Golar LNG Limited has released its third quarter 2014 results, noting considerable activity in the LNG and floating LNG sectors.
The company generated an ‘unsatisfactory’ EDITDA of US$ 5.9 million. This does however represent a US$ 4.3 million improvement over Q2 EBITDA of US$ 1.6 million.
Utilisation of the spot fleet improved with the Golar Crystal being available for the entire quarter, and employed for much of it, and the Golar Celsius securing its first charter during Q3.
Spot chartering activity rose in July as a temporary winter related contango in LNG pricing increased the amount of positioning and repositioning of vessels for voyages, and therefore voyage costs.
Two further new-builds, the Golar Penguin and the Golar Bear were delivered in mid-September, both of which spent the remainder of the quarter positioning from the yard in Korea to Singapore for bunkering and storing up.
In July, Golar LNG ordered the world’s first floating liquefaction vessel to be based on the conversion of an existing LNG carrier, the Hilli. The primary contract for the Hilli conversion was entered into with Keppel Shipyard Limited. Keppel simultaneously entered into a sub-contract with Black & Veatch, who will provide its licensed PRICO® technology, perform detailed engineering and process design, specify and procure topside equipment and provide commissioning support for the floating LNG vessel topsides and liquefaction process.
The Golar Hilli has now been delivered to the Keppel shipyard in Singapore for commencement of conversion works. The project remains on budget and schedule for delivery from the Keppel year in H1 2017.
The company took delivery of its fourth and fifth Samsung-built Tri-fuel Diesel Electric (TFDE) LNG carriers, the Penguin and Bear, in September.
Subsequent to the end of Q3, two further TFDE LNG carriers were delivered: the Samsung-built Golar Frost and the first of two Hyundai-built carriers, the Golar Glacier.
Ghana's FSRU project continues to advance towards a Final Investment Decision in early 2015. The project has made solid progress towards securing government support.
While the company continues to market the Golar Tundra outside of West Africa, several new opportunities have developed for smaller FSRUs in the 1 - 2 milllion tpy range in Central America and South East Asia.
Construction of the 160,000 m3 FSRU Golar Eskimo is expected to complete next month in advance of the scheduled 2015 commencement of service in Jordan.
Golar's strategic intent is to become a fully integrated LNG mid-stream services provider covering floating LNG liquefaction, shipping and regasification services.
The company’s investment proposition is to extend further upstream in the LNG value chain by adding Golar floating LNG liquefaction (GoFLNG) capability. GoFLNG will bring substantially lower unit cost liquefaction, shorter lead-times and a significantly lower execution risk profile when compared to conventional land based liquefaction plants.
The investment proposition has been positively received by a number of stakeholders.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/26112014/golar-lng-limited-third-quarter-2014-results-1864/
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