Highlights and subsequent events
* Golar LNG Limited ("Golar" or "the Company") reports Q3 2023 Net income of
$114 million and Adjusted EBITDA(1) of $75 million, inclusive of $39 million
of non-cash items(1).
* Total Golar Cash(1) of $841 million, inclusive of $114 million of restricted
cash.
* FLNG Hilli achieved operating milestone as world's first FLNG to offload
100 LNG cargoes.
* FLNG Gimi sailed from Singapore to start its 20-year contract for BP
offshore Mauritania and Senegal.
* Finalized the sale of 1977 built LNG carrier Gandria.
* Continuing development of FLNG growth pipeline.
* Repurchased 0.2 million shares at an average cost of $21.36 per share.
105.9 million shares issued and outstanding as of September 30, 2023.
* Declared dividend of $0.25 per share for the quarter.
FLNG Hilli: Maintained its market leading operational track record throughout
the quarter, and became the world's first FLNG to export its 100th cargo on
October 14 and its 102nd cargo on November 15, 2023. Q3 2023 Distributable
Adjusted EBITDA(1) from FLNG Hilli was $77 million, of which Golar's share was
$73 million, a $6 million decrease compared to Q2 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 in addition to Golar's
share of tolling fees and market linked Brent oil and TTF exposures, will be
allocated as follows:
* October-December 2023: 100% of TTF linked production unwound securing
approximately $23 million of Distributable Adjusted EBITDA(1); 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
around $9 million expected for Q4 2023. For 2024, based on a forward price of
$15.00/MMBtu, Golar expects additional Distributable Adjusted EBITDA(1) of $39
million, increasing or decreasing by $3.2 million per annum for every dollar
change in TTF.
FLNG Gimi: Sailed from Seatrium shipyard in Singapore on November 19, 2023,
heading for its operational location offshore Mauritania and Senegal.
Construction, pre-commissioning and sea trials are all complete and the vessel
is expected to be ready for production once connected to the Greater Tortue
Ahmeyim ("GTA") hub.
The journey to site is expected to take around 60 days inclusive of two
refueling stops. Subject to readiness of the overall project, we expect to
receive daily commissioning payments subsequent to the connection date, or
alternatively, provided Golar is ready, a standby day rate until commissioning
starts. Commissioning is expected to take approximately six months from the
commissioning start date with commercial operations ("COD") expected thereafter.
Golar and the GTA partners are working on initiatives to further optimize the
commissioning period in order to achieve COD as early as possible. COD triggers
the start of the 20-year contract.
With the construction phase of FLNG Gimi now complete, we will increase focus on
debt optimization alternatives for FLNG Gimi, targeting an increase in facility
size, a reduction in margin, and an extended repayment profile and duration
compared to the current facility. We are in discussions with potential lenders
and have received term sheets with improved terms for potential new vessel debt
facilities.
FLNG business development: Continued progress made on re-contracting FLNG Hilli
upon the end of its current charter in July 2026 with a number of counterparties
and gas field owners increasingly interested. Now in detailed commercial
discussions for three re-contracting opportunities with a 2024 commitment
targeted.
We continue to progress the FLNG growth pipeline, including advancing commercial
terms with gas resource owners, technical site-specific work and governmental
interaction and approvals across several West African countries. We are also
seeing increasing interest for our market leading FLNG solution in other
geographies, including the Americas.
Most of the projects under discussion are structures where Golar either
participates as an equal partner with the gas resource owner and upstream
partner in a gas field development, or commercial structures where Golar is
exposed to gas offtake prices. Golar's market leading capex per ton and focus on
proven gas reserves with attractive lifting costs in geographical areas with
shorter shipping distances to end users versus US export projects secures a low
break-even LNG production cost with attractive upside to current and forward LNG
prices.
We continue to progress construction of long lead item orders for a MKII
3.5mtpa FLNG project and expect to take delivery of the Fuji LNG carrier
intended for FLNG conversion during Q1 2024. Engineering and detailed design is
fully developed and ready for project initiation. The complexity of offshore gas
developments drives the timeline for these contemplated FLNG growth projects.
