Interim results for the period ended March 31, 2022
- Golar LNG Limited ("Golar" or "the Company") reports Q1
2022 ("Q1") Net income of $345.2 million.
- Adjusted EBITDA1 of $93.4 million for the quarter
inclusive of FLNG Hilli, Golar Arctic and Golar Tundra but
excluding the 8 TFDE vessels and management companies sold to Cool
Company Ltd. ("CoolCo").
- Sold 6.2 million New Fortress Energy Inc. ("NFE")
shares in Q2 2022 ("Q2") realizing net cash proceeds of
$253 million. Golar now owns 12.4 million NFE
shares following the sale.
- Q1 Total Golar Cash and Listed Securities1 position
increased by $0.4 billion to $1.3 billion. Golar's share of
Contractual Debt1 decreased by $0.5 billion to $1.7 billion in Q1
and a further $0.5 billion in Q2 after sale of remaining carriers
to CoolCo in April.
- Agreed to sell the steam turbine carrier Golar Arctic
as a converted FSRU to Italy's Snam for 269 million Euros ($288
million).
- Strong progress made on opportunities for FSRU Golar
Tundra and on pipeline of FLNG projects.
Shipping spin-off: A key focus
for Q1 was the spin-off of our 8 TFDE LNG carriers into CoolCo.
CoolCo successfully concluded an upsized $275 million equity raise
in January, listed on the Euronext Growth Oslo exchange in
February, recruited a designated management team in March and
closed its acquisition of 8 LNG carriers and The Cool Pool Limited
from Golar during March and April. The sale of the management
companies is contemplated to complete in Q2. In total the CoolCo
transactions will reduce Golar’s contractual debt1 position by $821
million, release approximately $217 million in cash and cash
equivalents to Golar, whilst maintaining a 31.25% shareholding in
affiliate, CoolCo.
FLNG operations and commodity
hedges: FLNG Hilli maintained its unbroken 4-year record
of 100% uptime during the quarter and started to produce its
incremental 0.2mtpa of production, increasing scheduled production
volume from 1.2mtpa to 1.4mtpa. The incremental 0.2mtpa that has a
tariff linked to Dutch Title Transfer Facility ("TTF") gas prices
contributed $22.6 million of incremental proceeds net of commodity
swaps to Golar during Q1. The Brent oil linked component of the
tariff contributed $15.6 million, bringing Golar’s pro-rata share
of gross proceeds from Hilli for the quarter to $64.0 million.
Golar's share of the TTF linked gross proceeds is expected to be
$19.0 million in Q2 (fully hedged), $19.0 million in Q3 2022 (fully
hedged) and $20.0 million in Q4 2022 (open). Estimated Q4 2022 TTF
linked gross proceeds are based on a TTF spot price of $26.90/mmbtu
and can be expected to increase (or decrease) by $0.8 million for
each $1.00/MMBtu change in the TTF forward price. Hilli's earnings
could increase further from 2023 until the end of the contract if
the customer exercises a one-time 0.4mtpa TTF-linked option that
expires on July 31, 2022.
FLNG Gimi construction:
Conversion of FLNG Gimi for its 20-year contract with BP scheduled
to commence in Q4 2023 is 83% technically complete. Once delivered,
Gimi is expected to unlock around $3.0 billion of earnings backlog1
to Golar, equivalent to $151 million in annual Adjusted EBITDA1.
The commercial start-up of FLNG Gimi together with the commodity
linked production from FLNG Hilli could result in Golar's share of
annual Adjusted EBITDA1 generation from Hilli and Gimi exceeding
$400.0 million within 3-years, a quadrupling of 2021 FLNG related
earnings.
FLNG business development: We
are in detailed discussions with existing and prospective clients
for new FLNG projects. Some of these projects would offer direct
access to gas molecules or allow for a commodity linked earnings
component, whilst others are on a tolling basis. Based on
envisioned funding and ownership structures we expect that our
Total Golar Cash and Listed Securities1 position could fund two
FLNG growth projects.
