Highlights
-
Golar LNG Limited ("Golar" or "the
Company") reports net income of $36.3 million for the second
quarter of 2018 ("2Q").
-
EBITDA1 for the
quarter was $98.9 million, including $94.7 million of unrealized
Brent oil linked mark-to-market derivative income related to the
FLNG Hilli Episeyo contract and $10.0 million
of costs in connection with the dissolution of OneLNG S.A.
("OneLNG").
-
Golar Power Limited's ("Golar Power")
affiliate, CELSE, closed a $1.34 billion financing facility for the
Sergipe project.
-
The Company entered into an agreement
and exchanged Heads of Terms with BP for delivery of a Tortue
project FLNG vessel.
-
Received an interim payment of $10.0
million from former charterers of the FSRU Golar
Tundra.
-
The shipping fleet records Time Charter
Equivalent1 ("TCE")
earnings of $19,600 per day.
-
FLNG Hilli Episeyo
commenced operations. Acceptance certificate signed by charterers
Perenco and SNH on June 2, effective May 31.
-
Closed FLNG Hilli
Episeyo post-acceptance $960 million lease financing, an
increase of $320 million from the pre-delivery financing.
-
Dividend payment for 2Q increased from
$0.05 to $0.125 per share reflecting commencement of Hilli Episeyo contract, reduced overall capital
commitments, and stronger financial position.
Subsequent
Events
-
Completed the sale of initial equity
interest in Golar Hilli LLC to Golar LNG Partners LP ("Golar
Partners" or the "Partnership").
-
FLNG Hilli Episeyo
achieved 100% commercial uptime following acceptance. Offload of
6th cargo expected shortly.
-
Strong improvement in shipping market.
Expected, 3Q 2018 TCE1 to at least
double 2Q TCE1.
Financial Review
Business Performance
|
2018 |
|
Apr-Jun |
Jan-Mar |
(in thousands of $) |
Vessel and other operations |
FLNG |
Total |
Total |
Total operating revenues |
40,797 |
|
18,577 |
|
59,374 |
|
66,190 |
|
Vessel operating expenses |
(16,940 |
) |
(3,556 |
) |
(20,496 |
) |
(18,415 |
) |
Voyage, charterhire & commission expenses (including
expenses from collaborative arrangement) |
(16,030 |
) |
(453 |
) |
(16,483 |
) |
(24,521 |
) |
Administrative expenses2 |
(13,257 |
) |
(99 |
) |
(13,356 |
) |
(10,736 |
) |
Project development expenses2 |
(1,145 |
) |
(6,798 |
) |
(7,943 |
) |
(3,280 |
) |
Realized and unrealized gain on FLNG derivative
instrument |
- |
|
97,748 |
|
97,748 |
|
13,600 |
|
Other operating gains (losses) |
10,000 |
|
(9,982 |
) |
18 |
|
- |
|
EBITDA1 |
3,425 |
|
95,437 |
|
98,862 |
|
22,838 |
|
Depreciation and amortization |
(16,366 |
) |
(4,091 |
) |
(20,457 |
) |
(16,409 |
) |
Operating (loss) income |
(12,941 |
) |
91,346 |
|
78,405 |
|
6,429 |
|
2. With effect from the quarter
ended June 30, 2018, we presented a new line item, "Project
development expenses", which includes costs associated with
pursuing future contracts and developing our pipeline of activities
that have not met our internal threshold for capitalization.
Previously, these costs were presented within "Administrative
expenses" along with our general overhead costs. This presentation
change has been retrospectively adjusted in prior periods.
Golar reports today 2Q 2018
operating income of $78.4 million compared to $6.4 million in 1Q
2018 ("1Q").
Total operating revenues net of
voyage, charterhire and commission expenses increased from $41.7
million in 1Q to $42.9 million in 2Q. Of the 2Q total, $24.8
million is derived from vessel and other operations and $18.1
million is from FLNG operations.
Revenues from vessel operations
net of voyage, charterhire and commission expenses, decreased by
$16.9 million to $24.8 million in 2Q. The significant reduction was
expected and was the result of a seasonal softening in shipping
market activity. Fleet utilization fell from 77% in 1Q to 62% in
2Q. Rates also dropped during the quarter. Collectively this
resulted in a $16,400 reduction in daily TCE1
earnings, from $36,000 in 1Q to $19,600 in 2Q.
FLNG Hilli
Episeyo was accepted with effect from May 31 and earnings under
the contract commenced at this point. Included in the $18.6 million
revenue is $17.5 million of base tolling fees (equivalent to a
daily rate of approximately $560,000) and $1.1 million amortization
of the deferred pre-acceptance amounts recognized.
