Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q4 2022 Earnings Presentation
22 slides from Golar Lng's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter 2022 Results
FOURTH QUARTER 2022 RESULTS FEBRUARY 28, 2023 Golar LNG Limited 2023 I 1
Slide 2: Forward looking statements
Forward looking statements This press release contains forward-looking statements (as materially, due to volatility in commodity prices or vessel contractual arrangements, including but not limited to our conditions, particularly where we operate, or where we defined in Section 21E of the Securities
Slide 3: Company overview
Company overview Investments & FLNG & Marine Assets Experience & Focus Shareholdings 50+ years of experience with 1 Existing FLNG Assets FLNG Growth Designs maritime LNG infrastructure Pioneering FLNG and Golar MKI design (up to 2.7mtpa) Ownership Current value ($m) 2 FSRU designs 8.3% 561) Market l
Slide 4: Q4 2022 highlights and subsequent events
Q4 2022 highlights and subsequent events FLNG Corporate and other • FLNG Hilli: • 2022 highlights: o Golar’s share of Q4 Distributable Adjusted EBITDA1) of $86m o 2022 net income attributable to Golar of $788m o Unwound TTF hedges, securing approximately $140m of o Record book value of equity of $2.
Slide 5: Agenda
Agenda Group results Business update Summary Golar LNG Limited 2023 I 5
Slide 6: Fourth quarter 2022 financial results
Fourth quarter 2022 financial results FY2021 4) Q4 2022 Q3 2022 FY 2022 Q4 2022 Highlights1) $m $m %∆ $m $m %∆ • Adjusted EBITDA of $87m Shipping 5 1 >100% 10 203 (95%) FLNG 37 55 (33%) 215 221 (3%) o Accrued Hilli underutilization of $36m to be Corporate and other 17 13 31% 43 28 54% compensated vi
Slide 7: $1bn+ cash: Balance sheet positioned for FLNG growth
$1bn+ cash: Balance sheet positioned for FLNG growth Cash and debt overview Balance sheet: debt-free and ready for FLNG growth Cash $m Adjusted Total Golar Debt, net of Q4 2022 Total Golar Cash1) 991 Annual Adjusted EBITDA1) Golar Cash and Listed Securities1), 5) Net proceeds from sale of NFE shares
Slide 8: FLNG Hilli: Commodity-linked tariff boosts earnings
FLNG Hilli: Commodity-linked tariff boosts earnings Evolution of Hilli Distributable Adjusted EBITDA1), 2) (Golar’s pro rata share) 100 ~3.0x Millions 90 Q4 2021 Levels 86.2 80 70 64.1 62.6 57.1 45.4 60 2.8 19.3 19.4 50 22.6 40 28.9 30 29.1 29.2 24.8 11.5 15.6 20 10 17.4 16.1 14.1 15.6 16.0 - Q4 202
Slide 9: Increasing exposure to the world’s best performing FLNG
Increasing exposure to the world’s best performing FLNG Economic interest overview Transaction details and rationale Transaction details • Acquiring 50% interest in T1&T2 and 2.5% of TTF related fees • Paying $100m cash + 4.1m NFE shares and assuming $323m of contractual debt obligation • Transactio
Slide 10: FLNG Hilli: Strong free cash flow to equity generation
FLNG Hilli: Strong free cash flow to equity generation Golar's pro-rata Distributable Adjusted EBITDA4) generation 400 350 335 300 59 283 270 37 48 250 EBITDA ( $m) 99 Increase in base fee and debt 48 200 service on back 101 of acquisition of 49 150 NFE’s interest 2023 95 106 Amortization 100 22 and
Slide 11: Agenda
Agenda Group results Business update Summary Golar LNG Limited 2023 I 11
Slide 12: FLNG Gimi: Construction update
FLNG Gimi: Construction update Selected statistics from FLNG Gimi construction 8% Technically completed • Average daily workforce of ~4,300 with 24/7 activities $165M Remaining works • ~30 million man hours worked to date • All heavy lifts onboard Remaining undrawn Debt • Boilers up and running in p
Slide 13: MKII – Secured donor vessel and progressed conversion
MKII – Secured donor vessel and progressed conversion MKII – 3.5MTPA Conversion project status • Total committed spend increased to $320m due to additional orders for long lead items • 200+ engineers engaged on the MKII project • Yard availability confirmed for 2025 delivery and advanced EPC negotia
Slide 14: Attractive $/ton valuation
Attractive $/ton valuation Implied USD/ton based on current trading levels Golar FLNG price points/capex per production unit $m 2,500 GLNG Market Cap1) 2,425 Prelude FLNG Adjusted Total Golar Debt, net of Golar Cash and Listed 2,000 (8) PFLNG Satu Securities2), 3) GLNG Enterprise Value 2,417 1,500 C
Slide 15: Strong earnings potential for integrated FLNG projects
Strong earnings potential for integrated FLNG projects FLNG can deliver LNG below $5/MMBtu Golar FLNG cash break-even 7 25 24.6 20 6 17.9 16.6 15 15.3 12.6 12.4 12.6 11.6 12.9 11.2 11.7 5 10 10.3 9.9 10.5 1.4 6.2 6.7 7.6 4.9 5.5 5.0 5 4 5.0 $/MMBtu 0 0.6 2023 2024 2025 2026 2027 2028 2029 2030 3 FLN
Slide 16: Agenda
Agenda Group results Business update Summary Golar LNG Limited 2023 I 16
Slide 17: Embedded EBITDA growth from existing asset portfolio
Embedded EBITDA growth from existing asset portfolio Golar's pro-rata Distributable Adjusted EBITDA4) generation 500 450 400 350 300 EBITDA ( $m) Gimi 250 commencing 200 Hilli operations Forecast increased Amortization 150 ownership and interest5) 100 50 0 2021 2022 2023 2024 1) 3) 2) Gimi - Base Hi
Slide 18: Summary
Summary Golar reports 2022 annual net income attributable to Golar of $788m and record total book value of equity of $2.9bn Total Golar cash balance of $1bn, low leverage and operating cash flow growth allow for FLNG expansion and return to shareholders Strong client interaction with focus on integr
Slide 19: Appendix
Appendix Golar LNG Limited 2023 I 19
Slide 20: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q4 2022 earnings release for a reconciliation to the most comparable US GAAP measure and the rationale for • Earnings backlog the adjustments: https://www.golarlng.com/investors/quarterly-reports/2023/ • Contr
Slide 21: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures QUANTITATIVE RECONCILIATION Oct-Dec Jul-Sep Oct-Dec Non-GAAP measure Rationale for adjustments (in $m) 2022 2022 2021 Increases the comparability of FLNG Adjusted EBITDA 80.4 85.8 56.2 Distributable Adjusted the operating results of the EBITDA1) FLNG Hilli from period to
Slide 22: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION FLNG tariff, net1) Increases the comparability of our Oct-Dec Jul-Sep Oct-Dec operational FLNG, Hilli from period to period and against the Closest equivalent US GAAP performance of other operational