Commercial Update
FLNG Hilli – Hedged part of TTF linked
production for Q1 2022:
Golar is pleased to announce that it has entered
into swap arrangements to hedge part of its TTF price exposure for
the incremental 0.2 MTPA train 3 production for Q1 2022 at a TTF
price of $28/MMBtu. With TTF gas prices averaging $28/MMBtu during
Q1 2022, the additional capacity utilization is expected to realize
$21.2 million of Net Income to Golar for the quarter. This implies
a gross tolling fee of $11.4/MMBtu for the incremental production.
For each $1.00/MMBtu change in TTF, Net Income realized by Golar
will increase (or decrease) by $0.4 million for unhedged volumes
during Q1 2022.
Golar is also realizing increased Net Income
from the Brent link component of production from trains 1 and 2.
Golar’s realized share of Net Income increases by $2.7m for every
$1/bbl that Brent is above $60/bbl. Assuming the current oil price
of approximately $83/bbl for 2022, Net Income realized from the oil
derivative will be approximately $15.5m for Q1 2022 or $62m for the
full year.
Shipping:
Golar has recently secured a 1-year fixed time
charter for one of its carriers. This will generate approximately
$36.5 million of revenue. The seasonal and cyclical strength of the
LNG carrier segment remains encouraging. Increasing price
arbitrages between LNG trading basins is driving up LNG freight
rates in the short term. Increasing demand for LNG freight together
with new environmental regulations impacting effective supply of
LNG carriers from 2023 add support to the medium and long-term
outlook. Charterers are increasingly looking for longer term
charters to secure shipping availability.
About Golar
Golar LNG is one of the world's most innovative
and experienced independent owners and operators of marine LNG
infrastructure. The company developed the world's first Floating
LNG liquefaction terminal (FLNG) and Floating Storage and
Regasification Unit (FSRU) projects based on the conversion of
existing LNG carriers. Front End Engineering and Design (FEED)
studies have also been completed for a larger newbuild FLNG
solution.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements (as defined in Section 21E of the Securities Exchange
Act of 1934, as amended) which reflects management’s current
expectations, estimates and projections about its operations. All
statements, other than statements of historical facts, that address
activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as “may,”
“could,” “should,” “would,” “expect,” “plan,” “anticipate,”
“intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,”
“potential,” “continue,” or the negative of these terms and similar
expressions are intended to identify such forward-looking
statements.
These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Golar LNG Limited undertakes no obligation
to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by applicable law.
Hamilton, Bermuda
October 13, 2021
Enquiries:
Golar Management Limited: + 44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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