Interim results for the period ended June 30, 2022
- Golar LNG Limited ("Golar" or "the Company") reports
Net income of $230.0 million and Adjusted EBITDA1
of $101.0 million for Q2 2022 ("Q2" or "the
quarter").
- Sold the FSRU Golar Tundra for $350.0 million and
agreed to sell the steam turbine LNG carrier Golar Arctic as a
converted FSRU to Italy's Snam Group ("Snam") for €269.0
million.
- Completed the sale of remaining TFDE carriers, The Cool
Pool Limited, and Golar's shipping and FSRU management organization
to Cool Company Ltd. (“CoolCo”).
- Golar's share of Q2 Contractual Debt1
decreased from $1.7 billion at Q1 2022 to $1.0 billion at Q2
2022.
- Subsequent to the quarter end, FLNG Hilli customer
elected to exercise optional capacity of 0.2 million tons per annum
("MTPA") of Dutch Title Transfer Facility (“TTF”) linked production
volumes from 2023 to 2026.
- Entered into swap arrangements to hedge approximately
50% of Golar's exposure to TTF linked production for 2023 at a TTF
price of $49.50/MMBtu.
- Advancing MKII newbuild activities scheduled for
delivery in 2025.
- Target FLNG project announcement within
2022.
FLNG operations: FLNG Hilli
maintained its 4+ year unbroken record of 100% uptime during Q2.
Distributable Adjusted EBITDA1 from FLNG Hilli was $92.5 million
for the quarter, of which Golar's share was $62.5 million. On July
27, 2022, Hilli customers Perenco Cameroon S.A. and Société
Nationale des Hydrocarbures declared 0.2MTPA of their TTF linked
optional production from 2023 until the end of the current contract
in July 2026. On August 9, 2022 Golar entered into swap
arrangements to hedge approximately 50% of Golar's exposure to the
2023 TTF linked production, securing around $80.0 million of 2023
Distributable Adjusted EBITDA1. Based on current average 2023 TTF
gas prices for the remaining unhedged portion, Golar’s share of
2023 TTF linked gross proceeds from the TTF linked volume is
expected to be $160.0 million. Including the Brent oil forward
curve ($88/bbl), and the fixed tariff, Golar's share of
Distributable Adjusted EBITDA1 from Hilli is expected to be
approximately $305.0 million in 2023. Golar's share of forecast
2023 total annual debt service for Hilli's contractual debt is
approximately $50.0 million (debt amortization of approximately
$29.0 million and interest of approximately $21.0 million).
FLNG Gimi construction:
Conversion of FLNG Gimi for its 20-year contract with BP scheduled
to commence in Q4 2023 is 86% technically complete. During the
quarter Golar and Keppel Capital, together the owners of FLNG Gimi,
agreed to a $50.0 million incentive payment to Keppel Shipyard for
initiatives to safeguard sail away within H1 2023. Golar owns 70%
of FLNG Gimi, hence $35.0 million of the incentive payment will be
for Golar's account. This will initially be funded from cash on
hand. Once commissioned and delivered to the customer, FLNG 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 FLNG Hilli and FLNG Gimi exceeding
$400.0 million within 2.5 years.
FLNG business development:
Multiple new client engagements during the quarter as well as
strong development of the existing FLNG growth pipeline across both
integrated and tolling based projects.
Yard availability and updated pricing for both
MKI and MKII designs was confirmed during the quarter, and in
discussion for MKIII. Indicative pricing suggests a capex per ton
of liquefaction capacity of between $500-600 million/ton. Both MKI
and MKII designs can be delivered within 2025 if ordered during 2H
2022. Competitive construction and long-term lease financing term
sheets for FLNG growth projects have been received.
Golar is ramping up construction engineering
work and planning to order long-lead items during H2 for a MKII
design FLNG, with a liquefaction capacity of up to 3.5MTPA. A
suitable conversion candidate vessel has been identified and
inspected.
Based on progress across the FLNG growth
portfolio the Company maintains its target for FLNG announcement
within 2022.
