FLNG Hilli – Customer option exercise of TTF linked production
July 27 2022 - 6:50AM
FLNG Hilli – Customer option exercise of TTF linked production
Golar LNG Limited ("Golar") announces today that
Perenco Cameroon S.A. (“Perenco”) and Société Nationale des
Hydrocarbures (“SNH”), together the customer of FLNG Hilli
(“Hilli”), have elected to exercise 0.2 million tons per annum
(“MTPA”) of their optional Dutch Title Transfer Facility (“TTF”)
linked production volumes from 2023 to July 2026, continuing
Hilli’s 2022 production volume of 1.4 million tons per annum.
The tariff for the 0.2 MTPA from January 2023 to
July 2026 is linked to TTF gas prices. Based on current average
2023 TTF gas prices ($45.49/MMBtu) the 0.2 MTPA of production can
generate US$135 million of incremental annual Adjusted EBITDA to
Golar. For each US$1.00/MMBtu change in TTF, this Adjusted EBITDA
will increase (or decrease) by US$3.2million. The total value of
the 0.2 MTPA production from 2023 until July 2026 is approximately
$267 million in Adjusted EBITDA to Golar based on current TTF
forward prices. Hence Hilli will continue with three components to
its Adjusted EBITDA generation; a fixed tariff, a Brent oil linked
tariff, and a TTF gas price linked tariff. At current forward
prices for 2023, Golar’s share of annual distributable Hilli
Adjusted EBITDA is expected to be approximately $286 million (fixed
tariff of $65 million, Brent oil linked earnings of $86 million,
and TTF linked earnings of approximately $135 million). Golar’s
share of total annual debt service for Hilli’s contractual debt is
approximately $50 million (debt amortization of approximately $29
million and interest of approximately $21 million). Hilli is
therefore expected to generate significant free cash flow to equity
for the reminder of the fixed contract. Golar may enter into
hedging transactions to reduce the sensitivity of the commodity
linked components of Hilli’s future earnings, as we have done in
2022.
Golar CEO Karl Fredrik Staubo commented: “We are
pleased to see continued TTF linked gas volumes from Hilli through
the rest of the existing contract, maturing in July 2026. These
confirmed additional volumes combined with Hilli’s outstanding
operational track record will add significant free cash flow
generation near term with no incremental capex”.
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. Golar LNG Limited undertakes no obligation
to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by applicable law.
Hamilton, Bermuda
July 27, 2022
Enquiries:
Golar Management Limited: + 44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
Golar Lng (LSE:0HDY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Golar Lng (LSE:0HDY)
Historical Stock Chart
From Apr 2023 to Apr 2024