Interim Results for the Period Ended September 30, 2021
- Total operating revenues of $106.6 million and Adjusted
EBITDA of $74.5 million, up 12% and 30% YoY
respectively
- Signed 1-year shipping time charter at approximately
$100,000/day
- Secured up to $682m in new financing facilities,
securing refinancing of the convertible bond on favorable terms and
balance sheet liquidity improvement
- Growing customer interest for new FLNG
projects
- Golar positioned to capitalize on macro tailwinds,
benefiting from operating and financial leverage going into
2022+
FLNG Hilli achieved another quarter of 100%
commercial uptime. Capitalizing on record gas prices, Golar
recently hedged half of its Q1 2022 Dutch Title Transfer Facility
(“TTF”) exposure from the 0.2mtpa of additional 2022 production at
a TTF price of $28/MMBtu, implying additional earnings to Golar for
the quarter of $21.2 million (for each $1.00/MMBtu change in TTF,
earnings realized by Golar will move by $0.4 million for unhedged
volumes during Q1 2022). This implies a gross tolling fee of
$11.4/MMBtu for the incremental production. The TTF linked
production will, together with the Brent linked fees from trains
one and two, see significant increased earnings from Hilli during
2022, with no further capital expenditure required by Golar. The
strong commodity price backdrop has also incentivized the current
customer of FLNG Hilli to expand its ongoing drilling program,
which if successful will allow it to take advantage of its option
to increase production by up to 0.4mtpa from 2023-2026.
FLNG Gimi is 75% technically complete. The unit
is now around two years from the scheduled start-up date for the
20-year lease and operate agreement with BP that will unlock around
$3.0 billion of earnings backlog1 to Golar.
We expect Adjusted EBITDA generation from our
FLNG segment to quadruple from current levels over the next 2-3
years on the back of contracted earnings from Gimi and increased
earnings from our commodity exposure on Hilli.
The current strength of LNG prices and favorable
price outlook further increases the attractiveness of our FLNG
solutions. This is driving momentum for potential new FLNG
projects. We are continuing constructive discussions with an
existing customer for use of a five-million-ton Golar Mark III
newbuild design and rapid progress is being made on potential
integrated projects. Our portfolio of prospective FLNG customers
across different geographies increased during the quarter.
Shipping Q3 2021 average daily Time Charter
Equivalent1 (“TCE”) earnings of $49,500/day, up 27% on Q3 2020,
will continue to increase as the shipping fleet is re-contracted at
higher expected rates. Golar recently announced a new 12-month time
charter with a gross hire rate of approximately $100,000/day.
Increasing exposure to higher freight rates over the course of
2022, rising asset values, tighter environmental regulations that
reduce effective vessel supply and deleveraging of Golar’s LNG
carriers are all contributing to expectations of a significant
increase in cash generation from our shipping segment and increase
the attractiveness of potential further group simplification by
separating our shipping business, potentially deconsolidating
approximately $990 million of associated contractual debt.
Golar expects to see a significant increase in
Adjusted EBITDA generation over the next 2-3 years, benefiting from
operating and financial leverage from its existing asset portfolio
in shipping and FLNG. This includes start-up of earnings from
Golar’s current $540 million of pro-rata capital invested in Gimi
(per Q3 2021) in around 2 years. Furthermore, we are well
positioned to capitalize on LNG macro tailwinds through an
attractive FLNG growth pipeline, with ~$600 million of value in
marketable securities (NFE and Avenir), that can be redeployed to
significantly higher cash yielding projects.
