Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q4 2020 Earnings Presentation
33 slides from Golar Lng's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter 2020 Results
Fourth Quarter 2020 Results February 25, 2021 Crystallization, strengthening and simplification © Golar LNG Limited
Slide 2: 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 addr
Slide 3: Speakers
Speakers Iain Ross Chief Executive Officer, Golar LNG Karl Fredrik Staubo Chief Financial Officer, Golar LNG Tor Olav Troim Chairman, Golar LNG © Golar LNG Limited 2
Slide 4: Agenda
Agenda ❑ Crystallization, strengthening and simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG – Hilli and Gimi ❑ Corporate and strategic focus © Golar LNG Limited 3
Slide 5: Crystallization
Crystallization Delivering on commitment to crystallize value in Hygo Energy Transition Ltd. (former Golar Power) 2016 2021 +$760m2 Established in 2016 as a book gain to Golar Golar and Stonepeak agree 50/50 JV between Golar and to sell Hygo to NFE Stonepeak Golar to receive a cash Golar announced a
Slide 6: Strengthening
Strengthening Q4 2020 highlights and recent events • Successful public follow-on offering of 12,067,789 common shares raising net proceeds of $100.3m to Golar. Additional liquidity $m Timing • Completed sale of the FSRU LNG Croatia (formerly Golar Viking) to LNG Hrvatska d.o.o. (LNG Hrvatska) releas
Slide 7: Simplification
Simplification 100% 100% 8.9% Upstream Midstream Downstream Golar Bear Golar Seal FLNG Hilli FLNG Gimi (under Episeyo construction) Golar Crystal Golar Kelvin Golar Frost Golar Snow Golar Gandria (for Golar MkIII conversion) design Golar Glacier Golar Ice Golar Arctic Golar Tundra © Golar LNG Limite
Slide 8: Segment clarity
Segment clarity Pro forma book value: $4,741m1 Corporate net debt1 $(375)m Pro forma total debt: ($2,190m)1 Cash from transactions: $131m Book equity of assets: $2,307m 100% 100% 8.9% Upstream Midstream Downstream 8x TFDE 2x FLNGs 1x Steam carrier 1x FSRU Adj. LTM EBITDA2: $82m EBITDA LTM: $123m + G
Slide 9: Agenda
Agenda ❑ Crystallization, financial strengthening and group simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG – Hilli and Gimi ❑ Corporate and strategic focus © Golar LNG Limited 8
Slide 10: Q4 2020 Highlights: Shipping and FLNG
Q4 2020 Highlights $m Shipping Adjusted EBITDA1 $ ‘000 TCE/Day 80 86% 93% 90% 94% 93% 100 Shipping developments 77% 80% 77% 70 66% 65% 80 ▪ Adjusted TCE1 of $52k in Q4 20 in line with guidance, below $77k 60 62% Shipping 50 in Q4 19 and above $39k in Q3 20 due to seasonally higher spot 51% 60 40 rat
Slide 11: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results SUMMARY RESULTS HIGHLIGHTS Q4 FY Q3 2020 FY 2019 Operating Results 2020 2020 ➢ Shipping: $m $m %∆ $m %∆ Q4 20 v Q3 20: TCE up $12,700 due to seasonality Shipping and Corporate 56 213 41 37% 231 -8% FY20 v FY19: Full year TCE1 up $4,500 due to fewer drydocks in 2
Slide 12: Adjusted EBITDA development
Adjusted EBITDA1 development Adjusted EBITDA1 development over the last 5 years 300 250 Group Adjusted EBITDA ($m) 200 150 279 255 218 100 50 0 -24 -66 -50 -100 2016 2017 2018 2019 2020 Successful shipping strategy implementation combined with reliable Hilli operations since commencement has led to
Slide 13: Agenda
Agenda ❑ Crystallization, financial strengthening and group simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG – Hilli and Gimi ❑ Corporate and strategic focus © Golar LNG Limited 12
Slide 14: Summary of New Fortress Energy transactions
Summary of New Fortress Energy transactions Sale of 50% ownership in Hygo to Sale of 30.8% common unit interest New Fortress Energy and 2% GP interest in GMLP to NFE Cash consideration of $50m and 18.6 Cash bid of $3.55/unit, with total cash million shares in NFE (FV of $911m consideration to GLNG o
Slide 15: Transactions rationale
Transactions rationale NFE and Hygo share vision of delivering Attractive price which creates immediate cheaper and cleaner energy to emerging value for GMLP’s shareholders1 markets Removes refinancing and re-contracting Attractive price and execution risk vs. IPO risk of the GMLP asset portfolio al
Slide 16: Agenda
Agenda ❑ Crystallization, financial strengthening and group simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG ❑ Corporate and strategic focus © Golar LNG Limited 15
Slide 17: Shipping adjusted EBITDA over previous quarters
Shipping adjusted EBITDA over previous quarters Evolution of Shipping Adjusted EBITDA1 Shipping Adjusted EBITDA ($m) Shipping TCE/day ($'000s) Utilization % Shipping Adjusted EBITDA ($m) Shipping TCE/day ($'000s) 80 93% 94% 93% 100 90% 86% 90 70 80% 77% 77% 80 60 66% 65% 70 62% 50 60 51% 40 50 40 30
Slide 18: Shipping adjusted EBITDA and contracted position
