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Apex Trader Funding - News

Interim results for the period ended June 30, 2024

Highlights and subsequent events  Golar LNG Limited ("Golar" or "the Company") signed an agreement for a 20-year FLNG deployment in Argentina. Strong progress on further FLNG opportunities. Golar and bp entered into commercial reset arrangements for FLNG Gimi for the pre-Commercial Operations Date ("Pre-COD") period, enabling refinancing at improved terms which is expected to release liquidity of up to $0.5 billion. Finalization of yard EPC and payment terms agreed in preparation for contracting of 3.5mtpa MKII FLNG. Golar reports Q2 2024 ("Q2" or "the quarter") Net income attributable to Golar of $26 million, and Adjusted EBITDA1 of $59 million. Adjusted EBITDA backlog1 of approximately $11 billion, including existing and redeployment charters for FLNGs Hilli and Gimi, before commodity exposure. FLNG Hilli Episeyo maintains market leading operational track record. Cumulative production to date surpasses 8 million tons. Declared dividend of $0.25 per share for the quarter. FLNG Hilli Episeyo: Maintained her market leading operational track record, generating $69 million of Q2 Distributable Adjusted EBITDA1, of which Golar's share was $64 million, both in line with Q1, 2024.  FLNG Gimi: In August 2024, Golar and the Greater Tortue Area ("GTA") operator, a subsidiary of BP p.l.c. ("bp"), executed agreements simplifying and settling previous disputes related to payment mechanisms for pre-COD contractual cashflows ("the commercial reset"). Golar is now contractually entitled to receive daily payments from January 10, 2024 until the Commercial Operations Date ("COD"). The daily payments have step-up mechanisms based on project milestones up to COD and are secured by long-stop dates. Golar will also be entitled to certain lump-sum bonus payments subject to the achievement of certain project milestones. Under the new arrangements and based on the operator's latest timeline, Golar expects to receive approximately $220 million across 2024 and 2025 in pre-COD compensation inclusive of milestone bonuses, of which approximately $130 million will be invoiced in 2024. The $110 million that Golar has paid bp in liquidated damages for the period up until January 10, 2024 will remain with bp. It is expected that this pre-COD compensation, net of already paid liquidated damages, will be deferred on the balance sheet. The FLNG Gimi is moored at the GTA Hub offshore Mauritania and Senegal, ready to commence operations. Following the commercial reset of pre-COD contractual arrangements, Golar, bp and Kosmos Energy Ltd. ("Kosmos") have agreed to use an LNG commissioning cargo to accelerate the commissioning schedule. A bp and Kosmos procured LNG cargo is expected to arrive at the GTA hub within August. The commissioning cargo is intended to parallel process the commissioning of the GTA FPSO and FLNG Gimi, and targets to shorten the time to COD. COD will occur upon completion of all project infrastructure commissioning and will trigger the start of the 20-year Lease and Operate Agreement that unlocks the equivalent of around $3 billion (Golar's share) of Adjusted EBITDA Backlog1 and recognition of the contractual day rate comprised of capital and operating elements in both the balance sheet and income statement. The commercial reset also enables refinancing of the existing FLNG Gimi debt facility. A potential refinancing facility is now in the credit approval process. This potential debt facility offers a lower margin and improved amortization profile versus the current vessel debt facility and will release significant liquidity to Golar. FLNG business development: In July 2024, Golar and Pan American Energy ("PAE") entered into definitive agreements for a 20-year FLNG deployment project in Argentina. Expected to commence LNG exports within 2027, the project will tap into the Vaca Muerta shale deposit in the Neuquén Basin, the world's second largest shale gas formation. The fully executed agreements include a Gas Sales Agreement from PAE for the supply of gas and an FLNG charter agreement with Golar. A final investment decision is expected before year-end subject to receipt of regulatory and environmental approvals and satisfaction of customary closing conditions. The PAE project expects to utilize Golar's FLNG Hilli Episeyo. With a nameplate capacity of 2.45 million tons per annum ("mtpa") and assuming 90% capacity utilization, a re-deployed FLNG Hilli Episeyo is expected to generate an Adjusted EBITDA per MMBtu of approximately US$2.6, equivalent to annual Adjusted EBITDA1 of approximately $300 million, with a commodity-linked pricing element additional to this. As part of the agreements, Golar will also hold a 10% stake in Southern Energy S.A., a dedicated joint venture with PAE, responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina. This initiative is envisaged to be the first phase of a multi-vessel project. In addition to FLNG Hilli Episeyo, this opportunity represents one of several potential deployment prospects for a 3.5mtpa MKII FLNG. Golar's offering as the only proven operator of FLNG as a service and planned available liquefaction capacity from 2027/2028 continues to be met by strong prospective client interest for additional FLNG projects. FLNG project opportunities in West Africa, South America, the Middle East and Southeast Asia are at various stages of development. The commercial team has been further expanded with two senior resources. Further development of our planned MKII 3.5mtpa FLNG is progressing. Long lead items already ordered are now 63% complete. Golar targets to enter into a yard EPC contract for conversion of Fuji LNG into a MKII FLNG within Q3 2024. If the order is placed within this timeframe, the MKII FLNG will be delivered within 2027. As part of the yard discussions, we have also secured an option for a second MKII FLNG for delivery within 2028. Other/Shipping: Operating revenues and costs under corporate and other items is comprised of two FSRU operate and maintain agreements in respect of the LNG Croatia and Italis LNG (formerly known as Golar Tundra). The non-core shipping segment is comprised of the LNGC Golar Arctic and Fuji LNG which is now trading on a multi-month charter. Subject to contracting, Fuji LNG is expected to enter the FLNG conversion yard at the end of her current charter in Q1 2025. Golar Arctic remains a candidate for sale or long-term charter. Shares and dividends: As of June 30, 2024, 104.0 million shares are issued and outstanding. Of the $150.0 million approved share buyback scheme, $74.1 million remains available. Golar's Board of Directors approved a total Q2 2024 dividend of $0.25 per share to be paid on or around September 3, 2024. The record date will be August 26, 2024. The Annual General Meeting was held on August 13, 2024. Financial Summary (in thousands of $) Q2 2024 Q2 2023 % Change YTD 2024 YTD 2023 % Change Net income/(loss) 35,230 6,910 410% 101,725 (85,659) (219)% Net income/(loss) attributable to Golar LNG Ltd 25,907 (4,545) (670)% 81,127 (106,408) (176)% Total operating revenues 64,689 77,530 (17)% 129,648 151,498 (14)% Adjusted EBITDA 1 58,716 82,815 (29)% 122,303 166,963 (27)% Golar's share of Contractual Debt 1 1,197,626 1,176,630 2% 1,197,626 1,176,630 2% Financial Review Business Performance:   2024 2023 (in thousands of $) Apr-Jun Jan-Mar Apr-Jun Net income        35,230        66,495          6,910 Income taxes              140              138          1,445 Net income before income taxes        35,370        66,633          8,355 Depreciation and amortization        13,780        12,476        12,450 Impairment of long-lived assets                —                —          5,021 Unrealized loss/(gain) on oil and gas derivative instruments        16,050        (2,148)        76,646 Other non-operating expense, net                —                —          1,305 Interest income        (8,556)      (10,026)      (11,836) Interest expense                —                —              610 Gains on derivative instruments, net            (107)        (6,202)      (11,673) Other financial items, net                54          2,640              464 Net losses from equity method investments          2,125              214          1,577 Net income from discontinued operations                —                —            (104) Adjusted EBITDA 1        58,716        63,587        82,815