Financial Summary
(in thousands of $) |
Q3 2021 |
Q3 2020 |
% Change |
YTD 2021 |
YTD 2020 |
% Change |
Net
(loss)/income attributable to Golar LNG Ltd |
(90,955) |
(21,802) |
317% |
405,842 |
(281,683) |
(244)% |
Total
operating revenues |
106,603 |
95,152 |
12% |
336,717 |
319,953 |
5% |
Adjusted
EBITDA |
74,489 |
57,287 |
30% |
219,127 |
200,645 |
9% |
Golar's share of contractual debt1 |
2,100,733 |
2,361,936 |
(11)% |
2,100,733 |
2,361,936 |
(11)% |
Q3 Highlights and recent
events
Financial and corporate:
- Profitability: Net loss attributable to Golar
of $91.0 million, and Adjusted EBITDA1 of $74.5 million for the
quarter, including:
- $157.5 million non-cash mark to market loss recognized on New
Fortress Energy Inc. ("NFE") shares based on September 30, 2021
discounted carrying value of $27.75 per share.
- $64.1 million non-cash gain recognized on Hilli Brent oil and
TTF natural gas linked derivative instruments.
- $8.9 million realized gain on Hilli Brent oil derivative. This
is expected to increase to around $13.0 million in Q4 2021.
- Hedges: Entered into swap arrangements to
hedge part of incremental TTF linked production for Q1 2022 at a
TTF price of $28/MMbtu.
Financing facilities:
- Unsecured Bond: Successfully placed USD $300.0
million Norwegian Bonds.
- Convertible Bond: As of November 8, 2021 $85.2
million of the February 2022 maturing $402.5 million 2.75%
Convertible Bonds had been redeemed. Current net outstanding
balance under the Convertible Bonds is now $317.3 million.
- Credit Facility: $200.0 million 3-year
Revolving Credit Facility ("RCF") in executable form to replace
existing $100.0 million December 2021 maturing RCF.
- Loan: $158.0 million 5-year Golar Tundra
facility that can be increased to $182.0 million in final stages of
documentation, replacing current $104.4 million June 2022 maturing
facility.
- Lender credit approval received to extend January 2022 maturing
Golar Seal debt facility by 3-years.
FLNG:
- Utilization: Industry leading operations
maintained with 100% commercial uptime by FLNG Hilli.
- Agreed 0.2mtpa TTF linked increase in 2022 capacity utilization
of Hilli and a one-time option for up to 0.4mtpa of additional
capacity utilization from 2023.
- Construction: FLNG Gimi conversion project 75%
technically complete. Over 13 million man hours worked.
- Commercial: Significant progress made on new
tolling based and integrated FLNG projects. Increasing portfolio of
prospective FLNG customers across different geographies developed
during the quarter.
Shipping:
- Shipping Rates: Q3 2021 TCE1 of $49,500 for
the fleet, up 13% on Q2 2021 and 27% on Q3 2020. Q4 2021 TCE1 of
around $53,500 expected.
- LTM TCE1 for the fleet was $50,900.
- Utilization: Fleet utilization at 98%, in line
with Q2 2021 and up on the 80% realized in Q3 2020.
- Time Charter: Fixed an LNG carrier on a
12-month charter at approximately $100,000 per day in October.
- Revenue
Backlog1: increased to
$267 million as of September 30, 2021.
- Outlook: Increasing number of requests for
medium and long-term charters at higher rates.
