Golar LNG Interim results for the period ended June 30, 2019

Financial Highlights

  • Contract Earnings Backlog1 (Golar LNG Limited share) of $6.5 billion.
  • Agreed to phased buyback of the 3 million shares underlying the Total Return Swap (“TRS”) at an incremental cash cost of approximately $31 million.
  • Dividend suspended for two quarters to finance intended TRS buyback.
  • Adjusted net debt1 of $2.3 billion, $1.0 billion of which relates to Golar LNG Limited’s (“Golar” or “the Company’s”) 8 TFDE ships.
  • Post period, executed new financing facilities that add an immediate $180 million of liquidity.

Iain Ross, CEO, Golar LNG, said:

“Golar is bringing simplicity to its business, improving Group liquidity, reducing earnings volatility and taking steps to bring forward shareholder returns.

To maximize shareholder value we intend to suspend the dividend for two quarters in order to buy back the three million shares underlying the Total Return Swap, simplifying our capital structure and reducing the share count from 101 million to 98 million.

Within the Group, we have fixed four LNG carriers on floating rate contracts and two more on fixed rate charters. We have secured new financing facilities that will immediately release $180 million to Golar which, together with the $700m underwritten funding for the Gimi, de-risks the Group’s balance sheet and enhances liquidity. Finally, in Golar Power, we are securing customers and transport capacity to accelerate downstream LNG distribution projects capable of delivering swift returns.

Operationally, Golar made steady progress.  In Shipping, we have taken advantage of seasonally low rates to dry dock vessels ahead of the second half market upturn.  In FLNG, Hilli Episeyo maintained 100% commercial uptime, while the Gimi conversion project continues to budget and schedule. In Golar Power, Sergipe has reached its commissioning phase.”

Financial Summary

(in thousands of $)2Q 20192Q 20181Q 20191H 20191H 2018
Total operating revenues96,74559,374114,287211,032125,564
Net (loss)/income attributable to Golar LNG Limited(112,682)36,319(41,741)(154,423)15,317
Adjusted EBITDA139,6634,16262,897102,56013,400
Operating (loss)/income(23,435)78,40528,8645,42984,834
Dividend per share0.1250.1500.1500.175
Adjusted net debt12,258,8242,193,4512,197,3842,258,8242,193,451

Operational Highlights

Shipping:

  • Improved fleet utilization of 66%, versus 51% in 1Q 2019 (“1Q”); three of Golar’s 11 carriers  now employed on 1-5 year index linked contracts and two vessels on multi-month fixed rate charters.
  • Four of these five charters commence in 3Q 2019 providing greater visibility on future vessel utilization.
  • 2Q fleet TCE at $24,400 reflects a seasonally softer market as well as idle time associated with four dry-dockings in the period and a further three dry-dockings in 3Q.

FLNG:

  • FLNG Gimi – $700 million underwritten financing commitment. Conversion on budget and schedule.
  • FLNG Hilli Episeyo – 100% commercial uptime maintained: 25 cargoes exported to date. Negotiation with charterers regarding additional utilization continues; initiated discussions with charterers on a reduction in the Letter of Credit (“LC”) that would allow the release of up to $75 million of restricted cash.

Golar Power:

  • Sergipe power station remains on track for year-end completion.
  • Downstream LNG distribution business securing customers. Initial commitments made to secure isotainers and access to trucking; in advanced discussions with Avenir for small-scale shipping capacity.

Source / More : Golar LNG Limited

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