First Quarter 2018 Results. Golar LNG Limited

Transcription

1 First Quarter 2018 Results

2 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. 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 commodity prices; 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 and in our ability to obtain financing for such retrofitting; increases in costs; changes in the timeliness of the Hilli Episeyo (the "Hilli") acceptance; changes in our ability to close the sale of the equity interests in Hilli on a timely basis or at all; our inability to meet our obligations under the Heads of Terms agreement entered into in connection with the BP Greater Tortue / Ahmeyim Project, prior to FID, which will result in extensive termination fees; our ability to make additional equity funding payments to Golar Power to meet our obligations under the shareholders agreement; 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; our inability to achieve successful utilization of our expanded fleet or inability to expand beyond the carriage of LNG and provisions of FSRUs particularly through our innovative FLNG strategy and our JV; changes in domestic and international political conditions, particularly where Golar operates; as well as other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the Securities and Exchange Commission, or the Commission, including our most recent annual report on Form 20-F. 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 Financial Highlights (USD thousands) 2018 Jan-Mar Oct-Dec Jan-Mar Jan-Dec (Audited) Total operating revenues Voyage, charter-hire and commission expenses Net operating revenues Operating expenses Administrative expenses Unrealized gain on FLNG derivative instrument EBITDA Depreciation and amortization Other non-operating (loss) income Net interest expense Other financial items, net Income taxes Equity in net earnings (losses) of affiliates Net income attributable to non-controlling interests Net (loss) income attributable to Golar LNG Limited 66,190 (24,521) 41,669 (18,415) (14,016) 13,600 22,838 (16,409) - (12,054) (1,237) 6 (1,541) (12,605) (21,002) 57,587 (19,464) 38,123 (17,076) (16,763) 15,100 19,384 (16,585) (189) (5,034) 24,122 (435) (6,348) (11,092) 3,823 25,110 (16,929) 8,181 (12,944) (11,441) - (16,204) (25,186) 62 (18,233) 14,456 (189) (13,897) (6,652) (65,843) 143,537 (61,292) 82,245 (55,946) (50,334) 15,100 (8,935) (76,522) (81) (53,415) 20,627 (1,505) (25,448) (34,424) (179,703) Number of vessels Dividend (US cents)

4 Balance Sheet (USD thousands) 2018 Mar 31 Dec 31 (Audited) Sep 30 Jun 30 Current assets Cash and cash equivalents Restricted cash and short-term deposits Other current assets Non-current assets Restricted cash Investments in affiliates 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 172, ,412 43, , ,736 2,061,027 1,212, ,159 4,784,146 1,368, ,377 1,098, ,569 1,780,588 4,784, , ,265 36, , ,225 2,077,059 1,177, ,504 4,764,287 1,384, ,341 1,025, ,795 1,796,304 4,764, , ,087 31, , ,285 2,093,515 1,032,116 64,317 4,645,223 1,102, ,527 1,199, ,718 1,784,429 4,645, , ,227 19, , ,707 2,110, ,949 61,687 4,498, , ,825 1,403, ,757 1,822,646 4,498,258 4

5 Current portion of long-term debt and short-term debt Breakdown (USD millions) 2018 March 31 Golar Tundra facility extended to June 2019 (subject to documentation) Golar Seal repayable December 31, 2018 depending on employment or extension Balance relating to consolidated lessor-owned VIE subsidiaries (not short-term for Golar) Current portion of long-term debt and short-term debt relating to lessor-owned VIE subsidiaries Hilli Episeyo debt (to be replaced by $960m sale and leaseback facility upon acceptance) Remaining current portion of long-term debt and short-term debt (relates to non sale and leaseback financed assets) Current portion of long-term debt and short-term debt (reported in balance sheet) 1,368 5

6 FLNG Update FLNG Hilli Episeyo (Cameroon): First LNG produced. First LNG cargo exported. Acceptance testing underway; expect completion in days. Second cargo currently being loaded on to Golar Maria. Fortuna (Equatorial Guinea): Financing increasingly unlikely in the short-term. Changed priorities mean Schlumberger will exit project. Golar and Schlumberger plan to wind down OneLNG. Golar, Ophir and EG government to continue pursuit of attractive financing which may include additional partners. No further updates until financing is fully committed. BP (Mauritania/Senegal): FLNG unit similar to Hilli Episeyo for 20 years. FEED update being progressed to meet FID later in year. Development of contracts and agreements underway. Strong appetite from lenders interested in financing project. 6

7 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 USD/day Shipping Update Spot rates (USD/day) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - LNG 160K CBM Spot Rate LNG 145K CBM Spot Rate Linear (LNG 160K CBM Spot Rate) Source: Clarksons Platou/Golar Further material improvements in September - March winter average rates expected: Average TFDE winter rates increased from around $40kpd in 2016/7 to $60kpd in /8. Further material increases expected over next 2-3 years. Expected seasonal softening to negatively impact 2Q TCE - will be around half 1Q levels. New production and widening trading margins once again driving up ton miles and absorbing vessels. Notable increase in period cover requirements. Trend expected to accelerate in 2H. Market remains structurally short of vessels. Increasingly difficult to order a vessel to deliver before

8 FSRU and Power Update Sergipe project making good progress: Project now fully funded with $1.35 billion in debt and $400 million equity fully paid in. Executed FSRU Golar Nanook time charter party. Power plant infrastructure modules arriving on site. Pursuing options to monetize spare FSRU capacity. Other opportunities: Above: progress to date: Sergipe power station Several FSRU opportunities being pursued. Good appetite for smaller/cheaper FSRUs. Newbuild FSRU market extremely competitive. Margins under increasing pressure. Gas to power remains of high interest with further integrated FSRU/power station projects being developed. Below: 3D rendering of completed Sergipe power station 8

9 Summary and Outlook Hilli Episeyo: Stable production levels achieved and Commercial Acceptance anticipated in the coming days. Golar s expected share of base annual operating income before depreciation and amortization on contracted trains of $82m with a further $82m dropped down to GMLP. Brent link worth $45million in additional annual cash flows at $75 Brent. Train 3 represents an increasingly attractive commercial opportunity. FLNG proof of concept opening new opportunities: BP Tortue project in Mauritania and Senegal indicative of this. Several new commercial enquiries received from gas companies. Completed Mark II FEED study expected to further widen opportunity set (e.g. Delfin). Sergipe project expected to be cash flow generative in 2020: Project financing secured. Equity now fully paid in. Significant construction progress expected over coming months as prefabricated modules arrive on site. Strong underlying shipping fundamentals despite weak 2Q: Significant improvements in cash generation still expected from 3Q. More charterers seeking multi-month and 1-year fixtures ahead of winter. Interest in multi-year charters also increasing. Market remains structurally short of vessels despite recent increase in ordering. Significant earnings growth Strategic platform and competitive advantage leads to strong expected growth over the coming years. 9

10 THANK YOU 10