FSRU: On May 18, 2022, Italian
energy infrastructure company Snam and Golar signed a contract that
will see Golar convert the last of its trading steam turbine LNG
carriers, Golar Arctic, into a FSRU for delivery to Snam at a port
in Sardinia, Italy. After conversion, acceptance and repayment of
any vessel related debt, the FSRU will be sold to the Snam Group
for 269 million Euros ($288 million). Initiation of activities
including procurement of long lead items for the conversion is
subject to Snam’s issuance of a Notice-to-Proceed. Once received,
the process of conversion and sale is expected to take up to two
years, with the vessel being required in a yard for around
9-months. Prior to entering the yard the Golar Arctic will continue
to be traded by Golar as an LNG carrier. The estimated conversion
cost is approximately $160 million due to the high specification of
equipment required and inflationary market conditions.
Developments in Europe have created an urgent
need for more floating LNG terminals. Golar has received multiple
approaches from European governments and utility companies for its
modern high-spec FSRU Golar Tundra.
Financial Summary
(in thousands of $) |
Q1 2022 |
Q1 2021 |
% Change |
Q4 2021 |
% Change |
|
|
|
|
|
|
Net
income attributable to Golar LNG Ltd |
345,182 |
25,364 |
1261% |
8,009 |
4210% |
Total
operating revenues |
79,688 |
77,456 |
3% |
72,414 |
10% |
Adjusted
EBITDA1 |
93,446 |
41,885 |
123% |
59,957 |
56% |
Golar's share of contractual debt 1 |
1,743,747 |
2,170,987 |
(20)% |
2,239,496 |
(22)% |
Q1 highlights and recent
events
Financial and corporate:
- Profitability: Net income attributable to
Golar of $345.2 million for the quarter, including:
- A $344.0 million non-cash mark-to-market gain recognized on NFE
shares based on a March 31, 2022 carrying value of $42.61 per
share.
- A $168.1 million non-cash gain recognized on Hilli Brent oil
and TTF natural gas linked derivative instruments.
- A discontinued operations net loss of $209.2 million inclusive
of a loss on sale/impairment in respect of the 8 carriers sold to
CoolCo.
- A $31.5 million gain on interest rate swaps.
- Hedges: Entered into swap arrangements to
hedge 100% of Golar's exposure to Q2 and Q3 2022 incremental Hilli
TTF linked 2022 production at an average TTF price of
$25.375/MMBtu.
- CoolCo transaction: $184.0 million of cash and
cash equivalents released to Golar and $340.1 million of
Contractual debt1 removed from balance sheet following sale of
first 4 vessels to CoolCo in Q1. Remaining 4 vessels sold in April
and disposal of management companies contemplated to complete in Q2
expected to release approximately $33.0 million of cash and cash
equivalents and derecognize a further $480.9 million of Contractual
debt1.
- Shares: Repurchased and then cancelled 368,496
Golar shares at a cost of $6.6 million. 108.0 million shares issued
and outstanding as of March 31, 2022.
- ESG: 2021 Environment, Social and Governance
report published on May 16, 2022.
- Invested in Oslo-based Aqualung Carbon Capture in May 2022, a
technology company working on a promising carbon capture and
separation membrane system that could be used on future FLNG
units.
Financing facilities:
- Convertible Bond: $317.3 million net
outstanding balance of 2.75% $402.5 million Convertible Bonds
redeemed on February 15, 2022.
- Credit Facility: $131.0 million of new
$200.0 million 3-year Corporate RCF drawn on February 4, 2022 and
subsequently repaid on May 10, 2022. Facility remains available
until 2024.
- Bilateral Corporate Facility: Executed a new
$250 million 7-year bilateral corporate facility on February 11,
2022. Currently undrawn and available until June 30, 2022.
- Finance tax lease case: Settled long running
tax dispute in respect of legacy UK finance lease transactions
resulting in an approximate $66.0 million final cash settlement
(including fees) payable by Golar in Q2.
FLNG:
- Utilization: Industry leading operations
maintained with 100% commercial uptime by FLNG Hilli.
- FLNG Hilli producing additional TTF linked 2022 volumes.
Customer drilling campaign to prove up additional reserves
completed with well testing underway.
- Construction: FLNG Gimi conversion project 83%
technically complete. 19-million man-hours worked with strong
safety record maintained.
- Commercial: Continued progress on new FLNG
projects with existing and new prospective counterparties.