Financial Review
Business Performance:
|
2021 |
2020 |
|
Jul-Sep |
Apr-Jun |
Jul-Sep |
(in thousands of $) |
Total |
Total |
Total |
Net (loss)/profit |
(55,635) |
|
507,335 |
|
8,104 |
|
Income taxes |
152 |
|
156 |
|
216 |
|
(Loss)/profit before income taxes |
(55,483) |
|
507,491 |
|
8,320 |
|
Depreciation and amortization |
26,489 |
|
26,493 |
|
26,875 |
|
Unrealized (gain)/loss on oil and gas derivative instruments |
(64,092) |
|
(70,590) |
|
(220) |
|
Other non-operating losses, net |
153,791 |
|
158,125 |
|
— |
|
Interest income |
(6) |
|
(27) |
|
(29) |
|
Interest expense |
13,763 |
|
14,467 |
|
16,093 |
|
(Gains)/losses on derivative instruments |
(581) |
|
6,869 |
|
4,686 |
|
Other financial items, net |
(227) |
|
(607) |
|
(1,997) |
|
Equity in net losses of affiliates |
718 |
|
(839) |
|
129 |
|
Net (income)/loss from discontinued operations |
117 |
|
(574,356) |
|
3,430 |
|
Adjusted EBITDA (1) |
74,489 |
|
67,026 |
|
57,287 |
|
|
2021 |
|
Jul-Sep |
Apr-Jun |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
45,829 |
|
54,480 |
|
6,294 |
|
106,603 |
|
41,833 |
|
55,737 |
|
6,717 |
|
104,287 |
|
Vessel operating expenses |
(16,216) |
|
(13,243) |
|
(2,477) |
|
(31,936) |
|
(15,001) |
|
(13,745) |
|
(2,682) |
|
(31,428) |
|
Voyage, charterhire & commission expenses |
(1,211) |
|
(150) |
|
(25) |
|
(1,386) |
|
(2,072) |
|
(150) |
|
(25) |
|
(2,247) |
|
Administrative expenses |
(204) |
|
143 |
|
(8,542) |
|
(8,603) |
|
(117) |
|
(185) |
|
(9,768) |
|
(10,070) |
|
Project development (expenses)/income |
— |
|
(1,371) |
|
70 |
|
(1,301) |
|
— |
|
(745) |
|
1,484 |
|
739 |
|
Realized gains on oil derivative instrument (2) |
— |
|
8,862 |
|
— |
|
8,862 |
|
— |
|
2,975 |
|
— |
|
2,975 |
|
Other operating income |
2,250 |
|
— |
|
— |
|
2,250 |
|
2,770 |
|
— |
|
— |
|
2,770 |
|
Adjusted EBITDA (1) |
30,448 |
|
48,721 |
|
(4,680) |
|
74,489 |
|
27,413 |
|
43,887 |
|
(4,274) |
|
67,026 |
|
(2) The line item “Realized and unrealized
gain/(loss) on oil and gas derivative instruments” in the Condensed
Consolidated Statements of Operations relating to income from the
Hilli Liquefaction Tolling Agreement (“LTA”) and natural gas
derivative is split into: “Realized gains on oil derivative
instrument” and “Unrealized gain/(loss) on oil and gas derivative
instrument”. The unrealized component represents a mark-to-market
gain of $64.1 million (June 30, 2021: $70.6 million gain and
September 30, 2020: $0.2 million gain) on the embedded oil and gas
derivative, which represents the estimate of expected receipts
under the remainder of the Brent oil linked clause and 2022
contracted capacity increase clause of the Hilli LTA. The realized
component amounts to $8.9 million (June 30, 2021: $3.0 million and
September 30, 2020: $nil) and represents the income in relation to
the Hilli LTA receivable in cash.
|
2020 |
|
Jul-Sep |
(in thousands of $) |
Shipping |
FLNG |
Corporate and other |
Total |
Total operating revenues |
35,582 |
|
54,524 |
|
5,046 |
|
95,152 |
|
Vessel operating expenses |
(14,899) |
|
(13,459) |
|
125 |
|
(28,233) |
|
Voyage, charterhire & commission expenses |
(476) |
|
— |
|
— |
|
(476) |
|
Administrative expenses |
(436) |
|
(204) |
|
(7,349) |
|
(7,989) |
|
Project development expenses |
(39) |
|
(32) |
|
(1,096) |
|
(1,167) |
|
Adjusted EBITDA (1) |
19,732 |
|
40,829 |
|
(3,274) |
|
57,287 |
|
We report today a Q3 net loss of $91.0 million
attributable to Golar, and Adjusted EBITDA1 of $74.5 million,
compared to Q2 net income attributable to Golar of $471.4 million,
and Adjusted EBITDA1 of $67.0 million.
Total operating revenues increased from $104.3
million in Q2 to $106.6 million in Q3 and were further supported by
a decrease in voyage, charter hire and commission expenses, down
from $2.2 million in Q2 to $1.4 million in Q3. The increase in
total operating revenues and decrease in voyage expenses was
attributable to a seasonally improving shipping performance.