FSRU: Italian energy
infrastructure company Snam and Golar signed two contracts. The
first contract will see Golar convert the last of its trading steam
turbine LNG carriers, Golar Arctic, into a FSRU. After its
conversion, ownership of the Golar Arctic will be transferred to
Snam who will pay €269.0 million for the completed FSRU.
Following Snam's issuance of a Notice-to-Proceed, the conversion is
expected to take up to two years. Golar will continue to trade the
vessel as a carrier until it enters the yard for conversion.
The second contract saw Snam acquire the FSRU
Golar Tundra for $350.0 million. After repayment of vessel
debt and fees, Golar received net proceeds of $193.1 million
in cash. Golar has agreed to lease the vessel back from Snam and
trade it as an LNG carrier until November 2022, generating
incremental earnings that will be reported in discontinued
operations until Q4 2022. Golar also expects to enter into a
development agreement to assist Snam with technical work on the
vessel before start-up of FSRU operations.
Financial Summary
(in thousands of $) |
Q2 2022 |
Q2 2021 |
% Change |
YTD 2022 |
YTD 2021 |
% Change |
Net
income attributable to Golar LNG Ltd |
230,032 |
471,434 |
(51)% |
575,214 |
496,797 |
16% |
Total
operating revenues |
67,227 |
65,303 |
3% |
140,165 |
131,105 |
7% |
Adjusted
EBITDA |
100,952 |
39,665 |
155% |
190,647 |
80,199 |
138% |
Golar's share of contractual debt1 |
1,002,228 |
2,186,512 |
(54)% |
1,002,228 |
2,186,512 |
(54)% |
Q2 Highlights and recent
events
Financial and corporate:
- Profitability: Net income attributable to
Golar of $230.0 million for the quarter, including:
- A $181.6 million unrealized gain (100% basis) on the Hilli
Brent oil and TTF natural gas linked derivative instruments.
- A $55.0 million realized gain (100% basis) on the Hilli Brent
oil and TTF natural gas linked derivative instruments.
- A $123.3 million realized gain on sale of the FSRU Golar
Tundra.
- A $76.2 million impairment charge recognized in respect of
the Golar Arctic.
- A $11.2 million realized loss on the 6.2 million New Fortress
Energy Inc. ("NFE") shares sold on April 6, 2022.
- A $37.8 million unrealized mark-to-market loss recognized on
Golar's 12.4 million NFE shares held as at June 30, 2022 based on a
June 30, 2022 carrying value of $39.57 per share.
- A $16.3 million unrealized gain on interest rate swaps.
- CoolCo transaction: Sale of the remaining 4
TFDE vessels, The Cool Pool Limited, and Golar's shipping and FSRU
management organization released $34.3 million of cash and cash
equivalents and reduced Contractual Debt1 by $480.9
million.
- Tundra transaction: Sale of the FSRU Golar
Tundra released $193.1 million of cash and cash equivalents
and reduced Contractual Debt1 by $155.5 million.
- Arctic transaction: Agreed to sell the LNG
carrier Golar Arctic as a converted FSRU for €269.0 million,
triggering the recognition of a non-cash $76.2 million
impairment charge.
- Hedges: Entered into swap arrangements on
August 9, 2022 to hedge approximately 50% of Golar's exposure to
TTF linked production for 2023 at a TTF price of $49.50/MMBtu.
- Golar shares: Repurchased and then cancelled
200,000 Golar shares at a cost of $4.5 million.
107.8 million shares issued and outstanding as of June 30,
2022.
- ESG: 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:
- Credit Facility: Repaid the $131.0 million Q1
2022 drawn balance of the $200.0 million 3-year corporate revolving
credit facility. The facility remains available until 2024 and is
currently undrawn.
- Bilateral Corporate Facility: Agreed to expire
the $250 million undrawn bilateral corporate facility available
until June 30, 2022 as year to date balance sheet initiatives allow
for FLNG growth to be funded from existing cash balances and
undrawn credit facilities.
- Legacy UK tax lease case: Settled long running
tax dispute in respect of UK tax lease transactions resulting in a
$66.4 million final cash settlement (including fees).
