- Golar LNG Limited ("Golar" or "the Company") reports
Net income of $141.1 million and Adjusted EBITDA1
of $85.2 million for Q3 2022 ("Q3" or "the quarter").
- FLNG Hilli customer elected to exercise optional
capacity of 0.2 million tons per annum ("MTPA") of Dutch Title
Transfer Facility (“TTF”) linked production from 2023 to
2026.
- Entered into swap arrangements to hedge approximately
50% of Golar's exposure to TTF linked FLNG Hilli production for Q4
2022, 100% of Golar’s exposure to 2023 TTF linked production, and
50% of Golar’s exposure to 2024 TTF linked
production.
- Sold 8.0 million shares in Cool Company Ltd. (“CoolCo”)
and 6.3 million shares in New Fortress Energy Inc. (“NFE”), raising
net proceeds of $430 million in November.
- Strong customer development for FLNG growth projects,
including working with upstream company for potential integrated
FLNG project, and paid development agreements with a supermajor and
an independent E&P company for new FLNG
opportunities.
- Ordered long-lead items for a new Mk II 3.5MTPA FLNG
for delivery in 2025.
FLNG operations: Distributable
Adjusted EBITDA1 from FLNG Hilli increased by $1.9 million from
$92.5 million in Q2 2022 to $94.4 million in Q3, of which Golar's
share was $64.1 million, compared to $62.5 million in Q2. FLNG
Hilli's scheduled maintenance window during the quarter was
extended by several days as a result of unscheduled maintenance
work. Accruals for overproduction during Q1 and Q2 2022 amounting
to $14.4 million were reversed and an estimated $0.9 million of
revenue reduction due to demurrage delays was incurred in Q3. After
receiving instruction that FLNG Hilli should continue to produce
0.2MTPA of TTF linked production from 2023 until the end of the
current contract in July 2026, Golar entered into three swap
transactions collectively securing, subject to vessel availability,
around $250 million of incremental earnings attributable to
Golar:
- August 9, 2022: Hedged 50% of Golar’s 2023 exposure to FLNG
Hilli’s TTF linked production at a TTF price of $49.50/MMBtu, the
energy equivalent of $291 Brent oil.
- August 24, 2022: Hedged 50% of Golar’s 2024 exposure to FLNG
Hilli’s TTF linked production at a TTF price of $51.20/MMBtu, the
energy equivalent of $301 Brent oil.
- September 2, 2022: Hedged the remaining 50% of Golar’s exposure
to FLNG Hilli’s 2023 TTF linked production at a TTF price of
$50.50/MMBtu and 50% of its Q4 2022 exposure at a TTF price of
$70.0/MMBtu, the energy equivalent of $297 and $412 Brent oil
respectively.
Including the Brent oil forward curve for 2023
($88/bbl), the hedged TTF exposure, and the fixed tariff, Golar's
share of Distributable Adjusted EBITDA1 from FLNG Hilli is expected
to be approximately $295 million in 2023. Golar's share of forecast
2023 total annual debt service for FLNG Hilli's contractual debt is
approximately $50 million (debt amortization of approximately $29
million and interest of approximately $21 million). This should
therefore generate free cash to Golar of approximately $245
million.
FLNG Gimi construction:
Conversion of FLNG Gimi for its 20-year contract with BP scheduled
to commence in Q4 2023 was 90% technically complete on November 15,
2022, on track for a 1H 2023 sail away. Pre-commissioning of
equipment has commenced. Once commissioned and delivered to the
customer in Q4 2023, FLNG Gimi is expected to unlock around $3
billion of Earnings Backlog1 to Golar, equivalent to $151 million
in annual Adjusted EBITDA1.
FLNG business development:
Golar continues to experience strong customer engagement for new
FLNG projects. This includes working with an upstream company for a
potential integrated FLNG project, and paid development agreements,
one with a supermajor that is exploring FLNG for a proven large gas
reserve, and another with an independent E&P company. Under the
development agreements both parties commit to deliver a defined
scope of work within set deadlines to progress potential new FLNG
opportunities and agree on key steps to reach Final Investment
Decisions.
We believe that securing attractive delivery of
our next FLNG unit will increase Golar’s ability to drive value
with prospective FLNG clients.
On the back of a growing opportunity set for new
FLNG growth projects, and noting the premium available to providers
for early delivery of liquefaction solutions, Golar has placed
orders for long-lead items targeted for a 3.5MTPA Mark II FLNG,
that can also be interchangeably used on our other FLNG designs.
Representing a total commitment of approximately $300 million,
ordering of these long-lead items, primarily comprised of
compressors, gas turbines, cold boxes and heat recovery steam
generators, puts Golar in a position to deliver an FLNG during
2025.