Until commitments on a gas field and secured debt financing are in place, we do
not plan to take a final investment decision or incur significant incremental
MKII FLNG capex beyond current committed levels.
Other: Operating revenues and costs under corporate and other items is now
comprised of two FSRU operate and maintain agreements in respect of the LNG
Croatia and Tundra.
Golar's remaining carrier Golar Arctic completed a 12-month charter in September
and her 5-year drydock in early November. Alternatives for this vessel including
conversion projects, chartering or sale are being considered.
Share buyback and dividends: During the quarter 0.2 million shares were
repurchased and cancelled at an average cost of $21.36 per share, leaving 105.9
million shares issued and outstanding as of September 30, 2023. Of the $150.0
million approved share buyback scheme, $117.3 million remains available for
further repurchases which will continue to be opportunistically pursued.
Golar's Board of Directors approved a total Q3 2023 dividend of $0.25 per share
to be paid on or around December 11, 2023. The record date will be December
1, 2023.
Financial Summary
+-----------------------+---------+-------+--------+---------+--------+--------+
|(in thousands of $) | Q3 2023 |Q3 2022|% Change|YTD 2023 |YTD 2022|% Change|
| +---------+-------+--------+---------+--------+--------+
|Net income | 113,880 |175,435| (35)% | 28,221 |871,987 | (97)% |
| | | | | | | |
|Net income/(loss) | | | | | | |
|attributable to Golar | | | | | | |
|LNG Ltd | 92,462 |141,121| (34)% |(13,946) |716,335 | (102)% |
| | | | | | | |
|Total operating | | | | | | |
|revenues | 67,252 |68,435 | (2)% | 218,750 |208,600 | 5% |
| | | | | | | |
|Adjusted EBITDA (1) | 74,559 |84,998 | (12)% | 241,522 |275,572 | (12)% |
| | | | | | | |
|Golar's share of | | | | | | |
|Contractual Debt (1) |1,171,848|993,094| 18% |1,171,848|993,094 | 18% |
+-----------------------+---------+-------+--------+---------+--------+--------+
Financial Review
Business Performance:
+---------------------------+---------------------------------+----------------+
| | 2023 | 2022 |
| +----------------+----------------+----------------+
|(in thousands of $) | Jul-Sep | Apr-Jun | Jul-Sep |
+---------------------------+----------------+----------------+----------------+
|Net income | 113,880| 6,910| 175,435|
| | | | |
|Income taxes | (159)| 1,445| 134|
+---------------------------+----------------+----------------+----------------+
|Net income before income | | | |
|taxes | 113,721| 8,355| 175,569|
| | | | |
|Depreciation and | | | |
|amortization | 12,473| 12,450| 12,433|
| | | | |
|Impairment of long-lived | | | |
|assets | -| 5,021| -|
| | | | |
|Unrealized (gain)/loss on | | | |
|oil and gas derivative | | | |
|instruments | (33,908)| 76,646| (12,365)|
| | | | |
|Realized and unrealized | | | |
|mark-to-market losses on | | | |
|investment in listed equity| | | |
|securities | -| -| (51,449)|
| | | | |
|Other non-operating | | | |
|expense/(income), net | -| 1,305| (1,244)|
| | | | |
|Interest income | (11,509)| (11,836)| (3,059)|
| | | | |
|Interest expense | 135| 610| 4,154|
| | | | |
|Gains on derivative | | | |
|instruments, net | (7,018)| (11,673)| (25,453)|
| | | | |
|Other financial items, net | (318)| 464| (340)|
| | | | |
|Net losses/(income) from | | | |
|equity method investments | 983| 1,577| (9,987)|
| | | | |
|Net income from | | | |
|discontinued operations | -| (104)| (3,261)|
+---------------------------+----------------+----------------+----------------+
|Adjusted EBITDA (1) | 74,559| 82,815| 84,998|
+---------------------------+----------------+----------------+----------------+
+-----------------+-------------------------------------------------------------------------------------------------+
| | 2023 |