Financial Review
Business Performance:
|
2022 |
2021 |
2021 |
|
Jan-Mar |
Oct-Dec |
Jan-Mar |
(in thousands of $) |
Total |
Total |
Total |
Net income |
410,014 |
45,811 |
63,104 |
Income taxes |
375 |
1,110 |
182 |
Net income before income taxes |
410,389 |
46,921 |
63,286 |
Depreciation and amortization |
15,536 |
15,621 |
15,646 |
Unrealized gain on oil and gas derivative instruments |
(168,059) |
(34,609) |
(10,600) |
Other non-operating (income)/losses |
(350,185) |
50,010 |
— |
Interest income |
(33) |
(69) |
(31) |
Interest expense |
7,577 |
11,098 |
9,089 |
Gains on derivative instruments |
(31,536) |
(7,285) |
(23,351) |
Other financial items, net |
(527) |
1,204 |
203 |
Losses/(income) from equity method investments |
1,056 |
(1,641) |
682 |
Net loss/(income) from discontinued operations |
209,228 |
(21,293) |
(13,039) |
Adjusted EBITDA (1) |
93,446 |
59,957 |
41,885 |
|
2022 |
2021 |
|
Jan-Mar |
Oct-Dec |
(in thousands) |
Shipping |
FLNG |
Corporate and other |
Total |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
9,985 |
62,894 |
6,809 |
79,688 |
9,806 |
56,406 |
6,202 |
72,414 |
Vessel operating expenses |
(3,488) |
(14,181) |
(1,789) |
(19,458) |
2,487 |
(11,907) |
(4,460) |
(13,880) |
Voyage, charterhire & commission (expenses)/income |
(2,241) |
(150) |
(24) |
(2,415) |
(1,474) |
(150) |
232 |
(1,392) |
Administrative expenses |
(2) |
(42) |
(9,994) |
(10,038) |
(56) |
(14) |
(9,545) |
(9,615) |
Project development (expenses)/income |
— |
(1,540) |
638 |
(902) |
143 |
(1,055) |
407 |
(505) |
Realized gain on oil and gas derivative instrument (2) |
— |
42,631 |
— |
42,631 |
— |
12,935 |
— |
12,935 |
Other operating income (3) |
— |
3,940 |
— |
3,940 |
— |
— |
— |
— |
Adjusted EBITDA(1) |
4,254 |
93,552 |
(4,360) |
93,446 |
10,906 |
56,215 |
(7,164) |
59,957 |
(2) The line item “Realized and unrealized gain
on oil and gas derivative instruments” in the Condensed
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 gain/(loss) on oil and gas
derivative instruments”. The realized component comprised (i) Brent
oil linked revenue of $17.5 million (December 31, 2021: $12.9
million), (ii) TTF-linked proceeds of $26.2 million and (iii)
commodity swap expense of $1.1 million and represents the
contracted amounts in relation to the Hilli LTA receivable in
cash.(3) Included in “Other operating income” is $3.6 million for
excess production over the contracted tolling capacity of
1.4 million tons.
|
2021 |
|
Jan-Mar |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
14,495 |
54,397 |
8,564 |
77,456 |
Vessel operating expenses |
(4,077) |
(12,300) |
(2,499) |
(18,876) |
Voyage, charterhire & commission expenses |
(6,341) |
(150) |
(16) |
(6,507) |
Administrative expenses |
(34) |
(143) |
(8,362) |
(8,539) |
Project development expenses |
— |
— |
(1,649) |
(1,649) |
Adjusted EBITDA |
4,043 |
41,804 |
(3,962) |
41,885 |
Golar reports today Q1 net income attributable
to Golar of $345.2 million. Golar also reports Adjusted EBITDA1 of
$93.4 million inclusive of FLNG Hilli, Golar Arctic and Golar
Tundra but excluding the 8 TFDE vessels and The Cool Pool Limited
sold to CoolCo in March and April 2022, and the management
companies, the sale of which is expected to complete in Q2. Q1
results associated with the 8 TFDE vessels and the Cool Pool
Limited sold to CoolCo and the management companies still to be
sold have been reclassified to Discontinued operations with Q1 2021
and Q4 2021 ("Q4") numbers adjusted on a retrospective basis
for comparison in the discussion of material movements below.
Quarterly amortization of the day one gain
recognized in respect of the incremental TTF linked production from
FLNG Hilli contributed to the $7.3 million increase in Total
operating revenues which increased from $72.4 million in Q4 to
$79.7 million in Q1. Fees for the additional TTF linked production
are accounted for within Realized and unrealized gains/losses on
oil and gas derivative instruments. Revenue from shipping (Golar
Arctic and Golar Tundra), net of voyage, charter hire and
commission expenses was $7.7 million and decreased by $0.6 million
from $8.3 million in Q4.