FSRU: Following the sale of
FSRU Tundra to Snam in May 2022, Golar agreed to charter the vessel
back from Snam until November 2022. Hire received from
sub-chartering the vessel to a third party, net of operating costs
and hire paid to Snam, amounted to $3.1 million in Q3, recorded
under Net income from discontinued operations. Golar also entered
into a services agreement to assist Snam with drydocking, site
commissioning and hook-up. The total scope of the upgrades to
Tundra is expected to amount to $23.5 million between Q3 2022 and
1H 2023, including an administrative fee to Golar. $5.1 million of
the total services amount was recognized in Q3.
Prior to receipt of a Notice-to-Proceed to
convert the Golar Arctic into a FSRU followed by its sale to Snam
as a converted FSRU, the vessel remains under Golar's ownership and
continues to trade as a carrier. During the quarter Golar secured a
12-month charter commencing mid-September which is expected to
generate around $16.0 million of annual Adjusted EBITDA1.
Financial Summary
(in thousands of $) |
Q3 2022 |
Q3 2021 |
% Change |
YTD 2022 |
YTD 2021 |
% Change |
Net
income attributable to Golar LNG Ltd |
141,121 |
(90,956) |
(255)% |
716,335 |
405,841 |
77% |
Total
operating revenues |
68,626 |
74,636 |
(8)% |
208,791 |
194,760 |
7% |
Adjusted
EBITDA |
85,209 |
52,336 |
63% |
275,855 |
125,987 |
119% |
Golar's share of contractual debt1 |
993,094 |
2,100,733 |
(53)% |
993,094 |
2,100,733 |
(53)% |
Q3 Highlights and recent
events
Financial and corporate:
- Profitability: Net income attributable to
Golar of $141.1 million for the quarter, including:
- A $57.0 million realized gain (100% basis) on the FLNG Hilli
Brent oil and TTF natural gas linked derivative instruments.
- A $12.4 million unrealized gain (100% basis) on the FLNG Hilli
Brent oil and TTF natural gas linked derivative instruments.
- A $51.4 million unrealized mark-to-market gain recognized on
Golar's then 12.4 million NFE shares based on a September 30, 2022
carrying value of $43.71 per share.
- A $25.5 million unrealized gain on interest rate swaps.
- A $14.4 million reversal of Q1 and Q2 overproduction fees
accrued in respect of FLNG Hilli.
- $10.0 million of net income from affiliates.
- Golar shares: Repurchased and then cancelled
400,000 Golar shares at a cost of $9.3 million (average
$23.24/share). 107.5 million shares issued and outstanding as of
September 30, 2022.
- Investments: Subsequent to the quarter end,
sold 8.0 million CoolCo shares and 6.3 million NFE shares, together
raising net proceeds of $430 million, bringing Total Golar Cash1
position to $1.04 billion.
FLNG:
- TTF linked tariff volumes: 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 90%
technically complete. Over 26-million man-hours worked. On schedule
for 1H 2023 sail away and Q4 2023 start-up.
- Business development: Based on the strong
global interest for increased LNG production, we are of the view
that securing an attractive delivery slot for a Mk II FLNG improves
potential commercial terms for FLNG growth contracts. We have
therefore ordered approximately $300 million of long lead items to
secure delivery of a new 3.5 MTPA Mk II FLNG within 2025.