| +---------------------------------------------------+---------------------------------------------+
| | Jul-Sep | Apr-Jun |
| +------------+------------+------------+------------+----------+------------+------------+--------+
|(in thousands of | | Corporate | | | | Corporate | | |
|$) | FLNG | and other | Shipping | Total | FLNG | and other | Shipping | Total |
+-----------------+------------+------------+------------+------------+----------+------------+------------+--------+
|Total operating | | | | | | | | |
|revenues | 56,391| 5,532| 5,329| 67,252| 60,373| 11,697| 5,460| 77,530|
| | | | | | | | | |
|Vessel operating | | | | | | | | |
|expenses | (17,726)| (4,813)| (2,048)| (24,587)| (15,869)| (7,006)| (1,834)|(24,709)|
| | | | | | | | | |
|Voyage, | | | | | | | | |
|charterhire & | | | | | | | | |
|commission | | | | | | | | |
|expenses | (150)| -| (540)| (690)| (150)| -| (74)| (224)|
| | | | | | | | | |
|Administrative | | | | | | | | |
|(expenses)/income| (354)| (8,021)| (22)| (8,397)| (42)| (7,962)| 10| (7,994)|
| | | | | | | | | |
|Project | | | | | | | | |
|development | | | | | | | | |
|(expenses)/income| (956)| (576)| 29| (1,503)| (1,965)| (16,590)| -|(18,555)|
| | | | | | | | | |
|Realized gain on | | | | | | | | |
|oil and gas | | | | | | | | |
|derivative | | | | | | | | |
|instruments ((2))| 42,484| -| -| 42,484| 46,451| -| -| 46,451|
| | | | | | | | | |
|Other operating | | | | | | | | |
|income | -| -| -| -| 2,499| 7,817| -| 10,316|
+-----------------+------------+------------+------------+------------+----------+------------+------------+--------+
|Adjusted EBITDA | | | | | | | | |
|(1) | 79,689| (7,878)| 2,748| 74,559| 91,297| (12,044)| 3,562| 82,815|
+-----------------+------------+------------+------------+------------+----------+------------+------------+--------+
(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".
+------------------+-----------------------------------------------------------+
| | 2022 |
| +-----------------------------------------------------------+
| | Jul-Sep |
| +-----------------+---------------+--------------+----------+
|(in thousands of | | Corporate and | | |
|$) | FLNG | other | Shipping | Total |
+------------------+-----------------+---------------+--------------+----------+
|Total operating | | | | |
|revenues | 54,893| 12,561| 981| 68,435|
| | | | | |
|Vessel operating | | | | |
|expenses | (14,227)| (1,633)| (1,857)| (17,717)|
| | | | | |
|Voyage, | | | | |
|charterhire & | | | | |
|commission | | | | |
|(expenses)/income | (150)| 25| (590)| (715)|
| | | | | |
|Administrative | | | | |
|income/(expenses) | 7| (10,468)| (4)| (10,465)|
| | | | | |
|Project | | | | |
|development income| 2,085| 136| -| 2,221|
| | | | | |
|Realized gain on | | | | |
|oil and gas | | | | |
|derivative | | | | |
|instruments | 57,046| -| -| 57,046|
| | | | | |
|Other operating | | | | |
|loss | (13,807)| -| -| (13,807)|
+------------------+-----------------+---------------+--------------+----------+
|Adjusted EBITDA | | | | |
|(1) | 85,847| 621| (1,470)| 84,998|
+------------------+-----------------+---------------+--------------+----------+
Golar reports today Q3 2023 net income of $114 million, before non-controlling
interests, inclusive of $39 million of non-cash items(1), comprised of:
* TTF and Brent oil unrealized mark-to-market gains of $34 million; and
* mark-to-market gains on interest rate swaps of $5 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 $14 million realized gain on the oil
derivative instrument was recorded in Q3 2023 of which Golar has an effective
89.1% interest. A Q3 2023 realized gain of $5 million was also recognized in
respect of fees for the TTF linked production of which Golar has an effective
89.4% interest. 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 $42 million Q3 2023 realized gain
on oil and gas derivative instruments was recognized.