Vessel operating expenses increased, from $13.9
million in Q4 to $19.5 million in Q1, Q4 costs having been
suppressed by a $5.4 million insurance recovery.
The Brent oil linked component of Hilli's fees
generates additional annual operating cash flows of approximately
$3.1 million for every dollar increase in Brent Crude prices
between $60.00 per barrel and the contractual ceiling. Billing of
this component is based on a three-month look-back at average Brent
Crude prices. As a result of rising prices, a $17.5 million
realized gain on the oil derivative instrument was recorded in Q1,
up from the $12.9 million realized in Q4. Golar has an effective
89.1% interest in these earnings. A realized gain of $26.2 million
was also recognized in respect of fees for the additional TTF
linked production that commenced in Q1. Golar has an effective
86.3% interest in these earnings. Offsetting this was a $1.1
million realized loss (100% attributable to Golar) on the hedged
component of the quarter's TTF linked earnings. Collectively a
$42.6 million realized gain on oil and gas derivative
instruments was recognized as a result.
The mark-to-market fair value of the Hilli Brent
oil linked derivative asset increased by $169.6 million during the
quarter, with a corresponding unrealized gain of the same amount
recognized in the income statement. The fair value increase was
driven by an upward movement in the expected future market price
for Brent oil. Similarly, the mark-to-market fair value of the
Hilli TTF natural gas derivative asset increased by $24.1 million
during the quarter with a corresponding unrealized gain of the same
amount recognized in the income statement, also driven by an upward
movement in expected future TTF prices. Offsetting the unrealized
TTF gain is a $25.7 million unrealized loss in respect of the
hedged portion of Q2 and Q3 2022 TTF linked Hilli production.
Collectively this therefore resulted in a $168.1 million Q1
unrealized gain on oil and gas derivative instruments.
Of the $3.9 million Other operating income in
Q1, $3.6 million was recognized in respect of LNG production
over and above the quarter's pro-rata share of 1.4mt of full year
2022 contracted production.
An increase in the NFE share price between
January 1 and March 31 resulted in the recognition of a Q1
unrealized mark-to-market gain of $344.0 million on Golar’s
18.6 million NFE shares in Other non-operating income. The fair
value of these shares was $42.61 per share as of March 31, 2022.
Together with $1.9 million of dividend income from NFE and a
foreign exchange gain on the final tax settlement with the UK tax
authorities relative to the foreign exchange rate used when
recognizing the liability at December 31, 2021, this collectively
contributed to $350.2 million of Other non-operating income
during the quarter.
Balance Sheet and Liquidity:
As of March 31, 2022 Golar had $209.1 million of
cash and cash equivalents and $135.9 million of restricted cash.
Restricted cash includes $16.3 million relating to the Hilli
lessor-owned VIE. Total Golar cash1 position therefore amounts to
$328.6 million. As of March 31, 2022, $131.0 million had been
drawn down against the Corporate RCF of $200 million, secured by
our stake in NFE. On April 6, 2022 Golar sold
6.2 million NFE shares raising net proceeds of
$253 million and on May 10, 2022 the $131.0 million
Corporate RCF was repaid. The full $200 million undrawn Corporate
RCF continues to be available for future drawdown and is now
secured by Golar's remaining 12.4 million NFE shares. On
February 11, 2022 Golar also entered into a $250.0 million
bilateral corporate facility secured by the Company's equity stakes
in FLNG Hilli and Gimi. Undrawn as of March 31, 2022 and to the
current date, this facility remains available until June 30,
2022.
Expected FLNG funding sources |
USD Million |
March 31, 2022 Total Golar Cash1 |
329 |
April 2022: Net proceeds from sale of 6.2m NFE shares |
253 |
April 2022: Final settlement of legacy UK tax dispute |
(66) |
May 2022: Repayment of outstanding balance of Corporate RCF |
(131) |
Q2 2022 Balance of proceeds expected from CoolCo spin-off |
33 |
Undrawn balance of $200m Corporate RCF (up to) |
200 |
Undrawn $250m Corporate bilateral facility currently available
until 30 June, 2022 (up to) |
250 |
Potential near-term funding sources |
868 |
Listed Securities1: |
|
NFE, Avenir, and CoolCo shares(3) |
719 |
Net of Corporate RCF secured by NFE investment |
(200) |
Forecast Total Golar Cash and Listed Securities1 (available
for future FLNG investment) |
1,387 |
(3) Based on market value as of May 25, 2022 for
NFE and CoolCo and book value of Avenir as of March 31, 2022.
