INTERIM RESULTS FOR THE PERIOD ENDED JUNE 30, 2015
(Thomson Reuters ONE) -
Highlights
· Main material commercial terms agreed with Perenco for employment of
Hilli in Cameroon.
· Construction of Hilli on track and within budget.
· Binding Heads of Terms signed with Ophir to support 20 yr. 2.2mtpa
Equatorial Guinea FLNG project.
· Weak market for chartering of LNG shipping and low fleet utilization.
· Underlying EBITDA* in the quarter decreased to a loss of $25.3 million
compared to 1Q loss of $4.3 million.
· Board maintains dividend at $0.45 per share for the quarter.
* Adjusted EBITDA is defined as earnings before interest, depreciation and
amortization equal to operating income plus depreciation and amortization.
Subsequent events
· Received financing commitment for GoFLNG Hilli.
· Entered into agreements for design and construction of a third floating
liquefaction facility.
· Placed order for additional FSRU newbuild with Samsung.
· Entered into agreement to establish an LNG Carrier pool "The Cool Pool"
with Gaslog and Dynagas.
Financial Review
Underlying Business Performance
+----------------------------------------------------------+--------+--------+
| | 2015| 2015|
| | | |
|(in thousands of $) | Apr-Jun| Jan-Mar|
+----------------------------------------------------------+--------+--------+
|Time and voyage charter revenues | 16,922| 28,835|
| | | |
|Vessel and other management fees | 3,222| 3,323|
| | | |
|Vessel operating expenses |(14,801)|(14,537)|
| | | |
|Voyage and commission expenses |(21,424)|(23,707)|
| | | |
|Administrative expenses | (9,214)| (6,952)|
| | | |
|Depreciation and amortization |(18,118)|(17,697)|
| | | |
| | | |
| +--------+--------+
|Total Operating Losses (excluding gain/loss on disposals) |(43,413)|(30,735)|
| | | |
| | | |
| | | |
|Add back | | |
| | | |
|Non-recurring items - Golar Grand charter loss contingency| 0| 8,757|
| | | |
|Depreciation and amortization | 18,118| 17,697|
| | | |
|Underlying EBITDA |(25,295)| (4,281)|
+----------------------------------------------------------+--------+--------+
* Underlying EBITDA is defined as earnings before interest, depreciation and
amortization, impairments and non-recurring items.
In line with guidance in the Q1 report, the market for chartering of LNG
shipping deteriorated further during the second quarter. 2Q operating results
were negatively impacted by lower utilization and underlying revenue net of
voyage expenses. Utilization of the Golar fleet declined from 46% in 1Q to 33%
in 2Q. With no further carriers scheduled for delivery, 2Q represented the first
full quarter of operations for the entire fleet of carriers. Significant adverse
performances relative to 1Q were observed by the Golar Seal, Glacier, Celsius,
Bear and the Arctic, the latter having been on hire for the first part of 1Q at
2012 market rates. Partially mitigating this were improved performances from the
Golar Crystal, Frost and Snow. Overall, 2Q revenues at $16.9 million were
sharply down on 1Q revenues of $28.8 million. Vessel and other management fees
at $3.2 million are consistent with 1Q and represent the revenue Golar receives
for managing the Golar Partners' fleet together with recharges to Golar
Wilhelmsen in respect of Golar employees seconded to this joint venture ship
management company.
2Q voyage costs decreased $2.3 million from $23.7 million in 1Q to $21.4
million. The cost of chartering in the Golar Eskimo and the Golar Grand from
Golar Partners contributed $13.2 million to voyage expenses, down from $19.1
million in 1Q. The elevated 1Q cost included a fair value accounting provision
of $8.8 million in respect of the Golar Grand that stems from the Company
guaranteeing Golar Partners that it would charter back the vessel in the absence
of BG exercising their own option to extend the Golar Grand charter. During 2Q,
$1.5 million of this provision was released and credited to voyage and
commission expenses.
Vessel operating expenses increased $0.3 million to $14.8 million in 2Q.