The non-cash mark-to-market fair value of the FLNG Hilli Brent oil linked
derivative asset increased by $70 million during the quarter, with a
corresponding unrealized gain of the same amount recognized in the unaudited
consolidated statement of operations. The non-cash mark-to-market accounting
fair value of the FLNG Hilli TTF natural gas derivative asset decreased by $15
million during the quarter with a corresponding unrealized loss of the same
amount recognized in the unaudited consolidated statement of operations. A $21
million unrealized loss in respect of the economically hedged portion of the Q3
2023 TTF linked FLNG Hilli production was also recognized during the quarter.
Collectively, this resulted in a $34 million Q3 2023 unrealized gain on oil and
gas derivative instruments.
Balance Sheet and Liquidity:
As of September 30, 2023, Total Golar Cash(1) was $841 million, comprised of
$727 million of cash and cash equivalents and $114 million of restricted cash.
Within the $327 million current portion of long-term debt and short-term debt as
at September 30, 2023 is $306 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 $1,172 million as of September 30, 2023.
Deducting Total Golar Cash(1) of $841 million from Golar's share of Contractual
Debt(1) of $1,172 million leaves debt of $331 million.
Inclusive of $19 million of capitalized interest, $42 million was invested in
FLNG Gimi during the quarter, with the total FLNG Gimi asset under development
balance as at September 30, 2023 amounting to $1.34 billion. Of this, $630
million was drawn against the $700 million debt facility secured by FLNG Gimi.
Both the investment and debt drawn to date are reported on a 100% basis.
Expenditure on long-lead items, engineering services and deposits paid on
conversion candidate Fuji LNG for the MKII FLNG amounted to $159 million as of
September 30, 2023, and is included in other non-current assets.
On November 1, 2023 the sale of Gandria closed and Golar received $13 million,
representing the balance of the agreed $15 million sale price.
Non-GAAP measures
In addition to disclosing financial results in accordance with U.S. generally
accepted accounting principles (US GAAP), this earnings release and the
associated investor presentation contains references to the non-GAAP financial
measures which are included in the table below. We believe these non-GAAP
financial measures provide investors with useful supplemental information about
the financial performance of our business, enable comparison of financial
results between periods where certain items may vary independent of business
performance, and allow for greater transparency with respect to key metrics used
by management in operating our business and measuring our performance.
This report also contains certain forward-looking non-GAAP measures for which we
are unable to provide a reconciliation to the most comparable GAAP financial
measures because certain information needed to reconcile those non-GAAP measures
to the most comparable GAAP financial measures is dependent on future events
some of which are outside of our control, such as oil and gas prices and
exchange rates, as such items may be significant. Non-GAAP measures in respect
of future events which cannot be reconciled to the most comparable GAAP
financial measure are calculated in a manner which is consistent with the
accounting policies applied to Golar's unaudited consolidated financial
statements.
These non-GAAP financial measures should not be considered a substitute for, or
superior to, financial measures and financial results calculated in accordance
with GAAP. Non-GAAP measures are not uniformly defined by all companies, and may
not be comparable with similarly titled measures and disclosures used by other
companies. The reconciliations as at September 30, 2023 and for the nine months
period ended September 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 FLNG |
| | |(income)/losses |Hilli, project |
| | |+/- Net financial |development costs |
| | |(income)/expense |and the operating |
| | |+/- Net |costs of the |
| | |(income)/losses from |Gandria (prior to |
| | |equity method |disposal) and FLNG|
| | |investments |Gimi. |
| | |+/- 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, |
| | | |identify the split|
| | | |of our debt |
| | | |(current and non- |
| | | |current) based on |
| | | |our underlying |
| | | |contractual |
| | | |obligations and |
| | | |aid 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.
