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Golar LNG releases its latest interim results

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LNG Industry,


Golar LNG Ltd has reported its interim results for the period ended 31 March 2020.

1Q20 highlights

Golar Power:

  • The 1.5 GW Sergipe Power Plant reached COD – approximately BRL 6.9 billion, or US$1.3 billion, of pre-inflation adjusted revenue less operating costs1 attributable to Golar LNG over the next 25 years.
  • FSRU Golar Nanook was accepted - approximately US$549 million of pre-inflation adjusted revenue less operating costs attributable to Golar LNG over the next 25 years.
  • Entered into a partnership with Petrobras Distribuidora S.A. to facilitate a nationwide rollout of small-scale LNG supply to Brazil's transportation and industrial sectors.
  • Signed a Protocol of Intentions with the State Government of Pernambuco to develop an LNG import terminal in the Port of Suape, Brazil.

FLNG:

  • FLNG Hilli Episeyo: vessel currently exporting 39th cargo, with 100% commercial uptime maintained.
  • FLNG Gimi received force majeure claim from BP Mauritania Investments Ltd (BP) in relation to a delay in the order of 12-months to the target connection date.
  • Progressed the development of our next generation FLNG vessel and continued discussions on four further FLNG projects.

Shipping:

  • 1Q20 average daily time charter equivalent (TCE) earnings of US$61 900 for the fleet, substantially higher than the US$39 300 achieved in 1Q19.
  • In the absence of vessel dry-dockings, utilisation increased from 90% in 4Q19 to 94% in 1Q20.
  • Revenue backlog from shipping as at 31 March 2020, stands at US$126 million.

Financial:

  • Purchased remaining 1.5 million shares underlying the total return swap (TRS), reducing the number of outstanding common shares to 97.8 million, and also reducing liquidity volatility.
  • Golar Viking debt re-financed with new FSRU conversion facility also executed upon vessel arrival at conversion yard.
  • Golar Celsius refinanced, releasing US$58 million of liquidity to Golar Power.
  • Received term sheets for the potential refinancing of the LNG carriers Golar Bear and Golar Frost, providing additional liquidity.
  • With a strong financial background, including 21 years in leading positions at JP Morgan Investment Bank, Callum Mitchell-Thomson appointed as new CFO.

Iain Ross, Golar LNG CEO, comments:

“Golar is pleased to report [1Q20] operating revenues of US$122.6 million and adjusted EBITDA of US$76.2 million, that were driven by a solid performance in FLNG, with 100% commercial uptime on Hilli Episeyo, and strong seasonal results in shipping, which delivered a [1Q20] TCE of US$62 000/day, a 57% increase on the US$39 300 achieved in 1Q19.

In Golar Power, the 1.5GW Sergipe power plant in Brazil reached its COD acceptance milestone which triggered commencement of earnings under the 25-year PPA contract and associated FSRU Golar Nanook charter. The first three small scale customers have also now been formally signed up and LNG distribution operations are expected to start in 2021. This short time to cash flow and the very strong project return confirms the attractiveness of our small scale business. To date, a further 200 potential customers have signed letters of intent to pursue various small scale opportunities with Golar Power, demonstrating the robust consumer appetite to reduce both energy costs and environmental footprints.

Safety remains our highest priority and several initiatives have been implemented in response to the COVID-19 pandemic to keep our seafarers, staff and our wider communities safe whilst ensuring that all our assets remain operational and that we are meeting our customer commitments.

In response to the combination of COVID-19 demand reduction and lower LNG/Brent pricing we have already implemented a number of liquidity assurance and cost reduction measures to ensure the business can withstand any prolonged economic downturn.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01062020/golar-lng-releases-its-latest-interim-results/

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