Financial Review
Business Performance:
|
2022 |
2021 |
|
Jul-Sep |
Apr-Jun |
Jul-Sep |
(in thousands of $) |
Total |
Total |
Total |
Net income/(loss) |
175,435 |
286,538 |
(55,633) |
Income taxes |
151 |
(190) |
134 |
Net income/(loss) before income taxes |
175,586 |
286,348 |
(55,499) |
Depreciation and amortization |
12,448 |
13,138 |
17,404 |
Impairment of long-term assets |
— |
76,155 |
— |
Unrealized gain on oil and gas derivative instruments |
(12,364) |
(181,548) |
(64,092) |
Realized and unrealized MTM loss/(gain) on our investment in listed
equity securities |
(51,449) |
49,001 |
— |
Other non-operating (income)/losses |
(1,244) |
(3,887) |
153,697 |
Interest income |
(3,059) |
(921) |
(5) |
Interest expense |
4,154 |
5,279 |
8,776 |
(Gains)/losses on derivative instruments |
(25,453) |
(16,341) |
(581) |
Other financial items, net |
(352) |
4,215 |
(284) |
Net (income)/losses from equity method investments |
(9,987) |
(4,065) |
718 |
Net (income)/loss from discontinued operations |
(3,071) |
(126,422) |
(7,798) |
Adjusted EBITDA (1) |
85,209 |
100,952 |
52,336 |
|
2022 |
|
Jul-Sep |
Apr-Jun |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
981 |
54,893 |
12,752 |
68,626 |
— |
60,527 |
6,700 |
67,227 |
Vessel operating expenses |
(1,857) |
(14,227) |
(1,633) |
(17,717) |
(1,685) |
(14,972) |
(1,439) |
(18,096) |
Voyage, charterhire & commission expenses |
(590) |
(150) |
25 |
(715) |
(569) |
(150) |
(25) |
(744) |
Administrative expenses |
(4) |
7 |
(10,449) |
(10,446) |
71 |
13 |
(10,003) |
(9,919) |
Project development (expenses)/income |
— |
2,085 |
136 |
2,221 |
— |
(3,462) |
761 |
(2,701) |
Realized gains on oil derivative instrument (2) |
— |
57,047 |
— |
57,047 |
— |
55,019 |
— |
55,019 |
Other operating (losses)/income (3) |
— |
(13,807) |
— |
(13,807) |
— |
10,166 |
— |
10,166 |
Adjusted EBITDA (1) |
(1,470) |
85,848 |
831 |
85,209 |
(2,183) |
107,141 |
(4,006) |
100,952 |
(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 $32.8 million (June 30, 2022: $32.6 million),
(ii) TTF-linked proceeds of $45.2 million (June 30, 2022:
$29.4 million) and (iii) commodity swap expense of
$20.9 million (June 30, 2022: $7.0 million) and
represents the contracted amounts in relation to the Hilli LTA
receivable in cash.
(3) The line item "Other operating
income/(losses)” in the Condensed Consolidated Statements of
Operations relates to accrued billing in relation to overproduction
of the contracted liquefaction tonnage of 1.4 million tons. This
includes a $13.8 million expense (June 30, 2022: $10.2 million
income) as a result of Hilli's production not expected to exceed
the contracted liquefaction tonnage due to its extended maintenance
window.
|
2021 |
|
Jul-Sep |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
13,861 |
54,480 |
6,295 |
74,636 |
Vessel operating expenses |
(4,278) |
(13,243) |
(2,477) |
(19,998) |
Voyage, charterhire & commission expenses |
(1,765) |
(150) |
(25) |
(1,940) |
Administrative expenses |
(143) |
143 |
(7,945) |
(7,945) |
Project development (expenses)/income |
— |
(2,100) |
821 |
(1,279) |
Realized gains on oil derivative instrument |
— |
8,862 |
— |
8,862 |
Other operating income |
— |
— |
— |
— |
Adjusted EBITDA (1) |
7,675 |
47,992 |
(3,331) |
52,336 |
Golar reports today Q3 net income attributable
to Golar of $141.1 million and Adjusted EBITDA1 of $85.2
million.
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. A $32.8 million realized gain on the
oil derivative instrument was recorded in Q3, in line with the
$32.6 million realized in Q2. Golar has an effective 89.1% interest
in these earnings. A Q3 realized gain of $45.2 million was also
recognized in respect of fees for the TTF linked production, up
from the $29.4 million realized in Q2. Golar has an effective 86.9%
interest in these earnings. Offsetting this was a $20.9 million Q3
realized loss (100% of which is attributable to Golar) on the
hedged component of the quarter's TTF linked earnings, up on the
$7.0 million realized loss recorded in Q2. Collectively a $57.0
million Q3 realized gain on oil and gas derivative instruments was
recognized as a result.
The mark-to-market fair value of the FLNG Hilli
Brent oil linked derivative asset decreased by $133.1 million
during the quarter, with a corresponding unrealized loss of the
same amount recognized in the income statement. The mark-to-market
fair value of the FLNG Hilli TTF natural gas derivative asset
increased by $114.7 million during the quarter with a corresponding
unrealized gain of the same amount recognized in the income
statement. A $30.7 million unrealized gain in respect of the hedged
portion of Q3 2022 TTF linked FLNG Hilli production was also
recognized during the quarter. Collectively this therefore resulted
in a $12.4 million Q3 unrealized gain on oil and gas derivative
instruments.
Following an extended maintenance window during
the quarter and upstream infrastructure limits to the amount of
feedgas that can be made available for overproduction in Q4, FLNG
Hilli's 2022 production is not expected to exceed 1.4 million tons
of LNG. As a result, fees accrued for overproduction during Q1 and
Q2 amounting to $14.4 million were reversed in Q3. Of this, $13.8
million is classified under Other operating losses, with the
remaining $0.6 million charged to Liquefaction services revenue. An
estimated $0.9 million of revenue reduction due to demurrage delays
was also incurred in Q3 as a result.