Inclusive of $10.6 million of capitalized
interest, $82.4 million was invested in FLNG Gimi during the
quarter, increasing the total Gimi Asset under development balance
as at March 31, 2022 to $960.3 million. Of this, $485.0 million had
been drawn against the $700 million debt facility. Both the
investment and debt drawn to date are reported on a 100% basis.
Golar's share of remaining capital expenditure, net of the
Company's share of remaining undrawn debt amounts to $213.0
million. Subsequent to the quarter end, a further $50.0 million has
been drawn against the $700 million facility.
Included within the $517.0 million current
portion of long-term debt and short-term debt as at March 31, 2022
is $370.9 million in respect of the Hilli lessor-owned VIE
subsidiary that Golar is required to consolidate. The Current
assets held for sale and Current liabilities held of sale of $644.1
million and $383.7 million respectively in Q1 include the remaining
four TFDE vessels and The Cool Pool Limited sold in April 2022 and
the management companies yet to be sold to CoolCo but contemplated
to complete in Q2. After sale of the remaining four TFDE vessels,
The Cool Pool Limited and the management companies, Golar's
Q2 equity method investments will increase by approximately $62.5
million.
Of Golar's $1.7 billion share of Contractual
debt1 as of March 31, 2022, $0.5 billion relates to the 4 TFDE
vessels sold in April 2022, leaving $1.2 billion. Net of Total
Golar cash of $0.3 billion, Net Debt1 therefore falls to around
$0.9 billion. If Listed Securities1 are taken into account, this
figure reduces to $0.2 billion. Assuming current commodity prices
prevail, Golar's share of 2022 Adjusted EBITDA1 remains on track to
reach $200.0 million. This could increase further in 2023 if the
customer exercises their option to increase Hilli production to up
to 1.6mtpa, and should exceed $400.0 million after the first full
year of Gimi operations, expected in 2024. Offering strong debt
coverage, near-term earnings power and meaningful growth potential
that can be financed, the simplified Golar is well positioned for
new FLNG projects.
Corporate and Other Matters:
As at March 31, 2022, Golar had 108.0 million
shares issued and outstanding post the repurchase and subsequent
cancellation of 368,496 shares during the quarter. There were also
1.1 million outstanding stock options with an average price of
$15.63 and 0.2 million unvested restricted stock units awarded. Of
the initial $50.0 million approved share buyback scheme, $19.0
million remains available for further repurchases which will
continue to be opportunistically pursued.
On May 11, 2022 Golar invested $2.4 million in
Aqualung Carbon Capture, an Oslo-based technology company that has
developed and achieved proof of concept for a CO2 capture and
separation membrane technology. Subject to the successful
completion of a commercial pilot project with an industrial user,
the technology could be used in future FLNG projects, enabling
Golar to offer interested customers the opportunity to further
reduce emissions from our already low carbon footprint FLNG
solutions. Golar has a 4.6% interest and a board seat in this
company.
Non-GAAP measures
In addition to disclosing financial results in
accordance with U.S. generally accepted accounting principles (US
GAAP), this earnings release and the associated investor
presentation contains references to the non-GAAP financial measures
which are included in the table below. We believe these non-GAAP
financial measures provide investors with useful supplemental
information about the financial performance of our business, enable
comparison of financial results between periods where certain items
may vary independent of business performance, and allow for greater
transparency with respect to key metrics used by management in
operating our business and measuring our performance.
These non-GAAP financial measures should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP. Non-GAAP measures are not
uniformly defined by all companies, and may not be comparable with
similarly titled measures and disclosures used by other companies.
The reconciliations from these results should be carefully
evaluated.
