Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q1 2023 Earnings Presentation
25 slides from Golar Lng's earnings presentation, May 30, 2023
Slide 1: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS MAY 30, 2023 Golar LNG Limited 2023 I 1
Slide 2: Forward looking statements
Forward looking statements This press release contains forward-looking statements (as attractive deployment opportunity, or any of the remaining equity holdings in Avenir LNG Limited (“Avenir”) financing on acceptable terms or at all; actions taken by defined in Section 21E of the Securities Exchang
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 2.7mtpa) Ownership 2 Pioneering FLNG and FSRU 100% 3 Market leader for FLNG uptime since start-up of FLNG H
Slide 4: Q1 2023 highlights and subsequent events
Q1 2023 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q1 financial highlights: o Re-acquired NFE’s interest in Hilli, effective from January 1, 2023 o Total Golar Cash1) position of $1BN+ o Unwound TTF hedges, securing $140M in TTF linked earnings o Adjusted EBITDA1) for the
Slide 5: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 5
Slide 6: FLNG Gimi update
FLNG Gimi update Gimi in the final stages of completion at Keppel 6% Technically completed $80M Remaining works Remaining undrawn Debt $620M Debt drawndown 94% Project commencement status Target sail-away Q3 2023 • Gimi now 94% technically complete • Expected sail away now in Q3 2023 Contract start
Slide 7: FLNG business development incl. MOU with Africa's #1 Energy Company
FLNG business development incl. MOU with Africa’s #1 Energy Company • Golar continues to target commercial structures aligned with gas resource owners, focusing on attractive break-even production costs relative to competing global LNG export projects, with upside in commodity price linkage • Key pr
Slide 8: High-grade FLNG vessel conversion candidate
High-grade FLNG vessel conversion candidate Sale1) of Gandria Acquisition of Fuji LNG Rationale for high-grading FLNG conversion candidate Key feature Gandria Fuji Benefit to Golar Built 1977 2004 Younger ship reduces re-conditioning costs Cargo capacity 126,000 m3 148,000 m3 Bigger storage redu
Slide 9: Strong earnings potential for integrated FLNG projects
Strong earnings potential for integrated FLNG projects FLNG can deliver attractively priced LNG Golar’s FLNG is well-positioned to deliver returns in majority of price environments 7 50 45 40 6 35 $/MMBTU 30 25 5 20 1.4 15 5.0 14 10 9 4 5 $/MMBtu 0 0.6 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-2
Slide 10: The world needs more LNG and cost-efficient LNG
The world needs more LNG and cost-efficient LNG More LNG needed to balance demand1) Golar has highly competitive unit cost compared to RoW1) 700 1,800 650 1,600 600 Liquefaction unit cost ($/ton) 1,400 550 1,200 MTPA 500 1,000 450 800 400 600 350 Golar FLNG unit cost is below $600/ton 2023 2024 2025
Slide 11: Macaw Energies Update
Macaw Energies Update • The founding team of Macaw Energies comprise of the key team behind Golar Power / Hygo Energy Transition. • Providing mid-stream integrated solutions for transforming flared, stranded and biogas, displacing Flare gas Regassification/ Industrial Diesel and LPG. Decompression •
Slide 12: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 12
Slide 13: First quarter 2023 financial results
First quarter 2023 financial results Q1 2023 Q4 2022 Q1 2022 Q1 2023 Highlights $m $m %∆ $m %∆ FLNG (before realized gains on oil and gas derivative 57 37 (54%) 64 (11%) • Total operating revenues of $74M, up 25% vs Q4 2022 and instruments and other adjustments1) FLNG Tariff, Net1), 2) of $110M, up
Slide 14: Increasing exposure to the world's best performing FLNG
Increasing exposure to the world’s best performing FLNG Key transaction highlights Improved Hilli financing terms • Acquired 50% interest in T1&T2 and 2.5% of TTF related fees • Releasing additional distributable cash flow of ~$75M until end of current contract • Paid $100M cash + 4.1M NFE shares an
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) 100 ~0.6x Millions Q1 2022 Levels 86.2 88.0 90 80 70 64.1 36.6 62.6 57.1 45.4 60 2.8 19.3 19.4 50 22.6 17.6 40 30 29.1 29.2 24.8 15.6 20 33.8 10 16.1 14.1 15.6 16.0 - Q
Slide 16: FLNG Hilli: Debt optimization increases free cash flow to equity
FLNG Hilli: Debt optimization increases free cash flow to equity Golar's pro-rata Distributable Adjusted EBITDA4) generation 350 313 300 270 Increase in base 53 261 fee and debt 250 service on back 15 EBITDA ( $ million) 19 39 99 of acquisition of 200 35 NFE’s interest 89 49 2023 Amortization 150 an
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 Amended bond terms, enabling shareholder returns Cash $m Key amendments include: Q1 2023 Total Golar Cash1) 1,002 • Flexibility to use up to 51% of total CoolCo cash proceeds of Unsecured Bonds repurchase2) (1
Slide 18: 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) 2,404 Prelude FLNG 2,000 Adjusted Total Golar Debt, net of Golar Cash2) 25 PFLNG Satu GLNG Enterprise Value 2,429 Coral South FLNG 1,500 PFLNG Dua U
Slide 19: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2023 I 19
Slide 20: Shareholder returns: Re-initiate quarterly dividend and $150 million buyback program
Shareholder returns: Re-initiate quarterly dividend and $150 million buyback program Re-instating quarterly dividends Buyback program initiated 450 400 350 Total Golar cash5) $1BN+ EBITDA ( $ million) 300 Forecast 250 Amortization and 200 interest6) Adjusted Total Golar 150 Reduced debt Debt, net of
Slide 21: Summary
Summary Initiated quarterly dividend distribution based on strong cash flow visibility from contracted assets Embedded earnings growth following Gimi delivery; increased Hilli commodity exposure and 2026 re- contracting opportunities; and further earnings growth from potential new FLNG projects Attr
Slide 22: Appendix
Appendix Golar LNG Limited 2023 I 22
Slide 23: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q1 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 24: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures QUANTITATIVE RECONCILIATION Jan-Mar Oct-Dec Jan-Mar Non-GAAP measure Rationale for adjustments (in $m) 2023 2022 2022 Increases the comparability of FLNG Adjusted EBITDA 97.6 80.4 93.6 Distributable Adjusted the operating results of the EBITDA1) Adjusted for: FLNG Hilli
Slide 25: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION FLNG tariff, net1) Increases the comparability of our Jan-Mar Oct-Dec Jan-Mar operational FLNG, Hilli from period to period and against the Closest equivalent US GAAP performance of other operational