Golar LNG Partners L.P. Secures New Long-term FSRU Contract
January 19 2018 - 8:00AM
YASTEST
January 19, 2018 - Golar LNG
Partners LP (NASDAQ: GMLP), (the "Partnership" or "Golar Partners")
announces that it has executed a 15-year charter with an energy and
logistics company for the provision of an FSRU (floating storage
and regasification unit) and related services in the Atlantic
Basin. The charter provides the Partnership with the flexibility to
nominate either the Golar Spirit or the
Golar Freeze to service the contract provided
that the nominated FSRU satisfies certain technical specifications
ahead of project start-up, which is expected in the fourth quarter
of 2018. The vessel is expected to remain in service for up to 15
years without drydock and will therefore undergo drydocking as well
as some minor modifications prior to service commencement. The
capital element of the charter rate will vary according to demand
for regasification throughput but includes a cap and a floor and so
is expected to generate annual operating income before depreciation
and amortisation of between approximately $18 and $22
million. The charter includes an option after 3 years for the
charterer to terminate the contract and seek an alternative
regasification solution, but only in the event that certain
throughput targets have not been met. Additionally, Golar Partners
will have a matching right to provide such alternative solution.
The charter also includes a 5-year extension option.
Golar Partners CEO Graham Robjohns
commented: "securing this contract demonstrates the underlying
value of the Partnership's existing assets, adds significant term
and revenue backlog whilst simultaneously reducing re-contracting
risk. It also reflects the growing interest in smaller, cost
competitive FSRUs that can facilitate the opening of niche markets
previously considered uneconomic for LNG".
FORWARD LOOKING
STATEMENTS
This press release contains
certain forward-looking statements concerning future events and
Golar Partners' operations, performance and financial condition.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future
results, performance or achievements, and may contain the words
"believe," "anticipate," "expect," "estimate," "project," "will
be," "will continue," "will likely result," "plan," "intend" or
words or phrases of similar meanings. These statements involve
known and unknown risks and are based upon a number of assumptions
and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond Golar
Partners' control. Actual results may differ materially from those
expressed or implied by such forward-looking statements. Important
factors that could cause actual results to differ materially
include, but are not limited to:
-
market trends in the floating storage
and regasification unit (or FSRU) and liquefied natural gas (or
LNG) carrier industries, including charter rates, factors affecting
supply and demand, and opportunities for the profitable operations
of FSRUs, and LNG carriers;
-
the anticipated start date for the FSRU
and related services;
-
the future annual operating income
before depreciation and amortisation expected to be generated by
the Golar Freeze or the Golar
Spirit operating under the new FSRU charter;
-
the cost of and time needed to drydock
and modify the Golar Freeze or the Golar Spirit;
-
changes in our operating expenses,
including drydocking and insurance costs and bunker prices;
-
the expected cost of, and our ability
to comply with, governmental regulations, maritime self-regulatory
organization standards, as well as standard regulations imposed by
its charterers applicable to our business;
-
regasification throughput requirements
of the FSRU;
-
charter commencement and termination
dates; and
-
other factors listed from time to time
in the reports and other documents that we file with the U.S.
Securities and Exchange Commission (the "SEC").
Factors may cause actual results
to be materially different from those contained in any
forward-looking statement. Golar Partners does not intend to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Golar
Partners' expectations with respect thereto or any change in
events, conditions or circumstances on which any such statement is
based.
Hamilton, Bermuda
January 19, 2018
Investor relations enquiries:
Golar Management Limited
Stuart Buchanan - + 44 207 063
7900
Graham Robjohns - + 44 207 063
7900
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Golar LNG Partners L.P. via Globenewswire
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