Revenue from shipping, net of voyage, charter
hire and commission expenses was $44.6 million and increased by
$4.8 million from $39.8 million in Q2. The quarter began with
quoted TFDE1 carrier headline spot rates at around $68,000 per day
and ended with rates at around $71,000 per day. Full fleet TCE1
earnings increased from $43,700 in Q2 to $49,500 in Q3 2021.
Total operating revenues from FLNG Hilli
including base tolling fees and amortization of pre-acceptance
amounts recognized normalized at $54.5 million in Q3, against $55.7
million in Q2 which benefited from some overproduction during the
quarter.
Scheduled repairs to a damaged motor on one of
the carriers contributed to a $0.5 million increase in vessel
operating expenses, up from $31.4 million in Q2 to $31.9 million in
Q3. Administrative expenses decreased by $1.5 million from $10.1
million in Q2 to $8.6 million in Q3, Q2 having been impacted by
redundancy costs from an overhead streamlining exercise. FLNG front
end engineering and design costs and business development expenses
for new FLNG projects accounted for the $1.3 million of Q3 project
development expenses.
The Brent oil linked component of Hilli's fees
generates additional annual operating cash flows of approximately
$3.1 million for every dollar increase in Brent Crude prices
between $60.00 per barrel and the contractual ceiling. Billing of
this component is based on a three-month look-back at average Brent
Crude prices. As a result of rising prices, an $8.9 million
realized gain on the oil derivative instrument (Golar share
equivalent to $7.9 million) was recorded in Q3, up on the $3.0
million realized in Q2.
An ongoing loss of hire claim in respect of the
recently repaired motor that failed on board the carrier referred
to above accounts for the shipping related Other operating income
of $2.3 million and $2.8 million in Q3 and Q2 2021
respectively.
Depreciation and amortization, at $26.5 million
was in line with the prior quarter.
The mark-to-market fair value of the Hilli Brent
oil linked derivative asset increased by $27.3 million during the
quarter, with a corresponding unrealized gain of the same amount
recognized in the income statement. The fair value increase was
driven by an upward movement in the expected future market price
for Brent oil. The spot price for Brent oil increased from $75.13
per barrel on June 30, 2021 to $78.52 on September 30, 2021.
After entering into agreement with the customer
in July 2021 to increase Hilli production by 0.2 million tons in
2022, a derivative asset of $28.3 million, representing the fair
value of the estimated discounted cash flows of payments due as a
result of the TTF natural gas price linked additional 2022
production, was recognized on July 22, 2021. Like the Brent oil
derivative above, the TTF derivative asset is adjusted to fair
value at each balance sheet date and, on September 30, 2021, the
value of this asset increased to $65.1 million. This resulted in
the recognition of an unrealized TTF natural gas fair value gain of
$36.8 million in the Q3 income statement. Together with the $27.3
million unrealized gain on the Brent oil derivative, a $64.1
million Unrealized gain on oil and gas derivative instruments was
reported in Q3.
A decline in the NFE share price between July 1
and September 30 and discounting for the 15-day balance of the
six-month holding period restriction resulted in the recognition of
a Q3 unrealized loss of $157.5 million for the fair value
adjustment on Golar’s 18.6 million NFE shares. The carrying value
of these shares was $27.75 per share as of September 30, 2021.
Netted against this was $1.9 million of dividend income from NFE
following its dividend declaration on August 4, 2021. Together
these accounted for most of the $153.8 million of Other
non-operating losses during the quarter.
As a result of the agreed $60.0 million
aggregate prepayment in respect of four sale and leaseback financed
LNG carriers in July, interest expense decreased by $0.7 million
from $14.5 million in Q2 to $13.8 million in Q3. An increase in
swap rates contributed to a $0.6 million gain on derivative
instruments in Q3, compared to a $6.9 million loss in Q2.
Equity in net losses of affiliates of $0.7
million is comprised of Golar's 23% investment in small-scale
services provider Avenir LNG and 50% stake in Egyptian affiliate,
ECGS.
Net losses attributable to non-controlling
interests relate to the Hilli, the Gimi and the finance lease
lessor VIEs.