FLNG:
- Utilization: Industry leading operations
maintained with 100% commercial uptime by FLNG Hilli.
- TTF linked tariff volumes: Subsequent to the
quarter end, FLNG Hilli customer elected to exercise 0.2 MTPA
pursuant to its 2023+ capacity option which results in TTF linked
production volumes from 2023 to July 2026 continuing at 2022
levels.
- Construction: FLNG Gimi conversion project 86%
technically complete. 22-million man-hours worked with strong
safety record maintained. Gimi owners agreed to pay Keppel Shipyard
an incentive payment of an additional $50.0 million to safeguard 1H
2023 sail away. On schedule for Q4 2023 start-up.
Financial Review
Business Performance:
|
2022 |
2021 |
|
Apr-Jun |
Jan-Mar |
Apr-Jun |
(in thousands of $) |
Total |
Total |
Total |
Net income |
286,538 |
410,014 |
507,337 |
Income taxes |
(190) |
374 |
92 |
Net income before income taxes |
286,348 |
410,388 |
507,429 |
Depreciation and amortization |
13,138 |
13,742 |
13,861 |
Impairment of long-term assets |
76,155 |
— |
— |
Unrealized gain on oil and gas derivative instruments |
(181,548) |
(168,059) |
(70,590) |
Realized and unrealized MTM loss/(gain) on our investment in listed
equity securities |
49,001 |
(344,049) |
84,801 |
Other non-operating (income)/losses |
(3,887) |
(6,136) |
73,293 |
Interest income |
(921) |
(33) |
(27) |
Interest expense |
5,279 |
6,156 |
8,110 |
(Gains)/losses on derivative instruments |
(16,341) |
(31,536) |
6,869 |
Other financial items, net |
4,215 |
(608) |
(737) |
Net (income)/losses from equity method investments |
(4,065) |
1,056 |
(839) |
Net (income)/loss from discontinued operations |
(126,422) |
208,774 |
(582,505) |
Adjusted EBITDA (1) |
100,952 |
89,695 |
39,665 |
|
2022 |
|
Apr-Jun |
Jan-Mar |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
— |
60,527 |
6,700 |
67,227 |
3,235 |
62,894 |
6,809 |
72,938 |
Vessel operating expenses |
(1,685) |
(14,972) |
(1,439) |
(18,096) |
(2,134) |
(14,181) |
(1,789) |
(18,104) |
Voyage, charterhire & commission expenses |
(569) |
(150) |
(25) |
(744) |
(540) |
(150) |
(25) |
(715) |
Administrative expenses |
71 |
13 |
(10,003) |
(9,919) |
(2) |
(42) |
(10,100) |
(10,144) |
Project development (expenses)/income |
— |
(3,462) |
761 |
(2,701) |
— |
(1,540) |
689 |
(851) |
Realized gains on oil derivative instrument (2) |
— |
55,019 |
— |
55,019 |
— |
42,631 |
— |
42,631 |
Other operating income (3) |
— |
10,166 |
— |
10,166 |
— |
3,940 |
— |
3,940 |
Adjusted EBITDA (1) |
(2,183) |
107,141 |
(4,006) |
100,952 |
559 |
93,552 |
(4,416) |
89,695 |
(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 fees of $32.6 million (March 31, 2022: $17.5
million), (ii) TTF-linked proceeds of $29.4 million (March 31,
2022: $26.3 million) and (iii) commodity swap expense of
$7.0 million (March 31, 2022: $1.1 million) and represents the
contracted amounts in relation to the Hilli LTA receivable in
cash.