Total vessel operating expenses
increased by $2.1 million to $20.5 million in 2Q. FLNG operating
costs for Hilli Episeyo's first month in
operation amounted to $3.6 million, which is in line with
expectations. Operating costs for the rest of the fleet dropped by
$1.5 million to $16.9 million in 2Q, with first quarter costs
having been inflated by the cost of moving Gandria from layup to Keppel Shipyard.
At $13.4 million for the quarter,
total administrative expenses were $2.6 million higher than 1Q. The
increase relates to increased salaries and benefits and share
option expenses.
Project development expenses
include costs associated with the pursuit of specific potential
projects and contracts. These costs were formerly included as part
of administrative expenses. Project development expenses increased
from $3.3 million in 1Q to $7.9 million in 2Q. FLNG project
development expenses of $6.8 million are predominantly represented
by Front End Engineering and Design ("FEED") expenses together with
legal and professional fees incurred in respect of the FLNG
conversion project for the BP-Kosmos Tortue project. Most of the
$1.1 million vessel and other operations related project costs are
recharged to affiliates Golar Power and Golar Partners.
The Brent-linked component of
Hilli Episeyo's invoiced fees generates
additional annual operating cash flows of approximately $3 million
for every dollar increase in Brent Crude prices between $60.00 per
barrel and the contractual ceiling. Monthly billing of this
component is based on a three month look-back at average Brent
Crude prices. This hire component for June amounted to $3.0 million
and was paid in July. The fair value of the derivative asset (i.e.
the value at June 30 of the potential future cash flow from the oil
linked hire component) increased by $94.7 million during the
quarter, with a corresponding unrealized gain of the same amount.
The fair value increase was driven by changes in market
expectations of future oil prices. Together with the realized
movement of $3.0 million, this results in a $97.7 million realized
and unrealized gain on the FLNG derivative instrument.
Other operating gains and losses
includes an other operating gain of $10.0 million. This relates to
a cash recovery during the quarter following ongoing proceedings in
respect of a former contract for the Golar
Tundra. Golar continues to pursue its rights under this
contract. Offsetting this are FLNG related costs of $10.0 million
in connection with the dissolution of OneLNG.
Depreciation and amortization
increased by $4.0 million to $20.5 million in 2Q. Having commenced
commercial service, the Hilli Episeyo became a
depreciating asset. Depreciation in relation to the rest of the
fleet was in line with the prior quarter.
Net Income (Loss)
Summary
|
2018 |
2018 |
(in thousands of $) |
Apr-Jun |
Jan-Mar |
Operating income |
78,405 |
|
6,429 |
|
Interest
income |
2,100 |
|
1,944 |
|
Interest
expense |
(24,014 |
) |
(13,998 |
) |
Other
financial items, net |
1,831 |
|
(1,237 |
) |
Income
taxes |
(490 |
) |
6 |
|
Equity in
net earnings (losses) of affiliates |
(4,674 |
) |
(1,541 |
) |
Net
income attributable to non-controlling interests |
(16,839 |
) |
(12,605 |
) |
Net income (loss) attributable to Golar LNG
Limited |
36,319 |
|
(21,002 |
) |
In 2Q, the Company generated net
income of $36.3 million. In addition to the increase in Operating
Income, other items contributing to the $57.3 million increase in
2Q are summarized as follows:
·
Interest expense
increased by $10.0 million to $24.0 million mainly due to the
interest on borrowing costs in respect of Hilli
Episeyo no longer being capitalizable after acceptance, a
general increase in LIBOR rates and an increase in the amortization
of debt related expenses.
·
Other financial items
reported a 2Q gain of $1.8 million. This includes mark-to-market
valuations on the Total Return Swap ("TRS"), interest rate swaps
("IRS") and the Golar Partners Earn-Out Units derivative.
·
The $4.7 million 2Q
equity in net losses of affiliates is primarily comprised of the
following:
·
a $8.0 million loss in
respect of Golar's 50% share in Golar Power;
·
a $0.5 million loss in
respect of Golar's 51% share in OneLNG; and
·
income of $3.8 million
in respect of Golar's stake in Golar Partners. Cash distributions
received from the Partnership are in line with prior quarters.
