Highlights and subsequent events
* Golar LNG Limited ("Golar" or "the Company") reports full year 2023 total
operating revenues of $298 million, a net loss attributable to Golar of $47
million inclusive of $331 million of non-cash items(1), and Adjusted
EBITDA(1) of $356 million.
* Q4 2023 total operating revenues of $80 million, a net loss attributable to
Golar of $33 million inclusive of $117 million of non-cash items(1), and
Adjusted EBITDA(1) of $114 million.
* Total Golar Cash(1) of $753 million.
* FLNG Hilli maintained market leading operational track record and exceeded
2023 production target.
* FLNG Gimi arrived and moored at the GTA hub offshore Mauritania and Senegal.
* Maturing commercial prospects for FLNG Hilli redeployment and potential new
FLNG opportunities, including contract proposals for 12-20 year employment.
* 2.9 million shares repurchased during 2023 at an average price of $21.27 per
share inclusive of 1.3 million shares repurchased during Q4 at an average
price of $21.48 per share.
* Re-sold $61 million notional value of senior unsecured bonds previously held
in treasury.
* Declared dividend of $0.25 per share for the quarter.
FLNG Hilli: Continued her market leading operational track record and exceeded
her contracted 2023 production volume resulting in a release of the remaining
2022 contract year underutilization balance of $29 million to the income
statement and the recognition of $0.3 million of 2023 over production revenue.
Q4 2023 Distributable Adjusted EBITDA(1) from FLNG Hilli, which excludes the
non-cash $29 million underutilization balance released, was $89 million, of
which Golar's share was $84 million, an $11 million increase compared to Q3
2023, driven by higher Brent oil prices.
FLNG Gimi: Arrived at the GTA field offshore Mauritania and Senegal on January
10, 2024 and was subsequently escorted into her 20-year GTA hub location by BP.
The vessel is now moored to the GTA Hub and ready to commence operations.
The FLNG Gimi is awaiting connection to the feedgas pipeline and start of
commissioning activities. The client advises that first gas is expected in Q3
2024, subject to final completion of upstream activities and installation of the
FPSO. The commissioning period is expected to be approximately six months, with
commercial operations ("COD") anticipated thereafter. FLNG Gimi expects to
receive a standby day rate and daily commissioning payments ahead of COD. Pre-
COD contractual cash flows are expected to be deferred on the balance sheet. COD
triggers the start of the 20-year Lease and Operate Agreement that unlocks the
equivalent of around $3 billion of Adjusted EBITDA Backlog(1) to Golar and
recognition of the contractual day rate comprised of capital and operating
elements in both the balance sheet and income statement.
Progressed discussions with prospective lenders for refinancing of the existing
senior debt facility including agreed indicative terms.
FLNG business development: Strong progress made on redeployment of FLNG Hilli
and potential MKII FLNG employment, including execution of a framework agreement
with a potential customer for a long-term opportunity that could utilize either
FLNG Hilli or a MKII FLNG. Commercial terms being discussed are for charter
opportunities with 12-20 year contract durations, where we are aligning towards
mutually acceptable terms with gas resource owners. Technical development of
these FLNG opportunities is being worked in parallel to optimize mooring
solutions and required upstream infrastructure. Engagement with respective
authorities to establish fiscal terms and environmental approvals for potential
FLNG deployment.
Construction of long lead item orders for our 3.5mtpa MKII FLNG continues and
the Fuji LNG carrier intended for FLNG conversion is expected to be delivered to
Golar in March 2024. During the quarter, we agreed terms for and progressed a
potential MKII debt facility and reconfirmed yard availability and pricing. A
final investment decision on MKII is expected when commercial terms for FLNG
Hilli redeployment and/or a MKII FLNG have been concluded.
Other/shipping: Operating revenues and costs under corporate and other items is
comprised of two FSRU operate and maintain agreements in respect of the LNG
Croatia and Tundra. The LNGC Golar Arctic completed her 5-yearly drydock in
early November and is currently operating in the spot market. This is a non-core
asset which we will trade in the spot and short-term shipping market while
considering chartering alternatives or a potential sale.
Share buyback and dividends: Total 2023 buyback and cancellation of 2.9 million
shares at an average cost of $21.27 per share, of which 1.3 million were
repurchased and cancelled during Q4 at an average cost of $21.48 per share. As
of December 31, 2023, 104.6 million shares are issued and outstanding. Of the
$150.0 million approved share buyback scheme, $88.3 million remains available.
Golar's Board of Directors approved a total Q4 2023 dividend of $0.25 per share
to be paid on or around March 20, 2024. The record date will be March 12, 2024.
