Bli medlem
Bli medlem

Du är här

2016-05-31

Golar LNG: Interim Results for the Period Ended 31 March 2016

Highlights

· EBITDA* in the quarter reported a loss of $21.7 million compared to
a 4Q loss of $12.0 million.

· Agreed to drop down the FSRU Golar Tundra to Golar Partners for $330
million.

· Entered into a MoU with Schlumberger to co-operate globally on the
development of green field, brown field and stranded gas reserves using
GoFLNG vessels.

· Golar GenPower Brasil Participações S.A. and ExxonMobil Titan LNG
Limited ("ExxonMobil") agree heads of terms for supply of LNG to the
approximately 1,500MW Porto de Sergipe project.

· Refinanced first newbuild LNG carrier Golar Seal releasing $48.7
million of additional liquidity.

· Dividend maintained at $0.05 per share for the quarter.

Subsequent events

· Concluded sale of FSRU Golar Tundra to Golar Partners generating
additional $100 million of 2Q liquidity for Golar.

· Completed site specific modifications to Golar Tundra. FSRU now
proceeding to Ghana.

· Oscar Spieler who has previous experience as Golar CEO and a proven
and successful track record delivering complex engineering projects is
appointed as CEO.

· The subordination period for Golar's subordinated units in Golar
Partners expires. By June 30, 2016 15.9 million subordinated units will
convert to common units.

Financial Review

Business Performance

---------------------------------------------------------
| 2016 2015 |
| (in thousands of $) Jan-Mar Oct-Dec |
| Time and voyage charter revenues 16,560 20,118 |
| Vessel and other management fees 2,085 2,876 |
| Vessel operating expenses (15,573) (13,450) |
| Voyage and commission expenses (13,209) (11,528) |
| Administrative expenses (11,576) (10,061) |
| Depreciation and amortization (19,444) (19,541) |
| |
| Total Adjusted Operating Losses** (41,157) (31,586) |
| Add back |
| Depreciation and amortization 19,444 19,541 |
| EBITDA* (21,713) (12,045) |
---------------------------------------------------------

* EBITDA is defined as earnings before interest, 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.

** Adjusted Operating Losses exclude gains and losses on disposals and
impairments of assets.

Golar LNG Limited ("Golar" or "the Company") reported today a 1Q adjusted
operating loss of $41.2 million as compared to $31.6 million in 4Q 2015.
Although headline shipping rates remained relatively unchanged, utilisation
fell from 42% in 4Q 2015 to 24% in 1Q and revenue dropped accordingly from
$20.1 million in 4Q of 2015 to $16.6 million in 1Q. The two carriers
employed by Nigeria LNG in January 2015 concluded their charters during March
2016 and have both since been entered into the Cool Pool. Partially
mitigating the loss of this income was revenue earned by the Golar Arctic
which commenced its two year FSU service with New Fortress Energy offshore
Jamaica. Layup of the steam turbine vessel Golar Grand at the end of 4Q
2015 together with efficient deployment of vessels by the Cool Pool has
helped to mitigate bunker costs associated with the increase in idle time. Of
the $13.2 million voyage and commission expenses, $5.8 million represents the
cost of chartering in the Golar Grand from our affiliate Golar LNG Partners
LP ("Golar Partners"). As charterers of theGolar Grand
, Golar have now placed the vessel into layup pending a recovery in the
shipping market. This has resulted in operating cost savings of
approximately $10,000 per day during the quarter which are being passed back
to Golar by way of a lower daily hire rate under the terms of the charter
agreement.

Vessel operating expenses increased $2.1 million to $15.6 million. Of this
increase, $1.7 million is due to a full quarter's cost of the Golar Tundra,
having been delivered on 25 November 2015, and additional repairs and
maintenance and storing up costs incurred in advance of the Golar Arctic
commencing service off Jamaica. Administration costs at $11.6 million were
$1.5 million higher than 4Q 2015. Project costs increased by $1.0 million
and share option charges normalised following a credit in 4Q of 2015 in
respect of options forfeited.

Collectively the above resulted in a $9.7 million decrease in EBITDA from a
loss of $12.0 million in 4Q to a loss of $21.7 million in 1Q.

