Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q2 2023 Earnings Presentation
23 slides from Golar Lng's earnings presentation, Aug 10, 2023
Slide 1: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS AUGUST 10, 2023 Golar LNG Limited 2023 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 liquefaction tolling agreement (the “LTA”) entered into in financing for such conversions on acceptable terms or at defined in Section 21E of the Securities Exch
Slide 3: Company overview
Company overview FLNG & Marine Assets Investments Experience & Focus Existing FLNG Assets FLNG Growth Designs 1 50+ years of experience with maritime LNG infrastructure Golar MKI design (up to 2.7mtpa3)) Ownership 2 Pioneering FLNG and FSRU 100% 3 Market leader for FLNG uptime since start-up of FLNG
Slide 4: Cash flow growth from Gimi delivery, upside in new charters
Cash flow growth from Gimi delivery, upside in new charters Nameplate MMBtu2) capacity contracted FLNG unit capacity (MMBtu/yr) 2022 2023 2024 2025 2026 2027 Hilli (2.4mtpa) 125 Contracted for ~75MMBtu/yr (58% of nameplate capacity) 2 Available Gimi (2.7mtpa) 140 Under construction 1 Contracted for
Slide 5: Q2 2023 highlights and subsequent events
Q2 2023 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q2 financial highlights: o Offloaded 97th LNG cargo o Adjusted EBITDA1) for the quarter of $83m o Executed amendments to financing facility reducing cost and o Total Golar Cash1) position of $0.9bn increasing term o Delive
Slide 6: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 6
Slide 7: FLNG Gimi update
FLNG Gimi update 3% Gimi in the final stages of completion at Keppel Technically completed 70 Remaining works Remaining undrawn Debt 630 Debt drawndown 97% Target sail-away Q3 2023 Project commencement status Contract start up Q1 2024 • Gimi 97% technically complete Annual Adjusted EBITDA1) $215m (1
Slide 8: Gimi delivery driving cash flow from capex to earnings
Gimi delivery driving cash flow from capex to earnings FLNG adjusted EBITDA2) FLNG Capex3) 450 450 400 400 350 350 300 300 $ million 250 $ million 250 200 200 150 150 100 100 50 50 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Adjusted EBITDA1) contribution from FLNG accelerating f
Slide 9: Continued progress for potential FLNG deployment in Nigeria
Continued progress for potential FLNG deployment in Nigeria • Continued development of Nigerian FLNG projects following MOU signing in April 2023 and heads of terms signed in August 2023 • Four gas prospects in discussion and development within Nigeria. Target use of Hilli or a MKII FLNG for 10+ yea
Slide 10: Continued development on MKII FLNG growth project
Continued development on MKII FLNG growth project MKII FLNG Project Update • Exercised option to acquire 2004 built LNG carrier Fuji LNG, targeted for conversion to a 3.5mtpa MKII FLNG • Financing discussions in advanced stage with several potential lenders, including large commercial Banks, Export-
Slide 11: Robust long-term fundamentals support improved pricing
Robust long-term fundamentals support improved pricing Buyers remain very active… …supporting pricing of LNG1)… …backed by strong long-term demand 80 15% 700 14.5 % +67% 669 70 SPA volumes contracted (million tons) 70 14% 650 627 60 Average slope in % of Brent 13.1 % 600 582 50 44 12.6 % Million ton
Slide 12: Macaw Energies update: On track for operations in 2024
Macaw Energies update: On track for operations in 2024 Liquefaction & Electric Vehicle (“EV”) Units • Ongoing discussions with US Shale Gas energy companies to run the first flare to Displacing diesel and LPG using small-scale integrated solutions LNG pilot project in Q1 2024 that transform flared,
Slide 13: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 13
Slide 14: Second quarter 2023 financial results
Second quarter 2023 financial results Q2 2023 Q1 2023 Q2 2022 Q2 2023 Highlights $m $m %∆ $m %∆ FLNG (before realized gains on oil and gas derivative 60 57 5% 60 - • Total operating revenues of $78m, up 5% vs Q1 2023 and instruments and other adjustments1) FLNG Tariff, Net1), 2) of $99m, down 10% vs
Slide 15: FLNG Hilli: Commodity-linked tariff boosts earnings
FLNG Hilli: Commodity-linked tariff boosts earnings Evolution of Hilli Distributable Adjusted EBITDA1), 2) (Golar’s pro rata share) +26% Y-o-Y 90 86.2 88.0 EBITDA ($ million) 78.6 80 70 64.1 36.6 62.6 45.4 30.2 60 19.4 19.3 50 17.6 14.6 40 30 29.1 29.2 24.8 20 33.8 33.8 10 14.1 15.6 16.0 - Q2 2022 Q
Slide 16: FLNG Hilli: Strong free cash flow generation
FLNG Hilli: Strong free cash flow generation Golar's pro-rata Distributable Adjusted EBITDA1) generation Improved Hilli financing terms 400 • Releasing additional distributable cash 333 350 flow of ~$75m until end of current ADJUSTED EBITDA1) ( $ million) 297 300 270 68 contract 16 65 • Improvement
Slide 17: Balance sheet with capacity for shareholder returns and FLNG growth
Balance sheet with capacity for shareholder returns and FLNG growth Cash and debt overview Key takeaways Cash $m • Current liquidity position including cash receivables from TTF hedges amount to ~$1bn and fully supports the development Q2 2023 Total Golar Cash1) 884 and equity requirements for the c
Slide 18: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 18
Slide 19: The leading FLNG company
The leading FLNG company Significant earnings growth, focus on shareholder returns Strong free cash flow support progressive dividend policy Strong balance sheet enable growth 500 ADJUSTED EBITDA1) ( $ million) Total Golar cash and TTF 400 ~$1bn hedging receivable8) 300 200 Optimized debt service po
Slide 20: Appendix
Appendix Golar LNG Limited 2023 I 20
Slide 21: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q2 2023 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/2023 •
Slide 22: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION Increases the comparability of the Apr-Jun Jan-Mar Apr-Jun Distributable Adjusted operating results of the FLNG Hilli EBITDA1) (in $m) 2023 2023 2022 from period to period by removing the non-distribu
Slide 23: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION Increases the comparability of our Apr-Jun Jan-Mar Apr-Jun FLNG tariff, net1) operational FLNG, Hilli from period to period and against the (in $m) 2023 2023 2022 performance of other operational Clos