An increase in the NFE share price between July
1 and September 30 resulted in the recognition of a Q3 unrealized
mark-to-market gain of $51.4 million on Golar’s 12.4 million NFE
shares in Other non-operating income. The fair value of these
shares was $43.71 per share as of September 30, 2022. Together with
$1.2 million of dividend income from NFE, this collectively
contributed to most of the $52.7 million of Other non-operating
income during the quarter. Subsequent to the quarter end, Golar
sold 6.3 million of its NFE shares. This is expected to result in a
Q4 2022 realized mark-to-market gain on listed equity securities of
approximately $56.7 million. Sale of the 8.0 million CoolCo shares
on November 2, 2022 is expected to generate a gain of approximately
$7.0 million, excluding fees.
Balance Sheet and Liquidity:
As of September 30, 2022 Golar had $498.2
million of cash and cash equivalents and $130.9 million of
restricted cash, with the quarterly decrease in cash and cash
equivalents and increase in restricted cash largely attributable to
$38.5 million of collateral posted for guarantees in respect of the
Golar Arctic FSRU conversion contract with Snam. Of the $130.9
million of restricted cash, $17.5 million is also attributable to
the FLNG Hilli lessor-owned VIE. Total Golar Cash1 therefore
amounts to $611.6 million, comprised of $498.2 million of cash and
cash equivalents and $113.4 million of restricted cash attributable
to Golar. Assuming this remains unchanged from September 30, 2022
and the $430.0 million of net proceeds from the subsequent sale of
listed securities is taken into consideration, Total Golar Cash1
increases to $1.04 billion on November 15, 2022. Golar has
cancelled the existing undrawn $200.0 million Revolving Credit
Facility that was secured by our NFE shares.
Within the $354.3 million current portion of
long-term debt and short-term debt as at September 30, 2022 is
$347.1 million in respect of the FLNG Hilli lessor-owned VIE
subsidiary that Golar is required to consolidate. Golar's share of
Contractual Debt1 amounts to $993.1 million. Net of Total Golar
Cash1 of $611.6 million, this falls to around $381.5 million.
Inclusive of the $430.0 million of net proceeds from listed
securities sold subsequent to the quarter end, this becomes net
cash of $48.5 million. If the value of remaining listed securities
held as of November 15, 2022 is taken into consideration Golar has
net cash of around $451.5 million.
Inclusive of $14.2 million of capitalized
interest, $40.1 million was invested in FLNG Gimi during the
quarter, increasing the total FLNG Gimi Asset under development
balance as at September 30, 2022 to $1.108 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.
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 $205.3
million.Corporate and Other Matters:
As at September 30, 2022, Golar had 107.5
million shares issued and outstanding. There were also 1.0 million
outstanding stock options with an average price of $15.41, 0.2
million unvested restricted stock units, and 0.1 million unvested
performance stock units awarded. Of the initial $50.0 million
approved share buyback scheme, $5.2 million remains available for
further repurchases. 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 income/(loss) attributable to Golar LNG Limited |
+/- Net financial expense +/- Other non-operating
income/expenses +/- Income taxes +/- Equity in net
earnings/(losses) of affiliates - Net income attributable to
non-controlling interests +/- Unrealized (gain)/loss 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 income/(loss) 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 development
costs and the operating costs of the Gandria and Gimi. |
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 |
During the year, we consolidate a lessor VIE for our Hilli sale and
leaseback facility. This means that on consolidation, our
contractual debt is eliminated and replaced with the lessor VIE
debt. Contractual debt represents our debt obligations under
our various financing arrangements before consolidating the lessor
VIE. 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 our
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 deposit |
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 + Other equity
method investments |
- VIE restricted cash balance- Trade receivables- Inventories- Gas
derivative instrument- TTF swap collateral- Prepaid expenses- MTM
commodity swap valuation- Other equity method investments (comprise
of Egyptian Company for Gas Services (ECGS) and Aqualung Carbon
Capture AS (Aqualung)) |
We consider our investment in listed equity securities (our equity
holdings in NFE) and our equity method investment in CoolCo to be
available for us to monetize 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:
FSRU: Floating Storage Regasification
UnitFLNG: Floating Liquefaction Natural Gas
Reconciliations - Liquidity
Measures
Contractual Debt
(in thousands of $) |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
Total debt (current and non-current) net of deferred finance
charges |
1,353,748 |
1,382,277 |
1,543,701 |
Total debt within liabilities held for sale net of deferred finance
charges |
— |
— |
738,020 |
VIE consolidation adjustment |
143,925 |
132,790 |
321,427 |
Deferred finance charges |
23,554 |
24,444 |
22,857 |
Deferred finance charges within liabilities held for sale |
— |
— |
1,959 |
Total Contractual Debt |
1,521,227 |
1,539,511 |
2,627,964 |
Less: Golar Partners', Keppel's and B&V's share of the Hilli
contractual debt |
(367,633) |
(376,783) |
(404,231) |
Less: Keppel's share of the Gimi debt |
(160,500) |
(160,500) |
(123,000) |
Golar's share of Contractual Debt |
993,094 |
1,002,228 |
2,100,733 |
Please see Appendix A for a capital repayment
profile for Golar’s contractual debt.