Additional costs during 2Q from a full quarter of operating the Golar Ice,
Kelvin and Snow which were delivered during 1Q were offset by no operating costs
incurred against the Golar Eskimo and the Golar Viking which were sold to Golar
Partners and PT Equinox on January 20 and February 16, respectively.
Administration costs increased $2.3 million over 1Q to $9.2 million in 2Q.
Project related cost increases were dominated by legal and professional fees
incurred in respect of current and future FLNG projects. Depreciation and
amortisation in 2Q amounted to $18.1 million, an increase of $0.4 million over
1Q. A full quarter's depreciation for the 1Q delivered Golar Ice, Kelvin and
Snow was substantially mitigated by savings in respect of the Golar Eskimo and
Viking, both of which were sold during 1Q.
Collectively the above resulted in a $21.0 million decrease in underlying EBITDA
from a loss of $4.3 million in 1Q to a loss of $25.3 million in 2Q.
Net Income Summary
+------------------------------------------------------------+--------+--------+
| (in thousands of $) | 2015| 2015|
| | | |
| | Apr-Jun| Jan-Mar|
| +--------+--------+
|Total Operating Loss (excluding gain/loss on disposals) |(43,413)|(30,735)|
| | | |
|Net gain on disposals (includes amortization of deferred | | |
|gains) | 126| 97,840|
| | | |
|Loss on sale of Golar Partners Common Units | 0| (3,011)|
| | | |
|Impairment on asset held for sale | (1,032)| 0|
| | | |
|Dividend income | 3,914| 3,581|
| | | |
|Net interest expense |(15,722)|(15,037)|
| | | |
|Other financial items | 50,802|(31,951)|
| | | |
|Taxes | 742| 1,061|
| | | |
|Equity in net earnings of affiliates | 4,406| 2,819|
| | | |
|Net (loss) / income | (177)| 24,567|
+------------------------------------------------------------+--------+--------+
In 2Q the Company generated a net loss of $0.2 million, driven by a poor
operating result substantially offset by significant non-cash financial gains
linked to mark to market valuation of interest rate and Total Return Swaps.
The contribution to the Company's 2Q dividend income derived from the Company's
share of common units, its general partner stake and incentive distribution
rights ("IDRs") in Golar Partners increased by $0.3 million to $3.9 million.
This increase follows the increase in Golar Partners distribution from $0.5625
declared in respect of 4Q and paid and recognised in 1Q to $0.5775 declared in
respect of 1Q, paid and recognised in 2Q. The Company also received a cash
dividend of $9.2 million in respect of its ownership of Golar Partners'
subordinated units and this is accounted for using the equity accounting method.
The Company has accounted for its share of Golar Partners' 2Q earnings (based on
its ownership interest in the subordinated units only) through the Equity in net
earnings of affiliates line item in the income statement. In 2Q this amounted to
$4.4 million, an increase of $1.6 million from 1Q due primarily to a full
quarter's contribution by both the FSRUs Golar Igloo and Eskimo party offset by
reduced earnings from the Golar Freeze which was drydocked during the quarter.
When all classes of ownership are taken into account, the aggregate underlying
cash dividend from Golar Partners received in 2Q was $13.1 million compared to
$12.6 million in 1Q.
Net interest expense increased from $15.0 million in 1Q to $15.7 million in 2Q.
The increase is largely due to a full quarter's use of debt facilities designed
to fund the three carriers delivered during 1Q. Deemed interest on equity
invested in the remaining newbuilding program which is capitalised and credited
to interest expense was in line with 1Q at $0.8 million. Included in the Other
Financial Items gain of $50.8 million is a $9.2 million non-cash mark-to-market
valuation gain on interest rate swaps due to increases in long term interest
rates in the period, a $46.7 million total return swap gain on the Company's
shares and $3.9 million of swap interest charge on undesignated hedges.
Commercial Review
LNG Shipping and FSRU Performance
Chartering activity and rates both remained low for much of April and May.
During the latter half of May and into June the number of fixtures did increase,
however these were not accompanied by material improvements in rates. Seasonal
LNG demand in the Middle East, South America and in Japan/Korea/Taiwan paved the
way for some incremental shipping demand. Pricing in these markets meant that a
small arbitrage opened up against European pricing, allowing re-exports to
increase again, relative to the very few witnessed in 1Q.
