
* changes in the supply of or demand for LNG or LNG carried by sea and for LNG
carriers or FLNGs;
* a material decline or prolonged weakness in charter rates for LNG carriers
or tolling rates for FLNGs;
* global economic trends, competition and geopolitical risks, including
impacts from the length and severity of future pandemic outbreaks, rising
inflation and the ongoing Ukraine and Russia conflict and the related
sanctions and other measures, including the related impacts on the supply
chain for our conversions or commissioning works, the operations of our
charterers and customers, our global operations and our business in general;
* changes in general domestic and international political conditions,
particularly where we operate, or where we seek to operate;
* changes in the availability of vessels to purchase and in the time it takes
to build new vessels and our ability to obtain financing on acceptable terms
or at all;
* actions taken by regulatory authorities that may prohibit the access of LNG
carriers and FLNGs to various ports; and
* other factors listed from time to time in registration statements, reports
or other materials that we have filed with or furnished to the Commission,
including our annual report on Form 20-F for the year ended December
31, 2022, filed with the Commission on March 31, 2023 (the "2022 Annual
Report").
As a result, you are cautioned not to rely on any forward-looking statements.
Actual results may differ materially from those expressed or implied by such
forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise unless required by law.
Responsibility Statement
We confirm that, to the best of our knowledge, the interim unaudited
consolidated financial statements for the three and six months ended June
30, 2023, which have been prepared in accordance with accounting principles
generally accepted in the United States (US GAAP) give a true and fair view of
the Company's unaudited consolidated assets, liabilities, financial position and
results of operations. To the best of our knowledge, the interim report for the
three and six months ended June 30, 2023, includes a fair review of important
events that have occurred during the period and their impact on the interim
unaudited consolidated financial statements, the principal risks and
uncertainties for the remaining period of 2023 and major related party
transactions.
August 10, 2023
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
Tor Olav Trøim (Chairman of the Board)
Dan Rabun (Director)
Thorleif Egeli (Director)
Carl Steen (Director)
Niels Stolt-Nielsen (Director)
Lori Wheeler Naess (Director)
Georgina Sousa (Director)
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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