Commercial
Review
LNG
Shipping
Golar achieved a TCE1
of $19,600 per day in 2Q compared to $36,000 per day in 1Q and
$14,600 per day in 2Q 2017. A reduction in rates from 1Q was
anticipated and is the result of a seasonal softening in activity
and utilization and a corresponding reduction in rates. The market
reached its seasonal trough in early May, with around 30 available
vessels in the spot market before strengthening as a result of
increasing LNG prices driven by strong demand from China and Korea.
As of today, JKM and European gas prices are up 84% and 61%,
respectively, year-on-year. Charterers seeking winter coverage have
also entered the market and interest in multi-month and multi-year
charters is picking up.
New production continues to
deliver. Projects with a nameplate capacity of 72mtpa, equivalent
to approximately 23% of current LNG production, are expected to
commence operations over the next 24 months. New production will
come from the start-up of new facilities and new trains at existing
facilities, including Yamal, Ichthys, Prelude, Corpus Christi,
Sabine Pass, Cameron and Freeport. This is expected to require in
excess of 100 vessels for transportation. Over the same time
horizon, 66 vessels are scheduled to deliver. Leading brokers
currently estimate that the market will be under supplied by 40
vessels in 2020.
During June, Dynagas left the Cool
Pool as a result of prior long-term charter commitments for their
ships. Golar and GasLog will continue to operate the pool, which is
currently marketing 15 TFDE carriers for fixtures with durations of
up to one year. The Company also continues to investigate options
to restructure its shipping business to capture more upside for
shareholders from the forthcoming recovery.
Golar Partners
(affiliate)
The Partnership's 2Q results
improved as expected, predominantly due to a full quarter's
scheduled hire in respect of the FSRU Golar
Igloo. Albeit from a low base, distribution coverage improved
as a result, from 0.32 in 1Q to 0.56 in 2Q. Further improvement is
expected following the acquisition of the initial interest in
Hilli Episeyo on July 12 and as a result of
the improving shipping market. Golar and the Partnership have
also resumed discussions with respect to the potential dropdown of
additional common units in Golar Hilli LLC.
Indicative of the recovering
shipping market, the Golar Maria has secured a
10-month charter that commences in August and will contribute
additional distributable cash through to 2Q 2019.
The Golar
Freeze, which has been nominated to service the 15-year
Atlantic FSRU opportunity, entered Dubai Dry Docks for her
scheduled drydock and requisite modifications. The Atlantic FSRU
contract is expected to commence around year end.
FLNG
By late April, stable levels of
production were being achieved on board Hilli
Episeyo. A commissioning cargo was subsequently offloaded.
Official acceptance testing commenced thereafter and completed on
May 31. The acceptance certificate was signed shortly afterwards on
June 2. All four trains have been commissioned and tested to at or
above nameplate capacity and the vessel has been operating with
100% commercial availability. The vessel is currently on schedule
to export its 6th cargo.
Vessel acceptance was also a key
trigger for the final drawdown against the $960 million CSSCL sale
and leaseback facility and closing of the previously agreed
dropdown to Golar Partners. Final drawdown against the sale and
leaseback facility was completed on June 20. Golar and affiliates
of Keppel Shipyard Limited and Black and Veatch closed the sale of
50% of the common units in Golar Hilli LLC to the Partnership with
effect from July 12. After this transaction, net of non-controlling
interests, Golar will be entitled to 44.6% of cash flows from the
initially contracted toll fee under the liquefaction tolling
agreement, 89.1% of the Brent-linked cash flows and 86.9% of any
future cash flows from the vessel's expansion capacity.
During April, Golar entered into a
Preliminary Agreement and exchanged Heads of Terms with BP for a
FLNG vessel similar to the Hilli Episeyo to
service the BP-operated Greater Tortue/Ahmeyim project. Executed on
April 19, the Heads of Terms represents a commitment between Golar
and BP to translate key commercial terms into a full commercial
agreement and to proceed with FEED work for the provision of a FLNG
vessel to service the project offshore Mauritania and Senegal.
Draft commercial, construction and financing agreements as well as
FEED work are being progressed at pace in order to meet the
required timetable for a potential Final Investment Decision
("FID"). BP has communicated to their shareholders that they expect
to take FID on the project before the end of 2018 and that
production is targeted to commence before the end of 2021.
The dissolution of OneLNG
commenced in early July and the project pipeline of FLNG
opportunities has now been handed over to Golar. A number of high
potential opportunities are being pursued with Hilli Episeyo's proof of concept adding momentum to
these discussions.