Financing and Liquidity:
Our cash position as at September 30, 2021 was
$268.2 million. This was made up of $123.7 million of unrestricted
cash1 and $144.5 million of restricted cash. Restricted cash
includes $65.1 million relating to lessor-owned VIEs and $60.7
million relating to the Hilli Letter of Credit.
Inclusive of $10.4 million of capitalized
interest, $19.1 million was invested in FLNG Gimi during the
quarter, taking the total Gimi Asset under development balance as
at September 30, 2021 to $850.6 million. Of this, $410.0 million
had been drawn against the $700 million debt facility. Both the
investment and debt drawn to date are reported on a 100% basis.
Included within the $1.2 billion current portion
of long-term debt and short-term debt as at September 30, 2021, is
the December 2021 maturing $100.0 million RCF, $310.9 million in
respect of the Convertible Bond, and $802.3 million relating to
lessor-owned VIE subsidiaries that Golar is required to consolidate
in connection with nine sale and leaseback financed vessels,
including the Hilli.
Corporate and Other Matters:
As at September 30, 2021, there were 108.2
million shares outstanding. There were also 2.2 million outstanding
stock options with an average price of $19.26 and 0.6 million
unvested restricted stock units awarded. Of the initial $50.0
million approved share buyback scheme, $25.5 million remains
available for further repurchases.
Golar’s Annual General Meeting was held on
August 10, 2021 in Bermuda.
Non-GAAP measures
In addition to disclosing financial results in
accordance with U.S. generally accepted accounting principles (US
GAAP), this earnings release and the associated investor
presentation contains references to the non-GAAP financial measures
which are included in the table below. We believe these non-GAAP
financial measures provide investors with useful supplemental
information about the financial performance of our business, enable
comparison of financial results between periods where certain items
may vary independent of business performance, and allow for greater
transparency with respect to key metrics used by management in
operating our business and measuring our performance.
These non-GAAP financial measures should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP. Non-GAAP measures are not
uniformly defined by all companies, and may not be comparable with
similarly titled measures and disclosures used by other companies.
The reconciliations from these results should be carefully
evaluated.
Non-GAAP measure |
Closest equivalent US GAAP measure |
Adjustments to reconcile to primary financial statements
prepared under US GAAP |
Rationale for adjustments |
Performance measures |
Adjusted EBITDA |
Net
(loss)/profit |
'+Income
taxes+Depreciation and amortization+/-Unrealized (loss)/gain on oil
and gas derivative instrument+/-Other non-operating
losses/(income), net -Interest income+Interest
expense+/-(Losses)/gains on derivative instruments+/-Other
financial items, net+/- Equity in net (losses)/earnings of
affiliates +/- Net (loss)/income from discontinued
operations |
Increases the comparability of total business performance from
period to period and against the performance of other companies by
excluding the results of our equity investments, removing the
impact of unrealized movements on embedded derivatives and removing
the impact of depreciation, financing and tax items. |
Average daily TCE |
Total Operating revenues |
-Liquefaction services revenue -Vessel and other management
fees -Voyage and commission expenses The above total is
then divided by calendar days less scheduled off-hire days, which
is also otherwise known as total operating days of the fleet. |
Measure of the average daily net revenue performance of a
vessel. Standard shipping industry performance measure used
primarily to compare period-to-period changes in the vessel’s net
revenue performance despite changes in the mix of charter types
(i.e. spot charters, time charters and bareboat charters) under
which the vessel may be employed between the periods. Assists
management in making decisions regarding the deployment and
utilization of its fleet and in evaluating financial performance.
|
Liquidity measures |
Contractual debt |
Total debt (current and non-current), net of deferred finance
charges |
+ VIE Consolidation Adjustment + Deferred Finance Charges |
We consolidate a number of lessor VIEs for our sale and leaseback
facilities. This means that on consolidation, our contractual debt
is eliminated and replaced with the lessor VIEs’ debt.