Although charter rates in the short-term market generally decreased and remained
low for 2Q, some fluctuations within a certain band were noted. Charter rates
were recorded on average in the low/mid $20,000's per day for steam vessels
while TFDE vessels noted average headline rates in the low $30,000's per day,
mostly with Ballast Bonus equivalent to fuel cost only to the nearest of
Singapore, Gibraltar or Fujairah. Much of the spot business concluded has
revolved around cargo tenders from both sellers and buyers.
July through to the present date has progressed in a similar manner to the end
of 2Q. Albeit at low levels, there is a steady flow of fixtures which are being
serviced by ample tonnage and this is keeping rates under pressure. Increased
activity in the spot market is illustrated by the fact that the number of spot
cargoes traded in the 8-months to date is in line with the total cargoes traded
for the whole of 2014. Some charterers have started to consider their options
for covering requirements from 4Q this year through 2016 and certain term deals
have been concluded. The start-up of projects in 4Q is expected to boost
shipping demand with APLNG, Gladstone LNG and Cheniere's Sabine Pass expected to
initiate operations. Indonesia's Senora-Donggi project has now commenced
operations and the second train of BG's Queensland Curtis project is also now
ramping up. The immediate issue to contend with is the sporadic and
unpredictable availability of charter opportunities in different parts of the
world. These can be difficult to capture without vessels nearby and result in
prolonged periods of offhire for vessels as a result. To help address this,
with the target to increase the efficiency of the fleet, Golar will enter into a
pooling arrangement with Gaslog and Dynagas. An LNG Carrier Pool, initially
consisting of 14 LNG carriers (Golar 8 vessels; Gaslog 3 vessels; Dynagas 3
vessels) will allow the participating owners to optimise the operation of the
pool vessels through improved scheduling ability, cost efficiencies and common
marketing. In so doing, the pool will better serve the transportation
requirements of the LNG shipping market by providing customers with reliable,
more flexible, and innovative solutions to meet their increasingly complex
shipping requirements. Each vessel owner will continue to be fully responsible
for the manning and technical management of their respective vessels.
Golar's existing fleet of 6 operating FSRU's, all of which reside within Golar
Partners, continue to operate reliably with 99.9% availability (excluding
scheduled drydocking).
Investment Review
Conversion Contracts
As of end-July, overall Hilli FLNG project progress remained on schedule and
expenditure for the quarter was in accordance with the approved budget. During
the quarter sponson construction, assembly, blasting and painting work
progressed. Fabrication of piping and pipe supports continued and good progress
was made with the repair and life extension work for the vessel. Significant
activities undertaken during the last quarter included addressing specific
design and operation issues (Perenco/Cameroon) and the overall project at the
end of July is calculated to be 60% complete.
On July 21, the Company executed agreements for the conversion of the 126,000m3
LNG carrier Gandria to a Golar floating liquefaction facility (GoFLNG). The
Gandria conversion will now be dedicated to satisfy the commitments to Ophir in
Equatorial Guinea, covered by the agreement announced in May this year,
requiring delivery of facilities in 2019. This move will release the Gimi
(conversion contract signed in December 2014) to cover the potential emerging
demand for a 2018 GoFLNG project. Provisions in the Gimi and Gandria contracts
give Golar the flexibility to adjust project timing and to limit expenditure.
The objective for Golar is to ensure that it does not remain financially exposed
in any material manner to more than one speculative GoFLNG. Golar's ability to
deliver fast track GoFLNG solutions by having a pipeline of key long-lead
components on order is a critical part of the business strategy.
The Gandria conversion contract is on target to become effective by the end of
September this year. This contract provides similar beneficial cancellation
provisions, which if exercised before December 2016 will allow termination of
the contracts after deduction of a set cancellation fee.