Golar Power
(50/50 Golar/Stonepeak Infrastructure Partners downstream joint
venture)
On April 19, CELSE, the 50% Golar
Power owned project company responsible for delivering the Sergipe
I power project, executed a US$1.34 billion non-recourse project
finance facility. Excluding the FSRU facility, proceeds will fund
remaining interest costs and capital expenditures for the project.
Equity contributions from CELSE's controlling partners, including
Golar Power, have also been fully paid in. Assuming no dispatch
under the Power Purchase Agreements, forecast annual
EBITDA1 from the
power project (of which Golar is entitled to a 25% interest which
will be reported as "equity in net earnings of affiliates" in the
consolidated statements of income) including inflation uplifts to
date is BRL 1.16 billion, equivalent to approximately US$306
million at a USD/BRL rate of 3.8. Payments under the executed PPA
are inflation indexed over the 25-year term and provide for
pass-through of fuel costs when the power plant is called upon to
dispatch. Around 94% of the project finance facility is also BRL
denominated. This reduces net debt to $1.21 billion at the same
USD/BRL rate, thus creating a natural hedge for currency
movements.
The project, 66% complete by the
end of July, is on schedule to commence operations on January 1,
2020. In excess of 2,000 workers are currently on site which is
operating 24/7. Prefabricated GE modules, including generators and
boilers, are being installed, transmission lines and pylons are
being erected and the pipeline connecting the power station to the
FSRU mooring is currently being laid.
Additional to the forecast annual
EBITDA1 from the
power project, the FSRU is expected to generate annual US CPI
adjusted EBITDA1 of
approximately US$41.0 million (of which Golar is entitled to a 50%
interest which will be reported as "equity in net earnings of
affiliates" in the consolidated statements of income). A financing
commitment for the FSRU Nanook, due to deliver
from the yard shortly, has been received and documentation is in
its final stages. Net of the final FSRU delivery installment, the
facility is expected to release approximately $70 million of cash
to Golar Power.
The FSRU Nanook will, when it commences operations in 2019,
represent the only entry point for LNG into Brazil outside
Petrobras. Access to significant spare FSRU capacity could
facilitate the supply of gas directly into the Brazilian grid as
well as support a distribution hub for small scale distribution of
LNG. The Company sees a number of very attractive opportunities to
substitute expensive fuel based energy demand with cheaper and more
environmentally friendly LNG solutions. The initial focus will be
to target diesel to LNG conversions in the trucking industry as
well as tailor-made LNG logistics solutions for the large mining
and industrial market. Based on existing infrastructure in Sergipe,
Golar Power is also well placed to participate in future Brazilian
power auctions, with a clear competitive edge given that capital
expenditure linked to the FSRU and grid connection has been
substantially covered by the first phase of the project.
Financing
Review
Golar and its affiliates, Golar
Power and Golar Partners, currently have no unfunded capital
commitments, given the financing commitment recently received for
the FSRU Nanook.
Golar's total cash position as at
June 30 was $651.4 million, of which $375.1 million was
unrestricted. This is after having drawn the post-acceptance $960
million lease financing facility provided by CSSCL and having
repaid the $640 million construction financing facility.
During 3Q 2018, approximately $130
million is expected to be paid to settle the final Hilli Episeyo capital commitments as well as amounts
due to non-controlling (10.89%) shareholders Keppel and Black and
Veatch as a result of the June 20 debt draw down and subsequent
drop down of 50% of the common units of Golar Hilli LLC to Golar
Partners on July 12. Of the $175 million restricted cash securing
the Hilli Episeyo Letter of Credit,
approximately $129 million is expected to be released to free
cash1 between 2019
and 2021.
During July, amendments to the
existing margin loan facility, secured by units in Golar Partners,
were agreed. Although most of the existing terms remain
substantially unchanged, the facility will no longer amortize. As
of June 30, this facility amounted to $98 million. Subject to the
satisfaction of certain covenants, no further principal repayments
will be required ahead of loan maturity in March 2020. The value of
the secured position as of August 22 was $322 million.
Included within the $868.7 million
current portion of long-term debt is $836.9 million relating to
lessor-owned VIE subsidiaries that Golar is required to consolidate
in connection with 8 sale and leaseback financed vessels, including
the Hilli Episeyo. Of the balance associated
with VIE financings, one facility amounting to $143.5 million is
due for refinancing by the end of 2018. Discussions with the bank
regarding an extension have been initiated.
Corporate and
Other Matters
As at June 30, 2018, there were
101.1 million shares outstanding, including 3.0 million TRS shares
that had an average price of $44.13 per share. The TRS was marked
to market as of June 30, 2018 when the closing price was $29.46 per
share. There were also 4.1 million outstanding stock options in
issue.