Contractual debt represents our debt obligations under our
various financing arrangements before consolidating the lessor
VIEs. The measure enables investors and users of our
financial statements to assess our liquidity and the split of our
debt (current and non-current) based on our underlying contractual
obligations. Furthermore, it aids comparability with competitors.
|
Total Golar Cash |
Golar cash based on GAAP measures: + Cash and cash
equivalents + Restricted cash and short-term deposits (current
and non-current) |
-VIE restricted cash and short-term deposits (current and
non-current) |
We consolidate a number of lessor VIEs for our sale and leaseback
facilities. This means that on consolidation, we include restricted
cash held by the lessor VIEs. Total Golar Cash represents our
cash and cash equivalents and restricted cash and short-term
deposits (current and non-current) before consolidating the lessor
VIEs. Management believe that this measure enables
investors and users of our financial statements to assess our
liquidity and aids comparability with our competitors. |
Reconciliations - Performance Measures
(Average Daily TCE Rate)
|
2021 |
2021 |
2020 |
(in thousands of $) |
Jul-Sep |
Apr-Jun |
Jul-Sep |
Total operating revenues |
106,603 |
|
104,287 |
|
95,152 |
|
Less: Liquefaction services revenue |
(54,480) |
|
(55,737) |
|
(54,524) |
|
Less: Vessel and other management fees |
(6,294) |
|
(6,717) |
|
(5,046) |
|
Time and voyage charter revenues |
45,829 |
|
41,833 |
|
35,582 |
|
Less: Voyage and commission expenses |
(1,210) |
|
(2,072) |
|
(476) |
|
|
44,619 |
|
39,761 |
|
35,106 |
|
Calendar days less scheduled off-hire days |
901 |
|
910 |
|
899 |
|
Average daily TCE rate (to the closest $100) |
49,500 |
|
43,700 |
|
39,100 |
|
Reconciliations - Liquidity Measures
(Contractual Debt)
(in thousands of $) |
September 30, 2021 |
June 30, 2021 |
September 30, 2020 |
Total debt (current and non-current) net of deferred finance
charges |
2,281,721 |
|
2,379,581 |
|
2,541,773 |
|
VIE consolidation adjustments |
321,427 |
|
316,894 |
|
255,936 |
|
Deferred finance charges |
24,816 |
|
26,417 |
|
29,227 |
|
Total Contractual Debt |
2,627,964 |
|
2,722,892 |
|
2,826,936 |
|
Less: Golar Partners', Keppel's and B&V's share of the Hilli
contractual debt |
(404,231) |
|
(413,380) |
|
(397,500) |
|
Less: Keppel's share of the Gimi debt |
(123,000) |
|
(123,000) |
|
(67,500) |
|
GLNG's Contractual Debt |
2,100,733 |
|
2,186,512 |
|
2,361,936 |
|
Please see Appendix A for a capital repayment
profile for Golar’s contractual debt.
Reconciliations - Liquidity Measures
(Total Golar Cash)
(in thousands of $) |
September 30, 2021 |
June 30, 2021 |
September 30, 2020 |
Cash and cash equivalents |
123,690 |
|
207,272 |
|
76,696 |
|
Restricted cash and short-term deposits (current and
non-current) |
144,480 |
|
131,268 |
|
162,199 |
|
Less: VIE restricted cash |
(65,105) |
|
(51,228) |
|
(61,738) |
|
Total Golar Cash |
203,065 |
|
287,312 |
|
177,157 |
|
Non-US GAAP Measures Used in
Forecasting Revenue Backlog: Revenue
backlog is defined as the minimum contracted daily charter rate for
each vessel multiplied by the number of scheduled hire days for the
remaining contract term. Revenue backlog is not intended to
represent EBITDA or future cashflows that will be generated from
these contracts. This measure should be seen as a supplement and
not a substitute for our US GAAP measures of performance.
Earnings Backlog: Earnings
backlog represents the share of contracted fee income for executed
contracts less forecasted operating expenses for these contracts.
In calculating forecasted operating expenditure, management has
assumed that where there is an Operating Services Agreement the
amount receivable under the services agreement will cover the
associated operating costs, therefore revenue from operating
services agreements is excluded.
