First Quarter 2017 Results. Golar LNG Limited

Transcription

1 First Quarter 2017 Results

2 FORWARD LOOKING STATEMENT 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 forwardlooking statements are: changes in LNG carriers, FSRU and floating LNG vessel market trends, including charter rates, ship values and technological advancements; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers, FSRUs; and floating LNG vessels; changes in Golar s ability to retrofit vessels as FSRUs and floating LNG vessels, Golar s ability to obtain financing for such retrofitting on acceptable terms or at all and the timing of the delivery and acceptance of such retrofitted vessels; increases in costs; changes in the availability of vessels to purchase, the time it takes to construct new vessels, or the vessels useful lives; changes in the ability of Golar to obtain additional financing; changes in Golar s relationships with major chartering parties; changes in Golar s ability to sell vessels to Golar LNG Partners LP; Golar s ability to integrate and realize the benefits of acquisitions; changes in rules and regulations applicable to LNG carriers, FSRUs and floating LNG vessels; changes in domestic and international political conditions, particularly where Golar operates; as well as other factors discussed in Golar s most recent Form 20-F filed with the Securities and Exchange Commission. Unpredictable or unknown factors also could have material adverse effects on forward-looking statements. 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. 2

3 Highlights Operating Loss and EBITDA in the quarter reported a loss of $41.4 million and $16.2 million, respectively, compared to a Q4 loss of $32.7 million and $15.9 million. Issued a $402.5 million 2.75% 5-year unsecured convertible bond with a capped call that gives an effective conversion premium and price of 75% and $48.86 respectively. Repaid balance of the year convertible bond and refinanced the debt facility in respect of LNG carrier Golar Crystal. Secured firm 2-year contract for Golar Grand commencing 2Q 2017 and a 12-month contract for a carrier commencing 1Q Subsequent Events: OneLNG s Fortuna joint venture executes Umbrella Agreement with the Republic of Equatorial Guinea to establish the fiscal and legal framework for the Fortuna FLNG project. Fortuna midstream EPC contracts awarded. Project on track for mid-2017 FID. Put Option in respect of FSRU Golar Tundra exercised by Golar Partners. The Company and Golar Partners enter into a purchase option agreement for Golar Partners to acquire up to 25% interest (50% of contracted capacity) in FLNG Hilli Episeyo. Transaction expected to close in June subject to customary closing conditions. OneLNG enters into a Memorandum of Understanding with the Republic of Equatorial Guinea to find a monetisation solution for stranded gas focusing on Blocks O and I offshore Malabo. 3

4 Financial Highlights Unaudited Audited (USD millions) Q1 Q4 Q1 12 months to Dec-16 Total operating revenues Voyage, charter-hire and commission expenses Grand charter and fair value guarantee (9.6) (4.9) (5.8) (22.3) Other voyage expenses (7.3) (7.7) (5.3) (25.3) Net operating revenues Operating expenses (12.9) (11.4) (15.6) (53.2) Administration expenses (11.4) (14.9) (11.6) (46.0) EBITDA (16.2) (15.9) (21.7) (66.4) Other non-operating income (loss) (8.6) Net financial (expense) income (3.8) 7.4 (34.0) (59.5) Equity in net (losses) earnings of affiliates (13.9) 37.8 (7.6) 47.9 Net (loss) income (65.8) 8.6 (86.6) (186.5) Vessel numbers Time charter equivalent ($p/day) 14,189 10,893 8,335 10,229 Dividend

5 Balance Sheet (USD thousands) Current assets Cash and cash equivalents Restricted cash and short-term receivables Other current assets Non-current assets Restricted cash Investment in affiliates Cost method investments Vessels and equipment, net Asset under development Other non-current assets TOTAL ASSETS Current liabilities Current portion of long-term debt and short-term debt Other current liabilities Non-current liabilities Long-term debt Other long-term liabilities Golar LNG Ltd s stockholders equity TOTAL LIABILITIES & EQUITY 2017 Mar 31 (Unaudited) 456, ,083 18, , ,893 7,347 2,129, ,760 56,670 4,506, , ,413 1,422,952 51,552 1,890,151 4,506, Dec 31 (Unaudited) 224, ,693 18, , ,780 7,347 2,153, ,993 56,408 4,256, , ,673 1,525,744 52,214 1,909,826 4,256,911 5