(3) Included in “Other operating income” is
$10.2 million (March 31, 2022: $3.6 million) for production over
Hilli's contracted tolling capacity of 1.4MTPA.
|
2021 |
|
Apr-Jun |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
2,849 |
55,737 |
6,717 |
65,303 |
Vessel operating expenses |
(1,696) |
(13,745) |
(2,682) |
(18,123) |
Voyage, charterhire & commission expenses |
(50) |
(150) |
(25) |
(225) |
Administrative expenses |
(14) |
(185) |
(9,332) |
(9,531) |
Project development expenses |
— |
(16) |
(718) |
(734) |
Realized gains on oil derivative instrument |
— |
2,975 |
— |
2,975 |
Adjusted EBITDA (1) |
1,089 |
44,616 |
(6,040) |
39,665 |
Golar reports today Q2 net income attributable
to Golar of $230.0 million. Golar also reports Adjusted EBITDA1 of
$101.0 million inclusive of FLNG Hilli and LNG carrier Golar Arctic
but excluding the FSRU Golar Tundra that was sold to Snam on May
31, 2022, and the TFDE carriers, The Cool Pool Limited, and Golar's
shipping and FSRU management organization sold to CoolCo during the
quarter. Pro-rata Q2 results associated with these assets and
entities are reported in discontinued operations.
On May 17, 2022 Golar entered into agreements
with Snam relating to the conversion and subsequent sale of the
converted LNG carrier Golar Arctic. Although ownership of the
converted FSRU is not expected to transfer for up to 3-years, the
transaction triggered an immediate impairment test. As the carrying
value of the vessel exceeds its fair value as a carrier as of June
30, 2022, an impairment charge of $76.2 million has been
recognized. The sale is expected to generate net positive cash and
a gain on sale upon completion.
The Brent oil linked component of FLNG 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 higher commodity prices,
a $32.6 million realized gain on the oil derivative instrument
was recorded in Q2, up from the $17.5 million realized in Q1. Golar
has an effective 89.1% interest in these earnings. A Q2 realized
gain of $29.4 million was also recognized in respect of fees
for the TTF linked production, up from the $26.3 million realized
in Q1. Golar has an effective 86.9% interest in these earnings.
Offsetting this was a $7.0 million realized loss (100%
attributable to Golar) on the hedged component of the quarter's TTF
linked earnings. Collectively a $55.0 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 decreased by $0.3 million during the
quarter, with a corresponding unrealized loss of the same amount
recognized in the income statement. The fair value decrease was
driven by a downward movement in the expected future market price
for Brent oil. Predominantly driven by the recognition of a
derivative asset reflecting the valuation of the discounted value
of the tolling fee above the floor in respect of the customer's TTF
linked capacity for 2023-2026, the mark-to-market fair value of the
Hilli TTF natural gas derivative asset increased by $170.5 million
during the quarter with a corresponding unrealized gain of the same
amount recognized in the income statement. A $11.4 million
unrealized gain in respect of the hedged portion of Q3 2022 TTF
linked Hilli production was also recognized during the quarter.
Collectively this therefore resulted in a $181.6 million Q2
unrealized gain on oil and gas derivative instruments.
FLNG Hilli production over and above the
quarter's pro-rata share of 1.4 million tons of full year 2022
contracted production resulted in the recognition of $10.2 million
of Other operating income during the quarter.
The pricing of the 6.2 million NFE shares sold
on April 6, 2022 was less than their carrying value and a $11.2
million realized loss was recorded. A decrease in the NFE share
price between April 1 and June 30 also resulted in the recognition
of a Q2 unrealized mark-to-market loss of $37.8 million on Golar’s
remaining 12.4 million NFE shares in Other non-operating losses.
The fair value of these shares was $39.57 per share as of June 30,
2022 (price as of August 9, 2022 was $54.92). Together with $1.2
million of dividend income from NFE, this collectively contributed
to most of the $45.1 million of Other non-operating losses during
the quarter.
Balance Sheet and Liquidity:
As of June 30, 2022 Golar had
$528.8 million of cash and cash equivalents and
$91.5 million of restricted cash. Restricted cash includes
$16.7 million relating to the Hilli lessor-owned VIE. Total
Golar Cash1 therefore amounts to $603.5 million. This includes
$253.0 million of net proceeds from the sale of NFE shares,
$193.1 million net proceeds from the sale of FSRU Golar
Tundra, repayment of the $131.0 million Corporate RCF, and
settlement of the $66.4 million legacy UK tax lease case. The full
$200.0 million undrawn Corporate RCF continues to be available for
future drawdown and is secured by Golar's remaining 12.4 million
NFE shares.