Definitions
TFDE: Tri-fuel Diesel Electric engine
FSRU: Floating Storage Regasification
UnitUnrestricted cash: Unrestricted cash refers to
our cash and cash equivalents
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 “believe,”
“anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “will,” “may,” “should,” “expect,” “may,” “could,”
“would,” “predict,” “propose,” “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 forward-looking statements
are:
- our inability and that of our counterparty to meet our
respective obligations under the Lease and Operate Agreement
entered into in connection with the BP Greater Tortue / Ahmeyim
Project (“Gimi GTA Project”);
- continuing uncertainty resulting from potential future claims
from our counterparties of purported force majeure under
contractual arrangements, including but not limited to our
construction projects (including the Gimi GTA Project) and other
contracts to which we are a party;
- our ability to formalize a settlement agreement with
authorities regarding tax benefits previously obtained under
certain of our leasing agreements;
- claims made or losses incurred in connection with our
continuing obligations with regard to Hygo Energy Transition Ltd
(“Hygo”) and Golar LNG Partners LP (“Golar Partners”);
- the ability of Hygo, Golar Partners and NFE to meet their
respective obligations to us, including indemnification
obligations;
- changes to rules and regulations applicable to LNG carriers,
FSRUs, FLNGs or other parts of the LNG supply chain;
- changes in our ability to retrofit vessels as floating storage
and regasification units (“FSRUs”) or floating liquefaction natural
gas vessels (“FLNGs”) and in our ability to obtain financing for
such conversions on acceptable terms or at all;
- changes in our ability to obtain additional financing on
acceptable terms or at all;
- the length and severity of outbreaks of pandemics, including
the worldwide outbreak of the novel coronavirus (“COVID-19”) and
its impact on demand for liquefied natural gas (“LNG”) and natural
gas, the timing of completion of our conversion projects, the
operations of our charterers, our global operations and our
business in general;
- failure of our contract counterparties to comply with their
agreements with us or other key project stakeholders;
- changes in LNG carrier, FSRU, or FLNG charter rates, vessel
values or technological advancements;
- our vessel values and any future impairment charges we may
incur;
- our ability to close potential future sales of additional
equity interests in our vessels, including the Hilli and Gimi or to
monetize our interest in NFE on a timely basis or at all;
- our ability to contract the full utilization of the Hilli or
other vessels;
- changes in the supply of or demand for LNG carriers, FSRUs or
FLNGs;
- a material decline or prolonged weakness in rates for LNG
carriers, FSRUs or FLNGs;
- changes in the performance of the pool in which certain of our
vessels operate;
- changes in trading patterns that affect the opportunities for
the profitable operation of LNG carriers, FSRUs or FLNGs;
- changes in the supply of or demand for LNG or LNG carried by
sea;
- continuing volatility of commodity prices;
- changes in the supply of or demand for natural gas generally or
in particular regions;
- changes in our relationships with our counterparties, including
our major chartering parties;
- changes in our relationship with our affiliates and the
sustainability of any distributions they pay to us;
- a decline or continuing volatility in the global financial
markets, specifically with respect to our equity holding in
NFE;
- changes in general domestic and international political
conditions, particularly where we operate;
- changes in the availability of vessels to purchase and in the
time it takes to construct new vessels;
- failure of shipyards to comply with delivery schedules or
performance specifications on a timely basis or at all;
- our inability to achieve successful utilization of our fleet or
inability to expand beyond the carriage of LNG and provision of
FSRU and FLNGs, particularly through our innovative FLNG
strategy;
- actions taken by regulatory authorities that may prohibit the
access of LNG carriers, FSRUs and FLNGs to various ports;
- increases in costs, including, among other things, wages,
insurance, provisions, repairs and maintenance; and
- 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.
November 9, 2021The Board of DirectorsGolar LNG
LimitedHamilton, BermudaInvestor Questions: +44 207 063
7900Karl Fredrik Staubo - CEOEduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
- Interim Results for the Period Ended September 30 2021
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