Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure, locking in approximately $140 million of TTF linked EBITDA.
January 19 2023 - 9:24AM
Golar LNG Limited (“Golar”) announces today that it has unwound
the majority of its swap arrangements for its Dutch Title Transfer
Facility (“TTF”) linked production on the FLNG Hilli:
- March-December 2023, securing approximately $76 million of
Distributable adj. EBITDA: 100% of TTF linked production
unwound at $21.80/MMBtu leading to a net gain of $28.2/MMBtu,
equivalent to Distributable Adjusted EBITDA of $76 million to be
received in ten equal monthly installments through the period
March-December 2023.
- Full year 2024, securing approximately $49 million of
Distributable adj. EBITDA: 50% of TTF linked production unwound
at $20.55/MMBtu leading to a net gain of $30.65/MMBtu, equivalent
to Distributable Adjusted EBITDA of $49 million to be received in
twelve equal monthly installments through 2024.
Golar’s only remaining TTF hedges are January
and February 2023, with an estimated Distributable Adjusted EBITDA
of approximately $25 million, which includes Golar’s share of TTF
invoices for the same period (approximately $12.5m generated from
the hedged price and physical production each). The total secured
value from the TTF hedges entered into in Q3 2022 amounts to
approximately $140 million, or approximately $1.3 in cash flow per
share.
Golar maintains exposure to its TTF linked
tariff for the FLNG Hilli, where 2023 earnings sensitivity is $2.7
million for every $1/MMBtu change in TTF, $3.2 million for every
$1/MMBtu change in TTF for 2024-2025 and $1.7 million for every
$1/MMBtu change in TTF from Jan-July 2026. At the current forward
curve, this is equivalent to $47 million of Distributable Adjusted
EBITDA for 2023 and $56 million for 2024.
Golar’s share of Hilli Distributable Adjusted
EBITDA is expected to be approximately:
- 2023: $282m This includes locked in TTF curves of $101 million,
TTF linked earnings of $47 million based on 2023 TTF forward price
of $20.8/MMBtu, and current Brent linked earnings of $67 million
based on 2023 forward price at $84/bbl and base tariff of $67
million.
- 2024: $225m This includes locked in TTF curves of $49 million,
TTF linked earnings of $56 million based on 2024 TTF forward price
of $20.9/MMBtu, and current Brent linked earnings of $53 million
based on 2024 forward price at $79/bbl and base tariff of $67
million.
Golar’s share of expected annual debt service
for Hilli’s contractual debt is approximately $50 million
(debt amortization of approximately $29 million and interest of
approximately $21 million).
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. Golar LNG Limited undertakes no obligation
to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by applicable law.
Hamilton, BermudaJanuary 19, 2023Enquiries:Golar Management
Limited: + 44 207 063 7900Karl Fredrik Staubo - CEOEduardo Maranhão
- CFOStuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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