Net Income Summary

------------------------------------------------------------------------------------------------
| (in thousands of $) 2016 2015 |
| Jan-Mar Oct-Dec |
| Total Adjusted Operating Loss** (41,157) (31,586) |
| Net gain / (loss) on disposals (includes amortization of deferred gains) 126 (1,033) |
| Impairment of long-term assets (1,706) (1,957) |
| Other gains and losses (LNG trade) 16 0 |
| Dividend income 4,178 4,115 |
| Net interest expense (5,127) (9,179) |
| Other financial items (28,880) (27,043) |
| Taxes 676 490 |
| Equity in net earnings of affiliates (5,397) 6,321 |
| Non-controlling Interests (2,817) (11,020) |
| Net loss (80,088) (70,892) |
------------------------------------------------------------------------------------------------

In 1Q the Company generated a net loss of $80.1 million. Notable contributors
to this are summarised as follows:

· 1Q net interest expense at $5.1 million has decreased from the prior
quarters $9.2 million. The funding costs in respect of the six bank owned
subsidiaries set up for the sale and leaseback financed vessels, which Golar
consolidates, have increased. This has been more than offset by an increase
in capitalised interest (a credit to interest expense) in respect of assets
under construction.

· Other Financial Items at $28.9 million for 1Q were in line overall
with the prior quarter cost of $27.0 million. A 1Q mark to market gain of
$11.1 million was recorded against the Company's Total Return Equity Swap
compared to a 4Q loss of $35.6 million representing the increase in Golar's
share price from $15.79 on December 31 to $17.97 on 31 March. Following a
decrease in interest rates a 4Q non-cash gain of $16.1 million on
mark-to-market valuations of interest rate swaps became a 1Q loss of $23.4
million. An impairment charge of $8.1 million was recorded in respect of a
loan receivable from the now cancelled 0.6mtpa Douglas Channel project.
Repayment of the loan was dependent on the projects replacement sponsors
reaching a Final Investment Decision ("FID"). Amortisation of debt related
expenses increased from $1.8 million in 4Q to $4.4 million in 1Q following
the write off of expenses in connection with a former Golar Seal facility
which was extinguished during the quarter. Charges in respect of unhedged
interest rate swaps amounted to $3.1 million for the quarter.

· Golar Partners overall contribution to the Company's 1Q result was
lower by $11.6 million compared to 4Q following a $40.4 million decrease in
Golar Partner's reported net income. Cash flows are not however impacted by
this. In line with 4Q, the Company has received $13.2 million in cash in
respect of its common units, subordinated units, GP and IDRs in Golar
Partners.

Commercial Review -
Existing Assets and Contracts

LNG Shipping

The early part of 2016 has witnessed a continuation of the weak LNG freight
market. The majority of fixtures have been in the Pacific basin, however
they have tended to be for relatively short periods, and this is also where
the largest number of idle vessels are located. Owners' economics have
remained under pressure as charterers have taken full advantage of this over
capacity. In the Atlantic there are fewer vessels but there have also been
fewer fixtures as reload activity from Europe remains subdued. Middle
Eastern activity was light during 1Q but has picked up as we approach
mid-year when Middle East and South American importers increase gas demand.

Slower than expected start-ups at Sabine Pass in the US, Gorgon in Australia
and Angola LNG have weighed negatively on the shipping market although most
of the dedicated ships for these projects have been withdrawn from the spot
market in recent weeks. Portfolio players with large fleets continue to be
long on carriers, though some who were expecting to be long on tonnage have
found themselves more balanced than originally anticipated.

The recent Enarsa tender for 35 cargoes into Argentina stimulated additional
chartering activity in early 2Q however it is too early to determine to what
extent this might translate into an improvement over 1Q utilisation. A
gradual recovery, hand in hand with the ramp up and start-up of projects
should result in improving utilisation and charter terms, initially for
newbuild TFDE tonnage, and then for modern steam vessels. Golar has
therefore decided to place its spot traded modern steam vessels Golar Viking
and Golar Grand into layup. Although headline rates for newbuild TFDE
vessels remain unchanged at around $25-30k/day, round-trip economics result
in a substantially lower effective rate. All of Golar's ten newbuilds are
now operating inside the Cool Pool.

During the quarter Golar concluded a 2 year charter agreement with New
Fortress Energy Transport Partners LLC for the employment of Golar Arctic in
Jamaica.

FSRUs

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.