Non-cash items: Non-cash items comprise of impairment of long-lived assets and
mark-to-market ("MTM") movements on our TTF and Brent oil linked derivatives,
listed equity securities and interest rate swaps ("IRS") which relate to the
unrealized component of the gains/(losses) on oil and gas derivative
instruments, unrealized MTM (losses)/gains on investment in listed equity
securities and gains on derivative instruments, net, in our unaudited
consolidated statement of operations.
Abbreviations used:
FLNG: Floating Liquefaction Natural Gas Vessel
FSRU: Floating Storage Regasification Unit
MKII FLNG: Mark II FLNG
MMBtu: Million British Thermal Units
mtpa: Million Tonnes Per Annum
Reconciliations - Liquidity Measures
Contractual Debt
+---------------------+------------------+------------------+------------------+
|(in thousands of $) |September 30, 2023| December 31, 2022|September 30, 2022|
+---------------------+------------------+------------------+------------------+
|Total debt (current | | | |
|and non-current) net | | | |
|of deferred finance | | | |
|charges | 1,177,612| 1,189,324| 1,353,748|
| | | | |
|VIE consolidation | | | |
|adjustments | 191,480| 152,133| 143,925|
| | | | |
|Deferred finance | | | |
|charges | 24,941| 20,955| 23,554|
+---------------------+------------------+------------------+------------------+
|Total Contractual | | | |
|Debt | 1,394,033| 1,362,412| 1,521,227|
| | | | |
|Less: Golar Partners'| | | |
|((1)), Keppel's and | | | |
|B&V's share of the | | | |
|FLNG Hilli | | | |
|contractual debt | (33,185)| (358,484)| (367,633)|
| | | | |
|Less: Keppel's share | | | |
|of the Gimi debt | (189,000)| (160,500)| (160,500)|
+---------------------+------------------+------------------+------------------+
|Golar's share of | | | |
|Contractual Debt | 1,171,848| 843,428| 993,094|
+---------------------+------------------+------------------+------------------+
Please see Appendix A for a capital repayment profile for Golar's Contractual
Debt.
(1) On March 15, 2023, we completed the reacquisition of Golar Partners' Common
Units of Hilli LLC from New Fortress Energy Inc ("NFE"). As a result GLNG's
share of FLNG Hilli's Contractual Debt increased from 44.6% to 94.6%.
Total Golar Cash
+-----------------+---------------------------------+--------------------------+
|(in thousands of | | |
|$) | September 30, 2023| December 31, 2022|
+-----------------+---------------------------------+--------------------------+
|Cash and cash | | |
|equivalents | 727,133| 878,838|
| | | |
|Restricted cash | | |
|and short-term | | |
|deposits (current| | |
|and non-current) | 132,462| 134,043|
| | | |
|Less: VIE | | |
|restricted cash | | |
|and short-term | | |
|deposits | (18,539)| (21,691)|
+-----------------+---------------------------------+--------------------------+
| | | |
|Total Golar Cash | 841,056| 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
floating liquefaction natural gas vessel ("FLNG"), the FLNG 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 Mark II FLNG ("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 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 New Fortress Energy Inc. ("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 floating storage and
regasification units ("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 natural gas and LNG supply chain;
* changes in the supply of or demand for LNG or LNG carried by sea for LNG
carriers or FLNGs and the supply of natural gas or demand for LNG in Brazil;
* a material decline or prolonged weakness in charter rates for LNG carriers
or tolling rates for FLNGs;
* global economic trends, competition and geopolitical risks, including
impacts from the length and severity of future pandemic outbreaks, rising
inflation and the ongoing conflicts in Ukraine and the Middle East 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 nine months ended September
30, 2023, which have been prepared in accordance with accounting principles
generally accepted in the United States give a true and fair view of the
Company's unaudited consolidated assets, liabilities, financial position and
results of operations. To the best of our knowledge, the interim report for the
three and nine months ended September 30, 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.
November 21, 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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