FSRU Newbuild
On July 17, Golar placed an order for a further FSRU newbuild with Samsung Heavy
Industries. This new vessel will be a sister vessel to the Golar Tundra with LNG
storage of 170,000m3 and a continuous regasification capacity of 500mmscfd (750
mmscfd peak). This latest order is also accompanied by fixed-price options for
two further FSRUs. The contract price is attractive reflecting the weak
shipbuilding market. The contract also provides for a tail-heavy instalment plan
and only 5 % initial down payment. Delivering in late 2017, the first FSRU is
timed to meet the requirements of a number of specific FSRU opportunities that
Golar is currently pursuing. This addition to the current fleet of 7 Golar
group owned and operated FSRUs, strengthens the Company's position in this
important market segment.
Business Development Review
FSRU activities
Golar Eskimo arrived off Aqaba on May 25, commenced its charter on June 24 and
completed its commissioning for the Hashemite Kingdom of Jordan on July 12.
Since commencement, the FSRU has been producing at close to peak capacity and
with 100% availability. Earnings received prior to June 30 and approximately
$9.2 million in late start fees also received from Jordan are for Golar's
account. After June 30, Golar Partners will receive all future revenue earned by
this FSRU. In accordance with the Eskimo sale and purchase agreement Golar paid
a $12.4 million time charter fee during 2Q for the use of the vessel. No further
time charter payments are due to Golar Partners and no further revenue in
respect of the Eskimo will be receivable by Golar.
Although progress continues to be made with the Ghana FSRU project, a number of
contractual items remain outstanding. As a consequence, the Company is actively
pursuing alternative projects. The lower gas price environment has increased
general and specific interest in FSRUs. As of today, including Golar's two new
buildings, 4 FSRUs are under construction without firm employment. These vessels
will be delivered between now and the end of 2017. Approximately 115 million
tonnes of new LNG production capacity is expected to come on stream before
2018, equivalent to a 45% increase on current production capacity. This will
result in an increase in utilisation of existing regas capacity and also create
a need for additional capacity. Based upon current customer inquiries and
expected demand, the Company is confident that demand for FSRUs in this period
will absorb these four units.
GoFLNG - Business Development Progress
Agreement has now been reached with the support of the Boards of both Golar and
Perenco on the material commercial terms and conditions for the approximate 1.2
million tonne, 8-year Cameroon FLNG project scheduled to commence operations in
2Q 2017. The Tolling Agreement which defines the material commercial terms and
conditions for the project is now subject to finalisation with SNH. The
Midstream Gas Convention setting out the regulatory and fiscal regime governing
the FLNG operations in Cameroon is now only subject to finalisation with the
government. All parties including the government of Cameroon remain on track and
are confident of approving the Tolling Agreement and the Midstream Gas
Convention by the end of September 2015. Signing of these agreements will
formalise FID for Golar's first GoFLNG project.
The Company expects the project in Cameroon to deliver an EBITDA for Golar in
the first full year of operation, based on the utilisation of 2 of the available
4 liquefaction trains, in the range of $170 million to $300 million, with a
flexible tolling structure which correlates to Brent crude oil prices ranging
from a floor of $60/bbl to a cap of $102/bbl.
Golar announced on May 5 that it had signed a binding Heads of Terms with Ophir
Energy Plc for the provision of the GoFLNG vessel Gimi or alternate.
Subsequently the Gandria was nominated for the Equatorial Guinea project so that
Gimi can be available in time for potential GoFLNG projects starting operations
in 2018. The agreement for Gandria will be structured as a 20-year tolling
contract, commencing commercial operations in the first half of 2019.
Golar, with its partners Keppel Shipyard and Black & Veatch, committed to the
Gimi FLNG conversion in December 2014. Gimi and Gandria will both benefit from
utilising the same configuration of utilities and liquefaction facilities as
sister ship Hilli, with variations to Gandria to accommodate production direct
from the deep-water reservoir. During the quarter, additional detailed
engineering studies (FEED) were commenced for Gandria with the objective of
finalising the design and budget for the deep water variations. The integrated
Ophir/GEPetrol/Sonagas/Golar project remains on schedule to take FID during the
first half of 2016.
The Cedar LNG Project development activity for the quarter included continued
support of the NEB LNG export application as well as focus on solidifying
arrangements for gas transportation service into the Douglas Channel area. The
Company continues to monitor development activities for the relevant large scale
pipeline projects upon which the first phase of Cedar LNG is dependent. Golar is
currently anticipating FID for Cedar Phase I to be achieved by the end of 2016
assuming such third party pipelines maintain their current schedules.