Shipping adjusted EBITDA and contracted position Shipping Revenue Backlog1 Shipping Adjusted EBITDA1 Development 250 Q3Q3 2020 2020 19.7 Revenue backlog ($m) Increase in total operating revenues 15.1 19.7 Decrease in vessel operating expenses 34.8 0.3 200 $193m Increase in voyage, $172m charterhire
Slide 19: Agenda
Agenda ❑ Crystallization, financial strengthening and group simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG ❑ Corporate and strategic focus © Golar LNG Limited 18
Slide 20: FLNG Hilli adjusted EBITDA over the previous quarters
FLNG Hilli adjusted EBITDA over the previous quarters Evolution of Hilli Adjusted EBITDA1 per quarter 50 $m 45 40 35 30 25 20 15 10 5 - Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Hilli adjusted EBITDA (excl Brent Oil linked fee) Brent oil linked fee Hilli over-production revenue
Slide 21: Gimi Update
Gimi Update Gimi Project Status ▪ In excess of 7 million man-hours worked to date, with around 2,500 yard workers currently allocated on the conversion. All while maintaining a strong safety record. ▪ Project continues on track, with 4th drydocking now complete. Rear sponsons now attached. Vessel on
Slide 22: Gas price development supporting attractive FLNG growth
Gas price development supporting attractive FLNG growth Tightening global gas market Increased activity for incremental FLNG business 450 ▪ Increased interest from FLNG customers as a result 400 of higher gas prices. 350 MTPA ▪ Future FLNG opportunities, focused on tolling model 300 to credible coun
Slide 23: Agenda
Agenda ❑ Crystallization, financial strengthening and group simplification ❑ Group results ❑ NFE Transactions ❑ Shipping ❑ FLNG ❑ Corporate and strategic focus © Golar LNG Limited 22
Slide 24: Initiatives being considered to capture value spread
Initiatives being considered to capture value spread between current share price and book value of shares $11.30/share $21/share GLNG share price at GLNG book value of close 24.02.2021 equity Share buy back program approved by the board. Initially $50 million to be intiatied post closing of NFE tran
Slide 25: Key strategic initiatives to create additional value
Key strategic intiatives to create additional value Objective Status Timing Shipping • Focus on opportunistic upside now that majority • Advanced Ongoing of the fleet is fixed on term charters • Seek industry consolidation • Ongoing Ongoing FLNG • Safe delivery of Gimi on time and budget • Underway
Slide 26: An integrated business model: Balancing the risk
An integrated business model: Balancing the risk © Golar LNG Limited 25
Slide 27: Significant superprofit in upstream and downstream LNG
Significant superprofit in upstream and downstream LNG Six months ago there was no profit in upstream Long-term potential is north of USD 3/MMBTU 12 12 10 10 3.2 2.9 1.6 3.4 0.7 2.6 2.3 2.2 1.9 8 3.2 8 1.0 1.0 1.0 1.5 1.0 1.0 1.0 2.0 1.0 1.0 $/MMBTU 6 1.0 4.0 $/MMBTU 1.0 2.6 3.2 3.6 3.5 1.0 6 2.3 2.
Slide 28: What could a Mark III FLNG with NFE's downstream generate in superprofit?
What could a Mark III FLNG design together with NFE’s downstream activities generate in superprofit? This is the asset that will realize the potential Golar has strong position upstream and downstream… Gas Field FLNG Shipping Power Exposure Golar FLNG Golar LNGC NFE …and a simple approach to create
Slide 29: Contact Us
Contact Us Stuart Buchanan Head of Investor Relations T: +44 20 7063 7911 E: Stuart.Buchanan@golar.com © Golar LNG Limited 28
Slide 30: Golar ESG update
Golar ESG update Floating Blue Ammonia Production: Creating a Zero- Progress highlights Carbon Emission Fuel Strategy and disclosure: In January, we released the first in a series of thought leadership paper • We are preparing our first stand-alone Sustainability through our collaboration with our l
Slide 31: Appendix: Non-GAAP Measures
Appendix Non-GAAP Measures Non-GAAP Closest equivalent US Rationale for adjustments Quantitative reconciliation measure GAAP measure (in $M) Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar 2020 2019 2018 Increases the comparability of total Net (loss)/income attributable to Golar LNG
Slide 32: Appendix: Non-GAAP Measures Definitions
Appendix Non-GAAP Measures Non-GAAP measure Definitions Average daily TCE Adjusted net debt Contractual debt Earnings backlog Shipping Adjusted Please see our Q4 2020 earnings release for a reconciliation to the most comparable US GAAP measure and the rationale for the adjustments: https://www.golar
Slide 33: Appendix – Reconciliations
Appendix – Reconciliations Illustrative Profit on disposal – Hygo ($000s) Total Contractual Debt as at Q4’20 ($000s) Cash proceeds on sale of Hygo 50,000 Contractual Debt as at Q4’20 ($000s) as per 2,672,768 Appendix A Quoted investment in NFE at current market price1 910,656 Add: adjustment to take