Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q2 2024 Earnings Presentation
25 slides from Golar Lng's earnings presentation, Aug 15, 2024
Slide 1: Second Quarter 2024 Results
SECOND QUARTER 2024 RESULTS AUGUST 15, 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 pandemic outbreaks, inflation and the ongoing conflicts in obligations to us, including indemnification obligations; defined in Section 21E of the Securities Exc
Slide 3: Golar LNG: Leading owner and operator of FLNGs
Golar LNG: Leading owner and operator of FLNGs Operating/future assets & investments GLNG at a glance Existing FLNG Assets MKII FLNG $3.5BN Market Cap1) $569M Q2 24 Golar’s Adjusted net debt2) ~$11BN Adjusted EBITDA FLNG Hilli (operational) - MKI (2.4mtpa) FLNG Gimi (ready for operations) – MKI (2.7
Slide 4: Golar owns the world's largest FLNG capacity and is the only proven provider of FLNG as a service
Golar owns the world’s largest FLNG capacity and is the only proven 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
Slide 5: Golar is targeting to more than double liquefaction capacity by 2030
Golar is targeting to more than double liquefaction capacity by 2030 Golar’s current focus is to rapidly expand FLNG asset base and sold capacity Quantifying earnings impact 14 • FLNG production capacity (mtpa) 12 In-built earnings growth from existing FLNG assets: 10 o Hilli capacity increase from
Slide 6: Gas demand outlook supports LNG prices to enable supply
Gas demand outlook supports LNG prices to enable supply Strong demand for natural gas Incremental LNG supply is trending >$10/MMBtu 4,000 14 Global gas supply (million tons LNG equivalents) Global gas demand 3,500 12 LNG delivered cost JKM/Asia ($/MMBtu) 3,000 900 10 2,500 1800 8 2,000 6 1,500 4 Uni
Slide 7: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 7
Slide 8: Q2 2024 highlights and subsequent events
Q2 2024 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q2 financial highlights: • Continued market leading operational track record • Net income attributable to Golar of $26M • Offload 117 in progress. Achieved milestone production of 8+ MT of LNG • Adjusted EBITDA1) of $59M s
Slide 9: Pan American Energy FLNG project - enabling Argentinian LNG exports
Pan American Energy FLNG project - enabling Argentinian LNG exports Contract highlights Contract summary 20-years FLNG • PAE and Golar entered into definitive agreements for a 20-year contract term FLNG deployment project in Argentina. • The project will tap into the Vaca Muerta shale deposit, the w
Slide 10: Attractive project location and solid counterparty
Attractive project location and solid counterparty Project details Project details About Pan American Energy Bridas Energy Holding 50% 50% BC Energy Inv. Corp. FLNG Location 50% 50% • FLNG location: San Matias gulf, Rio Negro province, Argentina • Leading privately-owned integrated energy company in
Slide 11: Strong development of FLNG growth pipeline
Strong development of FLNG growth pipeline FLNG business development update • June 2024 – entered into a PDA with NNPC that outlines the commercial framework for a potential FLNG opportunity offshore Nigeria including a gas sales agreement covering gas prices and volumes, as well as shareholding str
Slide 12: FLNG Gimi: Commercial reset agreement reached with bp
FLNG Gimi: Commercial reset agreement reached with bp Contract Amendment executed for the GTA project in August 2024 Provides settlement of all ongoing disputes including the current arbitration process and re-aligns the parties towards projects optimizations to reach COD Provides simplification of
Slide 13: Operational update FLNG Hilli and FLNG Gimi
Operational update FLNG Hilli and FLNG Gimi FLNG Hilli: Maintains market leading track record FLNG Gimi: In preparation for accelerated commissioning $285M LTM Golar’s Distributable Adjusted EBITDA1) $215M Annual Adjusted EBITDA1) (100% basis) 117th cargo offload in progress First gas expected in Q4
Slide 14: MKII FLNG: Target contracting within Q3 2024
MKII FLNG: Target contracting within Q3 2024 MKII FLNG Project Update • In final stages of yard EPC contract • Confirmed delivery of the first contemplated MKII FLNG within 2027 at an all-in FLNG price1) remains at an industry-leading ~$600 million/mtpa Steam Turbine Generator rotor Superheater for
Slide 15: Macaw Energies
Macaw Energies Macaw Energies update • F2X® unit field mobilization and pilot testing o July 2024 – Field deployment to South Texas. Completed rig-up and commissioning. o August 2024 – Pilot testing and implementation of updates to achieve 24/7 production and full production capacity. • Expanding F2
Slide 16: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 16
Slide 17: Second quarter 2024 financial results
Second quarter 2024 financial results Q2 2024 Q1 2024 Q2 2023 Q2 2024 Highlights $m $m %∆ $m %∆ FLNG (before realized gains on oil and gas 56 56 - 60 (7%) • Total operating revenues of $65M derivative instruments and other adjustments1)) Corporate and other 6 6 - 12 (50%) • FLNG tariff, net1), 2) of
Slide 18: 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 Millions 84.1 78.6 80 73.3 70 31.3 63.8 64.1 30.2 0.3 60 28.5 17.5 17.2 50 20.1 40 14.6 12.9 15.1 17.5 30 20 33.8 31.9 32.7 30.9 29.4 10 - Q2 2023 Q3 2023 Q4 2023 Q1
Slide 19: 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 65 275 Sensitivity to $1/bbl change: 250 $2.7M (annually) EBITDA ( $ million) 34 62 99 Limit: $60-$102/bbl 200 15 12 8
Slide 20: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 20
Slide 21: Summary and next steps
Summary and next steps FLNG Hilli FLNG Gimi MKII FLNG conversion FLNG opportunities Corporate and liquidity • Maintain market leading • Concluded new pre- • ~$0.3BN3) spent, fully • Strong prospective • $0.6BN4) in liquidity operational track record COD commercial equity funded client interests for
Slide 22: Appendices
Appendices Golar LNG Limited 2024 I 22
Slide 23: Appendices: Non-GAAP measures
Appendices: Non-GAAP measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q2 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 24: Appendices: Non-GAAP measures
Appendices: Non-GAAP measures Non-GAAP measure Rationale for adjustments Increases the comparability of the Distributable Adjusted QUANTITATIVE RECONCILIATION operating results of the FLNG Hilli EBITDA1) from period to period by Apr-June Jan-Mar Apr-June removing the non-distributable Closest equiva
Slide 25: Appendices: Abbreviations used
Appendices: Abbreviations used bbl Barrel of crude oil boe Barrels of Oil Equivalent COD Commercial Operations Date EPC Engineering, Procurement and Construction FID Final Investment Decision FLNG Floating Liquefaction Natural Gas vessel FPSO Floating Production, Storage and Offloading unit FSRU Flo