Financial Summary
+-----------------------+---------+-------+--------+---------+--------+--------+
|(in thousands of $) | Q4 2023|Q4 2022|% Change| YTD 2023|YTD 2022|% Change|
| +---------+-------+--------+---------+--------+--------+
|Net (loss)/income | | | | | | |
|attributable to Golar | | | | | | |
|LNG Ltd |(32,847) |71,438 | (146)% |(46,793) |787,773 | (106)% |
| | | | | | | |
|Total operating | | | | | | |
|revenues | 79,679 |59,140 | 35% | 298,429 |267,740 | 11% |
| | | | | | | |
|Adjusted EBITDA (1) | 114,249 |87,409 | 31% | 355,771 |362,980 | (2)% |
| | | | | | | |
|Golar's share of | | | | | | |
|contractual debt (1) |1,221,190|843,428| 45% |1,221,190|843,428 | 45% |
+-----------------------+---------+-------+--------+---------+--------+--------+
Financial Review
Business Performance:
+---------------------------+---------------------------------+----------------+
| | 2023 | 2022 |
| +----------------+----------------+----------------+
| | Oct-Dec | Jul-Sep | Oct-Dec |
| +----------------+----------------+----------------+
|(in thousands of $) | Total | Total | Total |
+---------------------------+----------------+----------------+----------------+
|Net (loss)/income | (31,071)| 113,880| 67,070|
| | | | |
|Income taxes | 332| (159)| (720)|
+---------------------------+----------------+----------------+----------------+
|(Loss)/income before income| | | |
|taxes | (30,739)| 113,721| 66,350|
| | | | |
|Depreciation and | | | |
|amortization | 12,794| 12,473| 12,432|
| | | | |
|Unrealized loss/(gain) on | | | |
|oil and gas derivative | | | |
|instruments | 126,909| (33,908)| 72,995|
| | | | |
|Realized and unrealized MTM| | | |
|gain on our investment in | | | |
|listed equity securities | -| -| (54,469)|
| | | | |
|Other non-operating | | | |
|loss/(income) | -| -| (649)|
| | | | |
|Interest income | (11,234)| (11,509)| (8,212)|
| | | | |
|Interest expense, net | (1,107)| 135| 3,697|
| | | | |
|Losses/(gains) on | | | |
|derivative instruments | 16,542| (7,018)| 1,833|
| | | | |
|Other financial items, net | (157)| (318)| 2,137|
| | | | |
|Net income from equity | | | |
|method investments | 1,241| 983| (6,045)|
| | | | |
|Net income from | | | |
|discontinued operations | -| -| (2,660)|
+---------------------------+----------------+----------------+----------------+
|Adjusted EBITDA ((1)) | 114,249| 74,559| 87,409|
+---------------------------+----------------+----------------+----------------+
+-----------------+----------------------------------------------------------------------------------------------------+
| | 2023 |
| +------------------------------------------------+---------------------------------------------------+
| | Oct-Dec | Jul-Sep |
| +------------+------------+-------------+--------+------------+------------+------------+------------+
|(in thousands of | | Corporate | | | | Corporate | | |
|$) | FLNG | and other | Shipping | Total | FLNG | and other | Shipping | Total |
+-----------------+------------+------------+-------------+--------+------------+------------+------------+------------+
|Total operating | | | | | | | | |
|revenues | 72,433| 5,510| 1,736| 79,679| 56,391| 5,532| 5,329| 67,252|
| | | | | | | | | |
|Vessel operating | | | | | | | | |
|expenses | (16,510)| (4,765)| (2,005)|(23,280)| (17,726)| (4,813)| (2,048)| (24,587)|
| | | | | | | | | |
|Voyage, | | | | | | | | |
|charterhire & | | | | | | | | |
|commission | | | | | | | | |
|expenses | (133)| -| (900)| (1,033)| (150)| -| (540)| (690)|
| | | | | | | | | |
|Administrative | | | | | | | | |
|income/(expenses)| 29| (7,031)| (1)| (7,003)| (354)| (8,021)| (22)| (8,397)|
| | | | | | | | | |
|Project | | | | | | | | |
|(expenses)/income| (958)| 380| (99)| (677)| (956)| (576)| 29| (1,503)|
| | | | | | | | | |
|Realized gains on| | | | | | | | |
|oil derivative | | | | | | | | |
|instrument ((2)) | 53,520| -| -| 53,520| 42,484| -| -| 42,484|
| | | | | | | | | |
|Other operating | | | | | | | | |
|income | 13,043| -| -| 13,043| -| -| -| -|
+-----------------+------------+------------+-------------+--------+------------+------------+------------+------------+
|Adjusted EBITDA | | | | | | | | |
|((1)) | 121,424| (5,906)| (1,269)| 114,249| 79,689| (7,878)| 2,748| 74,559|
+-----------------+------------+------------+-------------+--------+------------+------------+------------+------------+
(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 gains on oil and gas derivative
instruments" and "Unrealized (loss)/gain on oil and gas derivative instruments".