Expected FLNG funding sources(in millions of $) |
June 30, 2022 |
August 10, 2022 |
Total Golar Cash1,2 |
604 |
604 |
Undrawn $200m Corporate RCF (up to) |
200 |
200 |
Potential near-term funding sources |
804 |
804 |
Listed Securities |
|
|
NFE, Avenir LNG Limited, and CoolCo shares1,3 |
672 |
879 |
Net of Corporate RCF secured by NFE investment |
(200) |
(200) |
Forecast Total Golar Cash and Listed Securities1
(available for future FLNG growth) |
1,276 |
1,483 |
(2) Assumed unchanged from June 30, 2022(3)
Based on market value of NFE and book value of CoolCo and Avenir
LNG Limited.
Inclusive of $13.3 million of capitalized
interest, $107.3 million was invested in FLNG Gimi during the
quarter, increasing the total FLNG Gimi Asset under development
balance as at June 30, 2022 to $1.1 billion. Of this, $535.0
million had been drawn against the $700 million debt facility. Both
the investment and debt drawn to date are reported on a 100% basis.
During the quarter the Gimi owners (of which Golar owns 70%),
agreed to pay Keppel Shipyard an additional $50.0 million in order
to safeguard a 1H 2023 sail away. This increases the capital cost
of FLNG Gimi to $1.43 billion, of which around 10% is payable
whilst the vessel will receive a reduced rate of hire during
commissioning and post customer acceptance full rate hire. Golar's
share of remaining capital expenditure to be funded out of equity
and cash from commissioning hire and operations, net of the
Company's share of remaining undrawn debt amounts to $228.0
million.
Included within the $366.8 million current
portion of long-term debt and short-term debt as at June 30, 2022
is $359.6 million in respect of the Hilli lessor-owned VIE
subsidiary that Golar is required to consolidate. Contractual Debt1
attributable to Golar amounts to $1.0 billion. Net of Total
Golar Cash1 of $0.6 billion, Net Debt1 therefore falls to
around $0.4 billion. If the value of Total Golar Cash and Listed
Securities1 as of June 30, 2022 is taken into account, this figure
becomes net cash of $0.3 billion. Assuming current commodity prices
prevail, Golar's share of 2022 Adjusted EBITDA1 is on track to
exceed $200.0 million, $250 million in 2023 and $400 million in
2024. Offering strong debt coverage, near-term earnings power and
meaningful growth potential that can be financed, Golar is well
positioned to support a final investment decision on at least two
of the several new FLNG projects it is working on.
Corporate and Other Matters:
As at June 30, 2022, Golar had 107.8 million
shares issued and outstanding. There were also 1.0 million
outstanding stock options with an average price of $15.49 and 0.2
million unvested restricted stock units. Subsequent to the quarter
end 0.1 million performance stock units were also awarded. These
will vest over a three year period commencing July 2022. Of the
initial $50.0 million approved share buyback scheme, $14.5 million
remains available for further repurchases which will continue to be
opportunistically pursued. The Annual General Meeting was held on
August 10, 2022.
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, impairment,
depreciation, financing costs, tax items and discontinued
operations. |
Hilli's Distributable 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- Amortization of
deferred commissioning period revenue, Amortization of Day 1 gain-
Accrued overproduction revenue+ Overproduction revenue
received |
Increases the comparability of our operational FLNG, Hilli from
period to period and against the performance of other companies by
removing the non distributable income of Hilli, project
developmental costs and the Gandria and Gimi operating costs.
|
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 |
We consolidate a lessor VIE for our sale and leaseback facility.