6 Annual Change (%) Fleet Utilisation Rate (%) Shipping Update Source: Fearnley Securities Research Significant new LNG volume on its way Market equilibrium expected in early % 30% 25% 20% 15% 10% 5% 0% -5% -10% Change in LNG Volume Transport distance Fleet productivity Floating storage Net tonnage demand Tonnage Supply Fleet utilization (right axis) 100% 80% 60% 40% 20% Source: Clarksons Platou No further significant project delays expected 6 Source: Fearnley Securities Research Source: Fearnley Securities Research New-build orders & deliveries are declining

7 FSRU Update The Sergipe project is proceeding to plan: Source: Fearnley Securities Research Foundations for gas turbines complete. GE EPC project continues on schedule and budget. Financial close expected end Permitting for regas terminal main challenge but on track. Required modifications to Golar Nanook may delay FSRU delivery to More gas than ever is looking for access to new markets: This is creating additional demand for FSRUs. Niche market for smaller/cheaper FSRUs quite active too. Golar Partners has identified specific opportunities for Golar Spirit. Golar Power pursuing several opportunities for its first FSRU conversion expected to deliver 2H New competitors and new-build orders are starting to affect margins for generic FSRU tenders. Cheap abundant gas driving FSRU interest Source: Fearnley Securities Research Additional competition is eroding margins

8 Hilli Episeyo Project Update Courtesy of Perenco FLNG Hilli on schedule and within budget: All equipment installed. Pre-commissioning underway. Yard departure expected in around 6- weeks. First test for gas engines expected in June. Vessel to then steam to Cameroon accompanied by escort tug. Mooring complete and en-route to Cameroon. Will be installed end July. Provided remaining works progress to plan and no unforeseen issues arise, schedule to meet end-september start in Cameroon is tight but achievable. Perenco on track with their offshore and land based infrastructure. 8

9 Fortuna Project Update Fortuna project on track for mid-2017 FID: Done: Umbrella Agreement that covers legal and fiscal framework for project in Equatorial Guinea. Award of amended midstream EPC contracts for conversion of LNG vessel Gandria. Effectiveness of contracts subject to project FID. Still to do: Execute financing with a consortium of Chinese banks: Term-sheets agreed. Documentation underway. Only remaining item time-critical input for FID. Agree offtake structure. Award upstream EPCIC contracts. Obtain Ophir shareholder approval. Final sign-off from Government of Equatorial Guinea. 9

10 FLNG General Update OneLNG S.A. and Republic of Equatorial Guinea have entered into a binding Memorandum of Understanding to explore liquefaction and monetization of stranded gas: Focus is on Blocks O and I offshore Malabo, Equatorial Guinea. The state to take lead and secure supply if a project is feasible. OneLNG to assist in feasibility study to find a solution to monetize gas currently stranded or being reinjected in liquids production. Parties seek to reach definitive agreements to proceed with a target of December 2017 but no later than December Golar makes progress on Mark II FLNG solution: Opportunities in Americas being pursued by Golar. LNG prices expected to remain under pressure for the next few years: Will likely stimulate demand from those looking for a substitute to more expensive liquids or dirty fossil fuels. But conventional approach to delivering new LNG will struggle to make economics work. Expected to stimulate further demand for Golar s low cost FLNG execution model. 10

11 Summary and Outlook Conclusion of recent financing transactions has strengthened Golar s balance sheet. Further improvement expected when planned transaction with Golar Partners is concluded. Golar Partners exercises its right to put FSRU Tundra back to Golar. Simultaneously, the Company grants Golar Partners the option to acquire up to 25% equity interest (50% of contracted capacity) in FLNG Hilli Episeyo. Shipping remains challenging but getting closer to inflection point. More tenders for term business being presented to market. The Sergipe project is proceeding to plan. Construction work is progressing within schedule and financial close is still expected by end FLNG Hilli Episeyo remains within budget but with a tight delivery schedule. Transit to Cameroon, mooring installation and tendering Notice of Readiness are next material milestones. The Fortuna Project is progressing well with financing the only material input outstanding to FID. OneLNG is actively pursuing a number of projects, some with multiple FLNG unit requirements. 11

12 THANK YOU