Golar's Annual General Meeting is
scheduled for September 26, 2018 in Bermuda. The record date for
voting was August 1, 2018.
Reflecting the commencement of the
Hilli Episeyo contract, reduced overall
capital commitments, and a stronger financial position, the Board
has increased the dividend payment from $0.05 for 1Q 2018 to $0.125
per share for 2Q 2018.
Outlook
Golar is now an integrated energy
company delivering LNG upstream, midstream and downstream
solutions.
Evidence shows that gas is cheaper
to produce than oil and that it also delivers significant
environmental benefits relative to traditional fuel products. The
Company's target is to maximize profitability by offering
integrated LNG logistical solutions that not only improve the
environment but also deliver significant energy savings to our
customers and profits to Golar's shareholders. As part of this
strategy, Golar will also focus on securing access to low cost
stranded gas reserves that can be monetized via the cost effective
FLNG and FSRU solutions it has developed.
The secular growth thesis for LNG
is real. LNG's share of total gas trade is forecast to grow from
33% to ~ 40% in 2023, with emerging Asian markets accounting for
half of LNG imports in 2023. Chinese demand alone is up around 50%
year-to-date. The LNG commodity market is now expected to balance
in 2022, with a supply demand gap reaching ~ 50mtpa by 2025. Much
of this will likely be provided by new US export projects, however
significant investment in quick delivering infrastructure is also
needed. Golar is well placed to deliver this.
Increasing production, rising ton
miles and a structural shortage of ships will support sustained
improvements in the shipping market. The escalation of rates noted
in late May and June ahead of the summer cooling season will be
reflected in 3Q 2018 earnings. Charterers keen to lock in rates
before they go higher continue to approach the market for
multi-month and multi-year charters ahead of what is expected to be
a strong winter market. Similar dynamics to those that played out
in 2H 2010 are being repeated today. Based on current supply-demand
dynamics, Golar expects to generate solid free cash flow from the
shipping fleet over the coming 2-3 years.
Hilli
Episeyo's successful start-up and acceptance is a
transformative event that substantially de-risks the Golar
investment case. It also introduces Cameroon as a LNG exporting
nation. Representing the culmination of over 20 million man hours,
few, if any LNG liquefaction projects have delivered within budget,
as quickly and as close to their originally intended start-up
date.
The binding Heads of Terms with BP
to service the Tortue field offshore Mauritania and Senegal is a
significant step both for the Company and this project. Assuming
FID, Tortue should be delivering new LNG in 2021/2. Golar continues
to pursue other FLNG projects capable of delivering LNG at around
the same time and is actively pursuing several investment
opportunities alone and with partners, including the economically
attractive Fortuna project. An industry wide reluctance to accept
new solutions including FLNG, excess levels of bureaucracy, and
difficulty securing competitive construction and exit financing
represent hurdles for many of these projects. The successful
start-up of Hilli Episeyo is expected to lower
some of these hurdles. Golar is also in the process of evaluating
alternative shipyards that offer more attractive payment terms and
long-term financing packages.
A prolonged period of investment
of close to $4 billion in LNG carriers, FSRUs, Hilli Episeyo and the Sergipe project is now in the
final stages. Strong improvements in the shipping market and the
commencement of long-term contracts for Hilli
Episeyo and soon, Sergipe, are starting to generate significant
cash flow. The opportunity to contract Hilli
Episeyo trains 3 and 4 represents further potential upside
without the need for additional capital expenditure. Similarly,
optionality exists to utilize the spare capacity at the Sergipe
terminal. Based on the current strength of the LNG market,
monetization of both opportunities should be a realistic target for
the next 2 years.
Based on existing contracts, the
Golar Board looks forward to sustained improvements in earnings and
cashflows in the years to come. Results in 3Q 2018 will be
positively influenced by a full quarter's operations of Hilli Episeyo and a shipping market that will deliver a
materially better result relative to 2Q. Supported by these solid
fundamentals, a fully financed balance sheet and a self-funding
Golar Power, the Board has decided to increase the quarterly
dividend from $0.05 to $0.125. Further dividend growth should be
expected as the shipping market improves and cash flows from
long-term contracts in Golar Power commence.