This means that on consolidation, we include restricted cash held
by the lessor VIE. Total Golar Cash 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. |
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 |
- VIE restricted cash balance- Trade receivables- Inventories- Gas
derivative instrument- TTF swap collateral- Prepaid expenses- MTM
commodity swap valuation- Investment in 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. |
Definitions:
TFDE: Tri-fuel Diesel Electric
engineFSRU: Floating Storage Regasification
UnitFLNG: Floating Liquefaction Natural Gas
Reconciliations - Liquidity
Measures
Contractual Debt
(in thousands of $) |
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
Total debt (current and non-current) net of deferred finance
charges |
1,382,277 |
1,488,336 |
1,553,775 |
Total debt within liabilities held for sale net of deferred finance
charges |
— |
472,558 |
825,806 |
VIE consolidation adjustments |
132,790 |
285,107 |
316,894 |
Deferred finance charges |
24,444 |
26,942 |
24,162 |
Deferred finance charges within liabilities held for sale |
— |
2,236 |
2,255 |
Total Contractual Debt |
1,539,511 |
2,275,179 |
2,722,892 |
Less: Golar Partners', Keppel's and B&V's share of the Hilli
contractual debt |
(376,783) |
(385,932) |
(413,380) |
Less: Keppel's share of the Gimi debt |
(160,500) |
(145,500) |
(123,000) |
GLNG's Contractual Debt |
1,002,228 |
1,743,747 |
2,186,512 |
Please see Appendix A for a capital repayment
profile for Golar’s contractual debt.
Total Golar Cash
(in thousands of $) |
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
Cash and cash equivalents |
528,798 |
207,035 |
174,438 |
Restricted cash and short-term deposits (current and
non-current) |
91,466 |
135,870 |
93,195 |
Less: VIE restricted cash |
(16,735) |
(16,313) |
(16,504) |
Total Golar Cash |
603,529 |
326,592 |
251,129 |
Total Golar Cash and Listed
Securities
(in thousands of $) |
June 30, 2022 |
Cash and cash equivalents |
528,798 |
Restricted cash and short-term deposits (current and
non-current) |
91,466 |
Other current assets |
569,013 |
Equity method investments |
184,693 |
Less: VIE restricted cash |
(16,735) |
Less: Trade receivables |
(54,380) |
Less: Inventories |
(2,230) |
Less: Gas derivative instrument |
— |
Less: TTF swap collateral |
(13,520) |
Less: Prepaid expenses |
(4,278) |
Less: Other receivables |
(2,851) |
Less: Investment in ECGS |
(4,455) |
Total Golar Cash and Listed Securities(1) |
1,275,521 |
(1) Total Golar Cash and Listed Securities is
based on net book value of our equity method investments and the
listed securities as of the period end date.
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.
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,” “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;
- continuing volatility of commodity prices;
- claims made or losses incurred in connection with our
continuing obligations with regard to Hygo Energy Transition Ltd
(“Hygo”), Golar LNG Partners LP (“Golar Partners”), Cool Co Ltd.
(“CoolCo”) and Snam S.p.A. ("Snam");
- the ability of Hygo, Golar Partners and New Fortress Energy
Inc. (“NFE”) and CoolCo 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;
- 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;
- increases in costs, including, among other things, wages,
insurance, provisions, repairs and maintenance;
- 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 FLNG charter rates/terms, vessel values or
technological advancements;
- our ability to close potential future sales of additional
equity interests in our vessels, including the FLNG Hilli and FLNG
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 FLNG Hilli
or other vessels;
- our ability to realize the expected benefits from investments
we have made and may make in the future;
- 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
FLNGs;
- 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;
- 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 provision of FLNGs and
FSRUs, 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.
Responsibility StatementWe
confirm that, to the best of our knowledge, the interim
consolidated financial statements for the first half year of 2022,
which have been prepared in accordance with accounting principles
generally accepted in the United States (US GAAP) give a true and
fair view of the Company’s consolidated assets, liabilities,
financial position and results of operations. To the best of our
knowledge, the interim report for the first half year of 2022
includes a fair review of important events that have occurred
during the period and their impact on the interim consolidated
financial statements, the principal risks and uncertainties for the
remaining half of 2022, and major related party transactions.
August 11, 2022The Board of DirectorsGolar LNG
LimitedHamilton, BermudaInvestor Questions: +44 207 063
7900Karl Fredrik Staubo - CEOEduardo 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
- Interim results for the period ended June 30 2022
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