Press release
Interim Results for the Period Ended June 30, 2021
Golar reports Q2 Net income of $471.4 million, secured increased capacity utilization for Hilli and added further shipping earnings backlog1 Golar is pleased
About this update from Golar Lng Limited
[{"type":"text","content":"Golar reports Q2 Net income of $471.4 million, secured increased capacity utilization for Hilli and added further shipping earnings backlog1 Golar is pleased to announce the company's best ever quarterly net income of $471.4 million, inclusive of a gain on disposal of Hygo Energy Transition Limited and Golar LNG Partners LP to New Fortress Energy Inc (“NFE\"), where we have recorded our NFE shareholding at $35.37/share. The gain on disposal proves that Golar is building shareholder value in our asset portfolio significantly in excess of book values. Golar will seek to continue to simplify its group structure to crystalize value. On July 20, 2021 we concluded an agreement to increase capacity utilization for the FLNG Hilli Episeyo (\"Hilli\"), unlocking embedded value by utilizing more of Hilli’s 2.4 million tons of liquefaction capacity. Adding to our Brent oil exposure, the innovative TTF1 linked tolling fee for the incremental volumes delivers on our announced strategy to increase our upstream gas exposure. Based on TTF1 forward prices at the time of announcement and assuming Perenco exercise their option for an incremental 0.4 million tons/year from 2023-2026, the increase in capacity utilization will add around $113 million of incremental earnings backlog1 for Hilli on TTF1 forward curves, or $373 million if the August 6, 2021 spot TTF1 price is assumed to prevail over the same timeframe. The incremental capacity utilization will require no capital expenditure from Golar and minimal adjustments to operating costs, hence almost all cash generated from the increased utilization will be free cash flow1, of which Golar has an 86.9% economic interest. The increase in oil prices has also increased Golar’s earnings from Hilli through the Brent oil related tariff. Hilli is generating an incremental $3.0 million of Adjusted EBITDA for every US dollar the Brent oil price is above $60/ barrel, of which Golar has an 89.1% economic interest. Further progress has been made on Golar’s announced initiative to increase its gas price exposure by using our FLNG technology to increase our presence upstream in the LNG value chain. We have expanded our upstream team and are currently exploring several fields already producing associated gas, as well as stranded gas opportunities. On the tolling side of our FLNG business we continue to work with e...