Golar Lng Limited · NASDAQ:GLNG
Golar Lng — Q4 2023 Earnings Presentation
23 slides from Golar Lng's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter 2023 Results
FOURTH QUARTER 2023 RESULTS FEBRUARY 29, 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 from potential future claims from our counterparties of retrofit vessels as FLNGs or floating storage and defined in Section 21E of the Securities Exchange Act o
Slide 3: Company overview
Company overview FLNG & Marine Assets Investments Investments Existing FLNG Assets FLNG Growth Prospects Ownership 100% MKII design (3.5mtpa1) FLNG Gimi (ready for operations) – MKI FLNG Hilli (operational) - MKI (2.4mtpa1) (2.7mtpa1) Ownership Existing LNGC Assets / Conversion Candidates 23.5% Fuji
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: Attractive economics for FLNG projects
Attractive economics for FLNG projects LNG Market as of 2023: ~400 million tons1) Average cost of LNG supply by major export countries1) Attractive economics of Golar FLNG developments Russia, 32, 8% Africa, 39, 9% 14 LNG price landed in Europe ($/MMBtu) 12 Middle East, 92, North America, 88, 23% 22
Slide 6: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 6
Slide 7: Q4 2023 highlights and subsequent events
Q4 2023 highlights and subsequent events FLNG Corporate and other FLNG Hilli: Q4 financial highlights: o Continued 100% operational uptime and produced 1.46MT for o Adjusted EBITDA1) for the quarter of $114M 2023, including catch-up of 2022 underutilization o Total Golar Cash1) position of $0.8BN o
Slide 8: FLNG Gimi: Moored to the GTA Hub and ready for operations
FLNG Gimi: Moored to the GTA Hub and ready for operations Arrival and entry to GTA hub Sailaway from Seatrium’s shipyard on November 19, 2023 Arrived on the GTA field on January 10, 2024 Vessel now moored and ready to start operations Photo courtesy: bp, Golar Golar LNG Limited 2024 I 8
Slide 9: FLNG Gimi: Progressing towards COD
FLNG Gimi: Progressing towards COD F L N G Transit to Ready for Upstream FLNG Commercial Senegal / mooring to commissioning commissioning Operations Date Mauritania hub Gas introduced to Commencement of 20- FLNG, testing of year lease and operate Upstream prepares to COMPLETED COMPLETED production,
Slide 10: FLNG Hilli continued operational excellence
FLNG Hilli continued operational excellence 108 cargoes offloaded Steady performance since commencement of operations 8 7 6 Million tons LNG 5 4 3 2 1 0 May-18 Aug-18 Feb-19 May-19 Feb-20 May-20 Feb-21 May-21 Feb-22 May-22 Feb-23 May-23 Aug-19 Aug-20 Aug-21 Aug-22 Aug-23 Nov-18 Nov-19 Nov-20 Nov-21
Slide 11: MKII FLNG: Progressing long leads and delivery of Fuji LNG
MKII FLNG: Progressing long leads and delivery of Fuji LNG MKII FLNG Project Update Fabrication of long-lead items are ~55% complete • Major long lead item orders placed and under construction, 250,000+ engineering hours to date, to allow for fast-track project execution upon FID, reducing execution
Slide 12: Strong progress on development of new FLNG projects
Strong progress on development of new FLNG projects FLNG business development update • Progressing redeployment of FLNG Hilli and potential MKII FLNG employment • Signed framework agreement with a potential new customer for a long-term opportunity that could utilize either FLNG Hilli or a MKII FLNG
Slide 13: Macaw Energies: On schedule to deliver flare-to-LNG in 2024
Macaw Energies: On schedule to deliver flare-to-LNG in 2024 Macaw Energies Update F2X®️ Unit undergoing testing • Flare to LNG (F2X®️) unit operational in Q2 2024. First mobile flare to LNG solution capable to treat gas • Strong customer demand for F2X in US and globally • Ongoing integration with f
Slide 14: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 14
Slide 15: Fourth quarter 2023 financial results
Fourth quarter 2023 financial results Q4 2023 Q3 2023 FY 2023 FY 2022 Q4 2023 Highlights $m $m %∆ $m $m %∆ FLNG (before realized gains on oil and gas derivative instruments and other 72 56 29% 245 215 14% • Total operating revenues of $80M adjustments1) Corporate and other 6 6 - 35 43 (19%) • FLNG T
Slide 16: 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 86.2 88.0 84.1 $ million 78.6 80 73.3 70 36.6 31.3 45.4 30.2 60 28.5 50 17.6 20.1 40 14.6 12.9 30 24.8 20 33.8 33.8 31.9 32.7 10 16.0 - Q4 2022 Q1 2023 Q2 2023 Q3 20
Slide 17: 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 Sensitivity to $1/bbl change: 261 250 $2.7M (annually) EBITDA ( $ million) 34 55 99 Limit: $60-$102/bbl 200 18 89 4
Slide 18: Committed to attractive growth and shareholder returns
Committed to attractive growth and shareholder returns 2023: $431 million equity in dividends, share- and asset buyback Dividend program 1 300 $263M Recommenced quarterly dividend program at $0.25/share 250 (~$106M for Q1-Q4 20231)) 200 Share buybacks 2 $168M $ million 2.7% (~$62M) of outstanding st
Slide 19: Agenda
Agenda Business update Group results Summary Golar LNG Limited 2024 I 19
Slide 20: Summary and next steps
Summary and next steps Revenue diversification FLNG business 3.5 mtpa MKII Corporate and liquidity Committed to attractive development FLNG contract and FID growth and return to shareholders • FLNG Hilli revenues • Long-lead items well • $0.8BN2) in liquidity • Upside to dividend • Strong progress m
Slide 21: Appendix
Appendix Golar LNG Limited 2024 I 21
Slide 22: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Definitions • Adjusted EBITDA Please see our Q4 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 23: Appendices Non-GAAP Measures
Appendices Non-GAAP Measures Non-GAAP measure Rationale for adjustments QUANTITATIVE RECONCILIATION Increases the comparability of the Oct-Dec Jul-Sep Oct-Dec Distributable Adjusted operating results of the FLNG Hilli EBITDA1) (in $M) 2023 2023 2022 from period to period by removing the non-distribu