New GoFLNG business development activity has been focused on maturing projects
that have the potential to commence operations in 2018. A shortlist of 4
potential projects is currently subject to active discussions. Interestingly,
each of these projects is located in a completely separate geographic region. In
each of these projects the competitive tolling fees and flexible commercial
structures have the potential to generate very attractive economics, even at
today's low oil and LNG prices.
To meet potential customers' demand for early commencement, Golar has initiated
discussions with Keppel Shipyard and Black & Veatch. The target is to achieve a
fourth conversion with a delivery in late 2018/early 2019. A commitment will be
dependent on Golar firming employment opportunities within 1Q 2016.
The recent weakness in oil and gas prices has highlighted the benefits of a fast
track FLNG solution versus large, capital intensive greenfield LNG developments.
In addition to reduced capital expenditure and accelerated start up, the
Company's counterparts appreciate the flexibility the floating toll creates with
respect to term and volume. Several of the business opportunities currently
being discussed are based on stranded, associated or flared gas with limited
commercial value without monetization through LNG production.
Capital expenditure for new, large scale Greenfield LNG developments shows a
cash breakeven level from $10 per mmbtu and upwards. The cash breakeven level
for a turnkey GoFLNG development can be significantly lower.
The Company is confident that a GoFLNG solution supplied with African or Asian
gas reserves generates a reasonable return both for producers and Golar even
with European and Asian gas prices at current levels. Significant upside can be
monetized if gas prices recover. Golar is further confident that with respect to
feed gas price, capital cost, transportation cost and flexibility, it has a
competitive advantage over US export projects.
Financing and Liquidity Review
FSRU Tundra financing
The Company is progressing discussions on facilities that presuppose the Tundra
will be unchartered at the time of delivery. In terms of leverage and cost, the
Tundra financing is expected to be concluded on terms comparable to other
facilities secured by Golar on vessels unchartered at the time of delivery. The
facilities under discussion are expected to cover the remaining delivery
instalment and create extra liquidity.
FLNG financing
As at June 30, including the value of the original vessel, Golar has invested
$411 million in the Hilli conversion project. Today this investment sits at $424
million. From the end of September when the tolling agreement and the midstream
gas convention have been approved by SNH and the Cameroon government,
respectively, all remaining conversion and site specific costs for the GoFLNG
Hilli will be satisfied by a fully documented and underwritten facility provided
by CSSC (Hong Kong) Shipping Co. Ltd. ("CSSCL"). This will fund up to 80% of the
GoFLNG Hilli.
The financing structure will be split into two phases. Phase one enables Golar
to draw down up to $700 million from the facility to fund the ongoing project
cost once Golar and its minority partners have spent $400 million of the
estimated $1.2bn project cost. Phase two is triggered upon delivery of the
converted GoFLNG Hilli from Keppel Shipyard and the satisfaction of certain
milestones. This will provide for the drawdown of a further $260 million giving
an aggregate $960 million. This final tranche is expected to satisfy the
remaining conversion costs outstanding at that time and the remainder will be a
release of the Company's equity.
The CSSCL financing has a tenor of 10-years, a 15-year amortisation profile and
contemplates the eventual sale of GoFLNG Hilli to Golar Partners. The expected
cost of the financing during the conversion period is 6.25% while the long term
financing is projected to cost less than 6% on a fully swapped ten year basis.
Liquidity
The Company maintains a good liquidity position notwithstanding the current weak
operating results. The cash balance at the end of 2Q is $375 million and a
further $100 million is receivable from Golar Partners in respect of the Eskimo
sale. Additionally, the Company will receive $50 million in yearly distributions
from Golar Partners. The capital expenditure for Gimi and Gandria over the next
twelve months is to a large extent dependent on progress with contractual
employment discussions. As at June 30, 2015, $50 million has been invested in
the Gimi and Gandria conversions. If no progress is made firming up employment
opportunities, the total cash expenditure will have increased to $65 million for
these two vessels in the period up to June 30(,) 2016, of which $30 million is
recoverable in the case of termination.
