Golar LNG Interim Results to September 30, 2019

Golar reports today 3Q operating losses of $13.7 million compared to losses of $23.4 million in 2Q.

Total operating revenues increased from $96.7 million in 2Q to $98.7 million in 3Q and voyage, charterhire and commission expenses decreased from $14.3 million to $5.6 million both largely as a result of an improving shipping market.

Revenues from vessel and other operations, including management fee income, was $44.1 million and, net of voyage, charterhire and commission expenses, increased by $10.6 million to $38.5 million in 3Q. Assisted by multi-year low summer LNG prices, contango in the gas market encouraged a number of sellers to use vessels for floating storage ahead of the Northern hemisphere winter.

Vessel availability decreased and both sentiment and spot rates increased toward the end of the quarter as a result. Full fleet TCE1 earnings increased from $24,400 in 2Q to $35,200 in 3Q, although utilization at 65% was in line with the prior quarter. Despite improving rates, revenue continued to be negatively impacted by the positioning and scheduled dry docking of a further three vessels during the quarter.


Financial Summary

(in thousands of $)3Q 20193Q 20182Q 2019YTD 2019 YTD 2018
Total operating revenues98,670123,10196,745309,702248,665
Net (loss)/income attributable to Golar LNG Limited(82,301)66,212(112,682)(236,724)81,529
Adjusted EBITDA158,93283,52839,663161,49296,928
Operating (loss)/income(13,666)132,470(23,435)(8,237)217,304
Dividend per share0.1500.1500.325
Adjusted net debt12,294,9322,201,7312,258,8242,294,9322,201,731

Financial Highlights

  • Following the Barcarena power project award and increased coverage on the shipping fleet, Contract Earnings Backlog1 (Golar LNG Limited share) is expected to increase from $6.6 billion to $7.0 billion once a Final Investment Decision (“FID”) for Barcarena is taken.
  • The Company’s liquidity position is substantially strengthened as a result of the drawdown of the new $150 million facility, and post quarter end, draw down of the $700 million FLNG Gimi facility and the agreed release of $75 million of Hilli Episeyo restricted cash.

Operational Highlights

Shipping:

  • Time Charter Equivalent (“TCE”)1 earnings of $35,200 for 3Q were negatively influenced by a weak start to the quarter and by positioning and repositioning for 5 dry dockings.
  • Three vessels commenced their dry dockings during 3Q – two of these completed during the quarter and one concluded in 4Q. 

FLNG:

  • FLNG Hilli Episeyo – 100% commercial uptime maintained: 29 cargoes exported to date. Perenco are planning for a drilling campaign in the Kribi area to prove up more reserves during 2020. If successful, this may lead to further capacity utilization and/or contract extension for FLNG Hilli Episeyo. The companies are also in discussion regarding a smaller increase in production which will utilize part of train 3 starting from 1Q 2020.
  • FLNG Gimi – Conversion progressing according to schedule and budget.

Golar Power:

  • Gas has been introduced to Sergipe power station with hot commissioning underway.
  • Awarded a 25 year power purchase agreement (“PPA”) for the construction of a 605MW combined cycle thermal power plant in Barcarena, Brazil. This is also expected to include a 25 year FSRU contract.
  • Execution of Brazilian small scale downstream distribution strategy progresses including signing up customers, purchase and delivery of the first 12 isotainers and a commitment to charter in small-scale LNG shipping capacity from Avenir.

Source / More : Golar LNG

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