Non-GAAP measures
EBITDA:
EBITDA is a non-GAAP measure. EBITDA is defined as operating income
before interest, tax, depreciation and amortization. EBITDA is a
non-GAAP financial measure. A non-GAAP financial measure is
generally defined by the Securities and Exchange Commission as one
that purports to measure historical or future financial
performance, financial position or cash flows, but excludes or
includes amounts that would not be so adjusted in the most
comparable U.S. GAAP measure. We have presented EBITDA as we
believe it provides useful information to investors because it is a
basis upon which we measure our operations and efficiency. EBITDA
is not a measure of our financial performance under U.S. GAAP and
should not be construed as an alternative to net income (loss) or
other financial measures presented in accordance with U.S.
GAAP.
Free cash:
Free cash is defined as "cash and cash equivalents" as presented on
the consolidated balance sheets.
TCE: The
average TCE rate of our fleet is a measure of the average daily
revenue performance of a vessel. TCE is calculated only in relation
to our vessel operations. For time charters, TCE is calculated by
dividing total operating revenues (including revenue from the Cool
Pool but excluding vessel and other management fees and
liquefaction services revenue), less any voyage expenses, by the
number of calendar days minus days for scheduled off-hire. Under a
time charter, the charterer pays substantially all of the vessel
voyage related expenses. However, we may incur voyage related
expenses when positioning or repositioning vessels before or after
the period of a time charter, during periods of commercial waiting
time or while off-hire during drydocking. TCE rate is a standard
shipping industry performance measure used primarily to compare
period-to-period changes in an entity's performance despite changes
in the mix of charter types (i.e. spot charters, time charters and
bareboat charters) under which the vessels may be employed between
the periods. We include average daily TCE, a non-GAAP measure, as
we believe it provides additional meaningful information in
conjunction with total operating revenues, the most directly
comparable GAAP measure, because it assists our management in
making decisions regarding the deployment and use of its vessels
and in evaluating their financial performance. Our calculation of
TCE may not be comparable to that reported by other entities. Refer
to our most recent quarterly earnings release on our investor
relations section on our website (www.golar.com) for a
reconciliation to the most directly comparable financial measure
under US GAAP.
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 liquefied
natural gas, or LNG, carrier, floating storage and regasification
unit, or FSRU, or floating liquefaction natural gas vessel, or
FLNG, market trends, including charter rates, vessel values or
technological advancements;
·
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
close the sale of additional equity interests in Golar Hilli LLC on
a timely basis or at all;
·
our inability to meet our
obligations under the Heads of Terms agreement entered into in
connection with the BP Greater Tortue / Ahmeyim Project, prior to
FID, which will result in extensive termination fees;
·
changes in the supply of or demand for LNG carriers, FSRUs or
FLNGs;
· a
material decline or prolonged weakness in rates for LNG carriers,
FSRUs or FLNGs;
·
changes in the
performance of the pool in which certain of our vessels operate and
the performance of our joint ventures;
·
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 LNG or LNG carried by
sea;
·
changes in commodity prices;
·
changes in the supply of or demand for natural gas generally or in
particular regions;
·
failure of our contract
counterparties, including our joint venture co-owners, to comply
with their agreements with us;
·
changes in our relationships with our counterparties, including our
major chartering parties;
·
changes in the availability of vessels to purchase and in the time
it takes to construct new vessels;
·
failures of shipyards to
comply with delivery schedules or performance specifications on a
timely basis or at all;
· our
ability to integrate and realize the benefits of acquisitions;
·
changes in our ability to sell vessels to Golar Partners or our
joint venture, Golar Power;
·
changes in our relationship with Golar Partners or Golar Power;
·
changes to rules and
regulations applicable to LNG carriers, FSRUs, FLNGs or other parts
of the LNG supply chain;
·
our inability to achieve
successful utilization of our expanded fleet or inability to expand
beyond the carriage of LNG and provision of FSRUs and FLNGs,
particularly through our innovative FLNG strategy and our joint
ventures;
·
actions taken by
regulatory authorities that may prohibit the access of LNG
carriers, FSRUs or FLNGs to various ports;
·
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;
·
changes in general domestic and international political conditions,
particularly where we operate;
· a
decline or continuing weakness in the global financial markets;
·
challenges by
authorities to the tax benefits we previously obtained under
certain of our leasing agreements; 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.
August 23, 2018
The Board of Directors
Golar LNG Limited
Hamilton, Bermuda
Questions should be directed
to:
Golar Management Limited +44 207
063 7900
Iain Ross - Chief Executive
Officer
Graham Robjohns - Chief Financial
Officer and Deputy Chief Executive Officer
Stuart Buchanan - Head of Investor Relations
Interim results for the period
ended 30 June 2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Golar LNG via Globenewswire
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