Corporate and other matters
The recent collapse of oil and gas prices has increased interest in LNG fueled
combined cycle power generation. A shortage of power in areas like Brazil,
Indonesia, India and South Africa and strong power prices in these areas
together with lower gas prices have dramatically improved the economics of gas
fuelled power generation. Simultaneously, we see stranded and associated gas
reserves that can be acquired at attractive valuations. The lack of near term
liquidity in the LNG market to a certain extent prevents resource holders from
developing reserves before they have firm off take contracts.
In order to develop Golar further and accelerate the implementation of the
GoFLNG concept, the Company has in recent months been negotiating with Brazilian
power partners. These partners have been awarded a 25 year PPA contract with
Brazilian authorities to build and operate a 1.5 GWha LNG fuelled combined cycle
power station in Sergipe, Northern Brazil. Golar has negotiated a right to
participate in up to 25% of this project and has the exclusive right to provide
the FSRU. In addition to supplying the power station with gas, the FSRU would
also have excess capacity to deliver gas to the Brazilian grid. The partners are
currently working through the permitting process and are in negotiations with
LNG providers, contractors and financiers. The capacity payment achieved in the
PPA contract was awarded at a historically high level. If Golar proceeds, it
would do so on the basis of an expected unleveraged project return in excess of
15 %. Further upside is available based on usage.
Golar intends to establish a stand-alone, non-recourse subsidiary, Golar Power
Ltd. to hold this investment. The Company's total commitment to this subsidiary
will initially be $5 million in liquidity lines and $24 million in non-
performance guarantees, effective from 2020. Further equity investments would be
needed if the project gets a final go ahead. It would be Golar's intention to
bring additional partners into Golar Power. In addition to the solid project
return, Golar would use this position to accelerate its GoFLNG activities by
creating a natural partnership with power producers and traders. The target is
to offer a more integrated LNG solution to resource holders. Golar has
approached several leading trading companies with this idea and has received
encouraging feedback. A final clarification around this structure should be
expected before year-end.
The size of Golar's investments in Golar Power will be relatively small compared
to the Company's commitment to FLNG, FSRUs and LNG shipping. Golar's business
model remains to be a midstream gas company focussed on tariff based FLNG
production. It is the Company's intention to separate Golar Power from the rest
of the activities over time. This can take place through a spin off to Golar's
shareholders.
Changes to the Board
Chairman, Sir Frank Chapman, has decided not to stand for re-election at the
forthcoming AGM. In addition, Board member Kate Blankenship has decided not to
stand for re-election. Both members have contributed significantly to the rapid
expansion that currently takes place in Golar. Of special importance has been
Sir Frank's deep understanding of the LNG market and his strategic thinking, and
Miss Blankenship's solid finance and accounting skills. The Board has nominated
Dan Rabun to succeed Sir Frank Chapman as non-executive Chairman. Former
Chairman of Ensco plc until May 2015, Mr Rabun has a strong energy background
from Ensco and as managing partner in Baker McKenzie's Dallas office. He is
also currently a Board member of Apache Corporation.
Dan Rabun will assume Chairmanship from August 27 while Sir Frank Chapman and
Kate Blankenship will continue as ordinary Board members until their term ends
at the shareholder meeting on September 23.
Niels Stolt-Nielsen has also accepted to be nominated as a candidate to become a
Board member. Mr Stolt-Nielsen is a major owner and Chairman of the world's
leading chemical carrier company, Stolt Nielsen. He is also the Chairman and
founding investor of the LPG Company, Avance Gas. His extensive shipping,
customer relations and logistical experience will benefit Golar in the years to
come.
Share and Convertible Bond Buybacks
As at June 30, 2015, Golar had forward contracts to repurchase 3.5 million of
its own shares at an average price of $40.39 per share. No further shares were
repurchased during the quarter and none have been purchased since June 30. The
forward contract was marked to market as of June 30 (GLNG share price $46.80)
which resulted in an unrealised gain of $46.7 million for the quarter. On August
4, Golar also announced that it had approved a unit purchase program under which
the Company may purchase up to $25 million worth of publicly held Golar Partners
common units. Yielding 11% at the time, the Company viewed this as an attractive
investment opportunity. To date 167,000 shares have been purchased outright at
a cost of $3.5 million.