+------------------+-----------------------------------------------------------+
| | 2022 |
| +-----------------------------------------------------------+
| | Oct-Dec |
| +---------------+---------------+---------------+-----------+
|(in thousands of | | Corporate and | | |
|$) | FLNG | other | Shipping | Total |
+------------------+---------------+---------------+---------------+-----------+
|Total operating | | | | |
|revenues | 36,511| 17,160| 5,469| 59,140|
| | | | | |
|Vessel operating | | | | |
|expenses | (15,202)| (1,718)| (1,965)| (18,885)|
| | | | | |
|Voyage, | | | | |
|charterhire & | | | | |
|commission | | | | |
|(expenses)/income | (150)| (9)| (111)| (270)|
| | | | | |
|Administrative | | | | |
|income/(expenses) | 44| (7,579)| 37| (7,498)|
| | | | | |
|Project | | | | |
|development | | | | |
|expenses | (2,419)| (4,222)| (45)| (6,686)|
| | | | | |
|Realized gains on | | | | |
|oil derivative | | | | |
|instrument | 77,324| -| -| 77,324|
| | | | | |
|Other operating | | | | |
|income | (15,716)| -| -| (15,716)|
+------------------+---------------+---------------+---------------+-----------+
|Adjusted EBITDA | | | | |
|((1)) | 80,392| 3,632| 3,385| 87,409|
+------------------+---------------+---------------+---------------+-----------+
Golar reports today a Q4 2023 net loss of $33 million, before non-controlling
interests, inclusive of $117 million of non-cash items(1), comprised of:
* TTF and Brent oil unrealized mark-to-market losses of $127 million;
* Mark-to-market losses on interest rate swaps of $19 million; and
* Release of 2022 contract year underutilization liability of $29 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 $23 million realized gain on the oil
derivative instrument was recorded in Q4 2023 of which Golar has an effective
89.1% interest. A Q4 2023 realized gain of $8 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 $54 million Q4 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 decreased by $72 million during the quarter, with a
corresponding unrealized loss of the same amount recognized in the unaudited
consolidated statement of operations. The non-cash mark-to-market fair value of
the FLNG Hilli TTF natural gas derivative asset decreased by $33 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 Q4 2023 TTF linked
FLNG Hilli production was also recognized during the quarter. Collectively, this
resulted in a $127 million Q4 2023 unrealized loss on oil and gas derivative
instruments.
Balance Sheet and Liquidity:
As of December 31, 2023, Total Golar Cash(1) was $753 million, comprised of $679
million of cash and cash equivalents and $74 million of restricted cash.
During December 2023, Golar re-sold $61 million notional value of its senior
unsecured bonds maturing on October 20, 2025 which were previously held in
treasury. Following the sales, Golar retains $100 million notional value of
unsecured bonds in treasury and $200 million is issued to third party bond
holders.
Golar's share of Contractual Debt(1 )as of December 31, 2023 amounts to $1,221
million. Deducting Total Golar Cash(1) of $753 million from Golar's share of
Contractual Debt(1) of $1,221 million leaves a debt position of $468 million.
A total of $220 million was invested in FLNG Gimi during the quarter, with the
total FLNG Gimi asset under development balance as at December 31, 2023
amounting to $1.56 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 $185 million as of
December 31, 2023, and is included in other non-current assets. The $62 million
balance of the Fuji LNG purchase price is expected to be paid in Q1 2024.
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 December 31, 2023 and for the period ended
December 31, 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 |
| | |(income)/expense |costs, the |
| | |+/- Net |operating costs of|
| | |(income)/losses from |the Gandria (prior|
| | |equity method |to disposal) and |
| | |investments |FLNG Gimi and loss|
| | |+/- Net loss/(income)|on disposal. |
| | |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 |+/-Variable Interest |leaseback |
| | |Entity ("VIE") |facility. This |
| | |consolidation |means that on |
| | |adjustments |consolidation, our|
| | |+/-Deferred finance |contractual debt |
| | |charges |is eliminated and |
| | |+/-Deferred finance |replaced with the |
| | |charges within |lessor VIE debt. |
| | |liabilities held for | |
| | |sale | |
| | | | |
| | | |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
forecasted operating expenses for these contracts. Adjusted EBITDA backlog
should not be considered as an alternative to net income / (loss) 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,
release of prior year contract underutilization liability, 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 Tons Per Annum
Reconciliations - Liquidity Measures
Contractual Debt
+-----------------------+-----------------+------------------+-----------------+
|(in thousands of $) |December 31, 2023|September 30, 2023|December 31, 2022|
+-----------------------+-----------------+------------------+-----------------+
|Total debt (current and| | | |
|non-current) net of | | | |
|deferred finance | | | |
|charges | 1,216,730| 1,177,612| 1,189,324|
| | | | |
|VIE consolidation | | | |
|adjustments | 202,219| 191,480| 152,133|
| | | | |
|Deferred finance | | | |
|charges | 23,851| 24,941| 20,955|
+-----------------------+-----------------+------------------+-----------------+
|Total Contractual Debt | 1,442,800| 1,394,033| 1,362,412|
| | | | |
|Less: Golar Partners', | | | |
|Seatrium's and B&V's | | | |
|share of the FLNG Hilli| | | |
|contractual debt | (32,610)| (33,185)| (358,484)|
| | | | |
|Less: Keppel's share of| | | |
|the Gimi debt | (189,000)| (189,000)| (160,500)|
+-----------------------+-----------------+------------------+-----------------+
|Golar's share of | | | |
|Contractual Debt | 1,221,190| 1,171,848| 843,428|
+-----------------------+-----------------+------------------+-----------------+
Please see Appendix A for a capital repayment profile for Golar's contractual
debt.