Non-GAAP measure |
Closest equivalent US GAAP measure |
Adjustments to reconcile to primary financial statements
prepared under US GAAP |
Rationale for adjustments |
Performance measures |
Adjusted EBITDA |
Net (loss)/income attributable to Golar LNG Limited |
+/- Net financial expense +/- Other non-operating
income/expenses +/- Income taxes +/- Equity in net
(losses)/ earnings of affiliates - Net income attributable to
non-controlling interests +/- Unrealized loss/(gain) on oil
and gas derivative instruments + Depreciation and
amortization + Impairment of long-term assets +/- Net
income/(loss) from discontinued operations |
Increases the comparability of total business performance from
period to period and against the performance of other companies by
excluding the results of our equity investments, removing the
impact of unrealized movements on embedded derivatives and removing
the impact of depreciation, financing and tax items. |
Last Twelve Months (“LTM”) Adjusted EBITDA |
Net (loss)/income attributable to Golar LNG Limited |
The sum of the most recent four quarters Adjusted EBITDA (defined
above) |
Same as Adjusted EBITDA. The 12 month trailing metric removes
the impact of seasonality on our results. |
Liquidity measures |
Contractual debt |
Total debt (current and non-current), net of deferred finance
charges |
'+ Debt within liabilities held for sale+VIE consolidation
adjustments + Deferred finance charges+ Deferred finance charges
within liabilities held for sale |
We consolidate a number of lessor VIEs for our sale and leaseback
facilities. This means that on consolidation, our contractual debt
is eliminated and replaced with the lessor VIEs’
debt. Contractual debt represents our debt obligations under
our various financing arrangements before consolidating the lessor
VIEs. 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
competitors. |
Total Golar Cash |
Golar cash based on GAAP measures: + Cash and cash
equivalents + Restricted cash and short-term deposits (current
and non-current) |
-VIE restricted cash and short-term deposits (current and
non-current) |
We consolidate a number of lessor VIEs for our sale and leaseback
facilities. This means that on consolidation, we include restricted
cash held by the lessor VIEs. Total Golar Cash represents our
cash and cash equivalents and restricted cash and short-term
deposits (current and non-current) before consolidating the lessor
VIEs. Management believe that this measure enables investors
and users of our financial statements to assess our liquidity and
aids comparability with our competitors. |
Total Golar Cash and Listed Securities |
Golar cash based on GAAP measures: + Cash and cash
equivalents + Restricted cash and short-term deposits (current
and non-current) + Other current assets + Equity method
investments |
Cash and cash equivalents (current assets) + Restricted cash
and short-term deposits (current assets), adjusted to remove the
effects of VIE restricted cash balance cash balance + Other
current assets, adjusted to remove the effects of other current
assets apart from Listed equity securities + Restricted cash
(non-current assets) + Equity method investments (non-current
assets), adjusted to remove the effects of ECGS |
We consider our investments in listed equity securities and our
equity method investment in CoolCo to be available for us to
liquidate at short notice and therefore we consider available for
funding our capital intensive growth projects. Management
believes that this measure enables investors and users of our
financial statements to assess our liquidity position to fund
existing and future FLNG projects. |
Reconciliations - Liquidity Measures
Contractual Debt
(in thousands of $) |
March 31, 2022 |
December 31, 2021 |
March 31, 2021 |
Total debt (current and non-current) net of deferred finance
charges |
1,641,631 |
1,778,978 |
1,605,435 |
Total debt within liabilities held for sale net of deferred finance
charges |
319,263 |
630,823 |
768,447 |
VIE consolidation adjustments |
285,107 |
315,652 |
295,466 |
Deferred finance charges |
29,170 |
30,529 |
25,466 |
Deferred finance charges within liabilities held for sale |
8 |
1,595 |
2,202 |
Total Contractual Debt |
2,275,179 |
2,757,577 |
2,697,016 |
Less: Golar Partners', Keppel's and B&V's share of the Hilli
contractual debt |
(385,932) |
(395,081) |
(422,529) |
Less: Keppel's share of the Gimi debt |
(145,500) |
(123,000) |
(103,500) |
Golar's share of Contractual Debt |
1,743,747 |
2,239,496 |
2,170,987 |
Please see Appendix A for a capital repayment
profile for Golar’s contractual debt.
Reconciliations - Liquidity
Measures
Total Golar Cash
(in thousands of $) |
March 31, 2022 |
December 31, 2021 |
March 31, 2021 |
Cash and cash equivalents |
209,054 |
234,826 |
122,887 |
Restricted cash and short-term deposits (current and
non-current) |
135,870 |
106,074 |
118,721 |
Less: VIE restricted cash |
(16,313) |
(16,523) |
(26,642) |
Total Golar Cash |
328,611 |
324,377 |
214,966 |
Non-US GAAP Measures Used in
Forecasting
Earnings Backlog: Earnings
backlog represents the share of contracted fee income for executed
contracts less forecasted operating expenses for these contracts.