Shares and options
As at June 30, 2015, the total number of shares outstanding in Golar including
the 3.5 million shares repurchased by the Company is 93.4 million. Additionally,
there are currently 2.4 million outstanding stock options in issue.
Dividend
With respect to 2Q, the Board has decided to maintain the dividend at $0.45 per
share. The Board remains of the view that the current dividend is sustainable
for the next quarters. The size of the dividend for 2016 and going forward will
to a certain extent be influenced by Golar's success with FLNG and the capital
needed to grow this business. It will be further influenced by the developments
in shipping markets. The Board is of the opinion that a regular and stable
dividend is an important part of the overall return to shareholders.
The record date for the dividend will be September 10, ex-dividend date is
September 8 and the dividend will be paid on or about September 25, 2015.
Outlook
Golar has in the last twelve months made significant progress with the
development of its new business portfolio. The first GoFLNG conversion, Golar
Hilli, is progressing well and remains within budget and on schedule. An
attractive financing arrangement for the vessel has been concluded and the
contractual employment arrangement is currently expected to be signed off before
the end of September. The long lead items and flexible contractual arrangements
for a further two vessels have been committed with a fourth unit currently under
discussion. The economics for the first projects show solid returns for both
resource holders and FLNG providers and confirm the sustainability of our
business model, even in today's low LNG price environment.
The lower gas price environment is triggering lower cost LNG production and the
Company believes this will create additional demand for the fast track and
flexible GoFLNG concept. A significant share of growth in the LNG market over
the coming years is expected to come from LNG replacing coal and oil based power
generation.
The LNG shipping market remains under pressure and rates so far in 3Q have
remained at levels around $25 - 30,000 per day. Utilization of the shipping
fleet has however improved in 3Q versus 2Q. The end of the commitment linked to
Golar Eskimo and an improvement in utilization is likely to result in a solid
improvement in 3Q operating results.
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 "may," "could," "should,"
"would," "expect," "plan," "anticipate," "intend," "forecast," "believe,"
"estimate," "predict," "propose," "potential," "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: changes in LNG carriers, FSRU
and floating LNG vessel market trends, including charter rates, ship values and
technological advancements; changes in the supply and demand for LNG; changes in
trading patterns that affect the opportunities for the profitable operation of
LNG carriers, FSRUs; and floating LNG vessels; changes in Golar's ability to
retrofit vessels as FSRUs and floating LNG vessels, Golar's ability to obtain
financing for such retrofitting on acceptable terms or at all and the timing of
the delivery and acceptance of such retrofitted vessels; increases in costs;
changes in the availability of vessels to purchase, the time it takes to
construct new vessels, or the vessels' useful lives; changes in the ability of
Golar to obtain additional financing; changes in Golar's relationships with
major chartering parties; changes in Golar's ability to sell vessels to Golar
LNG Partners LP; Golar's ability to integrate and realize the benefits of
acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs
and floating LNG vessels; changes in domestic and international political
conditions, particularly where Golar operates; as well as other factors
discussed in Golar's most recent Form 20-F filed with the Securities and
Exchange Commission. Unpredictable or unknown factors also could have material
adverse effects on forward-looking statements.
August 26, 2014
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Questions should be directed to:
Golar Management Limited - +44 207 063 7900
Gary Smith - Chief Executive Officer
Brian Tienzo - Chief Financial Officer
Stuart Buchanan - Investor Relations
Golar LNG Limited 2Q 2015 Results:
http://hugin.info/133076/R/1947810/707359.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Golar LNG via GlobeNewswire
[HUG#1947810]
Unternehmensinformation / Kurzprofil:
Datum: 26.08.2015 - 23:54 Uhr
Sprache: Deutsch
News-ID 416181
Anzahl Zeichen: 43028
contact information:
Town:
Hamilton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 162 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"INTERIM RESULTS FOR THE PERIOD ENDED JUNE 30, 2015"
steht unter der journalistisch-redaktionellen Verantwortung von
Golar LNG (Nachricht senden)
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