Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q1 2024 Earnings Presentation
25 slides from Golar Lng's earnings presentation, May 28, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS MAY 28, 2024 Golar LNG Limited 2024 I 1
Slide 2: Forward looking statements
Forward looking statements This press release contains forward-looking statements (as our ability and that of our counterparty to meet our resulting from potential future claims from our liquefied natural gas (“LNG”) carriers, FLNGs or other defined in Section 21E of the Securities Exchange Act of r
Slide 3: Golar LNG: world leader owner and operator of FLNGs
Golar LNG: world leader owner and operator of FLNGs Operating assets & investments GLNG at a glance FLNG Assets $2.8BN Market Cap3) $356M 2023 Adjusted EBITDA (only Hilli in Operation) $550M Q1 24 Golar Adjusted net debt4) FLNG Hilli (operational) - MKI (2.4mtpa) 1) FLNG Gimi (ready for operations)
Slide 4: Golar owns the world's largest FLNG capacity and is the only provider of FLNG as a service
Golar owns the world’s largest FLNG capacity and is the only provider of FLNG as a service Overview of the global FLNG fleet by owner 5.1 mtpa of operating 4 3.6 2.7 capacity 0.6 2.7 3.6 1.5 1.4 3.4 2.4 1.2 1.4 Golar ENI Shell Petronas NFE Contract structure Liquefaction as service Liquefying own ga
Slide 5: Long-term LNG demand outlook remains strong
Long-term LNG demand outlook remains strong Global LNG demand will remain firm… …driven by decarbonization, industrial growth and power demand +70% 686 712 • China currently responsible for appx. 1/3 of 576 global energy-related CO2 emissions. • Set to drop to 1/5 by 2050 Million tons per year 457 4
Slide 6: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 6
Slide 7: Q1 2024 highlights and subsequent events
Q1 2024 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q1 financial highlights: • Continued market leading 100% operational uptime • Net income attributable to Golar of $55M • Offload 112 complete – totaling 7+ MT LNG produced since 2018 • Adjusted EBITDA1) of $64M • Total Gol
Slide 8: FLNG Gimi: Moored to the GTA Hub and ready for operations
FLNG Gimi: Moored to the GTA Hub and ready for operations • FLNG Gimi moored at her destination spot at the Greater Tortue Ahmeyim (GTA) field offshore Mauritania and Senegal • The BP FPSO1) has sailed from Tenerife, hook-up and commissioning of the FPSO1) are now on the critical path • First gas ex
Slide 9: FLNG Gimi: Progressing towards COD
FLNG Gimi: Progressing towards COD F L N G Transit to Moored to Upstream FLNG Commercial Senegal / hub commissioning commissioning Operations Date Mauritania Upstream prepares to supply Commencement of 20- Gas introduced to gas to FLNG2) year lease and operate FLNG • FPSO on-site for mooring COMPLET
Slide 10: FLNG Hilli continued operational excellence
FLNG Hilli continued operational excellence 112 cargoes offloaded Selected Hilli operational statistics ~100% 20th Economic uptime Cameroon became 20th LNG exporting country in 2018 112 cargoes 40% offloaded of offshore Hilli staff is Cameroonian 7+ million tons 16 of LNG produced Nationalities onbo
Slide 11: MKII FLNG: Developing towards FID
MKII FLNG: Developing towards FID MKII FLNG Project Update • Continued progress on commercial leads, construction financing and yard discussions drives the MKII project closer to FID. • Long lead items ordered to date is now 58% complete. • The LNGC conversion candidate Fuji LNG delivered March 4th,
Slide 12: Strong progress on new FLNG projects
Strong progress on new FLNG projects FLNG business development update • Focus on re-deployment of FLNG Hilli following the end of her current charter in July 2026, and thereafter ordering and securing commercial terms for a contemplated MKII FLNG • The framework agreement for potential FLNG deployme
Slide 13: Macaw Energies: First LNG produced in April
Macaw Energies: First LNG produced in April Macaw Energies Update • F2X ®️ offers unique mobile market solution for Flare-to-LNG production o 10-12 Months from capex to cash flow generation o Modular construction with capex/EBITDA build multiple of ~3-4x • F2X®️ unit commissioning and field deployme
Slide 14: ESG Report
ESG Report • FLNG Gimi conversion complete after 38 million hours worked without a Lost Time Incident • De-risking single asset exposure with two cash generating FLNGs • Significant progress by Macaw with their F2X® system and by Aqualung with their carbon capture membrane • Expanded previously succ
Slide 15: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 15
Slide 16: First quarter 2024 financial results
First quarter 2024 financial results Q1 2024 Q1 2023 Q1 2024 Highlights $m $m %∆ FLNG (before realized gains on oil and gas derivative • Total operating revenues of $65M 56 56 - instruments and other adjustments1)) Corporate and other 6 12 (50%) • FLNG Tariff, Net1), 2) of $86M Shipping 3 6 (50%) To
Slide 17: 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) 90 88.0 84.1 Millions 78.6 80 73.3 70 36.6 31.3 63.8 30.2 0.3 60 28.5 17.5 50 17.6 20.1 40 14.6 12.9 15.1 30 20 33.8 33.8 31.9 32.7 30.9 10 - Q1 2023 Q2 2023 Q3 2023 Q4
Slide 18: FLNG Hilli generating strong cash flow to equity
FLNG Hilli generating strong cash flow to equity Golar's pro-rata Distributable Adjusted EBITDA1) generation Commodity linked earnings 400 350 326 Commodity: Brent Crude oil 300 270 65 274 Sensitivity to $1/bbl change: 250 $2.7M (annually) EBITDA ( $ million) 34 61 99 Limit: $60-$102/bbl 200 20 5 89
Slide 19: Committed to attractive growth and shareholder returns
Committed to attractive growth and shareholder returns Continuing quarterly dividend program and share buyback in 2024 180 $168M 160 1 140 Buybacks: Dividend program $62M Continuing quarterly dividend program at $0.25/share 120 $ million 100 80 60 Dividend: Share buybacks 2 $106M $40M 40 $76M (~3.3%
Slide 20: $4.3BN of FLNG Gimi EBITDA Backlog vs $700M of debt
$4.3BN of FLNG Gimi EBITDA Backlog vs $700M of debt: opportunity for re-leveraging to fund FLNG growth FLNG Gimi startup allows for debt optimization, resulting in MKII FLNG funding plan in place as final significant release of equity to fund FLNG growth projects yard negotiations underway $ million
Slide 21: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 21
Slide 22: Summary and next steps
Summary and next steps FLNG Hilli FLNG Gimi MKII FLNG growth project Corporate and investments Shareholder returns • Maintain market leading • Conclude pre-COD cash • $270 million spent, • Target separate listing of • Strong cash flow operational track record flow mechanisms with equity financed Mac
Slide 23: Appendix
Appendix Golar LNG Limited 2024 I 23
Slide 24: Appendices: Non-GAAP measures
Appendices: Non-GAAP measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q1 2024 earnings release for a reconciliation to the most comparable US GAAP measure and the rationale for • Adjusted EBITDA backlog the adjustments: https://www.golarlng.com/investors/quarterly-reports/2024
Slide 25: Appendices: Non-GAAP measures
Appendices: Non-GAAP measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION Increases the comparability of the Jan-Mar Oct-Dec Jan-Mar Distributable Adjusted operating results of the FLNG Hilli EBITDA1) (in $M) 2024 2023 2023 from period to period by removing the non-distrib