Golar LNG Partners L.P. Secures New Long-term FSRU Contract
January 19 2018 - 8:01AM
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
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