In calculating forecasted operating expenditure, management has
assumed that where there is an Operating Services Agreement the
amount receivable under the services agreement will cover the
associated operating costs, therefore revenue from operating
services agreements is excluded.
Definitions
TFDE: Tri-fuel Diesel Electric engine
FSRU: Floating Storage Regasification
UnitFLNG: Floating Liquefaction Natural Gas
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 “believe,”
“anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “will,” “may,” “should,” “expect,” “may,” “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 subject to certain risks, uncertainties
and other factors, some of which are beyond our control and are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Unless legally required, Golar undertakes no
obligation to update publicly any forward-looking statements
whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements
are:
- our inability and that of our counterparty to meet our
respective obligations under the Lease and Operate Agreement
entered into in connection with the BP Greater Tortue / Ahmeyim
Project (“Gimi GTA Project”);
- 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 Gimi GTA Project) and other
contracts to which we are a party;
- claims made or losses incurred in connection with our
continuing obligations with regard to Hygo Energy Transition Ltd
(“Hygo”) and Golar LNG Partners LP (“Golar Partners”);
- the ability of Hygo, Golar Partners and New Fortress Energy
Inc. (“NFE”) to meet their respective obligations to us, including
indemnification obligations;
- a decline or continuing volatility in the global financial
markets, specifically with respect to our equity holding in
NFE;
- continuing volatility of commodity prices;
- failure of shipyards to comply with delivery schedules or
performance specifications on a timely basis or at all;
- changes to rules and regulations applicable to liquefied
natural gas (“LNG”) carriers, floating storage and regasification
units (“FSRUs”), floating liquefaction natural gas vessels
(“FLNGs”) or other parts of the LNG supply chain;
- changes in our ability to retrofit vessels as FSRUs or FLNGs
and in our ability to obtain financing for such conversions on
acceptable terms or at all;
- changes in our ability to obtain additional financing on
acceptable terms or at all;
- the length and severity of outbreaks of pandemics, including
the worldwide outbreak of the novel coronavirus (“COVID-19”) and
its impact on demand for LNG and natural gas, the timing of
completion of our conversion projects, the operations of our
charterers, our global operations and our business in general;
- failure of our contract counterparties to comply with their
agreements with us or other key project stakeholders;
- changes in LNG carrier, FSRU, or FLNG charter rates, vessel
values or technological advancements;
- our ability to close potential future sales of additional
equity interests in our vessels, including the Hilli and Gimi or to
monetize our remaining interest in NFE on a timely basis or at
all;
- our ability to contract the full utilization of the Hilli or
other vessels;
- changes in the supply of or demand for LNG or LNG carried by
sea and for LNG carriers, FSRUs or FLNGs;
- a material decline or prolonged weakness in rates for LNG
carriers, FSRUs or FLNGs;
- increases in costs, including, among other things, wages,
insurance, provisions, repairs and maintenance;
- changes in the performance of the pool in which certain of our
vessels operate;
- changes in trading patterns that affect the opportunities for
the profitable operation of LNG carriers, FSRUs or FLNGs;
- changes in the supply of or demand for natural gas generally or
in particular regions;
- changes in our relationships with our counterparties, including
our major chartering parties;
- changes in our relationship with our affiliates and the
sustainability of any distributions they pay us;
- changes in general domestic and international political
conditions, particularly where we operate;
- global economic trends, competition and geopolitical risks,
including impacts from the ongoing conflict in Ukraine and the
related sanctions and other measures, including the related impacts
on the supply chain for our conversions;
- changes in the availability of vessels to purchase and in the
time it takes to build new vessels;
- our inability to expand beyond the carriage of LNG and
provision of FSRU and FLNGs, particularly through our innovative
FLNG strategy;
- actions taken by regulatory authorities that may prohibit the
access of LNG carriers, FSRUs 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 Securities and Exchange Commission, or the
Commission, including our most recent annual report on Form
20-F.
As a result, you are cautioned not to rely on
any forward-looking statements. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise unless required by
law.
May 26, 2022The Board of DirectorsGolar LNG
LimitedHamilton, BermudaInvestor Questions: +44 207 063
7900Karl Fredrik Staubo - CEOEduardo 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
- Interim results for the period ended March 31, 2022
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