Total Golar Cash
+-----------------------+-----------------+------------------+-----------------+
|(in thousands of $) |December 31, 2023|September 30, 2023|December 31, 2022|
+-----------------------+-----------------+------------------+-----------------+
|Cash and cash | | | |
|equivalents | 679,225| 727,133| 878,838|
| | | | |
|Restricted cash and | | | |
|short-term deposits | | | |
|(current and non- | | | |
|current) | 92,245| 132,462| 134,043|
| | | | |
|Less: VIE restricted | | | |
|cash and short-term | | | |
|deposits | (18,085)| (18,539)| (21,693)|
+-----------------------+-----------------+------------------+-----------------+
|Total Golar Cash | 753,385| 841,056| 991,188|
+-----------------------+-----------------+------------------+-----------------+
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 site
such as the floating production, storage and offloading unit. Delays to
contracted deliveries to site could result in incremental costs to both
parties to the LOA, delay commissioning works and the unlocking of FLNG Gimi
adjusted EBITDA backlog(1);
* 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;
* the recoverability of other pre-commissioning contractual prepayments that
we believe we could be entitled to receive from BP, including the Standby
Day Rate;
* our ability to meet our obligations under the liquefaction tolling agreement
(the "LTA") entered into in connection with the Hilli Episeyo ("FLNG
Hilli");
* our ability to recontract the FLNG Hilli once her current contract ends and
other competitive factors in the FLNG industry;
* 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 the Fuji LNG vessel,
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 schedules, performance specifications or
agreed prices;
* failure of our contract counterparties to comply with their agreements with
us or other key project stakeholders;
* our inability to expand our FLNG portfolio through our innovative FLNG
growth strategy;
* our ability to close potential future transactions in relation to equity
interests in our vessels, including the Golar Arctic, FLNG Hilli and FLNG
Gimi or to monetize our remaining equity method investments 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,
spares and redeployment related modification costs;
* continuing volatility in the global financial markets, including but not
limited to commodity prices and interest rates;
* 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 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 to rules and regulations applicable to companies with securities
listed on an EU regulated market, or with an EU presence, including but not
limited to the European Corporate Sustainability Reporting Directive;
* 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 the
Americas;
* a material decline or prolonged weakness in charter rates for LNG carriers
or tolling rates for FLNGs;
* potential tax claims from jurisdictions where we are currently operating or
have previously operated;
* changes in general domestic and international political conditions,
particularly where we operate, including in Senegal, 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.
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 unaudited consolidated
financial statements for the year ended December 31, 2023, which have been
prepared in accordance with accounting principles generally accepted in the
United States give a true and fair view of Golar's unaudited consolidated
assets, liabilities, financial position and results of operations. To the best
of our knowledge, the report for the year ended December 31, 2023, includes a
fair review of important events that have occurred during the period and their
impact on the unaudited consolidated financial statements, the principal risks
and uncertainties and major related party transactions.
Our actual results for the quarter and year ended December 31, 2023 will not be
available until after this press release is furnished and may differ from these
estimates. The preliminary financial information presented herein should not be
considered a substitute for the financial information to be filed with the SEC
in our Annual Report on Form 20-F for the year ended December 31, 2023 once it
becomes available. Accordingly, you should not place undue reliance upon these
preliminary financial results.
February 29, 2024
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
Tor Olav Trøim (Chairman of the Board)
Dan Rabun (Director)
Thorleif Egeli (Director)
Carl Steen (Director)
Niels Stolt-Nielsen (Director)
Lori Wheeler Naess (Director)
Georgina Sousa (Director)
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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