Total Golar Cash
(in thousands of $) |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
Cash and cash equivalents |
498,164 |
528,798 |
91,084 |
Restricted cash and short-term deposits (current and
non-current) |
130,949 |
91,466 |
102,296 |
Less: VIE restricted cash |
(17,503) |
(16,735) |
(25,904) |
Total Golar Cash |
611,610 |
603,529 |
167,476 |
Total Golar Cash and Listed
Securities
(in thousands of $) |
September 30, 2022 |
Cash and cash equivalents |
498,164 |
Restricted cash and short-term deposits (current and
non-current) |
130,949 |
Other current assets |
649,783 |
Equity method investments |
196,912 |
Less: VIE restricted cash |
(17,503) |
Less: Trade receivables |
(51,264) |
Less: Inventories |
(745) |
Less: MTM asset on TTF linked commodity swap |
(5,423) |
Less: TTF swap collateral |
(27,570) |
Less: Prepaid expenses |
(3,326) |
Less: Interest receivable from interest rate swaps |
(5,700) |
Less: Other receivables |
(12,551) |
Less: Other equity method investments |
(7,162) |
Total Golar Cash and Listed Securities (1) |
1,344,564 |
(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 (the “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;
- our inability to meet our obligations under the Liquefaction
Tolling Agreement entered into in connection with Hilli;
- continuing volatility of commodity prices;
- increases in costs as a result of recent inflation, including,
among other things, wages, insurance, provisions, repairs and
maintenance;
- our ability to close potential future sales of additional
equity interests in our vessels, including the Hilli and Gimi or to
monetize our remaining equity holdings in New Fortress Energy Inc.
("NFE") and Cool Company Ltd. ("CoolCo") on a timely basis or at
all;
- continuing volatility in the global financial markets,
specifically with respect to our equity holdings in NFE and
CoolCo;
- changes in our relationship with our affiliates and the
sustainability of any distributions they pay us;
- 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”), CoolCo and Snam
Group (“Snam”);
- the ability of Hygo, Golar Partners, NFE, CoolCo and Snam to
meet their respective obligations to us, including indemnification
obligations;
- changes in our ability to retrofit vessels as floating
liquefaction natural gas vessels ("FLNGs") or floating storage and
regas vessels ("FSRUs") and in our ability to obtain financing for
such conversions or commissioning works on acceptable terms or at
all;
- changes in our ability to obtain additional financing on
acceptable terms or at all;
- failure of shipyards to comply with delivery schedules or
performance specifications on a timely basis or at all;
- failure of our contract counterparties to comply with their
agreements with us or other key project stakeholders;
- changes to rules and regulations applicable to liquefied
natural gas (“LNG”) carriers, floating liquefaction natural gas
vessels (“FLNGs”) or other parts of the LNG supply chain;
- changes in the supply of or demand for LNG or LNG carried by
sea and for LNG carriers or FLNGs;
- a material decline or prolonged weakness in rates for LNG
carriers or FLNGs;
- changes in our relationships with our counterparties;
- 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 or commissioning
works;
- changes in the availability of vessels to purchase and in the
time it takes to build new vessels;
- our inability to expand beyond the liquefaction, regasification
or carriage of LNG, particularly through our innovative FLNG growth
strategy;
- actions taken by regulatory authorities that may prohibit the
access of LNG carriers and FLNGs to various ports;
- the length and severity of outbreaks of pandemics, including
the worldwide outbreak of the coronavirus (“COVID-19”) and its
impact on demand for LNG and natural gas, the timing of completion
of our conversion projects or commissioning works, the operations
of our charterers and customers, our global operations and our
business in general; and
- other factors listed from time to time in registration
statements, reports or other materials that we have filed with or
furnished to 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 nine months ended
September 30, 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 nine
months ended September 30, 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 period of 2022, and major related
party transactions.
November 16, 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 September 30, 2022
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